Moseman Construction Co. v. State Department of Transportation

608 A.2d 34, 1992 R.I. LEXIS 93, 1992 WL 90044
CourtSupreme Court of Rhode Island
DecidedMay 5, 1992
Docket91-162-Appeal
StatusPublished
Cited by4 cases

This text of 608 A.2d 34 (Moseman Construction Co. v. State Department of Transportation) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Moseman Construction Co. v. State Department of Transportation, 608 A.2d 34, 1992 R.I. LEXIS 93, 1992 WL 90044 (R.I. 1992).

Opinion

OPINION

SHEA, Justice.

This matter comes before the Supreme Court on the plaintiff’s appeal and the third-party defendant’s cross-appeal from a judgment in favor of the plaintiff entered by the Superior Court. We affirm.

Moseman Construction Co. (Moseman) commenced this declaratory judgment action in the Superior Court against the State of Rhode Island Department of Transportation (DOT) and the Rhode Island Port Authority and Economic Development Corporation (Port Authority) (collectively, the state). The state in turn brought a third-party claim for indemnification against *35 Clarke-Fitzpatrick, Inc./Franki Foundation Company, a joint venture (CFF). This action was submitted to the Superior Court on stipulated facts.

After a hearing thereon the Superior Court justice issued his first written decision. The trial justice found that Moseman was the owner of a rail system and piles (rail system) that it had installed on a site CFF leased from the Port Authority and ruled that Moseman could remove its property. The state and CFF brought motions to reconsider whether Moseman should be permitted to remove the property. Following an evidentiary hearing the trial justice issued his second written decision. The trial justice found that removal of the property was no longer feasible and awarded Moseman scrap value of the rail system and piles at the time of conversion by the state. Moseman then brought a motion for reconsideration that the trial justice denied. A judgment in the amount of $62,500 was entered in favor of Moseman for the scrap value of the rail system. An appeal and a cross-appeal were timely filed.

According to the stipulated facts, in June of 1985 DOT and CFF entered into a contract for construction of the new Jamestown bridge. In turn CFF executed a subcontract with Moseman in October of 1985. Pursuant to the terms of this subcontract Moseman was to fabricate precast spans for the bridge superstructure and deliver the spans by barge to the bridge site. Once delivered the spans would be hoisted into place. At the same time CFF entered into a ground lease with the Port Authority for a tract of 7.5 acres on pier 2 at Davis-ville, Rhode Island, to satisfy its obligation to provide Moseman with a site for fabricating the spans. Pursuant to the terms of the subcontract Moseman was also responsible for making such improvements as would be necessary to perform its operations at the precast yard. One such improvement was the erection of a rail system. These improvements were to be removed from the precast yard by Moseman upon conclusion of the contract. Moseman was responsible for restoring the property to the Port Authority’s satisfaction.

By March of 1987 Moseman had constructed a rail system consisting of three longitudinal rails resting on 360 steel piles. Each rail was 628 feet long. The rail system was designed to support the spans during the casting process and facilitate transfer of the completed spans to the transport barges. At this time the transverse portion of the rail system had not been completed.

On March 21,1988, CFF and DOT agreed to terminate the general contract because of an ongoing dispute; CFF then exercised its right to terminate the Moseman subcontract for convenience.

Following termination of the subcontract Moseman attempted to remove the rail system and piles. However, the state would not permit removal. In December of 1988 the state and Moseman entered into a settlement agreement that set forth the rights of the parties to certain property, except for the rail system that Moseman claimed to own. In regard to the rail system the state and Moseman agreed to submit the question of ownership to the Superior Court for resolution. In January of 1989 Moseman filed a declaratory-judgment action. Initially Moseman prayed for payment of the fair market value of the rail system if the court found Moseman to be the owner.

During the spring of 1989 DOT solicited bids for the completion of the new Jamestown bridge. In the bid solicitation materials, DOT alleged that it had title to the rail system and asserted that the successor contractor would have the right to use the rail system. In response to Moseman’s motion the Superior Court enjoined DOT from making the above assertions. Mose-man filed a second amended complaint in June of 1989 that prayed for recovery and detention damages or, alternatively, damages for unjust enrichment resulting from the conversion.

The Superior Court justice issued his first written decision on February 16, 1990. He found that the rail system was a trade fixture owned by Moseman in spite of the fact that it was located on property owned by the Port Authority. The trial justice *36 granted Moseman’s prayer for recovery but permitted Moseman to elect to receive the “fair and reasonable value” of the rail system in lieu of recovery.

Both the state and CFF filed motions to reconsider Moseman’s entitlement to recovery. On May 30 and 31, 1990, the trial court conducted an evidentiary hearing on these motions. During the hearing DOT’s project manager testified that the new contractor had completed the rail system and was presently using it for fabrication and delivery of the spans. He also testified that if DOT were forced to construct a new rail system with piles, the project would be extensively delayed and result in additional costs of approximately $14 million. Mose-man presented an expert who testified that in June of 1989 the rail system and piles could have been removed without causing a delay. Moseman’s expert also testified that by April of 1990, because casting work was underway on the spans, a delay would result but removal was still possible.

After receiving evidence and hearing the parties’ arguments, the trial justice stated from the bench that he intended to issue a written decision granting the motions to reconsider the February 1990 award of recovery. The trial justice did not change his ruling that Moseman owned the rail system and piles.

The trial justice’s second written decision was issued on October 11, 1990. He found that removal of the rail system and piles was not now feasible. The trial justice concluded that the appropriate measure of damages was the scrap value of the rail system and piles at the time of conversion by the state. The parties have agreed that “scrap value” means the “gross value of uninstalled materials less the cost of removal.”

Moseman’s motion to reconsider was heard by the trial justice on December 17, 1990. The trial justice invited the parties to submit offers of proof concerning the amount of damages Moseman suffered if he ruled that the appropriate measure of damages was the value of the installed rail system rather than the scrap value. Mose-man contended that its testimony would show that the fair rental value of the rail system was approximately $40,000 per month and the value of the system was approximately $1.2 million. The DOT estimated that the replacement value of the rail system was approximately $900,000 to $1 million. The parties stipulated that the fair and reasonable scrap value of the rail system was $62,500 and agreed that a judgment in that amount could enter with interest accruing from the date of conversion, April 15, 1988.

On January 6, 1991 a judgment was entered in favor of Moseman. A timely appeal by Moseman and cross-appeal by CFF have been filed.

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Cite This Page — Counsel Stack

Bluebook (online)
608 A.2d 34, 1992 R.I. LEXIS 93, 1992 WL 90044, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moseman-construction-co-v-state-department-of-transportation-ri-1992.