National Environmental Service Co. v. Ronan Engineering Co.

256 F.3d 995, 2001 Colo. J. C.A.R. 3705, 45 U.C.C. Rep. Serv. 2d (West) 430, 2001 U.S. App. LEXIS 15709, 2001 WL 791890
CourtCourt of Appeals for the Tenth Circuit
DecidedJuly 13, 2001
Docket99-5206
StatusPublished
Cited by22 cases

This text of 256 F.3d 995 (National Environmental Service Co. v. Ronan Engineering Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Environmental Service Co. v. Ronan Engineering Co., 256 F.3d 995, 2001 Colo. J. C.A.R. 3705, 45 U.C.C. Rep. Serv. 2d (West) 430, 2001 U.S. App. LEXIS 15709, 2001 WL 791890 (10th Cir. 2001).

Opinion

SEYMOUR, Circuit Judge.

National Environmental Service Company (NESCO) sued Ronan Engineering for negligence and breach of contract after Ronan failed to deliver a leak detection system for underground fuel storage tanks. The jury found no contract had been breached, and determined that while both parties had been negligent in their dealings, NESCO’s negligence outweighed that of Ronan. NESCO appeals, contending the district court erred in its rulings on two evidentiary matters and one jury instruction. We affirm.

I

BACKGROUND

Project Negotiations

NESCO is an Oklahoma corporation which acts as a general contractor for a variety of projects involving the installation and service of fuel systems. In 1994, it contracted with Tinker Air Force Base to upgrade Tinker’s fueling equipment, remove outdated underground fuel tanks and install new ones, and install leak detection systems on the tanks. Ronan was brought in as a subcontractor to design and install the leak detection systems.

Traditionally, leak detection systems in underground fuel tanks work via telephone lines. Probes are installed in each fuel tank in order to measure fluid level and other essential data, and a master computer “phones” the probes at pre-pro-grammed times to collect the data and monitor the condition of the tanks. For this project, however, Tinker asked NES-CO to explore the feasibility of using radio-based communication in place of the traditional telephone linkage. The NES-CO representative responded that he would have to confer with Ronan. When representatives from Ronan, NESCO, and Tinker eventually met to discuss the feasibility of radio communications, the Ronan representative, sales manager Mike Thornton, stated that he thought radio monitoring would be possible and agreed to research the issue.

Mr. Thornton began discussions with Motorola, a well-known manufacturer of radio systems, in order to discern whether Motorola radio products might be suitable for the Tinker project. He requested a price quotation that he might use in preparing a budget for the Tinker plan, and a *998 Motorola sales manager faxed him a price for equipment and installation of the leak detection systems utilizing a radio model called Darcom. A message on the fax cover sheet included a caveat that “[d]ue to [Ronan’s] time frame only a cursory view has been taken in preparing this budgetary quote.” App., vol. IV, at 704.

In February 1995, Mr. Thornton sent NESCO a projected price for the Darcom radio system. The quote included charges for equipment and installation, and it specified that the project would be completed between four and six weeks after receipt of the project order. The letter also included the following statements:

The following quote is only a cursory view for budgetary purposes and the final components and costs are subject to change dependent on actual site conditions. This equipment is dependent on line-of-site [sic] [radio frequency] paths from each remote and each master site. This equipment proposes to use frequencies between 928-952 mhz and it will be the users [sic] responsibility to obtain authorized frequencies and to acquire approval from the Base LMR office.

Id. at 742. The NESCO representative, Charles Nance, did not ask Mr. Thornton about the “cursory view” language. Instead, he testified that he understood this language to mean the price was firm unless later modifications were required due to frequency changes or line-of-sight problems. Mr. Nance orally notified a Tinker official of the quote.

The parties then waited several months for Tinker’s decision. In fall 1995, Tinker notified NESCO that it would need a firm price based on a specified frequency. Mr. Nance phoned Mr. Thornton to request the price, following up with a fax that read in part:

Tinker AFB is still wanting to look at operating the Ronan Tank Monitor’s [sic] via a radio frequency instead of telephone lines or [cellular] service. Please work me up a FIRM price using frequency 142.6750, detailing everything that will be included and every thing that NESCO will need to furnish or do. Everything is still the same as before ....

Id. at 709 (emphasis in original). Mr. Thornton called Motorola for a final quote, only to learn that the Darcom radios would not work on the given frequency. Finding a frequency that could work with the Dar-com system would take many months. After further research, the Motorola representative suggested a model called R-Net to replace the Darcom system.

Motorola sent Ronan the R-Net quote in late November, adding “I hope this will let you complete your project. All of this is dependent on the clearance of this project through the Base LMR office on Tinker.” Id. at 710. Ronan added its standard markup and installation fees and forwarded the quote to NESCO, giving an estimated completion time of three to four weeks after receipt of the project order. The Ronan quote included substantially the same language as was given in its earlier communications:

The following quote is a cursory view for budgetary purposes and the final components and costs are subject to change dependent on actual site conditions. This equipment is dependent on line-of-site [sic] [radio frequency] paths from each remote and each master site. This equipment proposes to use frequency 142.6750 MHz and it will be the users [sic] responsibility to obtain approval from the Base LMR office for this frequency.

Id. at 712. It went on to say that the R Net equipment was less sensitive to line-of-sight problems than the earlier model, but that a clear line of sight would be *999 preferable nonetheless. Mr. Nance testified that he recognized the “cursory view” language from Ronan’s earlier quote and again understood it to mean that later system modifications might lead to changes in price. He explained that he paid little attention to continued use of the disclaimer because he had requested a firm price and because on this occasion Ronan had sufficient time to give the project more than “cursory” consideration.

NESCO submitted its final project proposal to Tinker in January 1996. The leak detection portion of that proposal was based on the equipment and installation costs from Ronan’s quote and included Ro-nan’s qualifications regarding frequency changes and line-of-sight problems. Mr. Thornton testified that he knew NESCO would use the Ronan quote in making its own proposal to Tinker, as this was standard practice in the industry. Tinker changed the proposed radio frequency in early February, but the change had no effect upon the proposed project price. Ronan and NESCO simply issued new quotes that were identical to the old except for the frequency alteration.

In March 1996, as the two companies awaited a final decision by Tinker, Mike Thornton contacted Charles Nance to request a purchase order for the radio project so that Ronan could include the project in its first fiscal quarter sales. Mr. Nance executed a purchase order referencing the agreed-upon equipment and faxed the purchase order to Ronan.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Exby-Stolley v. Board of County Commissioners
979 F.3d 784 (Tenth Circuit, 2020)
McCoy v. Meyers
Tenth Circuit, 2020
United States v. Carter
Tenth Circuit, 2019
Howard v. Ferrellgas Partners, L.P.
92 F. Supp. 3d 1115 (D. Kansas, 2015)
Howard v. Ferrellgas Partners, L.P.
748 F.3d 975 (Tenth Circuit, 2014)
Abraham v. BP America Production Company
685 F.3d 1196 (Tenth Circuit, 2012)
Leica Geosystems, Inc. v. L.W.S. Leasing, Inc.
872 F. Supp. 2d 1191 (D. Colorado, 2012)
Schmidt v. Medicalodges, Inc.
523 F. Supp. 2d 1256 (D. Kansas, 2007)
Selrahc v. Burruss
Tenth Circuit, 2007
Lohmann & Rauscher, Inc. v. YKK (U.S.A.) Inc.
477 F. Supp. 2d 1147 (D. Kansas, 2007)
Scotwood Industries, Inc. v. Frank Miller & Sons, Inc.
435 F. Supp. 2d 1160 (D. Kansas, 2006)
Townsend v. Lumbermens Mutual Casualty Co.
294 F.3d 1232 (Tenth Circuit, 2002)
Moore v. Walker
24 F. App'x 924 (Tenth Circuit, 2001)
Duncan v. Colorado Department of Corrections
15 F. App'x 730 (Tenth Circuit, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
256 F.3d 995, 2001 Colo. J. C.A.R. 3705, 45 U.C.C. Rep. Serv. 2d (West) 430, 2001 U.S. App. LEXIS 15709, 2001 WL 791890, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-environmental-service-co-v-ronan-engineering-co-ca10-2001.