Neal & Co., Inc. v. City of Dillingham

923 P.2d 89, 1996 Alas. LEXIS 95, 1996 WL 493128
CourtAlaska Supreme Court
DecidedAugust 30, 1996
DocketS-6525
StatusPublished
Cited by7 cases

This text of 923 P.2d 89 (Neal & Co., Inc. v. City of Dillingham) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Neal & Co., Inc. v. City of Dillingham, 923 P.2d 89, 1996 Alas. LEXIS 95, 1996 WL 493128 (Ala. 1996).

Opinion

OPINION

RABINOWITZ, Justice.

I. INTRODUCTION

This appeal centers on the application of the notice requirement of the Differing Site Conditions clause found in a contract between appellant Neal & Company, Inc. (NCI) and appellee City of Dillingham (City). Ap-pellee CH2M Hill (Hill), the City’s engineer on the project, is involved in this appeal primarily because it acted as the City’s representative on the project.

NCI claims that it encountered difficulties in excavation during the project because of unexpected soil conditions, that it gave notice of these unexpected conditions to Hill (and thus constructively to the City), and that therefore it is entitled to assert a claim under the Differing Site Conditions clause. The City and Hill claim that no notice of a differing site condition was given. The superior court ruled on partial summary judgment that NCI did not give adequate notice of a differing site condition.

NCI also appeals the superior court’s denial of its motions for leave to amend its complaint, for continuance of the trial, and for disqualification of thé trial judge.

II. FACTS

In February 1987 the City solicited bids for the construction of a sewerage facility. The project included two lagoon ponds. The lagoons were to be dug into a bluff outside of Dillingham. Interested bidders received a set of drawings and a volume containing bidding requirements, contract forms, conditions of the contract, and construction specifications, along with a “Geotechnical Data Summary.” The geological survey and the data summary, as well as all technical specifications for the project, were completed by Hill, the City’s engineer and on-site representative for the project.

The first dig in the construction of the lagoons was to be a wedge-cut into the bluff from the surface down to an elevation of forty-seven feet. After the first dig down to the forty-seven foot level, the second dig would begin, consisting of the excavation of two ponds down from the flat area created *91 by the first dig. The pools were to be eighteen feet deep, reaching an elevation of twenty-nine feet at their lowest point.

The data summary stated that there was a layer of peat containing some silt infilling extending four feet to eight feet below the original ground surface. Below the peat was a layer of sand and silty sand interbedded with layers of silt extending about six to twelve feet below the peat zone. Below that, the data summary described the remaining depth of the excavation as “fairly uniform to the remaining depth of the borings, showing a layer of stiff-to-hard clay having low-to-medium plasticity.” Regarding the clay layer, the data summary specified: “Occasional samples contained clay with gravel and sand suspended in the clay matrix, indicating that the clay unit may be a glacial till. No distinct bedding or layers of coarse grained material were found in the clay unit.” The data summary went on to describe the process by which the lagoons could be constructed:

The most attractive aspect of constructing the lagoons in the lower clay zone of the bluff is that they will not have to be lined. Also, native materials will not have to be recompacted to form the dikes, as the dikes can be constructed by carving the lagoons out of the bluff and leaving the clay intact around them. Construction concerns for this configuration are primarily slope protection against seepage and removal and disposal of the excavated material.

A set of contract documents was sent to NCI. On April 1,1987, bids were opened and NCI was declared the low bidder at $2,059,-991. NCI began the excavation on June 6, 1987. Excavation of the first dig, down to the forty-seven foot elevation of the pond surface, was completed. Work was suspended in October 1987. The second dig, excavation of the pond prisms, began when the ground froze. Excavation was completed by April 20,1988.

During the summer of 1987, while excavating the first dig, NCI encountered water bubbling through sand lenses in the excavation. Randy Mattoon, NCI’s project superintendent, discussed with Tony Neal, president of NCI, the possibility of the existence of sand lenses impairing the integrity of the lagoon, which would allow sewage to escape. Mattoon also discussed the issue of water permeable sand lenses with Bob Richie, Hill’s representative. Ken Green, a Hill geotechnical engineer, was scheduled to visit the project the week of July 27,1987.

NCI contends that Green’s visit was scheduled after and because of the Mattoon-Riehie conversation regarding the sand lenses. The City and Hill contend that Green’s visit had already been scheduled.

During Green’s visit, a test pit was dug in each of the pond prisms, and a soil sample was taken from one of the pits. Green’s field notes, taken at the time the pits were dug, indicate that at the level where the lagoons were to be dug, he saw “clayey silt Slightly plastic Blue Gray Moist slightly Blocky structure, stiff to n. stiff[.]” This level (two to nineteen feet down from the forty-seven foot elevation of the surface of the lagoon) had been described in the Data Summary as “a layer of stiff-to-hard clay having low-to-medium plasticity.”

During this time, the consistency of the soil was causing difficulties in NCI’s excavation. The soil in the lagoon area turned into a sticky mud, creating problems with excavation and transportation. The consistency of the soil, and the difficulty of excavating it, form the basis of NCI’s Differing Site Condition claim.

During the 1988 phase of the excavation, water infiltration continued to cause problems. In October 1988, NCI advised Hill that it was considering legal action. NCI then filed suit.

III. SUPERIOR COURT PROCEEDINGS

■. During the course of these proceedings, numerous claims and cross-claims were filed. The following are relevant to this appeal.

On March 29, 1990, NCI filed a second amended complaint, which added NCI’s Differing Site Condition claim to the lawsuit as the sixth cause of action, and added what NCI interprets as a defective specifications claim as the seventh cause of action. In May, NCI filed a substitute second amended *92 complaint. Judge Beverly Cutler granted the motion to amend on August 6, 1990. In January 1991, the City, seeking indemnity from NCI’s claims, filed a third-party complaint against Hill.

In November 1991, Hill filed a motion for partial summary judgment based on the limitation of liability and indemnity clause in its contract with the City. The superior court ruled for Hill. The City filed a petition for review, which this court accepted and has since decided in City of Dillingham v. CH2M Hill Northwest, Inc., 873 P.2d 1271 (Alaska 1994).

In April 1993, NCI moved for partial summary judgment, seeking to establish the sufficiency of its notice of differing site conditions. The City moved for summary judgment against both NCI and Hill.

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Cite This Page — Counsel Stack

Bluebook (online)
923 P.2d 89, 1996 Alas. LEXIS 95, 1996 WL 493128, Counsel Stack Legal Research, https://law.counselstack.com/opinion/neal-co-inc-v-city-of-dillingham-alaska-1996.