Neal & Co. v. Association of Village Council Presidents Regional Housing Authority

895 P.2d 497, 1995 Alas. LEXIS 54, 1995 WL 306836
CourtAlaska Supreme Court
DecidedMay 19, 1995
DocketS-6123
StatusPublished
Cited by43 cases

This text of 895 P.2d 497 (Neal & Co. v. Association of Village Council Presidents Regional Housing Authority) 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. v. Association of Village Council Presidents Regional Housing Authority, 895 P.2d 497, 1995 Alas. LEXIS 54, 1995 WL 306836 (Ala. 1995).

Opinion

OPINION

MOORE, Chief Justice.

I. INTRODUCTION

Neal & Company (Neal) contracted with the Association of Village Council Presidents Regional Housing Authority (the Housing Authority) to construct eighty-three single-family homes in the vicinity of Bethel. The parties dispute whether the Housing Authority was obligated to supply the sites with a source of permanent electricity for Neal’s use during construction.

Neal appeals from a grant of partial summary judgment in favor of the Housing Authority. Neal further appeals the denial of a motion for reconsideration and an order preventing Neal from introducing evidence at trial pertaining to the electricity issue. We affirm.

II. FACTS AND PROCEEDINGS

The Housing Authority is a public corporation that facilitates the construction of housing for Native Alaskans in rural areas of the state. The organization is funded primarily by the United States Department of Housing and Urban Development (HUD). In March 1988, the Housing Authority invited potential bidders to respond to a standard-form HUD contract offering with specifications for the construction of eighty-three single-family homes in the villages of Napakiak, Mekor-yuk, Napaskiak, Pitkas Point, and Oscarville.

Neal was the low bidder among six general contractors that submitted proposals. The Housing Authority awarded Neal the contract and directed Neal to begin construction on June 1,1988. The contract set completion dates of May 25, 1989, for Mekoryuk and Pitkas Point, and September 2, 1989, for the remaining three villages. Soon after Neal was awarded the contract, Neal notified the Housing Authority that it planned to substantially complete construction of all housing units early, by December 1988.

With the exception of Oscarville, the construction sites had not been equipped with permanent electric utility service at the time Neal was awarded the contract. 1 Neal contends that the Housing Authority was required to equip the sites with a source of permanent electricity for Neal to use during construction. The Housing Authority denies this, maintaining that although it possessed a duty to arrange permanent electric service for future homeowners, the bid documents clearly state that Neal was to supply whatever power it would require during the construction process.

Before contract negotiations were finalized, Neal sought information concerning what power sources would be available at the sites. While Neal was preparing its bid for the housing project, Chris Oehler, Neal’s *500 project manager, orally inquired of two employees of the project architect regarding the status of permanent electricity service at the construction sites. 2 Oehler later affied that Roger Sieber had informed him that “all necessary arrangements had been made by [the Housing Authority] to assure that permanent electric utility service would be available for use by the contractor during construction on the project.” He also affied that Paul Whipple had told him that the Housing Authority was “attempting to complete negotiations with the serving utilities so that permanent electric utility service could be constructed during the summer of 1988.”

Despite these representations and the fact that HUD had requested that formal executed agreements with the local utilities be in place before the main construction contract was awarded, the Housing Authority did not complete its discussions with the utilities before it awarded the contract to Neal.

With the exception of one village which was fully equipped with permanent power when Neal required it, Neal completed construction before permanent power lines were extended to the new subdivisions. 3 To satisfy its power requirements during construction, Neal relied on temporary generators. Final acceptance of the housing units was also delayed because mechanical equipment installed in the homes could not be formally inspected without the presence of permanent power.

In October 1990 Neal submitted a written request to the Housing Authority for an equitable adjustment of the final contract price. 4 In its demand for additional compensation, Neal claimed that the Housing Authority’s failure to supply permanent electrical power for use during construction resulted in delays and additional costs. The Contracting Officer denied Neal’s claim, stating that the Housing Authority was under no contractual duty to supply Neal with electrical power.

Neal pursued its equitable adjustment claim against the Housing Authority in Be-thel Superior Court. Among other contract claims, Neal contended that it “suffered substantial construction delays and extra costs as a result of [the Housing Authority’s] failure to timely bring permanent electrical power to the construction sites.” The Housing Authority denied that it was responsible for supplying permanent power for Neal’s use. The parties cross-moved for partial summary judgment on this issue.

In a memorandum decision the superior court granted the Housing Authority’s Motion for Partial Summary Judgment. After examining the entire contract, Judge Curda concluded: “The Court sees no evidence, in reviewing the contract, standing alone, which indicates that [the Housing Authority] had a duty to supply permanent power for use by Neal during construction.” The court went on to consider the extrinsic evidence offered by Neal, especially pre-bid representations made by the architect which Neal argued led it to expect that permanent power would be available for its use during construction. The court explained that under the facts of the case, debate over the meaning of the contract was a question for the court: “The language of the contract, standing by itself, and in light of the extrinsic evidence provided to this Court, is not reasonably susceptible to both asserted meanings, but only one.” The court determined that because the contract was integrated, and because the extrinsic evidence “directly contradicts the contract as interpreted by [the] Court,” Oehler’s testimony constituted inadmissible parol evidence.

Neal unsuccessfully moved the court for reconsideration. Alaska R.Civ.P. 77(k). The *501 trial court further ruled that based upon the court’s decision granting the Housing Authority partial summary judgment, Neal would not be permitted to present additional evidence at trial on the electricity issue. The court explained that “[biased on the Court’s knocking out that cause of action, hearing evidence on that is not relevant.”

On the eve of trial, the parties settled all remaining claims, with Neal preserving the right to appeal from partial summary judgment on the electricity issue. Neal now appeals.

III. DISCUSSION

A. Duty to Supply a Source of Permanent Electricity For Construction Purposes

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Bluebook (online)
895 P.2d 497, 1995 Alas. LEXIS 54, 1995 WL 306836, Counsel Stack Legal Research, https://law.counselstack.com/opinion/neal-co-v-association-of-village-council-presidents-regional-housing-alaska-1995.