Nello L. Teer Co. v. North Carolina State Highway Commission

166 S.E.2d 705, 4 N.C. App. 126, 1969 N.C. App. LEXIS 1458
CourtCourt of Appeals of North Carolina
DecidedApril 2, 1969
Docket6910SC17
StatusPublished
Cited by10 cases

This text of 166 S.E.2d 705 (Nello L. Teer Co. v. North Carolina State Highway Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nello L. Teer Co. v. North Carolina State Highway Commission, 166 S.E.2d 705, 4 N.C. App. 126, 1969 N.C. App. LEXIS 1458 (N.C. Ct. App. 1969).

Opinion

Mallard, C.J.

Teer on its appeal contends that the Superior Court committed error in failing to allow interest on the amount awarded to it, in ruling that the Board of Review correctly used invoice rental rates for certain equipment, and in failing to adopt the alternate award of the Board of Review based upon the rental rates of the Associated Equipment Distributors.

The Commission on its appeal contends that there are five questions presented, as follows:

1. Does the principle of quantum meruit apply to the State and its agencies?
2. Is a claim in excess of one thousand dollars arising out of the performance of work not included within the terms of the original contract unrecoverable as repugnant to the terms of G.S. 136-28?
3. Was the award of the Board of Review made for work not performed under the terms of the contract of 8 July 1958?
4. Are the findings of fact, conclusions and award of 11 July 1967 by the Board of Review, affirmed by the Superior Court on 27 June 1968, supported by the evidence and exhibits of record?
5. What sum, if any, is the Nello L. Teer Company entitled to recover of the State Highway Commission as a matter of legal right under the contract of 8 July 1958?

G.S. 136-29, as it was written before amendments in 1963 and subsequent years, provided the procedure for the settlement of claims against the Commission by a contractor who claimed, upon completion of any contract awarded by the Commission, that he failed to “receive such settlement as he claims to be entitled to under his contract.” It should be noted that unless the claim arises under *131 the Contract, the provisions of this statute are not applicable. In the opinion in Teer Co. v. Highway Commission, 265 N.C. 1, 143 S.E. 2d 247, the above statute as written prior to 1963 is quoted in full.

We are concerned in this case with what Teer is entitled to recover, if anything, within the terms and framework of the Contract. That this is the basic question involved is settled by the opinion of the Supreme Court in this case, Teer Co. v. Highway Commission, supra, when it said:

“Under the circumstances, we are of the opinion, and so hold, that Teer, in further hearings before the Board of Review, should be permitted to offer evidence tending to establish the amount, if any, to which it is entitled for work done and materials furnished in categories set forth in its claim of November 4, 1961. Even so, recovery, if any, must be within the terms and framework of the provisions of the contract of July 8, 1958 and not otherwise.”

The question is not raised in this case with respect to whether the Contract between the parties was a valid one. It is assumed by all of the parties hereto and found by the Supreme Court that the Contract between the parties of 8 July 1958 for Project 8.13438 was awarded to Teer after compliance with the requirements of the statute, G.S. 136-28, relating to the letting of contracts to bidders after advertisement. We are, therefore, not concerned in this proceeding with the question of whether Teer is entitled to recover on a quantum meruit basis. Recovery, if any, must be within the terms and framework of the provisions of the Contract.

Whether the facts found by the Board of Review are supported by competent evidence, and whether the facts found support the legal conclusion that all work performed by Teer on the project from and after 1 December 1959 was “Extra Work” as defined in the Contract are reviewable by this Court as questions of law. Teer Co. v. Highway Commission, supra; Pearson v. Flooring Co., 247 N.C. 434, 101 S.E. 2d 301.

There appears to be no dispute between the parties about the fact that as a result of the failure of another contractor to perform properly the rough grading, under the contract for Project 8.13437, the work of Teer under its Contract was interrupted and delayed.

The Board of Review has found, without exception being brought forward by the Commission, that:

“In short, in undertaking to perform its contracts, the Teer *132 Company was frequently unable to proceed as scheduled on account of the prior contractor’s failure to perform properly the rough grading, drainage and shoulder work covered by the prior project (No. 8.13437). The difficulties encountered by the Teer Company included the presence of approximately 168 soft yielding areas of varying size in the subgrade and shoulders due to the presence of stumps,, roots, matted vegetation, and other unsuitable material. Before the Teer Company could proceed with the work required under its paving contract, it was necessary to remove such unsuitable material (undercutting) and to replace it with suitable (borrow) material.
The existence of these unanticipated and adverse roadway conditions during the early construction work of the Teer Company interfered with and impaired its work, disrupted its construction schedule, greatly increased its costs, and seriously delayed its paving contract. These adverse conditions were mostly hidden and were and could be discovered only in piecemeal fashion as the Teer Company attempted to carry out its paving work.”

’ Teer did not seek to rescind its Contract because of such deficiencies in the rough grading project, resulting in extra expense and delays, but performed the required extra remedial work in addition to that required to perform its Contract. Since we find no provision in the Contract, and none has been called to our attention allowing or permitting Teer to be compensated for the delays and the extra expense caused by such delay, we are of the opinion and so hold that such could not be used in this proceeding by the Board of Review as a ground for changing the unit prices bid by Teer in its proposal to a force account basis.

The Engineers of the Commission, under the “Extra Work” or “Unforeseen Work” provisions of the Contract, directed Teer to remedy the deficiencies in the rough grading project which included drainage and shoulder work. In section 4.4 of the Specifications the terms “Extra Work” and “Unforeseen Work” are used synonymously. The provisions of the Contract with respect to “'Extra Work” are contained in a volume, as amended and supplemented, entitled, “North Carolina State Highway and Public Works Commission, Raleigh, Standard Specifications for Roads and Structures, October 1, 1952” (herein referred to as Specifications). “Extra Work” is defined in these Specifications as “ (a) dditional construction items which are not included in the original contract.” This language appears to be contradictory in that it appears upon reading it .that an *133 attempt is being made to include something within a contract that is not in fact .included therein. However, we interpret this language to mean that extra work is also additional construction items that were not included in the unit prices in the original Contract.

The cost of this extra remedial work exceeded, many times, the sum of $1,000.

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Bluebook (online)
166 S.E.2d 705, 4 N.C. App. 126, 1969 N.C. App. LEXIS 1458, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nello-l-teer-co-v-north-carolina-state-highway-commission-ncctapp-1969.