NESC, Inc. d/b/a New England Specialty Concrete v. Bacon Construction Co., Inc.

CourtSupreme Court of Rhode Island
DecidedFebruary 17, 2020
Docket17-423, 18-107, 18-111
StatusPublished

This text of NESC, Inc. d/b/a New England Specialty Concrete v. Bacon Construction Co., Inc. (NESC, Inc. d/b/a New England Specialty Concrete v. Bacon Construction Co., Inc.) 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
NESC, Inc. d/b/a New England Specialty Concrete v. Bacon Construction Co., Inc., (R.I. 2020).

Opinion

February 17, 2020

Supreme Court

No. 2017-423-Appeal. No. 2018-107-Appeal. No. 2018-111-Appeal. (PC 08-4992)

NESC, Inc. d/b/a New England Specialty : Concrete

v. :

Bacon Construction Co., Inc., et al. :

NOTICE: This opinion is subject to formal revision before publication in the Rhode Island Reporter. Readers are requested to notify the Opinion Analyst, Supreme Court of Rhode Island, 250 Benefit Street, Providence, Rhode Island 02903, at Telephone 222- 3258 of any typographical or other formal errors in order that corrections may be made before the opinion is published. Supreme Court

No. 2017-423-Appeal. No. 2018-107-Appeal. No. 2018-111-Appeal. (PC 08-4992)

Present: Suttell, C.J., Goldberg, Flaherty, Robinson, and Indeglia, JJ.

OPINION

Justice Robinson, for the Court. These consolidated cases come before the Supreme

Court pursuant to a judgment on a jury verdict entered on November 3, 2017 in favor of the

plaintiff, NESC, Inc. (NESC). The defendant, Bacon Construction Co., Inc. (Bacon), appeals from

a judgment entered pursuant to Rule 54(b) of the Superior Court Rules of Civil Procedure relating

to a January 3, 2018 order denying its motion for a new trial or, in the alternative, a remittitur.

NESC cross-appeals from a September 2, 2014 order denying its “Motion for Leave to File First

Amended Complaint” (motion to amend) and a November 4, 2016 order denying its motion to

reconsider the denial of its motion to amend.

For the reasons set forth in this opinion, we affirm the judgment and the orders of the

Superior Court.

-1- I

Facts and Travel

This case arises from a dispute between a general contractor, Bacon, and a subcontractor,

NESC, regarding an agreement to install flooring in a dormitory on the campus of Rhode Island

College (RIC). On July 30, 2008, NESC filed a complaint in Superior Court against both Bacon

and CNA Surety Corporation1 alleging as to each defendant: (1) breach of contract; (2) unjust

enrichment; (3) violation of the Rhode Island Prompt Payment Act; and (4) insurer bad faith. The

factual allegations underlying all four claims were to the effect that NESC had not been fully

compensated for the work which it had performed as a subcontractor on the RIC project. In

response, Bacon filed a counterclaim against NESC, alleging breach of contract and negligence.

A

NESC’s Motion to Amend

On March 25, 2010, NESC filed, under seal, a proposed amended complaint seeking to add

a claim against Bacon under the Rhode Island False Claims Act, G.L. 1956 § 9-1.1-3. NESC also

provided a written copy of the amended complaint to the Rhode Island Department of the Attorney

General in accordance with § 9-1.1-4(b)(2). On December 3, 2013, the Attorney General filed in

the Superior Court a “Notice of Election to Decline Intervention.” On August 4, 2014, NESC filed

a motion to amend its complaint. On September 2, 2014, following a hearing on August 27 of that

year, an order entered denying NESC’s motion to amend. Some two years later, on September 9,

2016, NESC filed a motion to reconsider the previous denial of its motion to amend. On November

1 According to NESC’s complaint, CNA Surety Corporation issued a bond to Bacon to insure Bacon’s performance on the general contract.

-2- 4, 2016, following a hearing on October 27 of that year, an order entered denying NESC’s motion

to reconsider.

B

The Trial

Prior to trial, the parties stipulated to a contract price of $10.69 per square foot for the

complete flooring system.2 The parties also stipulated as follows:

“that NESC’s claimed contact [sic] amount owed is $125,733.67 (which claim Bacon disputes). (The amount of NESC’s claim is based on its claimed contract price of $949,272 (88,800 square foot. x $10.69 per square foot) minus payments previously made by Bacon of $784,538.33 minus the above-mentioned credit of $39,000).”3

The case opened to the jury on October 30, 2017 and was heard over four days. The jury

heard testimony from six witnesses. We summarize below the relevant evidence presented at trial.

The Testimony of Anthony Petronio

NESC called Anthony Petronio as its first witness. He testified that he began working for

NESC in 2002 and assumed the position of general manager in 2006. He stated that, as general

manager, part of his job duties included finding work, obtaining drawings for presentation to

estimators, and negotiating contracts. He also testified that he had authority to enter into contracts

2 The $10.69 per square foot figure has remained a “fixed star” throughout the lengthy travel of this case. 3 The stipulation provided that “NESC will credit Bacon the amount of $39,000.00 towards the contract price in exchange for Bacon’s waiver of claims for credits for workmanship, floor defects, and any change orders * * *, or credits for early payment * * *.” This aspect of the stipulation has no direct bearing on these appeals.

-3- on behalf of his employer. He further testified that, in 2006, NESC distributed Maxxon products,

which are gypsum-based flooring products.

Mr. Petronio also testified that Bacon asked NESC to submit a bid to install flooring at the

RIC project and that it provided NESC with the contract drawings. He testified that Robinson

Green Beretta, the architectural firm on the project, was seeking the installation of a specific type

of acoustic Maxxon flooring composed of two products: (1) Dura-Cap, a type of base layer; and

(2) WearTop, a type of finished flooring. Mr. Petronio also testified that, when Bacon first

provided NESC with the bid documents, it was NESC’s understanding that the project was to be

completed by the Spring of 2007, in anticipation of the dormitory opening for students in the Fall

semester. He stated that NESC submitted its first bid to Bacon in January of 2006 based on an

estimate that 92,000 square feet of flooring would be needed; he added that Bacon did not accept

that first bid. Mr. Petronio further testified that Bacon later asked NESC to submit a revised bid

based on 91,430 square feet, and that NESC did so on July 26, 2006. He stated that Bacon did not

accept the revised bid either.

It was further Mr. Petronio’s testimony that, on April 10, 2007, NESC sent a fax to Bacon

addressed to Rick Reuter, an employee of Bacon,4 which fax consisted of yet another bid and a fax

cover sheet stating that “it looks like the only variable at this point is an agreed to square footage.”

The fax containing the new bid and the cover sheet was admitted as an exhibit at trial. The just-

referenced bid included a range of square footage for both Dura-Cap and WearTop. According to

Mr. Petronio, the high and low points of the range of square footage were derived from Bacon’s

estimate of 88,800 square feet and NESC’s estimate of 96,329 square feet. Mr. Petronio also

testified that, on the same date, he had a discussion with Mr. Reuter, in the course of which

4 Rick Reuter’s role is discussed more fully in Part I.B.2, infra.

-4- discussion they agreed that, in order to resolve the difference in the square footage estimates,

“[they] could get a third party to digitize the plans” and that “Mr. Reuter agree[d] to submit the

plans to Civil Takeoffs[5] * * *.”

Mr. Petronio next testified that, after making an adjustment at Bacon’s request concerning

an item that is not material to the instant dispute, he faxed NESC’s final bid to Bacon on April 11,

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