P. T. & L. Construction Co. v. State

179 A.D.2d 850, 578 N.Y.S.2d 921, 1992 N.Y. App. Div. LEXIS 113
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJanuary 9, 1992
StatusPublished
Cited by2 cases

This text of 179 A.D.2d 850 (P. T. & L. Construction Co. v. State) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
P. T. & L. Construction Co. v. State, 179 A.D.2d 850, 578 N.Y.S.2d 921, 1992 N.Y. App. Div. LEXIS 113 (N.Y. Ct. App. 1992).

Opinion

— Weiss, J. P.

In June 1973 claimant contracted with the State to construct a three-mile section of Interstate Route 88 and to relocate and construct a three-mile segment of State Route 8 near the Town of Sidney in Delaware County, which involved the relocation of almost four million cubic yards of material. The project cost exceeded $17 million and was to commence in July 1973 and be completed by December 24, 1975. The contract contained a provision for liquidated damages at the rate of $500 per day for delay in completion. Claimant encountered a number of problems which caused a delay of approximately two years in completion, as a result of which the State imposed an assessment of liquidated damages and made back charges for additional engineering expenses, as well as a chargeback for the cost of repairing a railroad crossing.

Claimant commenced this action seeking relief from the liquidated damages and extra engineering expenses and to recover its own damages for breach of contract, change order [851]*851work and contract deductions.1 After an extended trial, the Court of Claims rendered an exhaustive decision finding, inter alia, that claimant was responsible for the delay in completion of the construction, that the State had not breached the contract or underpaid claimant on revised contract work in the vicinity of Cole Road near Route 8, and that the State was liable to claimant in the sum of $6,500 for lost profit and fixed overhead based upon the deletion from the contract of the item involving engineering vehicles. The court also found the State liable for $8,950 for extra work on a fishing access area and $18,509.41 for excess contract withholdings pertaining to the repairs of a certain railroad crossing.

Claimant’s appeal is limited to the dismissal of its causes of action seeking recovery of liquidated damages (No. 3) and recovery of damages for change order work in the vicinity of Cole Road (No. 9). Claimant is also appealing the adequacy of damages awarded on the causes of action for damages for deletion of furnishing survey vehicles (No. 4), extra work at a fishing access area (No. 7) and recovery of the cost of railroad crossing repairs withheld by the State (No. 12).

The State withheld $199,334 as per diem liquidated damages for delay by assessing the full per diem sum of $500 for the period from December 25, 1975 to December 20, 1976 and thereafter a reduced sum of $89 per day from December 21, 1976 until July 15, 1977. The State also assessed the cost of additional engineering expenses of $377,157.22 incurred during the period following the contract completion date. These sums were withheld from payments otherwise due to claimant pursuant to the contract. In cause of action No. 3 claimant sought recovery of the sums withheld, contending that the delay was caused by the State and by extraordinary events beyond its control. Claimant contends that the imposition of liquidated damages is not permitted where both parties are found to be mutually responsible for the delay, citing to Mosler Safe Co. v Maiden Lane Safe Deposit Co. (199 NY 479, 489) and Babylon Assocs. v County of Suffolk (101 AD2d 207, 217).

Initially, we find that the Court of Claims’ determination absolving the State from liability for the delay in completion of the contract work is amply supported by evidence in the record. Claimant’s initial delay was caused by its failure to properly mobilize on this project because it simply had too [852]*852many other projects in progress and failed to properly mobilize its resources for this job. The substantial loss of the 1973 construction season was attributable to claimant and not to an alleged three-week delay in the State’s issuance of the "notice to proceed”.2 In concluding that claimant was substantially at fault for not completing the contract on time, the Court of Claims discussed the three factors which claimant alleged contributed to the delay over which the parties had no control, i.e., rainy weather, the Arab oil embargo and claimant’s financial difficulties. The court found that while the latter two may have caused some project delay, they were not sufficient to warrant waiving liquidated damages for failure to timely complete the contract. The excessively rainy weather during the latter half of the construction time period was a contract risk faced by all contractors and assumed in this case by claimant when it bid upon the job (see, Gordon v State of New York, 233 NY 1, 6-8). The court rejected claimant’s argument that the State should be held responsible for delays caused by limitations it imposed upon the operation of the borrow pits. Since the court’s findings in these regards were based upon its first-hand assessment of the evidence, they are entitled to deference by this court (see, Saulpaugh v State of New York, 132 AD2d 781, 782).

Claimant next contends that it should not have been held responsible for the full amount of the engineering expenses incurred after the contract completion date and that the State failed to give "due consideration” to "extenuating circumstances beyond the control of the contractor” prior to assessing these charges. We disagree. The regional construction engineer for the Department of Transportation testified that due consideration was given to the prevailing circumstances and that the imposition of the State’s actual engineering expenses was a provision of the contract, similar to the provision for per diem charges for delay in the contract completion. We find neither a basis for disturbing the decision of the Court of Claims with respect to the liquidated damages or to the imposition of the additional engineering costs.

[853]*853A clause in claimant’s contract provided that it would furnish up to five vehicles for use by the State’s engineers in surveying the work. The State unilaterally deleted the item and instead used vehicles provided by the consulting engineers on the project. The Court of Claims found that the deletion was a breach of a contract term by the State and awarded claimant $6,500 on cause of action No. 4. Claimant contends that the damages are inadequate and should be $10,000, which represents lost profit and fixed overhead associated with the item. The record, however, shows that some of the damages sought by claimant were estimates of unanticipated expenses it would have incurred in performance of the disputed item and that claimant failed to sustain its burden of proving that its actual damages were anything other than the approximations made in the preparation of its bid (see, Novak & Co. v Facilities Dev. Corp., 116 AD2d 891, 892). We are unpersuaded that the court erred in awarding $6,500 on this cause of action.

Claimant was required to perform additional work to construct a fishing access site on the north side of the Susquehanna River. In its decision on cause of action No. 7, the Court of Claims found that the work was similar to the contract work and, except for material used to construct embankments, was only quantitatively different. Claimant’s bid described embankment material as simply material excavated during the job, whereas on this claim for extra work claimant contends that it was required to use a combination of "5/8” excavated material and "3/8” borrow material, the cost of which exceeded the unit price it had provided in the contract.3

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Cite This Page — Counsel Stack

Bluebook (online)
179 A.D.2d 850, 578 N.Y.S.2d 921, 1992 N.Y. App. Div. LEXIS 113, Counsel Stack Legal Research, https://law.counselstack.com/opinion/p-t-l-construction-co-v-state-nyappdiv-1992.