Pipelines, Inc. v. Muhlenberg County Water District

465 S.W.2d 927, 1971 Ky. LEXIS 472
CourtCourt of Appeals of Kentucky
DecidedApril 2, 1971
StatusPublished
Cited by4 cases

This text of 465 S.W.2d 927 (Pipelines, Inc. v. Muhlenberg County Water District) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pipelines, Inc. v. Muhlenberg County Water District, 465 S.W.2d 927, 1971 Ky. LEXIS 472 (Ky. Ct. App. 1971).

Opinion

STEINFELD, Judge.

Several suppliers of materials filed suits to enforce materialman’s liens. Among the defendants were Muhlenberg County Water District (hereinafter District 1), Muhlenberg County Water District No. [929]*9293 (hereinafter District 3) and Pipelines, Inc. and Frank Vogler, a joint venture, (hereinafter Pipelines). Pipelines had contracted to construct two water systems for District 1 and one water system for District 3. The suppliers’ claims were satisfied leaving only the controversies presented by the cross claims between the water districts and Pipelines.

The jury awarded Pipelines $25,000 from District 1 for damages, for extra work and for changes, and allowed District 1 as liquidated damages and for other losses $37,964.99 plus $575.00 the amount required to complete certain minor items. It awarded District 3 as liquidated damages and for other losses $7,577.09 plus $550.00 to complete minor items. Judgment was entered accordingly on October 31, 1969, from which Pipelines appeals. The sole issue raised by appellant is whether the water districts are entitled to recover liquidated damages for alleged delay in the completion of the contracts. Pipelines contends that they are not, and that there was no delay which was not caused by the districts or their engineer. We affirm.

The districts contend that appellant did not perfect its appeal within the time and in the manner prescribed by CR 11 and CR 73.02(1), wherefore, they say we should dismiss the appeal.1 In the trial court they unsuccessfully attacked the notice of appeal. They are complaining of a ruling adverse to their position from which they did not appeal and they did not move to dismiss in this court, therefore, it is impermissible for them to argue in their brief that the appeal should not be considered. Cf. Reed v. Reed, Ky., 457 S.W.2d 4 (1969). District 1 also complains that a “No Damage Clause” in the contract made an award for damages from it to Pipelines impermissible. For the same reason we cannot consider this contention.

The contracts entered into by Pipelines with District 1 and District 3 contain the same general description as to duties and responsibilities of the parties, except that the contractual amount of liquidated damages was fixed at $85.00 per day with District 1 and $70.00 per day with District 3 for tardy completion.

The following summary prepared by counsel for appellant (which the court has found quite helpful) depicts the time schedule and the delays claimed.

District l
Contract X
Contract completion date, August 5, 1967 300 days
Change orders 1, 2, 3 add 12 days
Change order 4 add 80 days
Date District claims Contract was completed, (except change order 4) March 4, 1968
Date District claims change order was completed May 22, 1968
Total days District claimed Contract should have been completed 392 days
Total days, District 1 claimed
Contract was actually completed 695 days
Days of delay claimed by District 1 267 days
Date Pipelines claims facilities ready for use September 2, 1967
Contract 2
Contract completion date, August 5, 1967 300 days
Change order 1 add 1 day
Time of actual completion as claimed by District February 2, 1968
Total days District claims Contract should have been completed 301 days
Total days District claims Contract was completed 480 days
Days of delay claimed by District 179 days
Date Pipelines claims facilities ready for use November 2, 1967
District 3
Contract completion date, February 18, 1968 300 days
Change order 2 add 11 days
Date District claims Contract was completed June 17, 1968
Total days District claims Contract should have been completed 311 days
Total days District claims Contract was actually completed 419 days
Delay in completion claimed by District 108 days
Date Pipelines claims facilities ready for use April 30, 1968

Pipelines argues that it was entitled to a directed verdict or a judgment notwithstanding the verdict on the districts’ claims for liquidated damages because “Liquidated damages are not allowable on the contracts [930]*930which are the subject of this action.” It says that the provisions calling for payment of per diem amounts for failure to complete the work within the time allowed were penalties and not liquidated damages. It cites several cases to support this contention. We deem it unnecessary to attempt to explain or distinguish those authorities. A public body may and usually does require contractors engaged in public work to agree to pay specified amounts for failure to complete the work within the agreed time. Maryland Casualty Company v. Ballard County, 217 Ky. 343, 289 S.W. 316 (1926); 13 Am.Jur.2d 87, Building and Construction Contracts, § 86; 43 Am Jur.2d 77, Public Works and Contracts, § 78. In Gustav Hirsch Organization, Inc. v. East Kentucky Rural Electric Cooperative Corporation, 201 F.Supp. 809 (E.D.Ky.1962), it was written:

“The weight of authority on the subject seems to be that where at the time of the execution of the contract the probable damages are uncertain and difficult to ascertain and the amount stipulated is not so extravagant or disproportionate as to show fraud, mistake, circumvention or oppression, there is no sound reason why persons competent and free to contract may not agree upon this subject as fully as upon any other, or why their agreement, when fairly and understandingly entered into, with a view to just compensation for the anticipated loss, should not be enforced. Wise v. United States, 249 U.S. 361, 365, 39 S.Ct. 303, 63 L.Ed. 647; Priebe & Sons v. United States, 332 U.S. 407, 411-412, 68 S.Ct. 123, 92 L.Ed. 32 [109 Ct.Cl. 870.]”

Pipelines denies that it may be faulted for the extra time used for completing the work. The contracts provided that: “If the total amount of work done under the contract is increased or decreased, the number of days for completion of the work shall be increased or decreased in proportion.” The contractor claims “ * * * that changes, extra work, and work stoppages all caused by the engineer were responsible for 176 additional days to complete the * * * ” work. Interrogatories were submitted to the jury. Number 8 was as follows:

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Bluebook (online)
465 S.W.2d 927, 1971 Ky. LEXIS 472, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pipelines-inc-v-muhlenberg-county-water-district-kyctapp-1971.