Platt Electric Supply, Inc. v. JC Northwest, Inc.

967 P.2d 924, 157 Or. App. 79, 1998 Ore. App. LEXIS 1985
CourtCourt of Appeals of Oregon
DecidedNovember 4, 1998
Docket96P-1093; CA A95274
StatusPublished
Cited by5 cases

This text of 967 P.2d 924 (Platt Electric Supply, Inc. v. JC Northwest, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Platt Electric Supply, Inc. v. JC Northwest, Inc., 967 P.2d 924, 157 Or. App. 79, 1998 Ore. App. LEXIS 1985 (Or. Ct. App. 1998).

Opinions

[82]*82LANDAU, P. J.

The principal issue in this case is the extent to which defendant Polk County Housing Authority (PCHA) is liable to subcontractors when the general contractor failed to pay for work performed on a public housing project. Plaintiff Platt Electric Supply, Inc. (Platt) and defendant - cross-claim-plaintiff JC Northwest, Inc., dba Adolfs Electric (Adolfs), both subcontractors, contend that PCHA is liable under various public contracting statutes because it failed to obtain a bond from the general contractor to ensure that they would be paid. The trial court agreed, entered judgment against PCHA and awarded Platt attorney fees. PCHA appeals. Platt cross-appeals the award of attorney fees, arguing that the trial court should have awarded a larger amount. We reverse and remand on the appeal, which disposition renders the cross-appeal moot.

The relevant facts are not in dispute. In October 1993, PCHA solicited bids for construction of a public housing project in Independence. To take advantage of certain tax credit available through the Farmworker Housing Tax Credit Program, PCHA needed to secure completion of the project by the end of 1995. The solicitation did not attract any bids from contractors who were financially able to furnish performance bonds ordinarily required for public improvement projects. ORS 279.029(4)(b). PCHA determined that it did not have time to rebid the project without putting at risk the availability of the desired tax credits. As permitted by statute, ORS 297.029(5), it declared an emergency for the express purpose of excusing performance of the bond requirement and then awarded the contract to Cole Chaney, Inc. (Chaney), without the requirement that Chaney post a performance bond.

Chaney subcontracted the electrical work on the project to Adolfs, which, in turn, contracted with Platt for certain equipment and supplies. After work on the project was partially performed, Chaney defaulted on its payments to its subcontractors, including Adolfs and Platt, and was unable to complete construction.

[83]*83Platt initiated this action against Adolfs, Chaney and PCHA. Adolfs cross-claimed against Chaney and PCHA. Pertinent to the appeal are the claims against PCHA. Platt alleged two claims against PCHA. First, it alleged that PCHA is liable under ORS 279.542 for failing or neglecting to require Chaney to obtain a performance bond. Second, in the alternative, it alleged a right to recovery on a theory of unjust enrichment. Adolfs claim against PCHA also is predicated on ORS 279.542.

Platt moved for summary judgment on its statutory claim against PCHA. The trial court granted the motion. Adolfs then moved for summary judgment on its statutory claim, and the trial court granted that motion. The trial court entered a final judgment in favor of Platt “on all of [Platt’s] claims against all Defendants.” The court also entered judgment in favor of Adolfs against PCHA. Following the entry of judgment, Platt and Adolfs petitioned for an award of attorney fees. The trial court awarded Platt a portion of its fee request and awarded Adolfs the full amount requested. The court entered supplemental judgments on the fee awards.

On appeal, PCHA first challenges the trial court’s entry of summary judgment on the statutory claims asserted by Platt and Adolfs. PCHA argues that it is not liable under ORS 279.542, because that statute applies only to a “public contracting agency” that fails or neglects to obtain a performance bond when one is otherwise required. According to PCHA, it is not a “public contracting agency” within the meaning of the statute. Platt and Adolfs both argue that ORS 279.542 applies, because PCHA is a “public contracting agency” and because it did fail or neglect to obtain a bond that otherwise was required under ORS 279.029.

Resolution of the dispute depends on the proper interpretation of the relevant statutes, which we determine in accordance with the methodology described in PGE v. Bureau of Labor and Industries, 317 Or 606, 610-12, 859 P2d 1143 (1993). We begin with the text in context and, if necessary, also examine the legislative history and other aids to construction. Id.

ORS 279.029 describes the process by which a public contracting agency may award a contract for a public [84]*84improvement. Among other things, the statute requires that, when the contract is for a public improvement, the successful bidder must

“execute and deliver to the public contracting agency a good and sufficient bond, to be approved by the public contracting agency, in a sum equal to the contract price for the faithful performance of the contract. In lieu of a surety bond, the public contracting agency may permit the successful bidder to submit a cashier’s check or certified check in an amount equal to 100 percent of the contract price.”

ORS 279.029(4)(b). The same statute also provides an exception from thé obligation to provide a performance bond:

“In cases of emergency, or where the interest or property of the public contracting agency probably would suffer material injury by delay or other cause, the requirement of furnishing a good and sufficient bond for the faithful performance of any public contract may be excused, if a declaration of such emergency is made and concurred in by all members of the governing board of the public contracting agency.”

ORS 279.029(5). ORS 279.542 then describes the consequences to the public contracting agency of failing or neglecting to require a bond when one is otherwise required:

“If the contract is one for which a bond, cashier’s check or certified check as provided for in ORS 279.029 is required and the contractor fails to pay for labor or materials * * * and the officers of the public body which let the contract fail or neglect to require the person entering into the contract to execute the bond, cashier’s check or certified check:
* * * *
“(2) The public body and the officers authorizing the contract shall be jointly liable for the labor and materials used in the prosecution of any work under the contract * * * ”

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Related

Platt Electric Supply, Inc. v. Van Horn
982 P.2d 1 (Court of Appeals of Oregon, 1999)
Platt Electric Supply, Inc. v. JC Northwest, Inc.
967 P.2d 924 (Court of Appeals of Oregon, 1998)

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Bluebook (online)
967 P.2d 924, 157 Or. App. 79, 1998 Ore. App. LEXIS 1985, Counsel Stack Legal Research, https://law.counselstack.com/opinion/platt-electric-supply-inc-v-jc-northwest-inc-orctapp-1998.