Ponthie v. United States

98 Fed. Cl. 339, 2011 U.S. Claims LEXIS 570, 2011 WL 1474947
CourtUnited States Court of Federal Claims
DecidedApril 12, 2011
DocketNo. 09-122C
StatusPublished

This text of 98 Fed. Cl. 339 (Ponthie v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ponthie v. United States, 98 Fed. Cl. 339, 2011 U.S. Claims LEXIS 570, 2011 WL 1474947 (uscfc 2011).

Opinion

OPINION AND ORDER

BOHDAN A. FUTEY, Judge.

This case concerns two different disputes between the United States Postal Service (“the Postal Service”) and Grace and Ross Ponthie (collectively, “the Ponthies”) over work done at the United States Post Office in Kiln, Mississippi (“the post office”). The Ponthies built the post office, which sits on land owned by the Postal Service, as well as its parking lot and driveway.

[341]*341The first dispute stems from damage Hurricane Katrina dealt to the post office. The Ponthies agree that they are obligated under the parties’ lease to make “repairs” needed as a result of acts of God, but assert that the Postal Service is holding them responsible for costs beyond mere “repairs.” Additionally, they argue that the Postal Service violated the lease by not giving notice of the needed work. The Ponthies therefore move for summary judgment under Rule 56(c) of the Rules of the United States Court of Federal Claims (“RCFC”). The Postal Service opposes.

The second dispute concerns costs to remedy construction defects in and damage to the concrete of the parking lot and driveway. The Postal Service argues that the Ponthies are obligated to pay for those costs, since the concrete is thinner than provided for in the construction requirements. The Postal Service therefore moves for summary judgment. The Ponthies also move for summary judgment on this issue, and argue that the Postal Service’s claims are barred by the lease itself, as well as the statute of limitations.

I. Factual Background

On July 23, 1996, the Postal Service and the Ponthies entered into a lease for a post office in Kiln, Mississippi. Under the lease, the Ponthies were responsible for constructing a post office on land already owned by the Postal Service, as well as a parking lot and driveway, which the lease refers to as “appurtenances.”1 The lease runs from August 22, 1997 through August 21, 2017, and, at the end of that twenty-year term, the Ponthies must execute and deliver a bill of sale for the premises to the Postal Service. Rent is set at $60,000 per year, payable in equal monthly installments of $5,000. The lease is drafted on standard Postal Service forms and includes both a Construction Rider and a Maintenance Rider.

A. The Damage Done by Hurricane Katrina

Hurricane Katrina made landfall in Kiln on August 29, 2005. In its wake, the Postal Service contracted with URS Group, Inc. (“URS Group”) and Tony Watson Electric, Inc. (“Watson Electric”) to remedy damage done to the post office.

URS Group performed work from September 13, 2005 through September 16, 2005 and was paid $241,538.76 by the Postal Service. In early September, before URS Group had performed any work, the Postal Service attempted to contact the Ponthies by phone to inform them of the needed work, but did not provide them with written notice of the need for work.2

The work performed by URS Group and its subcontractors broadly covered restoring the post office to its pre-hurricane state. According to a December 20, 2005 scope of work statement, the “objective” of URS Group’s work was “to provide the USPS with oversight services during the cleaning of the Kiln facility” and to ensure the removal of “all water laden materials, dusVsludge debris ... from the facility and debris from outside and around the facilities ... in order to expedite the reopening of the facility.”3 A subcontractor, Clean Harbors Environmental Services, Inc. (“Clean Harbors”), performed the actual cleaning, and a January 2005 summary of the work from URS Group describes the work actually completed by Clean Harbors: “removal of excessive branches, leaves, trash, silt, and standing water ... moving all furniture, letter cases, work stations, and miscellaneous equipment to the parking lots, cleaning those items, and returning them to the interior of the facility, hanging temporary sheeting as barriers, and miscellaneous plumbing repairs” as well as removing and [342]*342disposing of “water-laden building materials including dry wall, Masonite™ (pegboard), wood finishes, paper, etc.”4

Watson Electric worked on the roof and floors of the post office between September 21, 2005 and December 5, 2005, as well as in April 2006. The Postal Service did send the Ponthies written notice of the needed roof repairs, but not until December 15, 2005. That notice asked for completion of the work by December 31, 2005. According to the certified mail receipt, the Ponthies did not receive this notice until January 3, 2006, and they did not hire a contractor to perform the work by the completion date. The Postal Service paid Watson Electric $78,557.29 for their services.

On March 3, 2008, Contracting Officer Jean Scholl Berg found that the Ponthies were obligated under the lease to pay for the full cost of the services performed by URS Group and Watson Electric. These services, including $50,618.36 in interest, amount to $371,526.47, and the Postal Service began withholding $4,953.69 of their $5,000 monthly rent on March 1, 2008. This deduction will continue for 75 months from that date.

B. Construction Deficiencies and Damage to the Driveway and Parking Lot

Under the lease, the Ponthies were obligated to install concrete paving at least five inches thick in the driveway and parking lot, which the Postal Service accepted and began using in the fall of 1997.5 According to the Postal Service, they had problems with the lot and driveway “[a]t least as early as 1998[.]”6 On April 17, 2006, the Postal Service informed the Ponthies that a review of the paved areas revealed that they were of “erratic thickness of concrete” and ranged from 2.5 to 8.5 inches in depth.7 The letter informed the Ponthies that it was their responsibility to rebuild the concrete, and demanded a schedule of repairs by April 24, 2006. The Ponthies responded on May 1, 2006, denied responsibility for the defective pavement, and refused to repair the concrete. On October 16, 2006, Contracting Officer Jody Sloan informed the Ponthies that the Postal Service was going to begin repairs, and the Postal Service later contracted with Watson Electric to repour the concrete.

After this lawsuit was brought, Contracting Officer Berg issued a September 29, 2009 final decision and found the Ponthies responsible for $136,240.43 in pavement repairs. The Postal Service plans to begin withholding from the monthly rent in October 2014, after they have finished withholding payments for the hurricane damage.

C. Procedural History

The Ponthies filed suit on March 2, 2009, and the government filed a counterclaim for the pavement repairs on June 30, 2009. On November 22, 2010, after the close of discovery, the Ponthies filed a Motion For Summary Judgment, and the Postal Service filed a Motion For Partial Summary Judgment. The parties filed responses on January 28, 2011, and replies on February 11, 2011.

II. Discussion

Both parties move for summary judgment under RCFC 56(c). The Ponthies move for summary judgment on both issues, but the government has only moved for summary judgment on the pavement issue.

A. Standard of Review

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
John R. Sand & Gravel Co. v. United States
552 U.S. 130 (Supreme Court, 2008)
Consolidation Coal Co. v. United States
615 F.3d 1378 (Federal Circuit, 2010)
Long Island Savings Bank, FSB v. United States
503 F.3d 1234 (Federal Circuit, 2007)
Teg-Paradigm Environmental, Inc. v. United States
465 F.3d 1329 (Federal Circuit, 2006)
Centex Corp. v. United States
395 F.3d 1283 (Federal Circuit, 2005)
Hol-Gar Manufacturing Corp. v. The United States
351 F.2d 972 (Court of Claims, 1965)
George Hyman Construction Company v. The United States
832 F.2d 574 (Federal Circuit, 1987)
Craft MacHine Works, Inc. v. The United States
926 F.2d 1110 (Federal Circuit, 1991)
Granite Construction Company v. The United States
962 F.2d 998 (Federal Circuit, 1992)
Fallini v. United States
56 F.3d 1378 (Federal Circuit, 1995)
Alder Terrace, Inc. v. United States
161 F.3d 1372 (Federal Circuit, 1998)
Manufacturers Aircraft Ass'n v. United States
77 Ct. Cl. 481 (Court of Claims, 1933)
Muniz v. United States
972 F.2d 1304 (Federal Circuit, 1992)
John R. Sand & Gravel Co. v. United States
552 U.S. 130 (Supreme Court, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
98 Fed. Cl. 339, 2011 U.S. Claims LEXIS 570, 2011 WL 1474947, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ponthie-v-united-states-uscfc-2011.