P.R. Burke Corp. v. United States

277 F.3d 1346, 51 Fed. Cl. 1346, 2002 U.S. App. LEXIS 889, 2002 WL 84260
CourtCourt of Appeals for the Federal Circuit
DecidedJanuary 23, 2002
Docket01-5001
StatusPublished
Cited by55 cases

This text of 277 F.3d 1346 (P.R. Burke Corp. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
P.R. Burke Corp. v. United States, 277 F.3d 1346, 51 Fed. Cl. 1346, 2002 U.S. App. LEXIS 889, 2002 WL 84260 (Fed. Cir. 2002).

Opinion

MICHEL, Circuit Judge.

Plaintiff-Appellant P.R. Burke Corp. (“Burke”) appeals from a decision granting the government partial summary judgment and holding the government not liable for any delay damages arising from Burke’s contract to repair and improve a sewage treatment plant. See P.R. Burke v. United States, 47 Fed. Cl. 340 (2000). As more *1350 fully discussed below, the United States Court of Federal Claims rejected Burke’s argument that the contract language requiring the plant to “remain in operation” during contract performance nevertheless allowed Burke to shut down the plant’s “trickling filter.” In addition, the court found that Burke was responsible for the delay for which it seeks damages. See id. at 353.

We agree with both conclusions of the trial court. We also agree with the trial court’s holdings that Burke’s contract interpretation was unreasonable and any ambiguity among different contract provisions was patent. Further, we hold that even assuming the government alone did cause any of the delays between the time when Burke received the contract and the time when it actually began to perform, that delay was necessary, in due exercise of a contract right, not excessively long under the circumstances and thus reasonable. For this reason, too, the government is not hable for delay damages. We therefore affirm.

BACKGROUND

I. Contract Language

The contract at issue, No. 2175, was awarded to Burke on September 27, 1994, and involved the repair and improvement of Sewage Treatment Plant Two (“STP 2”) at the United States Marine Corps Base at Camp Pendleton, California. Among other things, Burke’s contract required that it demolish some of the existing plant structures and install new ones and that it complete all of its contractual responsibilities by October 7, 1995. The project description also set forth the following requirements:

[T]he furnishing of ah labor, approved materials, and equipment required for the demolition of the existing chlorine contact tank, trickling filter, imhoff tank, and mechanical requirement within the existing primary sludge pump station; sludge bed rehabilitation work; new aerated grit chamber and grit washer/hopper; new sludge pumps in the existing sludge pump station; two new trickling filters (using existing cleaned rock media) with flow splitter box and pump station; new secondary sludge pump station; new secondary clarifier; new chlorine contact tank; new solids contact basin and appurtenances; new sludge bed recycle pumps in existing wet well; new operations/laboratory building; and all the necessary appurtenances to make the facilities fully operational.

(§ 01010, Part I, § 1.1.1, Project Description).

Burke was further required to adhere to the scheduling requirements stated in section 1.5 of section 01010 of the contract:

b. The plant shall remain in operation during the entire construction peñod and the Contractor shall conduct his operations so as to cause the least possible interference with the normal operations of the activity.
c. The contractor shall be responsible for pumping out basins and pipelines of sewage or sludge so as to perform the work. This shall also include temporary pumping to maintain operation of the facility.

(J.A. at 10) (emphasis added). The Index of Drawings included in the contract similarly specified that the “PLANT SHALL REMAIN OPERATIONAL AT ALL TIMES. CONTRACTOR TO SUBMIT CONSTRUCTION SCHEDULING AND BYPASS PLANS FOR CONTRACTING OFFICER’S APPROVAL.” (J.A. at 26) (emphasis added). The parties do not dispute that, under these contract provisions, the government had the right to approve the schedule submitted by Burke.

Meanwhile, Drawing C-l to the contract depicted the areas of the plant that Burke *1351 had to repair, showing both the existing location of various structures and the planned location of the structures that Burke had to construct. In particular, this drawing illustrated the location of the two new trickling filters. A trickling filter provides secondary treatment of waste in sewage treatment, ie., it converts organic materials into carbon dioxide, water and inert materials called “sludge.”

In the contract drawings, one of the new trickling filters appeared in the same area as the existing trickling filter. Portions of the trickling filter pump station and chlorine contact tank that Burke was required to construct likewise appeared in the same location as the existing trickling filter.

II. Events Leading to Dispute

Before commencing work, Burke was required to prepare a demolition and construction plan, submit the plan to the government and obtain the government’s approval, ie., the government was to review the demolition plan to ensure that it conformed to the contract’s requirements. On October 6, 1994, Burke informed the government that its draft demolition plan entañed (among other things) demolishing the trickling filter at the beginning of construction to make way for the new structures that were to be buüt in its place. The government, however, indicated that this would cause “operational” problems.

To resolve this issue and clarify the sequence of demolition and construction, the parties met, at Burke’s request, on October 24, 1994. At the meeting, Burke sought clarification from the government regarding the work sequence. In a followup phone call from the Officer-in-Charge of Construction to Burke on October 26, 1994, the government agreed to provide Burke with written guidance about the work sequence.

But, before receiving any such writing, Burke submitted its demolition and construction plan to the government on October 28, 1994. The plan required the shutdown of the existing trickling filter for the duration of the contract work. According to Patrick R. Burke, the president and owner of the company, Burke realized that its plan essentially called for the effective shutdown of the plant; Burke simply expected that the government would reject its plan and, at the same time, would respond with written directions that described a project schedule consistent with the contract specifications. The government received this plan on October 31, 1994.

The government rejected Burke’s submitted schedule in a letter dated November 10, 1994. In the government’s view, the plan to demolish the existing filter structure before constructing a new trickling filter would faü to maintain the plant’s continuous operation as required by the contract. The letter also included a suggested sequence of tasks and a request that Burke submit a new sequence of work. The government’s suggested sequence recommended that Burke could do the following:

(a) Before removal of the Imhoff tanks, divert and maintain sewage flow to existing trickling filter.

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Bluebook (online)
277 F.3d 1346, 51 Fed. Cl. 1346, 2002 U.S. App. LEXIS 889, 2002 WL 84260, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pr-burke-corp-v-united-states-cafc-2002.