Puerto Rico Housing Authority v. Superior Court

82 P.R. 333
CourtSupreme Court of Puerto Rico
DecidedApril 11, 1961
DocketNo. 2354
StatusPublished

This text of 82 P.R. 333 (Puerto Rico Housing Authority v. Superior Court) is published on Counsel Stack Legal Research, covering Supreme Court of Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Puerto Rico Housing Authority v. Superior Court, 82 P.R. 333 (prsupreme 1961).

Opinion

Mr, Justice Santana Becerra

delivered the opinion of the Court.

We issued a writ of certiorari pursuant to § 28 of Act No. 376 of May 8, 1951 — 32 L.P.R.A. § 3228 — to review the judgment rendered by the Superior Court, San Juan Part, affirming an arbitration award in the cases of Puerto Rico Housing Authority v. Xavier Zequeira, 55-6073 and Zequeira v. Housing Authority, 56-426 (consolidated) involving the impeachment and confirmation, respectively, of the award.

On July 12, 1949 the Authority and Zequeira entered into a contract for the construction of the San José Housing Project, PRHA-17, for the price of $987,976. Pursuant to article 17 of said contract, (a) all the disputes regarding questions arising under §§ 35 to 49 of the General Conditions shall be decided by the Housing Authority, and such decision shall be final and binding on the parties, except as otherwise expressly provided in the contract. (6) All other disputes [335]*335arising under the contract shall be decided by the Executive Director, except the disputes regarding the granting and the amount of claims which would involve a change in the contract price, such disputes were to he decided by the Executive Director, subject to arbitration. If the Authority or the contractor requests the arbitration of any of said disputes, a written notice of said petition shall be served on the other party within ten days from the date of the decision or the claim, with regard to which arbitration is requested. If no arbitration is requested, the decision or claim shall be final and binding on the other party, A referee shall be .appointed by the Authority and another one by the contractor, and if within ten days the referees are unable to agree, they shall appoint a third referee and a majority of two shall be conclusive. The works shall in no case be suspended during arbitration, except by written instructions from the Executive Director authorizing a stop in the works.1

In accordance with the evidence presented before the referees who rendered the award object of this proceeding, at the hearing held by them, the following took place: Part of the project consisted in an area to be filled, for which a topographic map was drawn indicating the existing levels, and another for the final fill to be made in the works according to the contract. Realizing that there was something [336]*336that was not clear with regard to the points indicated in the topographic map drawn by the Authority, the contractor requested the latter to draw a new plat and to make new points within that area in order to verify the correctness of the lines drawn in the former plat.

On April 20, 1950 the contractor wrote to Mr. Hidalgo, the engineer of the Authority, requesting information as to the topography which had been ordered by the Authority and stating that the natural grade which appeared on the plats was not the actual one for the reasons he set forth, and that this changed the conditions of the contract. He requested to negotiate the relevant change order. On May 5, 1950, the engineer, Mr. Hidalgo, told the contractor that a topography which the Authority ordered at his request was completed and that the computations to determine whether there was to be a change in the volume of the fill were being made and that possibly there would be an increase. As soon as the reports were completed, they would prepare a change order to cover the difference.

On December 4, 1950 the Authority sent the contractor Change Order No. 13, informing him that upon reconsidering the fill to be deposited in a specific area, additional fill was needed in the amount of 2,287.74 cubic yards, which the contractor would proceed to deposit in accordance with the original plats. A new plat indicating measurements data was included and an equitable adjustment of the contract price was made in the amount of $1,687.75. Said change order was broken down as follows:

“Additions:
2.287.74 cubic yards of fill at $0.80 $1, 830.19
“Deductions:
284.88 cubic yards of excavation at $0.50 142. 44
Total additions: $1, 830.19
Total deductions: 142. 44
Total increase in the contract price: $1, 687. 75”

[337]*337On March 6, 1951, the contractor wrote to the Authority with regard to the above-mentioned Change Order No. 13, stating that he did not accept it because the amount of fill involved was greater than the one mentioned therein by a total of 42,364 cubic yards, which at $0.80 per yard, amounted to $33,891.20 without including the 15% stipulated for the contractor. That the new grading prepared by the Authority at his request had been made without his intervention, and he requested that a new change order be made for the difference in the amount of fill which was actually used in the project. On May 7, 1951, the contractor informed the Authority that subsequent to the former letter he had deposited the additional amount of 2,134.56 cubic yards of fill which at the rate of $0.80, amounted to $1,707.65, his claim thus amounting to $35,598.85, without including the 15% for the contractor.

On December 18, 1951 the contractor sent a letter to the Executive Director, referring to conversations held with Mr. Hidalgo, the engineer, regarding the liquidation of the projects, setting forth that the condition different from project No. 17 was the levels appearing on the topographic map which indicated points which were not true, and reaffirming that the change order was made for an amount of fill less than the actual one. That since Mr. Hidalgo required him to offer a new map to support his claim, he was negotiating with the firm of Deer & Capacete to make the necessary estimates and to calculate the amount of fill furnished by him.

On October 24, 1953, the contractor sent to the Executive Director a survey made by the Foundation Engineering Co. of Puerto Rico, consisting of a topographic map of the area filled in the San José Project, which determined the amount of fill existing therein, the contractor reasserting that the original topographic map drawn by the Authority was not correct since it marked the wrong lines, and hence the existing [338]*338conditions differed from those shown in the plats. He pointed out that said firm had found 120,603 cubic meters of fill, 33,870 more meters than the number in the original plat, which represented 44,302.16 cubic yards or $35,441.61 at $0.80 per yard according to the price agreed upon, plus the 15% making a total of $40,757.84, less $1,687.75 accredited by Change Order No. 13. On November 9, 1953 and in relation to this letter, the Executive Director communicated to the contractor that having studied the documents related to the contract and the history thereof, they did not find any grounds whatsoever to justify the claim and they denied it.

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Bluebook (online)
82 P.R. 333, Counsel Stack Legal Research, https://law.counselstack.com/opinion/puerto-rico-housing-authority-v-superior-court-prsupreme-1961.