Raymond International, Inc. v. Bookcliff Construction, Inc.

347 F. Supp. 208, 1972 U.S. Dist. LEXIS 13006
CourtDistrict Court, D. Nebraska
DecidedJune 28, 1972
DocketCiv. No. 03365
StatusPublished
Cited by4 cases

This text of 347 F. Supp. 208 (Raymond International, Inc. v. Bookcliff Construction, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Nebraska primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Raymond International, Inc. v. Bookcliff Construction, Inc., 347 F. Supp. 208, 1972 U.S. Dist. LEXIS 13006 (D. Neb. 1972).

Opinion

MEMORANDUM

RICHARD E. ROBINSON, Senior Judge.

This matter comes before the Court following a trial to this Court without a [210]*210jury. The following shall constitute this Court’s findings of fact and conclusions of law pursuant to Rule 52 of the Federal Rules of Civil Procedure.

The jurisdiction of this Court is founded upon diversity of citizenship and the amount in controversy, exclusive of interest and costs, exceeds the sum of Ten Thousand Dollars [$10,000.00],

The plaintiff, Raymond International, Inc. [hereinafter referred to as Raymond], filed its complaint against Book-cliff Construction, Inc. [hereinafter called Bookcliff], seeking recovery of the sum of $35,500.00 [less an admitted backcharge of $254.50] alleged to be due for work performed by Raymond pursuant to a written contract.

[A second and third claim originally asserted by the plaintiff were dismissed upon the motion of the plaintiff].

Subsequently Bookcliff filed a third-party complaint against the Metropolitan Utilities District [hereinafter referred to as “MUD”] for damages if Bookcliff is found liable to Raymond and for sums in addition to any possible liability to the plaintiff.

The Court will first set forth general findings of fact and then address each claim separately.

On June 22, 1966, Bookcliff entered into a written contract with MUD. In consideration of approximately $1,850,-000 Bookcliff was to construct a well field water collection system for MUD’s .Platte River Water Treatment Plant. In general Bookcliff was to install pipes and other apparatus necessary to transport water from 37 existing wells located along the Platte River and south of Omaha, Nebraska, to the water treatment plant located approximately one-half mile north of the wells. Thus the system in question was to connect with the wells at one end and the treatment plant at the other end. The wells and the plant are not the subject of the present lawsuit.

Subsequently on August 3rd, 1966, Bookcliff subcontracted with Raymond to line the interiors of underground pipes with cement mortar. This work was to be performed after the pipes were placed into the ground.

Then in June, 1967, flooding occurred at the construction site, and the defendant, Bookcliff, alleges that all damages were caused by the flooding, and that MUD should ultimately be liable for damages caused by the flooding.

RAYMOND’S CLAIM AGAINST BOOKCLIFF:

The Court will first consider the claim of the plaintiff, Raymond as against Bookcliff. The foundation of this claim is the “subcontract” [Plaintiff's Exhibit # 3]. Pursuant to this contract, Raymond was to “furnish all labor, materials, tools, equipment, transportation, supervision and ‘know how’ for the complete construction of all cement mortar lining — in place required for all 42", 48", and 60" pipe and fittings, including all necessary cleaning preparatory to the lining and including necessary curing and final clean up . ALL FOR THE LUMP SUM OF ... $35,500.00”.

It was further stated that:

“It is mutually understood and agreed that the contractor will complete the installation of the pipe lines including the installation of all valves and fittings, and will remove any mud and debris from the lines to be lined, leaving it ‘broom’ clean.”

Raymond satisfactorily performed the work called for by the contract and this work was accepted by Bookcliff, but no payment has been made by Bookcliff to Raymond. There is no dispute as to these facts.

However, dirt, sand, and debris entered the pipe as a result of the flooding, and Bookcliff was forced to remove the flood debris. Since the contract explicitly provided that Bookcliff was to leave the pipes “broom clean” there is little room for dispute as to Bookcliff’s liability to Raymond. MUD has paid Bookcliff for the work performed, but Bookcliff has not paid Raymond.

[211]*211The defendant, Bookcliff, has asserted an “offset” by way of an amended answer which is asserted only in event that MUD is not liable to Bookcliff. ■

The plaintiff objected to this untimely motion to amend the answer since it came after all discovery was completed, and was filed just prior to trial. Rule 15 of the Federal Rules of Civil Procedure provides that leave to amend should be given freely when justice so requires, and it appears that the discovery adequately covered the subject matter of the offset such that prejudice to the plaintiff was minimized.

The plaintiff also contends the defendant, Bookcliff, is in reality asserting a counter-claim and thus barred by the applicable statute of limitations. However, in this situation the amendment would relate back to the date of the original pleading, because it arises out of the same conduct, transaction, or occurrence. See Federal Rules of Civil Procedure 15 [c] and Crowder v. Gordons Transports Inc., 387 F.2d 413 [8th Cir. 1967], Thus the objections to the amendment are without merit. Also without merit is the defense raised by the amended answer. The defendant presented no credible evidence which would support such a claim and on the contrary, the contract provided that Bookcliff turn over the pipe “broom clean” to Raymond for lining, and the debris entered the pipe when it was under the control of Bookcliff. Thus any expenses incurred by Bookcliff were spent in compliance with the terms of the contract. Raymond is clearly entitled to be paid for the work satisfactorily done.

The plaintiff asserts it is entitled to pre-judgment interest on its contractual damages. The amount claimed is expressly set forth in the contract. The plaintiff did deduct a back payment but there is no dispute as to the amount. Thus the sum due is fixed and determined or liquidated.

Raymond completed the work on October 20th, 1967, and MUD paid Bookcliff for the work on November 29th, 1967.

The Nebraska Supreme Court has held that interest is allowable from the date of the completion of the contract when “[T]he contract is found to be clear and unambiguous and the defense untenable”; Mid States Engineering v. Rohde, 182 Neb. 590, 156 N.W.2d 149 [1968]. Accord, National Fire Ins. Co. of Hartford v. Evertson, 157 Neb. 540, 60 N.W. 2d 638 [1953] and Gee v. Sutton, 149 Neb. 603, 31 N.W.2d 747 [1948].

The existence of an unliquidated set-off or counterclaim does not in this case bar interest prior to the entry of judgment. Eastmount Const. Co. v. Transport Mfg. & Equip. Co., 301 F.2d 34 [8th Cir. 1962].

BOOKCLIFF’S CLAIM AGAINST MUD:

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347 F. Supp. 208, 1972 U.S. Dist. LEXIS 13006, Counsel Stack Legal Research, https://law.counselstack.com/opinion/raymond-international-inc-v-bookcliff-construction-inc-ned-1972.