Red-Samm Mining Co. v. Port of Seattle

508 P.2d 175, 8 Wash. App. 610, 1973 Wash. App. LEXIS 1482
CourtCourt of Appeals of Washington
DecidedApril 2, 1973
DocketNo. 1518-1
StatusPublished
Cited by3 cases

This text of 508 P.2d 175 (Red-Samm Mining Co. v. Port of Seattle) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Red-Samm Mining Co. v. Port of Seattle, 508 P.2d 175, 8 Wash. App. 610, 1973 Wash. App. LEXIS 1482 (Wash. Ct. App. 1973).

Opinion

James, J.

Red-Samm Mining Company, Inc. and General Construction Company, joint venturers (hereinafter Red-Samm), brought this action against the Port of Seattle seeking reformation of a contract by which Red-Samm agreed “to furnish all labor, material, and supplies, and to construct” the port’s “L.D.I.D.D. Terminal 115 — Development Unit No. 2, Yard Improvements and Utilities” for the sum of $2,535,062.56.

The parties entered into a stipulation as to agreed facts. Red-Samm moved for a summary judgment decreeing that the contract be reformed to increase the contract price by $96,650.34. The port moved for a summary judgment of dismissal. The trial judge ruled that Red-Samm’s motion should be granted and entered judgment “reforming the amount of that certain contract between the parties . . . from $2,535,062.56 to read ‘$2,631,712.90, effective as of the date of contract award.’ ” We do not agree.

The formal “Order Upon Motions For Summary Judgment” recites that the trial judge considered (1) the stipulation as to agreed facts, (2) each party’s memorandum of authorities, and (3) a news article “respecting the Red-Samm bid.” The order also includes the following:

[612]*612II. Findings
The court having considered the evidence and argument of counsel, finds:
2.1 No Issue: There is no genuine issue as to any material fact in this action..
2.2 Judgment: Plaintiff is entitled to summary judgment in accordance with the prayer of its complaint as a matter of law. Defendant’s motion for summary judgment should be denied.

The facts which we consider to be controlling are as follows: The port advertised for competitive bids as required by RCW 53.08.120-.130, and provided bidders with a 15-page document entitled “Bid for Unit-Price Contract.” By the terms of the bid form, the contemplated construction was broken down into seven categories as follows:

A. Earthwork and Yard Grading
B. Surfacing, Paving and Curbing
C. Fencing
D. Sanitary 'and Storm Sewers
E. Water Distribution and Appurtenances
F. Trackwork
G. Electrical

Each of the categories was further broken down into numbered units and bidders were required to bid a dollar amount for each of 117 separate items. Each bidder agreed “to construct the project in accordance with the contract documents, within the time set forth therein, and at the prices stated below ” (Italics ours.) The bid form further provided that “[t]he above unit prices shall include all labor, materials, bailing, shoring, removal, overhead, profit, insurance, etc., to cover the finished work of the several kinds called for.” (Italics ours.) The port reserved the right to reject any or all bids.

At an appropriate place in the bid form there was provided space for totaling the amount of the bids. Red-Samm totaled the 117 unit prices of “Items A through G” to be $2,631,712.90. The news story which the trial judge considered as evidence concerned the public bid opening and [613]*613reported that Red-Samm’s $2,631,712.90 bid “was the low of five bidders.”

After the formal bid opening, the port determined that the correct total of Red-Samm’s unit price bids was $2,535,062.56 ($96,650.34 less than the total of Red-Samm’s bids). Thereafter, according to the stipulation as to agreed facts, Red-Samm undertook to persuade the port to accept the higher figure as its “bid” after explaining “where the discrepancy occurred.”

The stipulation as to agreed facts and the record on appeal provide us no explanation concerning the discrepancy beyond the obvious conclusion that the unit bid amounts were erroneously totaled by Red-Samm.

The port refused to award the contract at the higher figure and “gave [Red-Samm] the option of accepting the award at the lower sum, or risking forfeiture of its [bid] bond.” It is stipulated that Red-Samm then accepted the port’s tender of the award at the $2,535,062.56 figure, reserving its right “to bring legal action for the purpose of recovering the additional sum of $96,650.34.” A formal contract at $2,535,062.56 was executed and performed by Red-Samm.

In its complaint, Red-Samm alleges that it entered into the contract at the lower figure “under duress of these circumstances.” It asserts that “[e]quity should not permit a contracting party to ‘snap-up’ an offer which it knows to be mistaken, and by duress of economic retaliation, unjustly benefit itself.”

The record on appeal is silent as to the trial judge’s reasons for granting Red-Samm’s motion for summary judgment. Red-Samm’s trial brief, which the trial judge considered, may fairly be summarized as a plea for equitable relief because of an error in the preparation of its bid. The issue which we consider to be controlling was not briefed or argued. It Was, however, tendered by Red-Samm’s complaint. Red-Samm asked to be relieved of its agreement to perform the contract at the lower figure because it contracted under the compulsion of duress.

[614]*614Under compelling circumstances, equity’s abhorrence of forfeiture may be invoked to relieve a public works bidder from the consequences of his erroneous bid by denying forfeiture of his bid bond. Puget Sound Painters, Inc. v. State, 45 Wn.2d 819, 278 P.2d 302 (1954).

Equity has the same power to relieve from forfeitures provided for by statute as it has to relieve from forfeitures provided for by ordinary contract.

Donaldson v. Abraham, 68 Wash. 208, 211, 122 P. 1003 (1912).

However, facts which will persuade equity to deny forfeiture will not necessarily support a judgment for affirmative relief.

Red-Samm could have refused the port’s tender of the contract award at the lower figure and asserted any equitable defenses it might have in the event that the port sought forfeiture of its bid bond. Red-Samm elected, however, to accept the contract at the lower figure. Under these circumstances, it cannot claim duress. It is not duress to threaten to do what one has a legal right to do. 25 Am. Jur. 2d Duress & Undue Influence § 18 (1966).

Dangerous, indeed, would be the doctrine that contracts could be repudiated at will, when entered into by competent and capable men of comprehensive experience and sound judgment. If, in fact, they became the victims of duress, they cannot at the same time ratify, and bide their pleasure to disavow their act. A threat of litigation by one who has a legal right to sue, is not generally held to be duress within the meaning of the law.

Walla Walla Fire Ins. Co. v. Spencer, 52 Wash. 369, 373, 100 P. 741 (1909). Accord, Zent v. Lewis, 90 Wash. 651, 156 P. 848 (1916); Cornwall v. Anderson, 85 Wash. 369, 148 P. 1 (1915).

Under appropriate circumstances, equity will reform a contract to express the true intention of the parties. Thorsteinson v. Waters,

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

Related

One Der Works Ii, Res. v. James K. Duncan, App.
Court of Appeals of Washington, 2013
Peter Kiewit Sons' Co. v. Department of Transportation
635 P.2d 740 (Court of Appeals of Washington, 1981)
Clover Park School District No. 400 v. Consolidated Dairy Products Co.
550 P.2d 47 (Court of Appeals of Washington, 1976)

Cite This Page — Counsel Stack

Bluebook (online)
508 P.2d 175, 8 Wash. App. 610, 1973 Wash. App. LEXIS 1482, Counsel Stack Legal Research, https://law.counselstack.com/opinion/red-samm-mining-co-v-port-of-seattle-washctapp-1973.