Roberts & Schaefer Co. v. Hardaway Co.

152 F.3d 1283, 1998 U.S. App. LEXIS 21252, 1998 WL 548689
CourtCourt of Appeals for the Eleventh Circuit
DecidedAugust 31, 1998
Docket97-2664
StatusPublished
Cited by37 cases

This text of 152 F.3d 1283 (Roberts & Schaefer Co. v. Hardaway Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roberts & Schaefer Co. v. Hardaway Co., 152 F.3d 1283, 1998 U.S. App. LEXIS 21252, 1998 WL 548689 (11th Cir. 1998).

Opinion

• MARCUS, Circuit Judge:

This diversity ease arises out of three contracts between Roberts & Schaefer Company (“R & S”), a general contractor, and The Hardaway Company (“Hardaway”), a subcontractor, concerning construction of a phosphate beneficiation plant for Mobil Mining & Minerals Co. (“Mobil”). Following a jury trial before the magistrate judge, the court entered judgment for Hardaway on two of the contracts, and judgment for R & S on the third. On appeal, Hardaway contends that the magistrate judge erred in permitting R & S to take advantage of the unilateral mistake doctrine with respect to one of the contracts and further asserts that the trial court incorrectly applied the doctrine in this ease. R & S, meanwhile, cross-appeals and challenges the damages awarded to Harda-way on one of the other contracts. We find that the magistrate judge acted within his discretion when he applied the unilateral mistake doctrine in this case. We also conclude that the damages award to Hardaway is not *1286 in error. Accordingly, we affirm the judgment.

I.

A.

A detailed review of the facts is necessary to understand our holding. Mobil engaged R & S to design and build a phosphate benefici-ation plant for an initial lump sum of approximately $44,300,000. In accordance with Mobil’s arrangement with R & S, construction was to proceed on a “fast track.” In the construction business, this means that construction commences under a schedule of simultaneous design, building, and construction. In other words, in this ease, R & S was to begin construction before it completed the design and finalized a set of fully coordinated plans.

Consistent with fast-track construction, prior to finishing the design of the plant, R & S awarded three subcontracts to Hardaway. Specifically, and in the order of award, R & S and Hardaway entered into subcontracts for (1) structural steel/mechanical erection (“703 Contract”), (2) underground piping (“707 Contract”), and (3) above-ground piping (“712 Contract”). Although only the 712 and 703 Contracts are at issue on appeal, we review formation of all three contracts to establish the parties’ pattern of doing business.

Each of the three Contracts awarded contained engineering plans and specifications comprising hundreds of pages. The substance of the agreement between the parties, however, was contained within the Construction Agreement, which was nearly identical in all three Contracts. Among other relevant provisions, the Construction Agreements provided as follows:

ARTICLE II: PERFORMANCE OF THE WORK BY CONTRACTOR
* * *
2.3 Contractor shall employ sufficient labor and supervision to work as many shifts per week as necessary to complete the various components of the work by the interim completion dates specified in the agreed upon Schedule....
* *
ARTICLE V: WORK SCHEDULE
* * *
5.1 Contractor shall submit to Company a proposed Work Schedule for the Work set out in a form in conformance with the Specifications.
5.2 After review and approval of the proposed Work Schedule by Company, the Schedule shall be binding on both parties, and shall be changed only in conformance with the provisions of this Agreement.
5.3 It is further agreed that time is of the essence of each and every portion of this Agreement and of the Specifications wherein a definite and certain length of time is fixed for the performance of any act whatsoever; and, where an additional time is allowed for the completion of any Work, the new time limit fixed by such extension shall be of the essence of this Agreement. If Contractor fails to meet any deadline set forth in the Contract Documents, Contractor shall be liable to Company for any excess costs incurred which are attributed to Contractor’s failure.
ARTICLE VII: CHANGES, DELETIONS AND EXTRA WORK
* * *
7.1 Company may, at any time, make additions, deletions, or changes in the Work of either a major or a minor nature. All such modifications shall be authorized by written change orders.
7.9 If any dispute shall arise under this Agreement, Contractor shall continue to execute the work pending determination thereof unless requested by the Construction Manager or Company to suspend or terminate the Work or any portion thereof.
* * *
ARTICLE XII: TERMINATION ON CONTRACTOR’S DEFAULT
*1287 12.1 Company may, without limitation or exclusion of any other remedy, terminate Contractor’s right to perform the Work, if:
(a) Contractor shall fail to:
a. Make such progress with the Work as reasonably to conform with the Approved Work Schedule, or
(vii) Perform any other material obligation required by this Agreement,
* * *
12.5 If the Company terminates Contractor’s right to perform the Work asserting one of the grounds set out in Paragraph 12.1 and those grounds are subsequently determined to be inapplicable, Company’s action shall then be deemed to be a termination pursuant to Article XIII.
ARTICLE XIII TERMINATION FOR COMPANY’S CONVENIENCE
13.1 Company may terminate this Agreement for its convenience on giving written notice to Contractor. Contractor shall stop all Work on the date specified in the notice, and Company shall pay Contractor for:
(a) All Work satisfactorily performed to date of termination, and
(b) All actual and reasonable costs incurred by Contractor as a consequence of the termination.
Company shall [] not be hable to pay any bonus, damage or other claim asserted by Contractor, for its expected profit on the uncompleted portion of the Work.
* * *

1. The 70S Contract

When R & S invited Hardaway to bid on the 703 Contract, Hardaway responded with a written, signed bid and a form showing exceptions or clarifications to the bid drawings and specifications. A post-bid/pre-award meeting occurred between R & S and Hardaway. On March 9,1994, R & S awards ed the 703 Contract to Hardaway by signed letter accepting a bid of $2,497,000, and stating that a formal contract would be signed later. Hardaway began work on March 9. On April 6, 1994, it submitted a pay application seeking $152,550. The parties signed a formal contract the same day, with an “effective” date of March 8, 1994; corresponding to the date of oral notification of the award.

The 703 Contract was bid and accepted on a lump-sum basis.

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Bluebook (online)
152 F.3d 1283, 1998 U.S. App. LEXIS 21252, 1998 WL 548689, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roberts-schaefer-co-v-hardaway-co-ca11-1998.