Ronald Adams Contractor, Inc. v. United States

60 F. App'x 315
CourtCourt of Appeals for the Federal Circuit
DecidedFebruary 24, 2003
DocketNo. 02-5095
StatusPublished

This text of 60 F. App'x 315 (Ronald Adams Contractor, Inc. 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.

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Ronald Adams Contractor, Inc. v. United States, 60 F. App'x 315 (Fed. Cir. 2003).

Opinion

DECISION

SCHALL, Circuit Judge.

On November 11, 1995, Ronald Adams Contractor, Inc. (“Adams”) entered into a contract with the United States Army Corps of Engineers (“Corps”) for the construction of flood control levies in the vicinity of Lake Pontchartrain, Louisiana. After the contract work was completed, Adams filed suit in the United States Court of Federal Claims under the Contract Disputes Act of 1978, 41 U.S.C. § 601, et seq. In its suit, Adams challenged the final decision of the contracting officer that denied (i) its claim for an equitable adjustment based upon an alleged differing site condition and (ii) its claim for an equitable adjustment based upon an alleged constructive change. On February 28, 2002, the Court of Federal Claims granted the government’s motion for sum[316]*316mary judgment with respect to both claims and dismissed the complaint. Ronald Adams Contractor, Inc. v. United States, No. 00-445C (Fed.Cl. Feb. 28, 2002). Adams now appeals the grant of summary judgment with respect to the constructive change claim. Because we conclude that there are genuine issues of material fact, we vacate the summary judgment in favor of the United States and remand the case to the trial court for further proceedings consistent with this opinion.

ANALYSIS

I.

The earthen levies that were to be constructed under the contract were to consist of material from a “borrow pit” 400 feet wide and 2300 feet long. Certain provisions of the contract addressed the way in which material was to be removed from the borrow pit. Section 0220-2, Paragraph 3.2.1 provided:

To make optimum use of available material, excavation shall begin at one end of the borrow and be made continuous across the width of the area to the required depth.

Ronald Adams Contractor, No. 00-445C, slip op. at 11.

At the same time, Note 8 on the drawing titled “Typical Section of the Clay Borrow Pit” stated:

Excavation within the borrow area shall begin at the most southern end of the pit and shall progress full width and depth towards the north end. The contractor shall begin excavation operations in areas adjacent to previously excavated pits.

Id.

On February 1, 1996, Adams submitted its excavation plan for the borrow pit, which was approved by the Corps on March 25, 1996. The plan stated in pertinent part as follows: “Excavation shall be within the borrow area limits shown on drawing 7 of the project plans and shall begin at the North end and progress full width toward the South end. Excavation shall be to a elevation of -15.0 feet----” Subsequently, during the first week of May 1996, the Corps directed Adams to cease its excavation work. The Corps informed Adams that, in removing fill material, it was not complying with its approved excavation plan or with the requirements of the contract. Eventually, Adams performed the excavation work in the manner directed by the Corps.

After the contract work was completed, Adams submitted a claim to the contracting officer for additional compensation under the contract. Adams argued that the Corps’ order to cease excavation and to use a different method of excavating the borrow pit amounted to a constructive change that caused it to incur additional costs. After the contracting officer denied the claim, Adams appealed to the Court of Federal Claims.

II.

A constructive change entitles a contractor to an equitable adjustment. See 48 C.F.R. § 52.243-4. A constructive change occurs when the government requires work beyond contract requirements. In order to decide whether a constructive change has occurred, the court must examine the pertinent contract language in order to see what the contract requirements were, so that the court can determine whether the government changed those requirements. See Aydin Corp. v. Widnall, 61 F.3d 1571, 1577 (Fed.Cir.1995).

In this case, Adams asserts that the Corps constructively changed the contract when it directed Adams to alter its method of excavating fill material from the borrow [317]*317pit. In addressing that claim, the Court of Federal Claims considered the contract language quoted above. The court concluded that the “[t]he contract’s plain language” required that Adams excavate the borrow pit using the “single-cut” excavation method. Ronald Adams, No. 00-445C, slip op. at 12. Having thus construed the contract, the court determined that what it referred to as Adams’ “twin-cut” method did not meet contract requirements. Id. Accordingly, the court held that the Corps did not constructively change the contract when it directed Adams to cease work and use the “single-cut” method of excavation. Id. at 13.

III.

Summary judgment is appropriate when there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Fed. C.R. 56(c); Anderson v. Liberty Lobby, 477 U.S. 242, 255, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). We review the grant of summary judgment for correctness, determining whether the matter was amenable to summary resolution and, if so, whether the law was correctly applied to undisputed facts. Mass. Bay Transp. Auth. v. United States, 129 F.3d 1226, 1230-31 (Fed.Cir.1997). Contract interpretation is a question of law that is subject to plenary review on appeal. Id. at 1231 (citing Aerolineas Argentinas v. United States, 77 F.3d 1564, 1576 (Fed. Cir.1996)).

As just noted, the Court of Federal Claims construed the contract as requiring that Adams excavate the borrow pit using the “single-cut” method. The requirement that the borrow pit be excavated in a “single cut” is supported by the contract language, and we see no error in the court’s construction. However, because the trial court’s decision and the contentions of the parties leave three questions unanswered we vacate and remand.

The first question is how exactly is the “single-cut” method performed? Adams was required to excavate down to a depth of twenty-five feet from the surface. The Court of Federal Claims construed the contract so that an operation under which Adams went completely across the borrow pit and removed ten feet of material and then made a second pass across the pit and removed fifteen feet of material would not meet the requirements of the contract. Ronald Adams, No. 00-445C, slip op. at 12. That would be a “two-pass” method. The parties agree that an operation in which Adams used a large shovel resting on the edge of the borrow pit and excavated down to a depth of 25 feet below the surface would be use of a “single-cut” method and would comply with the requirements of the contract. Such a method of operation is shown at page 9 of Adams’ opening brief on appeal.

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