Ruby-Collins, Inc. v. City of Charlotte

740 F. Supp. 1159, 1990 U.S. Dist. LEXIS 8481, 1990 WL 94579
CourtDistrict Court, W.D. North Carolina
DecidedJuly 3, 1990
DocketC-C-89-287-P
StatusPublished
Cited by1 cases

This text of 740 F. Supp. 1159 (Ruby-Collins, Inc. v. City of Charlotte) is published on Counsel Stack Legal Research, covering District Court, W.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ruby-Collins, Inc. v. City of Charlotte, 740 F. Supp. 1159, 1990 U.S. Dist. LEXIS 8481, 1990 WL 94579 (W.D.N.C. 1990).

Opinion

MEMORANDUM OF DECISION AND ORDER

ROBERT D. POTTER, Chief Judge.

THIS MATTER is before the Court on the Defendant’s Motion for Summary Judgment, filed February 12, 1990. The Plaintiff has filed its Response to the Defendant’s Motion.

On May 15, 1990, the Court conducted a hearing in Charlotte, North Carolina to listen to the parties’ oral arguments on the Plaintiff’s Motion for Summary Judgment. At the hearing, the Plaintiff, Ruby-Collins, Inc. (hereafter “Ruby-Collins”), was represented by Attorney Richard E. Fay of the law firm of Petree, Stockton and Robinson of Charlotte, North Carolina and Attorney Lynn C. Stewart of the law firm of Schreeder, Wheeler & Flint of Atlanta, Georgia. The Defendant, the City of Charlotte (hereafter “the City”), was represented by Attorney H. Michael Boyd of the City Attorney’s Office. Since the hearing on May 15, 1990, the parties have filed additional materials with the Court.

In this diversity action, Ruby-Collins is seeking to recover approximately $1.5 million as an equitable adjustment to a contract for the construction of a water main through the City of Charlotte. In constructing the water main, Ruby-Collins needed to excavate a trench for the pipeline, lay the pipeline, and fill in the trench. According to the specifications in the contract between Ruby-Collins and the City, Ruby-Collins needed to fill in the trench by encapsulating the pipeline in a minimum of *1161 one foot of stone and by depositing six to eight feet of backfill in the trench on top of the stone. Backfill is the term given to materials used to fill in the trench and often is the soil originally excavated in digging the trench. In backfilling the trench, Ruby-Collins encountered some moisture problems and, consequently, allegedly provided materials and equipment and performed work that was beyond the scope of the contract and could not reasonably have been anticipated. Ruby-Collins bases its claim for an equitable adjustment to the contract between itself and the City on this alleged extra work.

I. THE PARTIES’ CONTENTIONS IN REFERENCE TO THE CITY’S MOTION FOR SUMMARY JUDGMENT

The City bases its Motion for Summary Judgment on three grounds. The City argues, first, that the contract between Ruby-Collins and itself clearly required Ruby-Collins to perform all of the backfill work, including providing any materials needed to complete such work, necessary for the installation of the water main in conformity with the project’s specifications. The City argues, second, that if the work performed by Ruby-Collins was not work originally covered by the contract, but extra work, Ruby-Collins failed to comply with the contract’s applicable provisions regarding the recovery of additional compensation for extra work. The City contends that Ruby-Collins failed to give timely notice of the filing of a claim for extra work, failed to file a timely claim for each of the instances claimed to be extra work, and failed to maintain proper cost records. The City argues, third, that Ruby-Collins’ prebid subsurface investigation, its primary basis for recovery, admittedly failed to contain a determination that Ruby-Collins could use the excavated soil immediately for backfill, despite Ruby-Collins’ initial allegations in the Complaint to the contrary.

Ruby-Collins foreseeably argues that the Court should deny the City’s Motion for Summary Judgment. Ruby-Collins argues, first, that by encountering conditions which substantially changed the nature of the work performed and which were not contemplated by either Ruby-Collins or the City, it is entitled to an equitable adjustment to the contract. Ruby-Collins contends that the absence of a changed conditions clause in the contract does not preclude an equitable adjustment to the contract. Ruby-Collins contends, also, that the extra work provisions of the contract authorize an equitable adjustment. Ruby-Collins argues, second, that it fulfilled the contract’s applicable notice, time-keeping, and record-keeping requirements or, alternatively, that the City waived those requirements. Ruby-Collins argues, third, that its own pre-bid site, investigation was adequate and that in preparing its bid, it had a right to rely upon the City’s soil reports.

II. STATEMENT OF THE FACTS

A. The Water Main Project and Its Construction

In June 1986, the City solicited bids for the construction of a water main. The proposed water main would begin at the intersection of Tuckaseegee Road and Vanizer Street in northwestern Charlotte and end at the intersection of Sharon Amity and Providence Roads in southeastern Charlotte, a distance of approximately six miles. The City divided the water main project into three distinct segments. The City eventually awarded the entire water main project to Ruby-Collins, who submitted the lowest bid of $11.5 million. Ruby-Collins has constructed the water main and has received in excess of $12.5 million from the City for work performed.

The City retained HDR Infrastructure, Inc. of North Carolina (HDR) to serve as the engineer for the water main project. As the engineer, HDR designed the water main and administered the contract between Ruby-Collins and the City. HDR in turn retained Soil and Material Engineers, Inc. (SME) to, among other things, prepare a “Report of Subsurface Explorations” (hereafter “the SME Report”), in which SME evaluated the subsurface conditions along the route of the pipeline, including soil and ground-water conditions, and pro *1162 vided design and construction guidance concerning backfill placement and compaction requirements within roadway areas. The City provided the SME Report to potential bidders for use at their own risk.

The design of the water main project required Ruby-Collins to install the water main mostly under existing, paved streets. The design, therefore, required Ruby-Collins to dig a trench, install the pipeline, and backfill the trench. Under the design’s specifications, the backfill needed to be free of rocks, cobbles, roots, sod or other organic matter, and frozen material and also needed to meet moisture density requirements established by HDR. HDR retained SME to, in addition to preparing the SME Report, determine whether Ruby-Collins completed the backfill process in accordance with the design’s specifications.

In computing its bid for the water main project, Ruby-Collins reviewed the pipeline route, made sample borings during its own pre-bid site investigation, and studied the SME Report. According to the deposition testimony of Mr. Ben Morgan, Ruby-Collins’s Vice President, Ruby-Collins during its pre-bid site investigation did not try to evaluate the condition of the soil to be excavated regarding its suitability for use as backfill. Ruby-Collins, instead, merely engaged in a visual inspection of the proposed pipeline route. Ruby-Collins assumed that the soil which it intended to excavate in digging the trench and to use as backfill would be sufficiently dry to compact immediately and allow Ruby-Collins to prepare for paving. Ruby-Collins based this assumption on the fact that the soil already was being used to support the paving of the existing streets. Ruby-Collins, however, made no specific effort to determine the accuracy of its assumptions.

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Related

Ruby-Collins, Incorporated v. City of Charlotte
930 F.2d 23 (Fourth Circuit, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
740 F. Supp. 1159, 1990 U.S. Dist. LEXIS 8481, 1990 WL 94579, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ruby-collins-inc-v-city-of-charlotte-ncwd-1990.