Scherer Construction, LLC v. Hedquist Construction, Inc.

2001 WY 23, 18 P.3d 645, 2001 Wyo. LEXIS 28
CourtWyoming Supreme Court
DecidedMarch 1, 2001
Docket00-106, 00-107
StatusPublished
Cited by67 cases

This text of 2001 WY 23 (Scherer Construction, LLC v. Hedquist Construction, Inc.) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scherer Construction, LLC v. Hedquist Construction, Inc., 2001 WY 23, 18 P.3d 645, 2001 Wyo. LEXIS 28 (Wyo. 2001).

Opinion

HILL, Justice.

[T1] These consolidated cases concern a dispute arising out of a subcontractor agreement. In case No. 00-106, the subcontractor, Scherer Construction, LLC, (Scherer) appeals the district court's grant of summary judgment on its claim for breach of contract including the implied covenant of good faith and fair dealing by the main contractor, Hed-quist Construction, Inc. (Hedquist), in soliciting and obtaining a change order from the City of Casper. In Case No. 00-107, Hed-quist appeals from the district court's determination that it had failed to fully compensate Scherer for work actually performed under the subcontract and denying Hedquist a set-off. We reverse that portion of the district court's decision in Case No. 00-106 relating to Scherer's claim for breach of the implied covenant of good faith and fair dealing. In Case No. 00-107, we conclude that the district court's findings and conclusions are not clearly erroneous and affirm.

[¶2] In Case No. 00-106, Scherer presents the following issue for consideration:

Did the trial court err in granting summary judgment in favor of [Hedquist] and against [Scherer] with respect to [Scherer's] claim for breach of contract, including its claim for breach of the implied covenant of good faith and fair dealing?

Hedquist responds with the following statement:

Whether the trial court committed reversible error in granting summary judgment where the undisputed facts supported Hedquist's contention that no breach of contract had occurred, and where Scherer submitted no facts or evidence supporting a cause of action for breach 'of the implied covenant of good faith and fair dealing.

In Case No. 00-107, Hedquist presents a single issue for consideration:

Was the trial court's finding that Hedquist failed to give Scherer reasonable notice to repair its defective work, clearly erroneous or incorrect as a matter of law, considering the parties' unambiguous contract provisions regarding Scherer's duty to perform its work in a timely and workmanlike manner, and the undisputed evidence regarding numerous requests for Scherer to repair said defective work?

Scherer counters with a short statement of the issue in the form of a question:

Did the trial court commit clear error in awarding a judgment in favor of Scherer on its claim for amounts due for work performed on the Project?

FACTS

Case No. 00-106

[T8] Pursuant to our standard of review for summary judgments, the recitation of facts is from the vantage point most benefi-clal to the party who opposed the motion, awarding that party all favorable inferences that may be drawn from those facts. S & G Investors, LLC v. Blackley, 994 P.2d 941, 943 (Wyo.2000).

[T4] Hedquist was the main contractor for the City of Casper's East Second Street Reconstruction Project (the Project). Scherer was the successful bidder for the paving subcontract. The Project's specifications called for the use of "performance graded" asphalt, which was a special rubberized as-phait. Approximately $340,000.00 of Scherer's total $448,802.48 bid was related to the costs associated with the special rubberized asphalt. Pursuant to the requirements of the Project, Scherer expended in excess of $35,000.00 on special equipment and materials.

*649 [T5] The contract between Hedquist and the City of Casper (the Main Contract) contained the following clauses:

6.11 All Work performed for [Hedquist] by a Subcontractor or Supplier will be pursuant to an appropriate agreement between [Hedquist] and the Subcontractor or Supplier which specifically binds the Subcontractor or Supplier to the applicable terms and conditions of the [Main Contract]....
[[Image here]]
10.1 Without invalidating the Agreement and without notice to any surety, [the City of Casper] may, at any time or from time to time, order additions, deletions or revisions in the Work. Such additions, deletions or revisions will be authorized by a Written Amendment, a Change Order, or a Work Change Directive. Upon receipt of any such document, [Hedquist] shall promptly proceed with the Work involved which will be performed under the applicable conditions of the Contract Documents (except as otherwise specifically provided).

The subcontract agreement between Hed-quist and Scherer, which was entered into on April 8, 1998, contains parallel language:

In consideration therefore, the Subcontractor (Scherer) agrees as follows:
[[Image here]]
2. To be bound by the terms of said Main Contract with the [City of Casper] (including every part of and all the general and special conditions, drawings, specifications and addenda), in any way applicable to this Subcontract[.]
[[Image here]]
(d) HEDQUIST may, without invalidating the SUBCONTRACT, order extra work or make changes by altering, adding to, or deducting from the work; the price herein being adjusted accordingly. All such work shall be executed under the conditions hereof, and of the MAIN CONTRACT, except that any claim for extension of time caused thereby must be agreed upon at the time of ordering such change.

[¶6] At the start of the Project, the use of concrete instead of asphalt had not been considered because of the presumed higher costs associated with concrete. However, shortly before the paving phase of the Project was to commence, discussions regarding a possible switch to concrete took place between Hedquist, the City of Casper, and the Project Engineer. According to a representative of the City, Hedquist initiated the discussions. The parties concluded that concrete would not, in fact, be cost prohibitive. On June 3, 1998, Hedquist sent a letter to the Project Engineer detailing a cost comparison between concrete and asphalt. On the same day, the Project Engineer sent a letter to the City detailing Hedquist's proposal. In a June 12 letter, Hedquist stated that it felt "that the concrete paving alternate would be a positive partnering/value-engineering concept for this project."

[¶7] On June 19, 1998, the City Engineer and Public Services Director recommended the issuance of a change order pursuant to the Main Contract allowing the substitution of concrete for asphalt paving on the Project. A change order for the substitution was approved by the City on the same day. The net effect of the change from asphalt to concrete paving was to reduce the value of Scherer's subcontract from $448,240.45 to $105,098.81. In addition, the specialized materials and equipment Scherer had already purchased in anticipation of asphalt paving were rendered superfluous by the change.

[¶8] On July 10, 1998, Scherer filed this action against Hedquist Among other causes of action not relevant to this appeal, Scherer claimed that Hedquist breached the subcontract and an implied covenant of good faith and fair dealing. In response, Hedquist moved for summary judgment. In opposition to Hedquist's motion, Scherer made three arguments in support of its action.

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

Related

Kelly Wilcox v. Security State Bank
2023 WY 2 (Wyoming Supreme Court, 2023)
Hermanson v. Baca
D. Nevada, 2022
Woodie v. Berkshire Hathaway
Tenth Circuit, 2020
Lemus v. Martinez
441 P.3d 831 (Wyoming Supreme Court, 2019)
James v. TACO John's Int'l, Inc.
425 P.3d 572 (Wyoming Supreme Court, 2018)
Bear Peak Resources, LLC v. Peak Powder River Resources, LLC
2017 WY 124 (Wyoming Supreme Court, 2017)
Denbury Onshore, LLC v. Christensen
101 F. Supp. 3d 1147 (D. Wyoming, 2015)
Martinez v. Rocky Mountain Bank
540 F. App'x 846 (Tenth Circuit, 2013)
Bowers Oil & Gas, Inc. v. DCP Douglas, LLC
2012 WY 103 (Wyoming Supreme Court, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
2001 WY 23, 18 P.3d 645, 2001 Wyo. LEXIS 28, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scherer-construction-llc-v-hedquist-construction-inc-wyo-2001.