Southern Fireproofing Company v. R. F. Ball Construction Company, Inc., Southwest Ball Construction Company and National Surety Corporation

334 F.2d 122, 1964 U.S. App. LEXIS 4811
CourtCourt of Appeals for the Eighth Circuit
DecidedJuly 7, 1964
Docket17388_1
StatusPublished
Cited by16 cases

This text of 334 F.2d 122 (Southern Fireproofing Company v. R. F. Ball Construction Company, Inc., Southwest Ball Construction Company and National Surety Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southern Fireproofing Company v. R. F. Ball Construction Company, Inc., Southwest Ball Construction Company and National Surety Corporation, 334 F.2d 122, 1964 U.S. App. LEXIS 4811 (8th Cir. 1964).

Opinion

BLACKMUN, Circuit Judge.

This diversity controversy is one between a construction project’s masonry subcontractor and the general contractor. The latter prevailed in the trial -court. The subcontractor appeals.

In September 1955 R. F. Ball Construction Company, Inc. and Southwest Ball Construction Company, joint adventurer corporations which we collectively refer to herein as “Ball”, were awarded the contract for the construction of two high school plant-complexes for the Independent School District of Cedar Rapids, Iowa. The agreement provided that the work was to be performed in accord with the architect’s drawings and specifications, that it was to be completed within 720 calendar days from the date of the contract, and that the completion date “shall be extended” if Ball were to be delayed in its work for stated causes. A performance bond, executed by Ball and by National Surety Corporation as surety, accompanied the contract.

On or about March 13, 1956, Ball and Southern Fireproofing Company, a partnership, executed a subcontract, dated February 18, 1956, whereby Southern agreed to perform both the exterior and the interior masonry work on the project in accord with the governing specifications and the General Conditions and other terms of Ball’s contract with the owner. The subcontract provided that Ball would pay to Southern “the Lump Sum Firm Price of SIX HUNDRED FIFTY-SEVEN THOUSAND FIVE HUNDRED DOLLARS ($657,500.00) total for both schools”. The agreement was on a printed form with blanks. We set forth in the margin those provisions which are pertinent here and we underline the material which was typed in the blank spaces. 1

*124 The General Conditions which were made part of the prime contract were the AIA standard form. So far as the provisions of this instrument appear to be pertinent here, we also set them forth in the margin. 2

The litigation had its inception in December 1957 when Ball sued Southern to *125 recover damages, of comparatively small amount, resulting from a fire loss alleged to have been sustained on the job because of Southern’s negligent handling of a fire laden salamander. Upon stipulation this claim was dismissed with prejudice but without effect upon a pending counterclaim filed by Southern alleging that sums were due it under the subcontract and seeking to compel arbitration under the federal Arbitration Act of 1947, 9 U.S.C. §§ 1-14.

Judge Graven, after a hearing, entered an order in February 1960, denying Southern’s application for arbitration. This denial flowed from the court’s conclusion that the contract for the construction of these Iowa public school buildings was not one “evidencing a transaction involving commerce”, within the meaning and reach of the Arbitration Act. Southern thereupon amended its counterclaim, did not thereafter seek to compel arbitration, and asserted damages for breach of contract.

The case in due course proceeded to trial before Judge Delehant without a jury. In its trial posture, therefore, although cast in the form of a counterclaim, it was an action by Southern against Ball for damages.

The issues as they come to us, with one possible addition noted below, concern :

(1) Ball’s liability to Southern for damages incurred by delay;

(2) Ball’s liability to Southern for the cost of constructing a certain wall; and

(3) Ball’s liability to Southern for damages incurred by Ball’s refusal to arbitrate.

Each of these issues was decided adversely to Southern. We consider them in order.

A. The delay. The trial court specifically found that, as a result of delays, Southern incurred additional costs amounting to $47,088.14. There is no challenge here to this conclusion or to this figure. Judge Delehant also found, however, that the delay was not the fault of Ball but that its “prime proximate cause” was subsurface conditions at the two sites. To this Southern takes exception. Southern’s argument is that, under the contract documents and the evidence, Ball is responsible for Southern’s increased costs due to the subsurface conditions; that even apart from this Ball is responsible because of its own delays; and that Ball’s progress schedules were relevant and required enclosure by December 1, 1956, so as to relieve Southern of the greater expenses which would be occasioned by exterior work in the winter.

Ball’s position is that Southern’s reliance on Article 15 of the General Conditions relating to the subsurface interjects into the case an entirely new theory which was not pleaded and which was not within the scope of the trial; that Article 15 was not a contractual obligation to pay Southern any increased cost it incurred; that the subcontract contained no warranty as to dates for Southern’s work; that the instrument’s very language indicated the possibility of delay; that the progress schedules were not warranties; that their contents were not even known to Southern until after the subcontract was executed; that by then Southern was aware of delays already incurred; that the delays on the job were not occasioned by Ball; that the subsurface conditions were their proximate cause; and that Ball did not interfere with Southern’s work.

Ball prepared progress schedules, both before and during construction, for each school. These were required by Article 3 of the General Conditions and were revised from time to time. Only two were received in evidence. Although Southern knew of their existence, these were seen by it for the first time when they were called for at the trial. These two were dated October 1955 and thus were after the prime contract but before the subcontract. The schedules set forth estimated starting dates for the masonry work of June 1 and July 1, 1956, respectively, for the two schools, and De *126 -cember 1 as the completion date. Each specified May 14, 1957, as the total construction completion date. Southern actually began its work on one school in late May and on the other in late July 1956. Its work was completed in January 1958 and December 1957, respectively.

Early in the construction it was ascertained that, despite prior soil tests, subsurface conditions (such as quicksand at one site) varied substantially from those anticipated. These required material modification of part of the subsurface plans for one school and the complete redesign of the foundation and subsurface portions of the other. Delay resulted. The redesign plans for the one .school were not received in their entirety until July 1956.

Southern learned of the subsurface problems at both sites some weeks before the subcontract was executed. It complained thereafter about the delay in the progress of the work and claimed additional compensation. Ball just as consistently disclaimed responsibility for the delay and, partially at least, attributed it to poor management on Southern’s part. Cost factors mounted. Among these were the winter of 1956-57 and consequent proteetion-from-the-cold costs, wage increases, additional equipment rental and a fire loss.

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Bluebook (online)
334 F.2d 122, 1964 U.S. App. LEXIS 4811, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-fireproofing-company-v-r-f-ball-construction-company-inc-ca8-1964.