Spandome Corp. v. United States

40 Cont. Cas. Fed. 76,738, 32 Fed. Cl. 626, 1995 U.S. Claims LEXIS 12, 1995 WL 24200
CourtUnited States Court of Federal Claims
DecidedJanuary 23, 1995
DocketNo. 551-89C
StatusPublished
Cited by6 cases

This text of 40 Cont. Cas. Fed. 76,738 (Spandome Corp. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spandome Corp. v. United States, 40 Cont. Cas. Fed. 76,738, 32 Fed. Cl. 626, 1995 U.S. Claims LEXIS 12, 1995 WL 24200 (uscfc 1995).

Opinion

OPINION

. FUTEY, Judge.

This contract case is before the court after a trial on the merits. Plaintiff contracted with defendant for the construction of a relocatable, tensioned fabric structure. One year after final acceptance of the finished structure, one part of the building collapsed. Defendant invoked the Warranty Clause stating that the collapse was caused by a latent defect, and requested plaintiff repair the structure. Plaintiff disagreed, stating that tornadic like winds caused the collapse. Plaintiff agreed to repair the dome, but only at additional cost to defendant. Defendant terminated plaintiff’s contract for default and removed the entire structure, offsetting part of the cost from a separate contract with plaintiff.1 Plaintiff alleges that its contract was improperly terminated for default, but defendant counters that the termination was proper and seeks reimbursement for the cost of the contract, plus additional expenses.

Factual Background

On March 27,1986, defendant, the Department of Defense, Defense Logistics Agency (DLA), Defense Industrial Plant Equipment Center (DIPEC) issued Solicitation No. DLA002-86-003, inviting fixed-price bids for the supply and erection of two relocatable, tensioned fabric structures of at least 24,000 square feet each or, alternatively, one relocatable, tensioned fabric structure of at least 55,000 square feet. The structure was intended to protect 55-gallon containers of haz[628]*628ardous and flammable liquids stored at the Defense Depot Memphis, Tennessee (DDMT).

Plaintiff, Spandome, submitted a proposal to supply a single roof structure covering 55,332 square feet. The structure was to consist of two domes, adjacent to one another and connected by a strip of fabric called the “valley.” The structure was designed by the president of Spandome, Mr. Arpad Kolos-vary. Although he had vast experience in designing single dome structures, Mr. Kolos-vary testified at trial that he never designed and erected a tensioned fabric structure consisting of two domes with a connecting valley between them.2

Defendant awarded the contract to Span-dome on April 21,1986. Spandome erected a two-dome fabric structure at the DDMT, completing it by July 22,1986. Final inspection was completed and the project was finally accepted on the same day.3

A snow storm on January 6 & 7, 1988, deposited snow in the valley of the Spandome structure (Spandome I) at a depth of approximately two feet.4 The snow melted and accumulated in the valley center with no outlet or drainage. As a result, the fabric in the valley stretched and weakened. Another heavy rainfall on the morning of January 19, 1988, caused more water to collect in the stretched pocket of the fabric.

Evidently the government was aware that Spandome I was in a weakened state. On the morning of January 19,1988, representatives of the government, Mr. Gray and Mr. Spurlock, went to observe the dome. Specifically, Mr. Gray testified that he was asked by his supervisor to “go out and see if the Spandome is still standing.”5 The men arrived at the site of the structure sometime between 7:20 and 7:45 a.m. They testified that it was raining, but they did not notice any wind.6 The men did notice a bulge sinking down in the center of the valley, apparently the water accumulated in the valley and caused the fabric to sag.7 The men also testified that there was no tension in the valley cables.8

At approximately 8:00 a.m. on January 19, 1988, the north dome of Spandome I collapsed. Defendant’s witness, James A Jackson, a National Weather Service official, indicated that 1.55 inches of rain fell on the morning of January 19, 1988 (before the 8:00 а. m. collapse). Defendant further states the weather data provided that winds that day were moderate, averaging about 15 miles per hour (m.p.h.) with maximum wind gusts of 30 miles per hour. Defendant maintains that there was no mention of a tornado in this weather data.

Coincidentally, on the morning of the collapse, Mr. Kolosvary, the President of Span-dome, was en route to the site in order to inspect the structure where the water and snow had accumulated. After arriving to find the collapsed structure, defendant’s representatives advised plaintiff to call an independent firm to assess the situation. Plaintiff selected a local Memphis engineering firm, The Pickering Firm, to examine the structure. The chief branch engineer of that firm concluded after investigation that “wind forces much greater than the building code required for design of the structures ... triggered the collapse.”9

Plaintiff maintains that strong winds and heavy rain prevailed in the early morning hours, just prior to the collapse. Plaintiff states that a tornado watch was in effect in the Memphis and Shelby County area, and [629]*629was upgraded to a tornado warning at or about the time of the collapse. Plaintiff maintains that the collapsed structure showed evidence that it was hit by a tornado.

On February 1,1988, the Contracting Officer (CO) invoked the Warranty Clause of the contract claiming that there was a latent defect in the structure, and requested that Spandome submit a plan of corrective action toward restoration of the structure in accordance with contract requirements. On February 15,1988, plaintiff sent a letter protesting the invocation of the warranty. Defendant maintains that Spandome did not offer any plan of correction in that letter.

On February 29, 1988, the CO sent plaintiff a cure notice. Plaintiff responded on March 18, 1988, enclosing a statement which alleged that a tornado had hit the structure causing it to collapse. Additionally, plaintiff requested the government specify latent defects in the structure’s design.

On March 25, 1988, defendant revoked acceptance of Spandome I based on the existence of a latent defect, and executed a partial default termination. Defendant informed plaintiff that a final determination had not been made as to whether it’s failure to perform was excusable, but that a final determination would be made after receipt of the engineering report on the cause of the collapse.

Defendant prepared two final engineering reports, a Forensic Study of Tensioned Fabric Structure at DDMT prepared by Garver & Garver, PA, and Evaluation of the Collapse of the Tensioned Membrane Fabric Structure at DDMT, prepared by the Department of the Army, Construction Engineering Research Laboratory (CERL). Both reports concluded that design defects caused the failure of the double-domed Span-dome I structure. Preliminary reports made by both Garver & Garver and CERL also stated that design defects caused the collapse. On July 6, 1988, plaintiff objected to the government’s course of action, disagreeing with the findings of both reports.

By final decision of October 6, 1988, based on physical evidence, witness reports, and’ technical findings, the CO found that plaintiff’s failure to perform its contract did not arise out of causes beyond its control or without its fault or negligence.

On February 13, 1989, the CO issued a final decision which determined total, non-excusable default termination, invoked final revocation of acceptance, and elected to demand dismantling/removal of Spandome I from the Depot.

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Bluebook (online)
40 Cont. Cas. Fed. 76,738, 32 Fed. Cl. 626, 1995 U.S. Claims LEXIS 12, 1995 WL 24200, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spandome-corp-v-united-states-uscfc-1995.