Specialized Grading Enterprises, Inc. v. Goodland Construction, Inc.

181 P.3d 352, 2007 Colo. App. LEXIS 2093, 2007 WL 3197096
CourtColorado Court of Appeals
DecidedNovember 1, 2007
Docket06CA0630, 06CA1017
StatusPublished
Cited by10 cases

This text of 181 P.3d 352 (Specialized Grading Enterprises, Inc. v. Goodland Construction, Inc.) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Specialized Grading Enterprises, Inc. v. Goodland Construction, Inc., 181 P.3d 352, 2007 Colo. App. LEXIS 2093, 2007 WL 3197096 (Colo. Ct. App. 2007).

Opinion

Opinion by

Judge ROY.

Plaintiff, Specialized Grading Enterprises, Inc. (the subcontractor), appeals the trial court's judgment entered on a directed verdict in favor of defendant, Goodland Construction, Inc. (the contractor), on its quantum meruit claim. The contractor appeals from the denial of its motion for directed verdiet on the contract claim, the denial of its motion for summary judgment on the quantum meruit claim, and an evidentiary ruling concerning one of the subcontractor's witnesses. We reverse and remand for a trial on the subcontractor's quantum meruit claim and otherwise affirm.

The contractor entered into a contract (general contract) with the City of North-glenn (the City) to rehabilitate the Webster Lake & E.B. Rains Jr. Memorial Park (the project). The project required that the lake be deepened and reshaped. The subcontractor entered into a subcontract based on a unit price for each cubic yard of dirt excavated and incorporated into embankments in accordance with the specifications. The subcontract was capped at $162,400. The subcontractor began work on August 25, 2000, and was discharged on October 23, 2000.

The subcontractor commenced this consolidated proceeding for damages under a number of claims, but only its claims for breach of contract and quantum meruit went to trial. The damages sought in those claims were $128,819 for breach of contract, and $90,274 on quantum meruit, for a total of $219,098.

The subcontractor claimed $86,554 for "cutting" and $42,265 for "filling," or $128,819 as contract damages for work completed as of the date of discharge. The jury awarded $98,570, which, taken with the $50,000 previously paid by the contractor, brought the total compensation paid to the subcontractor for completed work to $143,570.

The quantum meruit claim was premised on extra work occasioned by the failure of the contractor to have the site dewatered prior to the arrival of the subcontractor. The subcontractor alleged that saturated soil is more difficult to cut, is heavier to move, and is unusable as fill without first being allowed to dry. In addition, the subcontractor alleged that it participated in dewatering the site so it could perform its earth-moving operations.

The trial court granted a directed verdict on the subcontractor's quantum meruit claim based on its interpretation of Scott Co. v. MEK-Ferguson Co., 882 P.2d 1000 (Colo.App. 1991) (Scott,) and the authorities cited therein.

1.

The subcontractor argues that the trial court erred in granting the contractor's motion for a directed verdict on its quantum meruit claim. We agree.

A motion for directed verdict can be granted only if the evidence, when considered in a light most favorable to the non-moving party, compels the conclusion that reasonable persons could not disagree and that no evidence, or legitimate inference therefrom, has been presented upon which a jury's verdict against the moving party could be sustained.

Burgess v. Mid-Century Ins. Co., 841 P.2d 325, 328 (Colo.App.1992) (citing Romero v. Denver & Rio Grande Western Ry., 183 Colo. 82, 87, 514 P.2d 626, 628-29 (1978); Pierce v. Capitol Life Ins. Co., 806 P.2d 388, 390 (Colo.App.1990)).

If an express contract exists, there can be no implied contract covering the same subject matter between the parties because the provisions of the express contract supersede those of the implied contract; however, this rule does not apply if the implied agreement is based upon the conduct of the parties subsequent to, and not covered by, the terms of the express contract. Scott, 882 P.2d at 1002 (citing Schuck Corp. v. Sorkowitz, 686 P.2d 1366, 1368 (Colo.App.1984)).

Quantum meruit is an appropriate basis for recovery when substantial changes oceur that are not covered by the contract and are not within the contemplation of the parties, and when the effect of such changes *355 is to require extra work or to cause substantial loss to one party. Scott, 882 P.2d at 1002-08 (citing Hensel Phelps Constr. Co. v. King County, 57 Wash.App. 170, 787 P.2d 58, 61 (Wash.Ct.App.1990)). Whether a subeon-tractor can recover under a quantum meruit claim is a mixed question of law and fact. Scott, 882 P.2d at 1008. Also, interpretation of a written contract and whether such a contract is ambiguous are questions of law for the court. Pepcol Mfg. Co. v. Denver Union Corp., 687 P.2d 1810, 1818-14 (Colo. 1984). This court is not bound by the trial court's findings or conclusions as to those issues. Barnes v. Van Schaack Mortgage, 787 P.2d 207, 209 (Colo.App.1990).

Prior to trial, the contractor filed a motion for summary judgment on the quantum me-ruit claim arguing that the damages were too speculative and that the judgment should be granted as a sanction for alleged discovery abuses. The trial court denied the motion.

The contractor then moved for a directed verdict at the close of the subcontractor's case, again arguing insufficiency of the evidence and relying, for the first time, on Scott. The contractor argued that the requirement that the site be dewatered was clearly contemplated by the parties because it was expressly provided for in the general contract, which was incorporated into the subcontract. The contractor further argued that, because the general contract contained a change order procedure, there was an adequate contractual remedy. In support of this argument, the contractor noted that the parties had submitted a change order to the City, which it rejected on the basis that, as to the City, the contract required dewatering and the parties should have anticipated that there would be waterlogged soil at the bottom of a lake. Therefore, the contractor argued that the claim of quantum meruit did not lie.

The trial court granted the motion and dismissed the quantum meruit claim. The court initially indicated that the subcontractor might be able to bring the claim for damages under the breach of contract claim, but ultimately foreclosed that avenue as well.

In our view, Scott is distinguishable. There, a mechanical subcontractor contracted to install brewery process piping during the construction of a new brewery. The subcontractor alleged that it experienced delays and had to perform extra work because the plans and specifications were defective, unclear, and frequently changed. The subcontractor brought an action for breach of express contract, promissory estoppel, goods sold and delivered and services rendered, negligence, and negligent misrepresentation, all of which were submitted to the jury. The jury awarded over $1.5 million on all claims without allocation, although, apparently, no damages were awarded on the negligence claims.

A division of this court stated that the subcontractor's claim for goods sold and delivered and services rendered was, in essence, a quantum meruit claim and could not be brought if there was a contract provision covering the matter.

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Bluebook (online)
181 P.3d 352, 2007 Colo. App. LEXIS 2093, 2007 WL 3197096, Counsel Stack Legal Research, https://law.counselstack.com/opinion/specialized-grading-enterprises-inc-v-goodland-construction-inc-coloctapp-2007.