Swan Engineering v. Tuscan Ridge Associates CA3

CourtCalifornia Court of Appeal
DecidedMay 1, 2025
DocketC098983
StatusUnpublished

This text of Swan Engineering v. Tuscan Ridge Associates CA3 (Swan Engineering v. Tuscan Ridge Associates CA3) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Swan Engineering v. Tuscan Ridge Associates CA3, (Cal. Ct. App. 2025).

Opinion

Filed 5/1/25 Swan Engineering v. Tuscan Ridge Associates CA3 NOT TO BE PUBLISHED California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA THIRD APPELLATE DISTRICT (Butte) ----

SWAN ENGINEERING, INC., C098983

Plaintiff and Appellant, (Super. Ct. No. 20CV00061)

v.

TUSCAN RIDGE ASSOCIATES, LLC,

Defendant and Respondent.

Plaintiff Swan Engineering, Inc. was hired by defendant Tuscan Ridge Associates, LLC to perform construction work related to the cleanup in Paradise, California, following the Camp Fire. Plaintiff asserts that the work took longer and cost more than originally contemplated. When defendant would not compensate plaintiff for what it characterized as additional work beyond the scope of the contract, plaintiff sued for breach of contract and related claims. After a bench trial, the trial court entered judgment in favor of defendant.

1 On appeal, plaintiff argues that the trial court failed to make necessary factual findings, a matter we will address in connection with plaintiff’s substantive arguments that: (1) verbal change orders are common and enforceable and the trial court failed to make a finding as to whether the parties verbally agreed plaintiff would perform additional work; (2) the trial court erred in failing to consider changed circumstances that would render enforcement of the contract inequitable; (3) defendant waived the contractual requirement that change orders be in writing; (4) the trial court erred in failing to consider estoppel; (5) and the trial court erred in ignoring plaintiff’s quantum meruit claim. Finding no error, we will affirm the judgment. BACKGROUND The Complaint Plaintiff filed a complaint asserting causes of action for (1) breach of contract, (2) quantum meruit, (3) open book account, (4) account stated, and (5) foreclosure on a mechanic’s lien. According to the complaint, the parties entered into a written contract on or about April 10, 2019, pursuant to which plaintiff agreed to perform certain construction work for defendant. The complaint generally alleged that defendant breached the contract by, among other things, requiring plaintiff to perform work beyond the scope of the contract and failing to pay for that work. In the quantum meruit cause of action, plaintiff asserted that defendant owed plaintiff not less than $725,000 as the reasonable value of labor, equipment, and materials furnished. The open book account and account stated causes of action largely reiterated the allegations in the quantum meruit cause of action. Plaintiff also sought to foreclose on a mechanic’s lien it had secured in the amount of $722,149. The Written Contract and Written Change Orders In the written contract, signed on April 10, 2019, defendant agreed to pay plaintiff $494,193 for the work contemplated by the contract, “subject to adjustments for changes in the work as may be agreed to in writing by the Owner and the Contractor.” The work

2 performed included the installation of two storage ponds, one design pond and one auxiliary pond, for use with a wastewater treatment facility. The contract contained an integration clause, providing: “ENTIRE AGREEMENT. This Contract represents the entire agreement between the Contractor and the Owner regarding the work described in Section 1 and supersedes any prior written or oral agreements or representations as to that work.” The contract provided that time was of the essence, and that plaintiff would “complete the work on or before the date that is thirty (30) days from receipt of a notice to proceed from Owner.” The contract also provided that plaintiff “acknowledges and agrees that the work includes extensive rock excavation and hammering and the contract amount is inclusive of all such work, including damage to Contractor’s equipment. There shall be no change orders for any such items.” Section 9 of the contract, addressing changes in work, provided: “Whenever an adjustment in the Contract price or Contract time is required because of Owner’s request, differing site conditions, errors in the plans and specifications, or other circumstances beyond the control of Contractor . . . , the Contractor shall submit to the Owner within a reasonable time a detailed estimate, with supporting calculations, pricing and adjustments in the schedule of the change to the Contract price and the Contract time including a 10% markup for Overhead and 10% markup for Profit. . . . However, to the extent that such pricing is inapplicable, cost of the change or the amount of the adjustment shall be determined based on the cost to the Contractor plus reasonable amounts for overhead and profit, not to exceed 20%. . . . [¶] The Contractor shall not be obligated to perform changes in the work or additional work until the Owner has approved, in writing, the changes to the Contract price and the Contract time.” The parties executed written change orders one through six on April 12, 2019, adding a total of $212,703 to the contract price, resulting in a revised contract amount of $706,896.

3 The Trial Defendant worked on the installation of a wastewater treatment facility for use by a base camp being established for workers involved in the cleanup of Paradise following the Camp Fire. Justin Swanson, a principal for plaintiff, submitted a bid to construct ponds for use with the treatment facility. Defendant accepted plaintiff’s bid and the parties entered into the written contract. Swanson testified that there were two substantial changes made to the project plans as the project was ongoing. First, on April 22, 2019, Swanson received an email from Lance Bates (Lance),1 an employee of defendant, that included “a plan set that was different than the original . . . .” The change, based on the topography of the land, resulted in a switch in the project from the original plan “of cutting, excavating down, 90 percent of the work, and 10 percent of that being fill, to a situation where we had to cut down 50 percent of the time and fill the other 50 percent of the time.” In other words, plaintiff “had to add dirt and build the banks of the pond instead of cutting it into the ground.” While the original plan indicated the topography for the site was level, in reality, one end of the site was 14 or 15 feet higher than the original plan indicated. This change required plaintiff to perform additional “fill” work. According to Swanson, building up takes more time and resources than digging down. Lance disagreed, testifying that “fill” work is quicker than “cut” work. Another factor that contributed to the increased cost of the project was that according to Swanson, plaintiff could not achieve the necessary results at the site with a D10 size dozer, so they had to get a larger D11 size dozer. According to Swanson, Lance had represented that a D10 would be sufficient. Swanson acknowledged, however, that

1 Given the shared surname with this witness and his father, also a member of defendant, we will refer to each of them by their first names to avoid any confusion. No disrespect is intended.

4 plaintiff’s proposal did not specify the use of a D10 size dozer, and there was no mention of a D10 in any of the change orders. He also acknowledged he never notified defendant in writing about differing site conditions. He testified that “[w]e did it verbally.” Swanson testified that, as a result of circumstances that differed from what was anticipated, he asked for a change order. According to Swanson, there were two ways to create a change order. One involved stopping work to perform analysis and generate the change order.

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Swan Engineering v. Tuscan Ridge Associates CA3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swan-engineering-v-tuscan-ridge-associates-ca3-calctapp-2025.