Tc Midatlantic Dev. v. Dept. of Gen. Svcs.

695 S.E.2d 543, 280 Va. 204
CourtSupreme Court of Virginia
DecidedJune 10, 2010
Docket091271
StatusPublished
Cited by26 cases

This text of 695 S.E.2d 543 (Tc Midatlantic Dev. v. Dept. of Gen. Svcs.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tc Midatlantic Dev. v. Dept. of Gen. Svcs., 695 S.E.2d 543, 280 Va. 204 (Va. 2010).

Opinion

695 S.E.2d 543 (2010)

TC MIDATLANTIC DEVELOPMENT, INC.
v.
COMMONWEALTH of Virginia, DEPARTMENT OF GENERAL SERVICES, et al.

Record No. 091271.

Supreme Court of Virginia.

June 10, 2010.

*544 S. Scott Morrison (Nicole L. Kobrine; Daniel Spurlock; Everette Allen, Jr.; Andrew K. Clark; Robert Wm. Best; Katten Muchin Rosenman; LeClairRyan, on briefs), for appellant.

Richard Tyler McGrath, Assistant Attorney General (William C. Mims, Attorney General; Maureen R. Matsen, Deputy Attorney General; Randall H. Wintory, Assistant Attorney General, on brief), for appellees.

Present: KOONTZ, KINSER, LEMONS, GOODWYN, and MILLETTE, JJ., and CARRICO and LACY, S.JJ.

OPINION BY Senior Justice ELIZABETH B. LACY.

In this construction contract dispute, the dispositive issue is whether the trial court erred in sustaining a demurrer and dismissing an amended complaint on the ground that compliance with conditions precedent was not adequately pled.

*545 BACKGROUND

In May of 2004, TC MidAtlantic Development, Inc. (TCM) entered into a Comprehensive Agreement with the Commonwealth of Virginia, Department of General Services (DGS) to perform work on the Washington and Finance Buildings (Phase I) and a proposal by TCM to perform work on the 8th Street Complex (Phase II). Phase II had not received legislative or gubernatorial approval or authorization but the Comprehensive Agreement provided that, as part of the review and report prepared to secure the requisite governmental approvals, TCM would undertake certain planning activities with regard to Phase II at no cost to DGS. The design-build contracts for Phase I were incorporated in and attached to the Comprehensive Agreement.

Several disputes arose between TCM and DGS in connection with the project. The parties exchanged a number of communications and engaged in mediation in December, 2006; however, the claims were not resolved. DGS sent a letter to TCM dated February 16, 2007, terminating the Comprehensive Agreement as it related to Phase I, the Finance and Washington buildings, and informing TCM it was not going forward with Phase II, the 8th Street Complex. The letter also stated that TCM was "entitled as of the date of this letter to file any formal claims on these projects pursuant to the provisions of Section 47 of the General Terms and Conditions of the Comprehensive Agreement." Section 47 provided in relevant part:

Contractual claims ... shall be submitted, in writing, no later than sixty (60) days after final payment; however, written notice of the Contractor's intention to file such claim must be given at the time of the occurrence or beginning of the Work upon which the claim is based. The filing of a timely notice is a prerequisite to recovery under this Section.... All claims shall be submitted along with all practically available supporting evidence and documentation.
No written decision denying a claim or addressing issues related to the claim, if rendered prior to final payment, shall be considered a denial pursuant to this Section unless the written decision makes express reference to this Section and is signed by the Agency head or his designee. The Contractor may not institute legal action prior to receipt of the Owner's final written decision on the claim unless the Owner fails to render such a decision within ninety (90) days of submission of the claim or within ninety (90) days of final payment, whichever is later.

TCM instituted this litigation in April 2007 by filing a complaint asserting seven counts based on the termination of Phases I and II of the Comprehensive Agreement and its subparts. DGS filed a plea in bar and motion to dismiss asserting inter alia that TCM's complaint failed to comply with the requirements of Section 47 of the General Conditions of the Comprehensive Agreement and therefore did not state a cause of action.[1] Without ruling on the plea in bar and motion to dismiss, the trial court allowed TCM to file an amended complaint. TCM filed an amended complaint in September 2007 in which it asserted five counts and attached a number of documents purporting to demonstrate that it had complied with the requirements of Section 47. DGS responded by filing a demurrer, plea in bar, and motion to dismiss, asserting that the amended complaint and its exhibits still "fail[ed] to allege submission of a timely claim in compliance with Section 47."

Following briefing and argument, the trial court entered an order dated December 17, 2007, sustaining DGS' demurrer and dismissing the amended complaint with prejudice and without leave to amend. In its order, the trial court concluded that the February 16, 2007 letter from DGS began the 60-day period for filing formal claims under Section 47. The trial court went on to hold that TCM did "not submit any documentation or make reference to a formal claim submitted within the sixty-day time period." TCM subsequently filed motions for reconsideration and to amend the dismissal order, both of *546 which the trial court denied.[2] We awarded TCM an appeal.

DISCUSSION

On appeal TCM raises three assignments of error asserting that the trial court erred in granting DGS' demurrer and denying TCM's motion for reconsideration, and abused its discretion by refusing to allow TCM to amend its amended complaint. We will consider these issues in order.

I.

In its first assignment of error TCM complains that the trial court erred in sustaining DGS' demurrer and denying the motion for reconsideration with regard to Counts I through IV of the amended complaint. This error, according to TCM, occurred because the trial court resolved the merits of the case, misinterpreted Section 47, did not properly evaluate TCM's pleadings, and erred in holding that "TCM failed to submit a timely claim and complaint."

TCM and DGS agree that Section 47 required that (1) TCM submit to DGS written notice of its intent to file a claim at the time of the occurrence or beginning of the work upon which the claim is based; (2) TCM file in writing its contractual claim with documentation within 60 days of the final payment; (3) DGS render a final decision within 90 days of receiving the written contractual claim; and (4) legal action be initiated within six months of the final decision or, if no final decision was rendered, within six months of the date of the submission of the claim or the date of final payment, whichever is later.

TCM's argument that the trial court misinterpreted the requirements of Section 47 is based on the following language in the final order:

The Court has reviewed Plaintiff's supporting exhibits and finds that Plaintiff failed to submit a timely claim to Defendant for a final decision. Plaintiff did not file suit in this Court until April 24, 2007, more than sixty days after Defendant's February 16, 2007 termination letter. Plaintiff failed to file any other form of final complaint with Defendant.

TCM argues that in stating that TCM filed this litigation more than 60 days after the February 16th letter and did not file any other "final complaint," the trial court "confused" filing a claim with filing a complaint in circuit court. We disagree.

Read in context, the final two sentences quoted above mean that the lawsuit filed in this case could not be considered as compliance with the period in which a claim had to be filed because it was filed more than 60 days after the February 16th letter and no other document was filed within the 60-day period.

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Cite This Page — Counsel Stack

Bluebook (online)
695 S.E.2d 543, 280 Va. 204, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tc-midatlantic-dev-v-dept-of-gen-svcs-va-2010.