Tony Zumbo & Son Construction Co. v. Ohio Department of Transportation

490 N.E.2d 621, 22 Ohio App. 3d 141, 22 Ohio B. 381, 1984 WL 6046, 1984 Ohio App. LEXIS 12698
CourtOhio Court of Appeals
DecidedDecember 24, 1984
Docket83AP-823
StatusPublished
Cited by12 cases

This text of 490 N.E.2d 621 (Tony Zumbo & Son Construction Co. v. Ohio Department of Transportation) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tony Zumbo & Son Construction Co. v. Ohio Department of Transportation, 490 N.E.2d 621, 22 Ohio App. 3d 141, 22 Ohio B. 381, 1984 WL 6046, 1984 Ohio App. LEXIS 12698 (Ohio Ct. App. 1984).

Opinion

Whiteside, J.

Defendant, State of Ohio, Department of Transportation, appeals from a judgment of the Court of Claims and raises seven assignments of error as follows:

“1. The court of claims erred, to the prejudice of the appellant, in finding that an unanticipated, subsurface defect in the condition of the underpavement of Wilson-Mills Road constituted a breach of contract by the appellant.
“2. The court of claims erred, to the prejudice of the appellant, in failing to allow the appellant to apply R.C. 5525.14 to project 411-79.
“3. The court of claims erred, to the prejudice of the appellant, by concluding that the payment to appellee for the extra work necessitated by the unforeseen defect in Wilson-Mills Road was not equitable.
“4. The court of claims erred, to the prejudice of the appellant, by allowing appellee to recover compensation for the placement of asphalt beyond the amount specified by the contract.
“5. The court of claims erred, to the prejudice of the appellant, by permitting the appellee to avoid the contract and recover on a ‘total reasonable cost of performance’ theory.
“6. The court of claims erred, to the prejudice of the appellant, in ordering appellant to pay prejudgment interest when the appellee’s claim was unliquidated prior to judgment.
“7. The court of claims erred, to the prejudice of the appellant, by awarding the appellee interest on its judgment in an amount greater than that permitted by law.”

Plaintiff-appellee, Tony Zumbo & Son Construction Co. (Zumbo), was the lowest bidder and was awarded a contract by defendant-appellant, State of Ohio, Department of Transportation (State), to construct a one and one-half mile portion of Wilson-Mills Road in Mayfield, Cuyahoga County. Because of a dispute between the parties as to the compensation due Zumbo for performance of the work involved, this action was brought in the Court of Claims, which made the following findings in its corrected judgment entry following the trial of the case:

“The Court finds the parties, the Ohio Department of Transportation on behalf of Cuyahoga County, Ohio, and Tony Zumbo & Son Construction Co., entered into a contract, for grading, draining, widening and resurfacing 7,191.97 feet of Wilson Mills Road at a total unit price sum of $1,171,871.33. The date of the contract was July 10, 1979. The completion date was May 31, 1980.

“In the process of stripping the asphaltic surface off the original concrete pavement, to which the resurfacing was to be applied, the condition of the concrete was found to be in such a condition that it was necessary to remove it and build the roadway anew. This required a plan change, which changed the performance of the contractor radically. A major change order was prepared but authority to proceed with it was not granted until June 9, 1980. The completion date of the contract was extended to October 28, 1980v By May 31, 1980 the contractor had received a total payment of $690,438. (almost 60% of the contract price).

“The remainder under the original contract to be performed after June 1, 1980 was $481,433. ($1,171,871. - $690,438.). Non-performed items under the original contract were $361,916. which, left $119,517. of items under the original contract. The additional items added by change orders were $807,955. which made contract work to be performed according to defendant of $927,512. ($119,517 + $807,995.). To an unidentified extent the defendant re *143 quired some of the $927,512 to be performed under the 20% increased quantities at the original unit prices by application of R.C. 5524.14 [sic]. The balance of the original contract and the added estimated amount(s) were to be performed by ‘force account’ under Section 109.04 of the Construction and Material Specifications.
“The Court further finds that the total of payments, received by plaintiff for work performed in accordance with defendant’s demands, are $1,599,329. Plaintiff claims an additional $112,455 for a total performance value of $1,711,784. Or conversely defendant’s balance of performance, supra, totals $927,512. plus plaintiff’s additional claim of $112,455 totals $1,039,967. less $908,890 payments received for work on and after June 1, 1980 leaves a balance due of $131,077. This is $18,622. more than plaintiff’s demand of $112,455.
“The Court further finds that the defendant in its superior bargaining position forced the plaintiff to proceed with the work or suffer the consequences of a default contract performance. That the plaintiff notified the defendant that it was proceeding under protest and it continued to do so at each appropriate opportunity (change orders and directions of the Project Engineer (Cuyahoga County) and the defendant department) and in order to receive payment at all was forced to approve payment amounts set out in the change orders.
“Further the Court finds the defendant for the use of Cuyahoga County has had the use of plaintiff’s material and labor to the extent of the claim of plaintiff as reduced to judgment.
“The Court concludes as a matter of law the original contract was breached by the defendant when the conditions found, on which the original contract was based, were entirely impractical to be performed. The payment which the defendant required plaintiff to accept was not fair and equitable, which the defendant was required to and should have made in accordance with Sections 104.02, 104.03 and 109.04 of the Construction and material specifications. The work required to be performed on and after June 1,1980 should have been entirely on a ‘force account’ basis.
“The Court further finds that the damage suffered by plaintiff is in the sum of $112,455., as prayed for in the complaint.
"The Court further concludes that plaintiff is by reason of defendant’s breach of contract entitled to judgment at the legal rate of ten (10%) percent from January 1, 1981 to date of judgment and then in accordance with Section 2743.18 of the Revised Code.”

The first four assignments of error are somewhat interrelated and will be generally discussed together. There is no dispute but that it was impracticable, if not impossible, to perform the contract as originally contemplated and agreed to because the existing concrete underpavement was too deteriorated to patch and repair. Therefore, the project had to be changed so that all of the concrete underpavement would be removed and a new roadway, both concrete underpavement and asphaltic surface, would be constructed. Such type of construction was contemplated for a small portion of the project known as “the hill,” but not with respect to the balance of the project. Section 104.02 of the Construction and Material Specifications, made a part of the contract, provides in the first paragraph:

“* * * The department reserves the right to make, at any time during the progress of the work, such increases or decreases in quantities and such alterations in the details of construction, including alterations in the grade or alinement [sic] of the road or structure or both, as may be found to be necessary or desirable.

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Bluebook (online)
490 N.E.2d 621, 22 Ohio App. 3d 141, 22 Ohio B. 381, 1984 WL 6046, 1984 Ohio App. LEXIS 12698, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tony-zumbo-son-construction-co-v-ohio-department-of-transportation-ohioctapp-1984.