Travelers Casualty & Surety of America v. United States

74 Fed. Cl. 75, 2006 U.S. Claims LEXIS 359
CourtUnited States Court of Federal Claims
DecidedNovember 22, 2006
DocketNos. 02-584C, 03-1548C
StatusPublished
Cited by4 cases

This text of 74 Fed. Cl. 75 (Travelers Casualty & Surety of America 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
Travelers Casualty & Surety of America v. United States, 74 Fed. Cl. 75, 2006 U.S. Claims LEXIS 359 (uscfc 2006).

Opinion

OPINION AND ORDER

WOLSKI, Judge.

This case arises under the Contract Disputes Act, 41 U.S.C. §§ 601-13 (2000) (“CDA”), out of a contract between the defendant and the plaintiff surety company (“Travelers”). The contract in question concerned the construction of the United States Department of Agriculture’s (“USDA’s”) Vegetable Laboratory in Charleston, South Carolina. The case results from the consolidation of two separate eases brought before this Court—case number 02-584C, which initially contained a claim for remission of withheld liquidated damages and compensation for additional work performed by a contractor, and was later amended to include equitable adjustment claims of a subcontractor; and case number 03-1548C, which concerned mold remediation. After oral argument was held in November, 2003 on Travelers’ motion for partial summary judgment on its complaint in case number 02-584C, the parties announced to the Court that they had reached agreement in principle on the lion’s share of issues presented in the consolidated case. See Order (Mar. 31, 2004).1 The remaining unresolved issues concerned contract disputes involving one of the project’s subcontractors, Landscape Pavers, Ltd. (“LPL” or “plaintiff”). Landscape Pavers contended that the USDA’s order to remove and replace two paved turn lanes, and portions of two concrete aprons abutting drainage pipes, constituted constructive changes to the contract. It further contended that the government breached the implied warranty of plans and specifications concerning these turn lanes and aprons. A two-day trial was conducted on this facet of the case. After conclusion of the trial, both LPL and the government made thorough closing arguments and submitted post-trial briefs. This opinion comes after a careful consideration of the briefs, oral argument, testimony and other evidence introduced at trial.

I. BACKGROUND

On October 25, 1998, the United States Department of Agriculture put out to bid a contract for the construction of a vegetable laboratory in Charleston, South Carolina. Ex. 2 (Solicitation No. 8255-3K15-99). The contract was originally awarded to Adams Construction Company, Inc. (“Adams”) on February 29, 1999. Adams was terminated [78]*78for default and Travelers assumed the contract under the terms of its performance bond. Travelers, in turn, hired Alcon Associates, Inc. (“Alcon”) as general contractor to perform the work required to complete the contract. Landscape Pavers was the subcontractor responsible for paving work related to the vegetable laboratory site, which included roads and parking lots on-site as well as the work at issue in this case.

The vegetable laboratory is located on a site adjacent to U.S. Highway 17. Landscape Pavers constructed several turn lanes to access the lab from Highway 17. One turn lane, for northbound traffic, was built on what had been a grass-covered median at the westernmost portion of the site. This lane crossed over the southbound lane and led to the old entrance to the site. A second turn lane, also for northbound traffic, was built on a median further to the east. This lane also crossed over the southbound lane and led to the new entrance to the site. A third lane, a deceleration lane for southbound traffic on Highway 17, was built on what had been a grass-covered shoulder, and also led into the new entrance. In addition to this work, LPL was to adjust the location of a drainage ditch that ran along the edge of the property, parallel to Highway 17, and to install concrete aprons where the ditch met the flared ends of concrete storm drain piping—flanking the new entrance to the site. This ease concerns the work on the two northbound turn lanes, and the concrete aprons.

Odell Associates (“Odell”) was the design architect and construction manager on the project. Ex. 10 at 7 (Sept. 28, 2000 Hester ltr.). Lockwood Greene was a subcontractor to Odell enlisted to provide design and civil engineering services. Alcon was the general contractor hired by Travelers to complete the project. Def.’s Prop. Findings & Conel. at 2; PL’s Post-Trial Br. at 2. Landscape Pavers was Alcon’s pavement subcontractor. Def.’s Prop. Findings & Conel. at 2; PL’s Posh-Trial Br. at 2. Any correspondence from LPL on the project was required to come through Alcon. Ex. 10 at 5 (Oct. 10, 2000 Hogue ltr.).

T. Wayne Hogue, of Odell, was the construction inspections contractor for the project. Transcript (“Tr.”) at 724 (Hogue). His responsibilities were to oversee construction on the site and report back to Odell whether the facility and surrounding areas were being built according to specification. Id. at 726. He also reported to the government, checked pay applications and responses for information (“RFIs”), and handled correspondence among subcontractors, Odell and the government. Id. Richard A. Rogers, of Alcon, was the project manager. Id. at 645 (Thul). Arthur B. Schirmer, III, an owner of LPL, was LPL’s site construction manager for the USDA project. Id. at 85 (Schirmer). Mark Hester was a civil engineer employed by Lockwood Greene. See id. at 725 (Hogue). Marva L. Huggins was the USDA contracting officer for the project. Id. at 179 (Schirmer). Jeffrey Thul, currently the facility manager of the vegetable lab, was the quality control (“QC”) manager of the site for Alcon. Tr. at 641^12 (Thul).

In addition to the contract specifications, see Ex. 2 (Solicitation), the paving work was governed by two sets of drawings made by Lockwood Greene. One set, the Contract Drawings, consisted of four site plans (Existing Site & Demolition Plan, Site Layout Plan, Site Grading and Drainage Plan, and Site Underground Utilities Plan, Ex. 1, CV2.1-5.1) drawn to a scale of one inch equaling fifty feet; a sheet explaining the terminology and symbols used and instructing the contractors (Civil Legend, General Notes & Abbreviations, Ex. 1, CV 1.1); and four sheets providing site details (Ex. 1, CV6.1-6.4). Because the turn lanes and a portion of the concrete aprons were located in the state highway right-of-way, an Encroachment Permit from the South Carolina Department of Transportation (“SCDOT”) was required for the work. This permit, good for one year-, was issued on April 11, 2000, and obligated the relevant contractors to follow a set of General Provisions as well as nine Special Provisions. Ex. 3 at 2 (Encroachment Permit). The second set of drawings, also made by Lockwood Greene, was filed with and approved by the SCDOT as a part of the Encroachment Permit application. Four of these were site plans (two Site Layout Plans, Ex. 3, HWY-1 & HWY-5; a Site Grading [79]*79Plan, Ex. 3, HWY-2; and a Site Utility Plan, Ex. 3, HWY-3) drawn to a scale of one inch equaling eighty feet (except HWY-5, where one inch equals fifty feet); the fifth sheet contained “Miscellaneous Site Sections & Details.” See Ex. 3, HWY-4. The Encroachment Permit also required the work to comply with SCDOT’s “Standard Specifications for Highway Construction.” Ex. 3 at 2 (Application H 4), 3 (General Provision No. 10(h)); see also Ex. 2 § J, Attach. V (“Specs.”) § 2301, ¶¶ 1.1,1.4 (manual referenced in contract specifications).

A. The Turn Lanes

The actual construction of the turn lanes required several steps.

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Cite This Page — Counsel Stack

Bluebook (online)
74 Fed. Cl. 75, 2006 U.S. Claims LEXIS 359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/travelers-casualty-surety-of-america-v-united-states-uscfc-2006.