Tropic Plumbing, Inc. v. Thompson-Starrett International, Inc.

325 F. Supp. 449, 8 V.I. 232, 1971 U.S. Dist. LEXIS 14242
CourtDistrict Court, Virgin Islands
DecidedMarch 12, 1971
DocketCivil No. 340-1967
StatusPublished

This text of 325 F. Supp. 449 (Tropic Plumbing, Inc. v. Thompson-Starrett International, Inc.) is published on Counsel Stack Legal Research, covering District Court, Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tropic Plumbing, Inc. v. Thompson-Starrett International, Inc., 325 F. Supp. 449, 8 V.I. 232, 1971 U.S. Dist. LEXIS 14242 (vid 1971).

Opinion

CHRISTIAN, Chief Judge

[234]*234MEMORANDUM OPINION

This action for debt is before the Court on plaintiff’s motion for summary judgment.

From plaintiff’s amended complaint, it would appear that on December 11, 1964, Thompson-Starrett International, Inc. (hereinafter Thompson-Starrett or general contractor) entered into a contract with Bluebeard Housing Corporation for the construction of the Bluebeard Hill Housing Project. This construction contract was labeled FHA Project Number 056-55007 (hereinafter prime contract). On February 5, 1965, Thompson-Starrett contracted with plaintiff to perform specified plumbing work required in the Bluebeard Hill project for an agreed sum. Between August 25,1965, and October 24, 1966, Thompson-Starrett issued change orders, pursuant to the contract terms, resulting in a net increase in the contract price. Plaintiff admits receiving partial payment of this sum, but it here claims that $24,123.63 of the total contract price, as adjusted, remains unpaid.

In addition to its claim on the contract, plaintiff adds a further ground for relief growing out of the following facts. Thompson-Starrett was required to submit to the Federal Housing Administration (hereinafter FHA) a certificate stating its unpaid obligations, which certificate included the plaintiff’s claim for the unpaid balance of his contract price. The pertinent regulation, 24 CFR 221.558, states that “such certification should be final and incontestable.” Plaintiff asserts, therefore, that such certification, in fact filed by Thompson-Starrett, should bind ThompsonStarrett in this action. The complaint also contains a claim against Maryland Casualty Company, Thompson-Starrett’s surety on a dual obligee bond applicable to the contract.

On November 3, 1969, this Court entered a pre-trial order pursuant to Rule 16, Federal Rules of Civil Pro[235]*235cedure. This order shows that the' parties do not dispute (1) the existence and validity of their original subcontracting agreement, (2) that the ten change orders were executed by the parties, and that they specify the work to be done and the cost thereof, (3) that the work stated in the change orders was performed and accepted, (4) that plaintiff has not been paid for this work, and finally, that the amount certified to the FHA as due to plaintiff has not been paid. The amount of the contract price that remains unpaid is not disputed. .

The issues, as framed by the pre-trial order, involve the validity of the ten change orders. Defendant contends that the prime contract, incorporated by reference in the subcontract, provides that payments for “extras” are forbidden, unless they are approved in writing by the FHA. It asserts that the said change orders covered “extras” within the meaning of the prime contract, and that since these change orders were issued without the approval of the FHA they are invalid.

The unpaid amount attributable to the change orders is substantially less than the total amount of the contract price that plaintiff asserts remains unpaid. The balance represents amounts to be held in retainage, by the terms of the contract, until final payment by the owner to Thompson-Starrett. The pre-trial order established that Thompson-Starrett has received its final payment on the prime contract. Hence this dispute relates only to payment of the amount attributable to the ten change orders.

Relevant portions of the prime contract have been submitted for the consideration of the Court. The subcontract, the certificate submitted to the FHA, the dual obligee contract bond, and the ten change orders were likewise submitted.

Among the pertinent provisions of the subcontract are the following:

[236]*2364. The Subcontractor shall be entitled to receive no extra compensation for changes or extra work of any kind whatsoever regardless of whether-the same was ordered by the Contractor or any of its representatives, unless such extra order is given in writing signed by an officer of the Contractor, and the Subcontractor agrees that it will make no claim that it was authorized to do any extra work or make any modification in its Work by the Contractor or any of - its representatives at the site or elsewhere,- and if such work was so ordered and the Subcontractor has performed the same but has received no written order therefor as herein provided for, the Subcontractor shall be deemed to have waived any claim for extra compensation therefor regardless of any written or verbal protests or claims by the Subcontractor.
7. a. In the event that the Owner, or the Contractor, requires the performance of extra work or changes in the Work as the Owner, or the Contractor, may find necessary or desirable in so far as such extra work or changes in the Work affect the Work to be performed by the Subcontractor hereunder the amount of compensation to be paid to the Subcontractor shall be determined as follows: (there follows four alternative means of determining the price).
8. The Subcontractor shall be bound by the decision of those authorized by the General Contract as to the meaning of any terms and conditions of the General Contract Documents as the same may affect the Work hereby let to the Subcontractor. The Subcontractor shall comply with all the terms of the General Conditions made part of the General Contract Documents and of all the other terms and conditions of any of the other General Contract Documents to the Work of the Subcontractor, and the Subcontractor hereby agrees that the Contractor shall have the samé power as regards terminating this agreement that the Owner may exercise over the Contractor under any of the provisions of the General Contract Documents.
9. The Subcontractor hereby assumes towards the Contractor all the obligations and responsibilities that the Contractor has assumed under the General Contract towards the Owner, and the Subcontractor hereby agrees that all the limitations and duties to which the Contractor is bound to the Owner by the terms of the General Contract shall be deemed the limitations and duties to [237]*237which the Subcontractor in turn shall be bound to the Contractor. . . .

The following provision appears in the prime contract:

All requests for changes in the Drawings and Specifications must be in writing signed by the Owner and the Lender and shall be conditioned upon acceptance by the (Federal Housing) Commissioner, which acceptance may be subject to such conditions and qualifications as the Commissioner in his discretion may prescribe, it being understood that the Commissioner at all times has the right to require compliance with the original Drawings and Specifications. (Parenthetical added.)

The parties have submitted the matter on the documents now before the Court without argument. Those documents, including the pleadings and the pre-trial order, raise a single issue of law, namely whether the failure of the general contractor to obtain the approval of the FHA for its otherwise- unchallenged change orders, permits it to avoid payment for work done by the subcontractor in conformance with those change orders.

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Bluebook (online)
325 F. Supp. 449, 8 V.I. 232, 1971 U.S. Dist. LEXIS 14242, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tropic-plumbing-inc-v-thompson-starrett-international-inc-vid-1971.