Turner Construction Co., Inc. v. United States

367 F.3d 1319, 2004 WL 1057624
CourtCourt of Appeals for the Federal Circuit
DecidedMay 12, 2004
Docket03-5055
StatusPublished
Cited by38 cases

This text of 367 F.3d 1319 (Turner Construction Co., Inc. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Turner Construction Co., Inc. v. United States, 367 F.3d 1319, 2004 WL 1057624 (Fed. Cir. 2004).

Opinions

PAULINE NEWMAN, Circuit Judge.

Turner Construction Co. (Turner) appeals the judgment of the United States Court of Federal Claims,1 denying Turner’s claim for compensation for additional costs incurred in performance of a construction contract with the United States Department of Veterans Affairs (DVA). We reverse the judgment as to entitlement, and remand for further proceedings.

[1321]*1321DISCUSSION

On appeal of judgments of the Court of Federal Claims, plenary review is given to the court’s legal conclusions, and factual findings are reviewed under the clearly erroneous standard. See Massachusetts Bay Transp. Auth. v. United States, 254 F.3d 1367, 1372 (Fed.Cir.2001); City of El Centro v. United States, 922 F.2d 816, 819 (Fed.Cir.1990). The interpretation of contracts is reviewed as a matter of law. See Seaboard Lumber Co. v. United States, 308 F.3d 1283, 1292 (Fed.Cir.2002). Contracts between the government and private contractors are subject to the general law of contracts. See Mobil Oil Exploration & Producing Southeast, Inc. v. United States, 530 U.S. 604, 607, 120 S.Ct. 2423, 147 L.Ed.2d 528 (2000).

When a dispute arises as to the interpretation of a contract and the contractor’s interpretation of the contract is reasonable, we apply the rule of contra proferentem, which requires that ambiguous or unclear terms that are subject to more than one reasonable interpretation be construed against the party who drafted the document. United States v. Turner Constr. Co., 819 F.2d 283, 286 (Fed.Cir.1987). However, the court will consider whether the ambiguity or lack of clarity was sufficiently apparent that there arose an obligation on the contractor to inquire as to that provision before entering into the contract. See P.R. Burke Corp. v. United States, 277 F.3d 1346, 1355-56 (Fed.Cir.2002) (where a government contract contains latent ambiguity, the court will construe the ambiguous term against the government as drafter of the contract, provided that the contractor’s interpretation was reasonable and the contractor relied on that interpretation when preparing its bid); Zinger Const. Co. v. United States, 807 F.2d 979, 981 (Fed.Cir.1986) (a reasonable contractor is expected to recognize patent ambiguities and to inquire about the work to be performed). The parties are charged with knowledge of law and fact appropriate to the subject matter, and reasonable professional competence in reading and writing contracts is presumed. See Lockheed Martin IR Imaging Sys., Inc. v. West, 108 F.3d 319, 322 (Fed.Cir.1997).

The DYA and Turner entered into a contract for construction of an addition to the DVA Medical Center in Boston. While construction was proceeding, Turner disagreed with the DVA resident engineer about whether the contract required certain fire-nated electrical feeders and panel-boards in the operating room area on the third floor of the addition. The DVA resident engineer directed Turner to install the disputed materials. Turner complied, incurring the additional costs that are subject of this appeal.

The contract required Turner to “Furnish and install electrical wiring, systems, equipment and accessories in accordance with the specifications and drawings” and to comply with the applicable electrical codes. The government states that the contract should be read to include certain fire-rated electrical installations for the operating rooms, based on the contract’s requirement of compliance with electrical codes, and that this overrides any inadequacy in the contract specifications or error in the government’s electrical drawings. The government states that the contract should at least be viewed as patently ambiguous, placing on Turner the duty to inquire during the bidding process with respect to the erroneous drawings. Turner states that the contract is not ambiguous, and that the electrical require[1322]*1322ments as set forth in the contract specifications and electrical drawings do not conflict with the applicable codes.

The contract contained detailed drawings showing the electrical systems for the operating room area, as for the other areas of the construction. The drawings also provided details of the emergency system. The dispute is focused on whether the operating room electrical feeders and pan-elboards should have been viewed as part of a fire-rated emergency system, although the contract specifications and drawings were clear that fire-rated electricals were not designated for the disputed feeders and panelboards.

The Massachusetts State Electrical Code (MSEC) requires that emergency equipment have fire-rated feeders and enclosures. Relevant provisions of the MSEC include:

1.22A. Massachusetts State Electrical Code requires all emergency generation and distribution equipment be installed within dedicated 2-hour fire-rated rooms, closets or shafts. All equipment, conduit, piping, ductwork, etc., alien to the emergency system shall not be located within these rooms, closets, or shafts except the equipment that serves these rooms, closets or shafts.
B. All emergency equipment such as generators, transfer breakers, switchboards and panel-boards, shall be installed in 2-hour fire-rated rooms....
C. All portions of the emergency system, such as feeders, located outside of rooms, closets or shafts described herein above shall also be enclosed within 2-hour fire-rated enclosures....

The government states that MSEC 1.22 requires that the operating room feeders and panel-boards be deemed “emergency electrical systems” and therefore must be 2-hour fire-rated.

Turner states that the contract does indeed require fire-rated feeders for the emergency electrical system, as shown in the contract, but that the contract specifications and electrical drawings do not include the operating room areas as part of the emergency electrical system, and are explicit as to the aspects that do and do not require fire-rating. It is undisputed that no description in the contract or any contract specification or electrical drawing shows the operating rooms as part of the hospital’s emergency system. The government argues that such designation of the operating rooms is unnecessary, referring to National Electrical Code Article 517-80 entitled “Essential Electrical Systems for Hospitals.” This NEC Article requires that hospitals have a separate “emergency system” for “circuits essential to life safety and critical patient care,” in the following provisions:

517.30(b) General.

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Bluebook (online)
367 F.3d 1319, 2004 WL 1057624, Counsel Stack Legal Research, https://law.counselstack.com/opinion/turner-construction-co-inc-v-united-states-cafc-2004.