United States Ex Rel. Mod-Form Inc. v. Barton & Barton Co.

769 F. Supp. 235, 37 Cont. Cas. Fed. 76,205, 1991 U.S. Dist. LEXIS 11259
CourtDistrict Court, E.D. Michigan
DecidedAugust 13, 1991
Docket2:90-cv-71387
StatusPublished
Cited by4 cases

This text of 769 F. Supp. 235 (United States Ex Rel. Mod-Form Inc. v. Barton & Barton Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States Ex Rel. Mod-Form Inc. v. Barton & Barton Co., 769 F. Supp. 235, 37 Cont. Cas. Fed. 76,205, 1991 U.S. Dist. LEXIS 11259 (E.D. Mich. 1991).

Opinion

OPINION

GADOLA, District Judge.

Background of Litigation

This cause was tried to the court as a non-jury matter.

The suit involves claims by plaintiff Mod-Form, Inc., as subcontractor, against defendant Barton & Barton Company, the general contractor on a project for the remodeling of a stair tower building at the U.S. Army Detroit Arsenal. The claims are made under the Miller Act, and are governed thereby. 40 U.S.C. § 270a et seq.

Barton & Barton Company was awarded the contract for this remodeling work and then subsequently, on October 20, 1986, Mod-Form, Inc. and Barton & Barton Company entered into a subcontract by the terms of which Mod-Form was to manufacture and install precast insulating panels and to do related work for the project, for a contract price of $50,000.00.

Barton & Barton, as general contractor on this U.S. Army contract, was required to furnish a performance bond, and such bond was issued by defendant Employers Insurance of Wausau.

During the Fall of 1987 Mod-Form commenced its work under its subcontract on the project.

The original subcontract price of $50,-000.00 was modified on September 29, 1987, and the subcontract price was increased by $11,268.00 for a total revised subcontract price of $61,268.00 as the result of a modification of Barton & Barton’s contract with the Army.

The panels were manufactured by Mod-Form, with manufacture completed by October 9, 1987. The panels were delivered to the project site, the U.S. Army Detroit Arsenal, in December of 1987, but were not installed by Mod-Form until a subsequent date, there being no crane on site at that time for the required erection work.

*236 On November 25, 1987 Mod-Form submitted its invoice to Barton & Barton in the amount of $51,268.00, covering “pre-cast aggregate panels and miss (sic) hardware”. The invoice also contained a notation that the additional charge for installation of the panels had been calculated by Mod-Form to be $10,000.00.

On April 5, 1988 a second invoice was submitted by Mod-Form to Barton & Barton making the following charges:

“Installation of pre-cast panels at 100% completion: $10,000.00

Storage on trailer due to delays not by Mod-Form including 10% overhead and 10% profit: 1,956.00

Total: $11,956.00”

On January 9, 1989 the Department of the Army suspended Barton & Barton’s work on the project “to evaluate whether continuance of this project is in the best interests of the government.” On May 22, 1989 the Department of the Army lifted the suspension of contract work.

Prior to these developments, on October 31, 1988 the Army had requested that Barton & Barton quote a price for certain additional possible work including:

(a) the installation of additional structural steel support work; and
(b) the repositioning of the panels.

This work was not required under Barton & Barton’s then existing contract with the Army on this project. The Army in its communication of October 31, 1988 also notified Barton & Barton that it must:

“(c) “correct existing defective welds” as “a no cost item”.”

This last item (c) was the correction of allegedly defective welds previously made by Mod-Form under its subcontract, in installing the panels which it had manufactured.

On June 5, 1989 the Department of the Army entered into another modification of its contract with Barton & Barton, providing for the additional work outlined in its communication of October 31, 1988 as items (a) and (b), (which was additional work in which Mod-Form was not to be involved) and also requiring the aforementioned correction of existing defective welds (item (c) in the October 31, 1988 communication) as a “no cost item”, which would be work to correct defects in Mod-Form’s prior subcontract work.

On June 1, 1989 Barton & Barton informed Mod-Form that the Army had, on May 22, 1989, lifted its “suspension of work” order of January 9, 1989 and that Mod-Form “can now proceed with the corrective work required to make your in place work acceptable to the government.” This communication from Barton & Barton also stated that Mod-Form had informed Barton & Barton that it would not do any corrective work (i.e., repair of the allegedly defective welds) until it had been paid “for work already performed”. Barton & Barton further advised Mod-Form that it would not be paid “for work that is not acceptable, before the corrections have been performed and accepted by the government.” The letter further stated that if Mod-Form refused “to do the necessary corrective work, to make the work acceptable, then Barton & Barton Company will be forced to hire another contractor to perform the corrections and charge the costs to Mod-Form, Inc. You will have until June 23, 1989 to make whatever corrections will be required for acceptance.”

On June 16, 1989 Mod-Form responded by letter informing Barton & Barton that “[w]e are willing to make corrections to our welds as per your request but are unable to until the additional work required by the owner is done. The additional work requested by the owner does not fall under our contract.” The letter also contained a demand by Mod-Form for payment of its invoices by Barton & Barton.

On August 17, 1989 Barton & Barton informed Mod-Form by letter that it was proceeding to correct the allegedly defective welds, that the corrective work would commence August 21, 1989, and that Mod-Form would be held responsible for the cost of correcting the defects.

Barton & Barton retained Greiner Erection Company to correct the welding defects, and the corrective work was per *237 formed by Greiner on August 21, August 22, August 23, August 24, August 25 and August 28, 1989 at a cost to Barton & Barton of $3,328.00.

Ultimately, the Army terminated its contract with Barton & Barton in January 1990, for reasons not associated with any contractual responsibilities of Mod-Form.

It is the claim of plaintiff that it is entitled to receive payment of its two invoices, $51,268.00 on November 25, 1987 and $11,-956.00 on April 5, 1988, being a total of $63,224.00, less payments received of $20,-000.00 on January 26, 1988 and $26,141.00 on March 7, 1988, leaving a balance of $17,083.00. Plaintiff concedes, however, that defendants may be entitled to credits of $800.00 for flashing work and $480.00 for caulking work, which arguably were left uncompleted by plaintiff, and which, if such credits were given, would result in a revised balance owing of $15,803.00.

Defendants maintain that plaintiff’s claim is barred under the Miller Act by a one year statute of limitations, which requires that suit must be filed within one year from the date of the last furnishing of labor or materials in order for a contractor on a government project such as this to be entitled to recover.

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769 F. Supp. 235, 37 Cont. Cas. Fed. 76,205, 1991 U.S. Dist. LEXIS 11259, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-ex-rel-mod-form-inc-v-barton-barton-co-mied-1991.