United States ex rel. Trans-Colorado Concrete, Inc. v. Midwest Construction Co.

653 F. Supp. 903, 3 U.C.C. Rep. Serv. 2d (West) 1353, 1987 U.S. Dist. LEXIS 1317
CourtDistrict Court, D. Colorado
DecidedFebruary 18, 1987
DocketCiv. A. No. 86-K-958
StatusPublished

This text of 653 F. Supp. 903 (United States ex rel. Trans-Colorado Concrete, Inc. v. Midwest Construction Co.) is published on Counsel Stack Legal Research, covering District Court, D. Colorado 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. Trans-Colorado Concrete, Inc. v. Midwest Construction Co., 653 F. Supp. 903, 3 U.C.C. Rep. Serv. 2d (West) 1353, 1987 U.S. Dist. LEXIS 1317 (D. Colo. 1987).

Opinion

MEMORANDUM OPINION AND ORDER

KANE, District Judge.

This is an action by the United States, on behalf of Trans-Colorado Concrete, to recover transportation costs incurred by plaintiff in delivering concrete to certain job sites for bridge repair and replacement at Fort Carson, Colorado. Plaintiff has moved for summary judgment. Jurisdiction is alleged under 40 U.S.C. § 270a-c, commonly known as the Miller Act.

The facts are undisputed. On August 20, 1984, Trans-Colorado Concrete, a concrete manufacturing company, entered into an agreement with defendant Midwest Construction Company to supply materials and perform labor for Midwest for the Fort Carson project. The three pages detailing the awarded bid and the bidding schedule [905]*905for plaintiff’s services and materials constituted the only contract documents. On the bidding schedule only one location, Ellis St., was specifically mentioned as a delivery site. However, both parties also relied on a single purchase order, Invoice No. 2751, to determine the places of performance of the contract. That invoice simply stated “F.O.B. job site”.

Plaintiff began work under the contract in January of 1985, supplying concrete to Midwest at the location identified by the parties as the Ellis-Chiles Road site. Around May, Midwest orally contacted plaintiff and requested additional concrete to be delivered to other bridge projects south of the original site and a substantial distance away. Although the parties agreed that the price of the concrete would remain the same, there is nothing in the pleadings or accompanying affidavits indicating a discussion between them concerning extra distance, short load, or waiting charges for the new deliveries.

From then to the end of October of 1985, plaintiff billed Midwest for charges based on transportation distances further than the original delivery site at Ellis-Chiles Road. For close to eight months, Midwest paid all these bills promptly in order to take advantage of an early payment discount. In what was to be its last payment to plaintiff, on a check dated January 3, 1986, Midwest deducted all distance, short load, and waiting charges paid since May, and sent plaintiff the reduced balance. Plaintiff now sues to recover that deducted amount.

I first find I have jurisdiction over the dispute. The Miller Act was enacted with the purpose of protecting those who furnish labor and materials in performance of a contract for construction of public works. See generally, Borrett-Moore & Associates v. U.S. for Use of Harwell, 367 F.2d 122 (10th Cir.1966). Facts pleaded by both parties demonstrate that an appropriate federal question exists under the aegis of the Act. Plaintiff furnished the requisite bond to the United States in satisfaction of 40 U.S.C. § 270a, and plaintiff is a “person(s) who furnish(es) labor or material in the prosecution of the work provided for in such contract” for purposes of 40 U.S.C. § 270b. Consequently, defendant’s claim of improper jurisdiction is without merit. Additionally, since defendants have submitted neither brief nor motion to this court concerning their claim of improper venue, I strike that claim as well.

Summary judgment is appropriate only if “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed.R.Civ.P. 56(c). In determining the existence of any genuine issue of material fact, the record is construed in the light most favorable to the party opposing the motion. Otteson v. United States, 622 F.2d 516, 519 (10th Cir.1980). However, the adverse party “may not rest upon the mere allegations or denials of his pleading, but his response, by affidavits or as otherwise provided in this rule, must set forth specific facts showing that there is a genuine issue for trial.” Fed.R.Civ.P. 56(e).

Whether a contract is ambiguous is a question of law for the court. Geralnes B. V. v. City of Greenwood Villdge, Colo., 630 F.Supp. 644,649 (D.Colo.1986). Resolution of the contract ambiguity will necessarily resolve the principal question presented before me by the parties in this case. I find that under the facts provided, this action is appropriate for summary disposition.

I must first determine what law applies in this action. In my opinion in United States v. Santa Fe Engineers, Inc., 515 F.Supp. 512, 514-15 (D.Colo.1981), I held that when there is a distinction between federal and state substantive law in Miller Act cases, federal law controls, although the interstices may be filled by incorporating state law. As in Santa Fe, Colorado law determines the terms of the contract in this case, while federal law determines whether,, and to what extent, plaintiff’s claim is cognizable under the Miller Act. [906]*906Id. Since I find the claim cognizable, I must look to relevant contract law to determine whether Trans-Colorado is entitled to payment of the additional distance charges.

Plaintiffs first argument is that the place of performance under the contract was modified by subsequent conduct or agreement by the parties. It claims that payment of distance charges became part of the contract between the parties, as a result of their conduct.

The contract expressly mandated that plaintiff would deliver the concrete “F.O.B. job site.” 1973 Colo.Rev.Stat. 4-2-319(l)(b) defines this provision:

(1) Unless otherwise agreed the term F.O.B. ... at a named place, even though used only in connection with the stated price, is a delivery term which:
(b) When the term is F.O.B. the place of destination, the seller must at his own expense and risk transport the goods to that place ...

Official comment on Colorado statutes dealing with evidence of the final written expression of contract terms between parties, and with absence of specified place of delivery, imply that an “otherwise agreement” may be constituted by surrounding circumstances, usage of trade, course of dealing, or course of performance, as well as by the express language of the parties. 1973 Colo.Rev.Stat. 4-2-202 (n. 2); 1973 Colo.Rev.Stat. 4-2-308 (n. 4). While it is apparent from the bidding schedule that the first delivery site must have been the Ellis-Chiles Road site, and that under Colorado contract law plaintiff was responsible for transportation costs to that location, the subsequent oral agreement between the companies to deliver elsewhere formed an otherwise agreement. Such a modification needed no consideration to be binding. 1973 Colo.Rev.Stat. 4-2-209(1).

Furthermore, in spite of pronouncements to the contrary in Midwest’s brief in opposition to the motion for summary judgment, “job site” is an ambiguous term in this contract.

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Related

Borrett-Moore & Associates v. United States
367 F.2d 122 (Tenth Circuit, 1966)
Jerome Otteson v. United States
622 F.2d 516 (Tenth Circuit, 1980)
GERALNES BV v. City of Greenwood Village, Colo.
630 F. Supp. 644 (D. Colorado, 1986)
CITY & COUNTY OF DENVER, ETC. v. Bergland
517 F. Supp. 155 (D. Colorado, 1981)

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Bluebook (online)
653 F. Supp. 903, 3 U.C.C. Rep. Serv. 2d (West) 1353, 1987 U.S. Dist. LEXIS 1317, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-ex-rel-trans-colorado-concrete-inc-v-midwest-construction-cod-1987.