United States v. S. J. Groves & Sons Co.

53 F.R.D. 656, 1971 U.S. Dist. LEXIS 11328
CourtDistrict Court, D. Minnesota
DecidedOctober 7, 1971
DocketNo. 3-70 Civ. 9
StatusPublished
Cited by5 cases

This text of 53 F.R.D. 656 (United States v. S. J. Groves & Sons Co.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. S. J. Groves & Sons Co., 53 F.R.D. 656, 1971 U.S. Dist. LEXIS 11328 (mnd 1971).

Opinion

NEVILLE, District Judge.

Use-plaintiff M. G. Astleford Co., Inc., a Minnesota corporation, commenced this action against defendant S. J. Groves and Sons Company, a contractor and its two sureties. The complaint alleges that Groves, pursuant to a contract with the Army Corps of Engineers entered into on or about June 30, 1965, agreed to construct a dam on the Eau Galle River near Spring Valley, Wisconsin. Certain portions of the work required by this contract were subcontracted on August 4, 1965, to use-plaintiff Astleford. Pursuant to 40 U.S.C. § 270a (the Miller Act), Groves duly furnished payment and performance bonds written by the other defendants.

The complaint further alleges that all labor and materials called for in the Astleford subcontract were furnished, [658]*658that the prosecution of the work embodied in the subcontract ultimately involved more than was specified or contemplated in the subcontract, and that Astleford has received no payment for such extra work. This extra work is alleged to have been required by certain changes of circumstances beyond Astle-ford’s control and by Groves’ various breaches of contract. There is also a claim for “equitable adjustment” on the theory that the subcontract was “abandoned.” Specific breaches, and consequential damages, are enumerated in paragraph XI of the Amended Complaint. It does not appear that the Amended Complaint materially alters the substance of the claims or the items of damage for which recovery is sought in the original complaint, though the ad dam-num prayer is reduced.

Specifically, the Amended Complaint alleges the following conduct which it is claimed gives rise to liability for damages: (1) Astleford performed certain work at the request of Groves which was not specified in the subcontract and for which Groves has not paid Astleford (If VIII), and (2) Groves breached the subcontract by failing to adhere to the schedule promised in the subcontract OH IX(a)), by failing to prepare work sites and conditions as promised in the subcontract G|f IX(b)), by compelling Astleford to do certain contract work in times, manners, sequences, and techniques otherwise than as agreed upon (If IX(c)), by compelling Astleford to do work beyond the scope of the contract (If IX(d)), and by failing to pay Astle-ford for extra costs incurred by reason of changed circumstances (|f IX(e)).

As the proximate result of such conduct, Astleford claims various elements of damages as specified in |f XI of the Amended Complaint. Without elaborating such claims with specificity, they include: extra overhead, extra labor costs —both because more man-hours were involved and because the work scheduled to be done when one pay scale prevailed was delayed until after an upwards-renegotiation of the scale — extra equipment costs, idle equipment time, materials costs involved in the furnishing and pouring of concrete in excess of that required in the specifications of the subcontract, and in the construction of certain tunnel forms.

Defendants answered denying liability and defendant Groves has asserted a counterclaim to which Astleford has replied. Defendants have moved for a Summary Judgment on the grounds that (1) the allegations of the complaint— both the original and the proposed amended complaint — do not state a cause of action under the Miller Act, 40 U.S.C. § 270b, and the court is therefore without jurisdiction, (2) Clause 10 of the subcontract and Clauses (b) and (c) of Attachment No. 1 thereto exculpate Groves and operate to limit Astleford’s remedy for delays, hindrances or interferences to a corresponding extension of time within which to perform its promised work, and (3) Clause 5(d) of the prime contract between Groves and the United States as incorporated by the subcontract provides only for an extension of time in these circumstances. In other words, the defendant claims that this is not a Miller Act case since it involves only “delay” damages and not a claim for labor and material rendered and furnished, and that in any event the governing contract precludes the relief requested.

On the question of allowing the filing of plaintiff’s amended complaint the court has little hesitation. The case is yet some months from trial; defendants themselves earlier were granted permission to file an amended answer and counterclaim; Rule 15 of the Federal Rules of Civil Procedure contemplates liberality in allowing amendments; and for these reasons the amendment is allowed.

The two questions remaining are whether the motions for summary judgment should be granted, and whether this [659]*659court should assume pendent jurisdiction or dismiss at least a portion of the claims contained in plaintiff’s complaint.

Plaintiff resists defendants’ motion for summary judgment on the ground that there is at least one primary genuine issue of fact involved. It claims that the “boiler plate” “no-damage” clause when strictly construed against Groves, in light of other contract provisions, the contract negotiations, the surrounding circumstances, and the subsequent behavior of the parties does not mean that there could be no claims for extra compensation for any delays, interferences, or hindrance caused by the defendant Groves. It particularly asserts that its damages are at least in large part, based in reality on claims for labor and material.

Likewise, defendant resists plaintiff’s motion for partial summary judgment on the ground that there is at least one primary genuine issue of fact involved. Plaintiff would have the court determine summarily that Groves is guilty of a breach of contract. Defendant claims that there has been no breach wholly or partially and that any delays were not its fault. Again, the contractual intent and particularly the facts concerning the unanticipated artesian water difficulty must be ascertained before ruling can be made on whether there was a breach of contract. The court cannot well interpret or apply the specific terms of the contract without evidence of the facts as to what occurred, the effect of the delay, and the behavior of the parties and other matters which are factual issues. It would seem to the court that there are numerous questions of fact which can be resolved only after a trial.

The Eighth Circuit several times has indicated and stated that summary judgment under Rule 56 of the Federal Rules of Civil Procedure is an extraordinary remedy and should be granted very, very sparingly.

“A summary judgment should be used only in ‘extreme’ situations. To grant a summary judgment under Rule 56, a party must be entitled to relief ‘beyond all doubt’ without ‘room for controversy’. Recovery must be barred beyond ‘any discernible circumstances.’ See Traylor v. Black, Sivalls & Bryson, Inc., 8 Cir., 189 F.2d 213 [1951]. As Judge Parker said in Pierce v. Ford Motor Co., 4 Cir., 190 F.2d 910, at 915 [1951]:

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Related

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352 F. Supp. 120 (D. Minnesota, 1972)
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349 F. Supp. 1182 (D. Minnesota, 1972)
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336 F. Supp. 1392 (D. Minnesota, 1972)

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Bluebook (online)
53 F.R.D. 656, 1971 U.S. Dist. LEXIS 11328, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-s-j-groves-sons-co-mnd-1971.