Wachter v. Gratech Co., Ltd.

2000 ND 62, 608 N.W.2d 279, 2000 N.D. LEXIS 65, 2000 WL 301192
CourtNorth Dakota Supreme Court
DecidedMarch 24, 2000
Docket990171
StatusPublished
Cited by28 cases

This text of 2000 ND 62 (Wachter v. Gratech Co., Ltd.) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wachter v. Gratech Co., Ltd., 2000 ND 62, 608 N.W.2d 279, 2000 N.D. LEXIS 65, 2000 WL 301192 (N.D. 2000).

Opinion

MARING, Justice.

[¶ 1] Gail Wachter, Lance A. Wachter, and Wachter Development, L.L.C. (“Wachter”), appealed from a judgment dismissing with prejudice an action against Gratech Company, Ltd. (“Gratech”) for slander of title, abuse of process and lost profits, and awarding Gratech $118,370 plus interest on its counterclaim against Wachter for breach of contract. We conclude the trial court’s findings that Wachter breached the parties’ contract, Gratech suffered $118,370 in damages as a result of the breach, and Gratech did not commit an abuse of process, are not clearly erroneous. We affirm.

I

[¶ 2] On February 22, 1996,. Wachter hired Gratech to excavate about 300,000 cubic yards of dirt for a housing develop *282 ment. The terms of the parties’ contract were set forth in a letter from Gratech to Wachter:

This is to confirm the work to be accomplished and the price and payment terms for the referenced project.
Grading items per your X-X-96 drawing, which consists of the removal of clay embankment material from a “borrow” area and the placement of this material in a nearby “fill” area. The approximate quantity of excavated material is 300,000 cubic yards and the approximate average haul distance is 3,000 feet.
Price per cubic yard of excavation:
• First 150,000 cy— $.85
• Second 150,000 cy— $.79
Our price includes:
• All labor, equipment and material necessary to provide cut and fill grades as specified.
• Clearing, grubbing and stockpiling the trees in the fill area for removal by others.
• Compaction of embankment in the area of streets as specified by Engineer.
Our price does not include:
• Building permits (if required)
• Utility relocation costs (if any)
• Compaction tests
• Initial layout of the work and “blue-tops”
• Initial and final cross-sectioning of excavation area

[[Image here]]

We ask that a payment in the amount of $20,000 be made at the start of mobilization, that progress payments be made bi-weekly based on estimated quantities and that final payment be made within 10 days of completion....

We understand your objective is to have this site ready for water and sewer line installation in approximately 8 to 10 weeks. We will commit the necessary resources in that effort, but cannot accept responsibility for weather related or other unforeseen delays outside our control.

[¶ 3] The excavation was part of Wachter’s plan for the development of two subdivisions. Swenson Hagen & Company (“Swenson Hagen”), an engineering firm, designed the housing project and proposed digging a lake and using the fill from the lake to raise the elevation of nearby land so it could be developed. Although the excavation was initially estimated to involve more than 300,000 cubic yards of dirt, Wachter estimated the total for compacted fill to be about 240,000 cubic yards. Gratech was to excavate the proposed lake and move the fill to a development area known as Cottonwood Lake Fifth Addition, which did not include the waterfront property. Wachter planned to develop the waterfront property at a later time.

[¶ 4] Gratech initially believed excavation of the lake would require the removal of eight feet of dirt and the company based its proposal to Wachter on that assumption. Before beginning work on the project, however, Gratech realized it would be required to remove 13 feet of dirt, which would involve excavating from below the water table. Swenson Hagen provided markers called “blue tops,” which indicated how much fill was needed to be placed into the development area.

[¶ 5] Gratech began the excavation project in February 1996. Gratech soon encountered water at the 13-foot level, which caused problems creating a smooth bottom for the lake. Gratech employees met with Swenson Hagen’s land consultant and Wachter’s agent to explain these problems. Rather than creating a flat bottom, Gra-tech dug a series of holes resembling basements and knocked down the walls between them to deal with the challenge of digging below the water table. Wachter’s agent and the land consultant either approved or did not object to Gratech’s method of digging the lake bottom. This method resulted in an “egg carton” bottom *283 with small “islands” in the lake. Gratech employees said Wachter representatives told them they were not concerned about the bottom of the lake being flat, but were primarily concerned that sufficient dirt be removed to bring the fill area to the correct grade or elevation.

[¶ 6] Shortly before Gratech completed the project in September 1996, Gratech employees met with the land consultant and Wachter’s agent, who expressed concerns about the uneven bottom of the lake. After a Gratech employee reminded them about their earlier meeting regarding the difficulty in making the bottom of the lake flat, there was no further discussion about the lake bottom. The land consultant and Wachter’s agent viewed the fill area and requested that Gratech stockpile 4,000 cubic yards of fill for later use.

[¶ 7] On September 4, 1996, Lance Wachter wrote to Gratech stating he knew Gratech would be finished with the excavation project in a few days.

Therefore, I will have the lake crossed-sectioned [sic] to determine the amount of yards excavated. The only problem we have now is the islands in the lake. Who is going to pay, to straighten out.

[¶ 8] Gratech responded on September 6, 1996, telling Wachter:

Dining discussion with your representatives, Gratech’s project superintendents pointed out that it was not possible to excavate to the “neat line” in these conditions. They were told the primary objective of the project was to obtain material for fill and that the final condition of the borrow area bottom was not a significant concern.
Our position on this matter is that we have done the best we can to deal with a condition that was not apparent at the time the agreement was made. Any further work on the borrow area must be for the account of others.
In any event, though, we believe that over time the lake bottom will level out on its own. We do not feel any of the parties involved should spend money in this effort.

Wachter did not respond to Gratech’s letter.

[¶ 9] On January 20, 1997, Gratech sent Wachter a final invoice for $66,761. The invoice was based on information about the amount of dirt excavated provided by the Swenson Hagen land consultant. Gratech later learned the land consultant had not had the property cross-sectioned as called for by the contract, but had used a different method of calculating the amount of dirt excavated.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

PHI Financial Services v. Johnston Law Office
2020 ND 22 (North Dakota Supreme Court, 2020)
Rodenburg Law Firm v. Sira
2019 ND 205 (North Dakota Supreme Court, 2019)
Bearce v. Yellowstone Energy Development, LLC
2019 ND 89 (North Dakota Supreme Court, 2019)
Johnston Law Office, P.C. v. Brakke
2018 ND 247 (North Dakota Supreme Court, 2018)
Jalbert v. Eagle Rigid Spans, Inc.
2017 ND 50 (North Dakota Supreme Court, 2017)
Riemers v. Hill
2016 ND 137 (North Dakota Supreme Court, 2016)
Dish Network Service L.L.C. v. Brian Laducer
725 F.3d 877 (Eighth Circuit, 2013)
Abdullah v. State
2009 ND 148 (North Dakota Supreme Court, 2009)
Bell v. North Dakota
567 F. Supp. 2d 1130 (D. North Dakota, 2008)
City of Bismarck v. Mariner Construction, Inc.
2006 ND 108 (North Dakota Supreme Court, 2006)
Curtis Construction Co. v. American Steel Span, Inc.
2005 ND 218 (North Dakota Supreme Court, 2005)
State v. Lura
2004 ND 70 (North Dakota Supreme Court, 2004)
State v. Causer
2004 ND 75 (North Dakota Supreme Court, 2004)
Keller v. Bolding
2004 ND 80 (North Dakota Supreme Court, 2004)
AgGrow Oils, L.L.C. v. National Union Fire Insurance
276 F. Supp. 2d 999 (D. North Dakota, 2003)
Trinity Health v. North Central Emergency Services, P.C.
2003 ND 86 (North Dakota Supreme Court, 2003)
Farstveet v. Rudolph
2000 ND 189 (North Dakota Supreme Court, 2001)
Moen v. Thomas
2001 ND 95 (North Dakota Supreme Court, 2001)
In Re Estate of Lutz
2000 ND 226 (North Dakota Supreme Court, 2000)
Pfeifle v. Tanabe
2000 ND 219 (North Dakota Supreme Court, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
2000 ND 62, 608 N.W.2d 279, 2000 N.D. LEXIS 65, 2000 WL 301192, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wachter-v-gratech-co-ltd-nd-2000.