Weaver-Bailey Contractors, Inc. v. United States

36 Cont. Cas. Fed. 75,847, 20 Cl. Ct. 158, 1990 U.S. Claims LEXIS 155, 1990 WL 45589
United States Court of Claims·Decided April 17, 1990·No. No. 137-87C·Published·Cited by 28 cases

Opinion

ORDER

SMITH, Chief Judge.

In its February 9, 1990 opinion, the court awarded plaintiff Weaver-Bailey Contractors an equitable adjustment of $469,041 for increased costs of contract performance. Weaver-Bailey Contractors v. United States, 19 Cl.Ct. 474 (1990). The court found that the government’s defective specifications led to a delay in completing the contract, and concluded that plaintiff’s increased costs stemming from the delay were compensable under the contract’s Differing Site Conditions clause. Defendant now asks the court to reconsider its ruling, asserting, as it did in its post-trial brief, that the portion of damages awarded for equipment rental charges was too high. For the reasons set forth below, defendant’s motion for reconsideration is denied.

“A motion for a new trial in a nonjury case or a petition for rehearing should be based upon manifest error of law or mistake of fact, and a judgment should not be set aside except for substantial reasons.” Wright & Miller, Federal Practice and Procedure, Civil section 2804 (quoted approvingly in McConney v. Great Atlantic & Pacific Tea Co., 455 F.Supp. 1143 (E.D.Pa.1978)). “Whatever may be the purpose of [a motion for reconsideration], it should not be supposed that it is intended to give an unhappy litigant one additional chance to sway the judge.” Durkin v. Taylor, 444 F.Supp. 879, 889 (E.D.Va.1977). Thus, a motion for reconsideration should not be used as a substitute for an appeal. As the court stated in Frito-Lay of Puerto Rico, Inc. v. Canas, 92 F.R.D. 384, 391 (D. Puerto Rico 1981): “To the extent that the motion for reconsideration merely reas[159] serts ... arguments previously made ..., all of which were carefully considered by the court ..., there is no reason to vacate the Court’s earlier Opinion and Order.”

With the above considerations in mind, the court now turns to the substance of defendant’s motion for reconsideration. $199,450 of the $469,041 awarded plaintiff were attributable to the costs of renting earthmoving equipment from M.R.S. Enterprises, a firm owned and controlled by Marion Stephenson. 19 Cl.Ct. at 484. Defendant now challenges this portion of the damages award as too high, arguing that in light of the relationship between Weaver-Bailey and Marion Stephenson, equipment charges should have been assessed at lower ownership rates. Defendant relies on Special Clause 10 of the contract, which provides:

EQUIPMENT OWNERSHIP AND OPERATING EXPENSE
10.1 Allowable cost for construction and marine plant and equipment in sound workable condition owned or controlled and furnished by a Contractor for work requiring adjustment in contract price shall be based upon actual costs, provided both ownership and operating costs for each piece of equipment or equipment groups of similar serial and series are proposed by the Contractor or known by the Contracting Officer to be avail-able____ When actual costs are neither proposed not [sic] known to be available, equipment costs shall be based upon the applicable provisions of the “Construction Equipment Ownership and Operating Expense Schedule,” Region VI____ 10.2 Equipment rental costs are allowable, subject to the provisions of FAR 15.205-36 [now 31.205-36], substantiated by certified reproduced copies of invoices or bills. Rates for equipment rented from an organization under common control, lease-purchase or sale-leaseback arrangements will be determined in accordance with the schedule. A copy of the schedule will be provided to the successful bidder upon request.

FAR 31.205-36 (Oct. 1, 1988) provides:

(a) This subsection is applicable to the cost of renting or leasing real or personal property____
(b) The following costs are allowable:
(1) Rental costs under operating leases, to the extent that the rates are reasonable at the time of the lease decision, after consideration of (i) rental costs of comparable rental property, if any; (ii) market conditions in the area; (iii) the type, life expectancy, condition, and value of the property leased; (iv) alternatives available; and (v) other provisions in the agreement.
* * * * * *
(3) Charges in the nature of rent for property between any divisions, subsidiaries, or organization under common control, to the extent that they do not exceed the normal costs of ownership, such as depreciation, taxes, insurance, facilities capital cost of money, and maintenance (excluding interest or other unal-lowable costs pursuant to Part 31), provided that no part of such costs shall duplicate any other allowed cost. Rental cost of personal property leased from any division, subsidiary, or affiliate of the contractor under common control, that has an established practice of leasing the same or similar property to unaffiliated lessees shall be allowed in accordance with subparagraph (b)(1) above.
* * % * * *

The central question presented by defendant’s motion for reconsideration is whether Weaver-Bailey and M.R.S. Enterprises should be treated as being under “common control” for purposes of FAR 31.205-36(b) and Special Clause 10 of the contract. Defendant seizes on the court’s comment in footnote 4, 19 Cl.Ct. at 478, that Weaver-Bailey and Mr. Stephenson were co-venturers on the Arcadia Lake project, and argues now that the court “found” that Weaver-Bailey and M.R.S. Enterprises were under common control.

Footnote 4 reads in full:
Defendant attacked Mr. Stephenson’s credibility by introducing evidence that Mr. Stephenson settled a lawsuit against Weaver-Bailey arising out their relationship as co-venturers on the Arcadia Lake [160] contract, in exchange for a share in any judgment that might be recovered in the present suit. Weaver-Bailey and Mr. Stephenson had bid the Arcadia Lake project together, with Mr. Stephenson and Weaver-Bailey agreeing to split any profits and share any losses. Mr. Stephenson sued Weaver-Bailey, believing that it was the only way to protect his interest in the Arcadia Lake venture, since he was not a party to the contract with the government. Defendant wished to create the impression that Mr. Stephenson’s testimony was unreliable, in light of his financial interest in the outcome of this litigation. The court merely notes that Mr. Stephenson’s testimony is no less reliable than that of most friendly witnesses called by a contractor seeking an equitable adjustment. Mr. Stephenson does stand to gain from a ruling in favor of Weaver-Bailey, but virtually every head or senior employee of a plaintiff in a suit in this court stands to gain from a favorable decision. While this is a factor to be weighed, it does not in and of itself destroy reliability.

The court’s comments were made for the limited purpose of explaining that Mr. Stephenson was a credible witness, notwithstanding his relationship with Weaver-Bailey. Defendant now quotes the court out of context; nowhere in footnote 4 did the court discuss the applicability of contract clauses or FAR provisions relating to rental equipment.

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Weaver-Bailey Contractors, Inc. v. United States, 36 Cont. Cas. Fed. 75,847, 20 Cl. Ct. 158, 1990 U.S. Claims LEXIS 155, 1990 WL 45589 (cc 1990).

36 Cont. Cas. Fed. 75,847 (Weaver-Bailey Contractors, Inc. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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