Westates Construction Co. v. City of Cheyenne

775 P.2d 502, 1989 Wyo. LEXIS 143, 1989 WL 60871
CourtWyoming Supreme Court
DecidedJune 9, 1989
Docket88-191
StatusPublished
Cited by9 cases

This text of 775 P.2d 502 (Westates Construction Co. v. City of Cheyenne) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Westates Construction Co. v. City of Cheyenne, 775 P.2d 502, 1989 Wyo. LEXIS 143, 1989 WL 60871 (Wyo. 1989).

Opinion

CARDINE, Chief Justice.

Appellant Westates Construction Company (Westates) initiated a contract action against the City of Cheyenne and the Cheyenne Board of Public Utilities (City) to recover damages allegedly arising from the performance of extra-contractual work and delays in the construction of the Stage II Water Diversion Project. The district court granted the City’s motion for summary judgment on three alternative grounds:

1. Westates’ action was barred by its failure to file a timely claim under the Wyoming Governmental Claims Act;
2. Westates effectively relinquished its claims by agreeing to the terms of change orders 3019 and 3032;
3. Westates forfeited its claims by failing to adhere to contractually mandated claims procedures.

We affirm.

Appellant seeks reversal, alleging that the Governmental Claims Act is inapplicable to contract claims and asserting that ambiguities in the contract and the change orders raise issues of material fact which preclude summary judgment. We need not decide whether the Governmental Claims Act and change orders 3019 and 3032 were a bar to appellant’s claim because we find that the unambiguous terms of the contract control appellant’s right to relief. Appellant’s claims are barred because they were not asserted as required by the contract of the parties.

FACTS

The Stage II Water Diversion Project required the City to obtain an easement from the United States Forest Service (USFS) to increase the storage capacity of Hog Park Reservoir, located in the Medicine Bow National Forest approximately twenty miles southwest of Encampment, Wyoming. Under the terms of the easement issued, USFS retained broad supervisory authority over the project for the control of soil erosion and water pollution. On *503 July 26, 1982, Westates contracted with the City to enlarge the reservoir. In mid-October, subcontractors began washing gravel and draining muddy water from the process into three holding ponds built by one of Westates’ subcontractors. The ponds failed, discharging the muddy pollutant into Hog Park Creek. The USFS, apparently concerned that Westates’ diversionary structure might be unable to handle the 1983 spring runoff thereby resulting in a similar degradation of the stream, immediately suspended work until adequate preventative measures could be devised. After evaluating the problem, USFS required Westates to leave the reservoir’s existing outlet works in place until after runoff.

Westates alleges in its complaint that compliance with USFS’s decision created delays and extensive extra work which so enlarged Westates’ contractual obligations as to require additional compensation. During October and November of 1982 Westates requested a change order that would compensate it for the anticipated delays and extra work. The requests, however, were not accompanied by data supporting the claim for additional payment.

About the same time, a dispute arose concerning excavation in the area of the reservoir’s new control building and stilling basin. Because the contractors and the project engineers were uncertain whether the excavators had reached bedrock, the area was over-excavated, requiring that it be refilled with concrete. ' By the end of July 1983, Westates’ subcontractor had completed the refilling, and on July 30 representatives for Westates and the City agreed that Westates would be paid for 495 of the 985 cubic yards of concrete required to fill the over-excavation. Thereafter, on November 29, 1983, Westates’ subcontractor requested payment for an additional 448 cubic yards of concrete. Westates forwarded that claim to the project engineer with supporting data on March 8, 1984. The engineer denied the claim on May 10, 1984, on the grounds that Westates had already agreed to accept payment for only 495 cubic yards of concrete and had in fact been paid.

In the meantime, because of the USFS’s 1982 decision to temporarily leave the res--ervoir’s existing outlet structures in place, Westates had to reschedule the demolition of those structures and postpone construction of the new outlet. Accordingly, Wes-tates fell behind schedule for the 1983 construction season and once again found it necessary to perform additional, but temporary, work to prepare for the upcoming spring runoff. On November 8, 1983, the City authorized change order 3019, relieving Westates of liability for its failure to complete that year’s work according to contract deadlines and requiring the completion of certain temporary work in preparation for runoff. By the terms of that change order, Westates was to receive no compensation for the extra work performed or for the delays caused by performing that work. Westates was never able to overcome the delays created in 1982, and the project remained behind schedule. Therefore, on June 4, 1985, the City authorized change order 3032, extending the contract completion date but providing that Westates would receive no extra compensation for work performed during the extension.

On December 19, 1985, Westates submitted a series of claims and supporting data asserting that the City owed it additional compensation for extra work and delays caused by the diversion and excavation problems that arose in 1982. Except for the claim relating to the refilling of the over-excavation, this was the first time that Westates had offered any data in support of its claims. When the City failed to pay these claims, Westates initiated the present action for breach of contract.

ANALYSIS

Westates’ suit was premised on the City’s alleged breach of contract. The provisions of the contract control the rights and obligations of the parties. Under the terms contained in §§ 101.10 to 101.12 of the General Conditions of this construction contract, Westates was not entitled to additional payment or an extension of contract *504 deadlines simply because the City required it to perform extra work. Westates was merely entitled to an “equitable adjustment” of the contract — and then only if it followed the contractually mandated procedures for seeking a change order. If through the use of those procedures Wes-tates successfully obtained an increase in payment or an extension of time, it would have no claim to assert. Thus, under the provisions of Westates’ contract with the City, the only type of event which could constitute a breach of the City’s obligation to provide additional compensation would be the failure of the contract’s dispute resolution mechanisms.

To approach the matter otherwise would be in derogation of the parties’ intent to settle their disputes through a more informal and cooperative means than litigation. Such a reading of a public works contract finds support in the dissenting opinion in Rissler & McMurry Co. v. Wyoming Highway Dept., 582 P.2d 583, 586-88 (Wyo.1978) (Thomas, J., dissenting, with whom Raper, J., joins), and was implicitly adopted by a majority of this court in Brasel & Sims Construction Co. v. State Highway Commission, 655 P.2d 265 (Wyo.1982).

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775 P.2d 502, 1989 Wyo. LEXIS 143, 1989 WL 60871, Counsel Stack Legal Research, https://law.counselstack.com/opinion/westates-construction-co-v-city-of-cheyenne-wyo-1989.