Western Contracting Corp. v. Sooner Construction Co.

256 F. Supp. 163, 1966 U.S. Dist. LEXIS 6514
CourtDistrict Court, W.D. Oklahoma
DecidedJune 30, 1966
DocketCiv. No. 65-72
StatusPublished
Cited by6 cases

This text of 256 F. Supp. 163 (Western Contracting Corp. v. Sooner Construction Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Western Contracting Corp. v. Sooner Construction Co., 256 F. Supp. 163, 1966 U.S. Dist. LEXIS 6514 (W.D. Okla. 1966).

Opinion

MEMORANDUM OPINION

DAUGHERTY, District Judge.

This is an action by the plaintiff, Western Contracting Corporation, against the defendant, Sooner Construction Company, for breach of an alleged subcontract between the parties on a runway project [165]*165at Tinker Air Force Base, Oklahoma. There was no written subcontract signed by the parties. The plaintiff relies upon an implied contract and estoppel. The defendant asserts that there was no meeting of the minds of the parties on the subcontract, thus, no subcontract, express or implied, and no estoppel. The defendant seeks recovery for a small open account item it furnished the plaintiff.

From the evidence the Court finds that Sooner orally quoted certain unit prices on asphalt paving to Western prior to Western submitting its bid on the project for the prime contract. Western was successful on its bid. Thereafter, Sooner confirmed its orally quoted prices to Western by a letter dated March 25, 1963.1 The oral quotes and the letter quotes were the same. Regarding the item of hot mix surface the price quote of Sooner was 17,220 tons at $8.32 per ton less a 50# per ton discount if payment is made by the 10th of the month. Sooner asked for the subcontract during these activities but the request was denied. During the period from March 25,1963, the date of the above mentioned letter, until July 15, 1963, Western opened an office at Tinker and the parties had various contacts, telephone calls, and discussions regarding the possibility of a subcontract. Western was obtaining asphalt quotes elsewhere. On July 15, 1963, at Tinker a meeting was had attended by a Mr. Hastie for Western, a Mr. Lemon for Sooner, a Mr. Pybas, a superintendent of Sooner, and a representative or representatives of the United States Corps of Engineers. At the meeting discussions were had regarding the specifications, equipment and rolling stock. Hastie testified that after this meeting he for Western and Lemon for Sooner reached an oral agreement on the [166]*166subcontract following which a form of subcontract, unsigned by Western, was forwarded by Hastie to Sooner for execution and return to Western for execution by Western at its home office in Iowa. On the hot mix' surface this written subcontract submitted by Hastie contained a price of $7.82 per ton thereon but did not provide for payment by the 10th of the month. Rather, it provided for partial payments to Sooner, less a retained percentage of 10%, as Western was paid on estimates by the owner and final payment to Sooner upon complete performance of the subcontract within 45 days after final payment is received from the owner by Western. Lemon denied that an oral subcontract was agreed upon on July 15, 1963, with Hastie and denied that any discussions were even had whereby Sooner would agree to the $7.82 price with the retainage provision and final payment provision as above set out instead of payment for the hot mix surface by the 10th of the month. Pybas, who testified that he was with Lemon at all times going to, at and from the Tinker meeting on July 15,1963, also denied any oral agreement on the subcontract or any discussions about the discounted price of $7.82 being agreeable without payment by the 10th of the month. Lemon testified that shortly after receiving the written subcontract from Hastie he called Hastie on the phone several times and objected to the lower price of $7.82 per ton without payment being provided for by the 10th of the month in accordance with his quoted terms. Hastie acknowledged several telephone conversations after July 15, 1963, with Lemon regarding the retainage and that Hastie suggested in one of these conversations a reduction of the retainage to only 50'% of the work. Hastie further testified that Lemon never gave him an answer to this suggestion.2

Western points to several actions of Sooner after the July 15, 1963, meeting which it says supports the claimed oral subcontract and that they evidence an implied subcontract and create an estop[167]*167pel which prevents Sooner from now denying the claimed oral subcontract of July 15, 1963. These actions of Sooner consisted of Sooner furnishing a certificate of insurance to Western, names of personnel and vehicles to secure passes and decals, working with their personnel and the Corps of Engineers on a mix to meet the specifications, asking for and getting a modification from the owner on the scale requirement and furnishing to Western a small quantity of asphalt mix.

Sooner does not deny these activities but asserts that they were of little consequence and except for furnishing the hot mix were only normal preparations in anticipation of eventually getting the subcontract which was under negotiation. As to the hot mix, Sooner asserts that this was a small quantity ordered by Western for their own work and not work under the subcontract and which was furnished as requested by Western in the interest of good relations and the anticipated subcontract. Sooner did not furnish a payment and performance bond, move onto the job or do any work called for by the subcontract.

It does appear from the evidence that Sooner was having some trouble with getting the Corps of Engineers to approve their mix under the specifications and the problem here apparently was never finally resolved between them before negotiations terminated between Sooner and Western.

In late September, 1963, certain developments took place. Sooner sent a signed subcontract to Western to which it attached certain amendments, six in number, one of which called for full payment for each of the three phases of the work to be done by Sooner within 45 days of completion by Sooner of each phase in lieu of Sooner’s requirement in its written confirmation of payment by the 10th of the month and Western’s requirement in the written subcontract it prepared and submitted of the 10'% retainage and the final payment in 45 days. Western wrote Sooner a letter advising Sooner that it was delinquent in the performance of its subcontract and that if Sooner did not correct this default in performance within five days Western would exercise its rights under the subcontract. Then on September 29 or 30, 1963, a meeting was held in Oklahoma City which brought a Mr. Shaller down from Iowa for Western. Shaller as manager of heavy construction for Western was over Hastie. At this meeting the six amendments were discussed one by one and Shaller disapproved the amendment about full payment in 45 days following each phase completion as well as two other amendments and in his own hand wrote “out” opposite each of the three amendments so disapproved. Shaller approved the other three amendments. In the language of Shaller, finally at this meeting “things were terminated”. Under date of October 2, 1963, Western made a subcontract with Metropolitan Paving Company for larger unit prices as to all items (the price for hot mix surface — the largest item — was $8.53 per ton) and sues herein for the difference amounting to $16,957.08 plus interest, overhead and profit and other expenses.

An implied contract is one deemed to have been reached by the parties even though not expressed by a document or documents, because of subsequent conduct and actions regarding the subject matter involved. In Board of County Com’rs of Seminole County v. Southwest Natural Gas Co., 192 Okl. 594, 138 P.2d 525 (1943), it has been held:

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256 F. Supp. 163, 1966 U.S. Dist. LEXIS 6514, Counsel Stack Legal Research, https://law.counselstack.com/opinion/western-contracting-corp-v-sooner-construction-co-okwd-1966.