weston/bean Joint Venture v. United States

123 Fed. Cl. 341, 2015 U.S. Claims LEXIS 1180, 2015 WL 5313466
CourtUnited States Court of Federal Claims
DecidedSeptember 11, 2015
Docket11-31C, 11-360C
StatusPublished
Cited by4 cases

This text of 123 Fed. Cl. 341 (weston/bean Joint Venture v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
weston/bean Joint Venture v. United States, 123 Fed. Cl. 341, 2015 U.S. Claims LEXIS 1180, 2015 WL 5313466 (uscfc 2015).

Opinion

Differing Site Condition; Constructive Change; Defective Design Specifications; FAR 52.236-2; FAR 52.243-4; FAR 52.249 — 10(b)(1); Maintenance Dredging; Implied Duty of Good Faith and Fair Dealing; Liquidated Damages.

POST-TRIAL OPINION AND ORDER

KAPLAN, Judge.

These consolidated cases arise out of a contract between the plaintiff, Weston/Bean Joint Venture 1 (“WBJV” or ‘Weston/Bean”), and the United States Army Corps of Engineers (“USAGE” or “the Corps”) for the dredging of the Miami River and the disposal of contaminated sediments. Weston/Bean’s central claim is that although the contract was one for “maintenance dredging” and disposal of “sediments,” the Corps directed it to engage in “new work” dredging, which required it to dredge and dispose of significant quantities of rock. WBJV alleges that because it was required to engage in such “new work” dredging, the subsurface conditions it encountered in performing its work under the contract were materially different from those indicated in the contract documents. According to WBJV, the “constructive change” to the contract and/or the differing site condition it encountered resulted in the imposition of significant excess costs related to the processing and disposal of the dredged materials.

In addition to its constructive change/differing site condition claim, WBJV also alleges that the government provided defective specifications for the Miami River Project, which resulted in damage to certain properties along the river; that the government breached its implied duty to cooperate; that it unreasonably failed to grant extensions of time to complete work; and that the government improperly retained or assessed liquidated damages. Weston/Bean seeks an equitable adjustment of the contract amount, a time extension • of 348 days, and $12,423,937.23 in damages, plus interest, costs, and attorney fees.

After a decision by this Court denying the parties’ cross-motions for summary judgment, a nine-day trial was held in Washington, D.C. in June 2014. The Court heard testimony from sixteen witnesses, including several experts. Hundreds of exhibits were admitted and the parties have filed hundreds of pages of post-trial briefs.

For the reasons set forth below, the Court concludes that plaintiff has failed to prove its *345 claims. Accordingly, judgment is entered for the government as to all counts in plaintiffs complaint.

FINDINGS OF FACT

1. Creation of the Miami River Channel

Beginning in the late 1920s, the City of Miami, Florida sought an appropriation from the federal government to deepen and to widen the Miami River. Joint Stip. of Facts (“JS”) ¶ 1, ECF No. 88, May 30, 2014. On July 3, 1930, Congress appropriated $800,000 for these purposes and authorized the Secretary of War “to improve the Miami River with a view to securing a channel” 150 feet wide and 15 feet deep for a distance of 3 miles from the mouth of the river, 125 feet wide and 15 feet deep to a point 4.125 miles from the mouth, and 90 feet wide and 15 feet deep to a point 5.5 miles from the mouth, with “each section to have suitable side slopes.” Id.; see also Rivers and Harbors Act of 1930, Pub.L. No. 71-520, ch. 847, 46 Stat. 918, 945; Trs. of Internal Improvement Fund v. Claughton, 86 So.2d 775, 781 (Fla.1956). The dimensions authorized by Congress constitute what is referred to as “the federal channel.”

The federal channel of the Miami River was dredged from 1931 to 1933, creating “a navigation channel that extends from the mouth of the Miami River approximately 5.5 miles to a salinity control structure near NW 36th Street.” JS ¶ 2; PX 7 at 17 § 1.7.2. Approximately 1,000,000 cubic yards (“CY”) of dredged materials were removed from the federal channel. JS ¶ 2. Some sections of the channel, however, were not dredged to the authorized depth of 15 feet mean low water (“-15 feet MLW” or “-15 feet”). 2 After dredging was completed, a final after-dredge survey was performed, whose results are reflected in a set of documents referred to as the “1934 as-builts” or the “as-built drawings.” Mahar Tr. 695:15-18. 3

The 1934 as-builts show that there remained rock above grade (i.e., rock above -15 feet) in some areas of the channel. Mahar Tr. 658:3-4; Wood Tr. 863:2-4; 874:16-20. Thus, the federal channel that resulted from the 1930s project was “150 feet wide and 14-16 feet deep from the mouth of the Miami River to the south fork” of the river, “125 feet wide and 14-16 feet deep from the south fork to the Tamiami Canal, and 90 feet wide and 10-14 feet deep from the Tamiami Canal to the Seaboard Railroad Bridge near the salinity structure.” JS ¶2; PX 7 at 17 § 1.7.2.

No dredging of the federal channel was performed between its creation in the mid-1930s and the beginning of the project at issue in this case (“the project”). JS ¶ 2. Private dredging, however, occurred outside of the federal channel along bulkheads, docks, and boat slips. Id. Asked by the Court at trial if it is “unusual to wait 70 years to do a maintenance dredge,” the project designer, Mr. John Bearce, testified that “[t]he Miami ... River was in a state of equilibrium. It wasn’t necessarily shoaling in. And it was being used by the navigation community on a regular basis. So for various reasons it was not maintained for seventy years, and yes, that is very unusual and not typical.” Bearce Tr. 1086:22-1087:9. According to Mr. Bearce, “[m]ost projects might have a typical maintenance dredging interval of three to five years. That would be typical.” Id. at 1087:8-9.

A. 1986 Dredging Authorization and Feasibility Report

In 1986, Congress authorized and directed the Secretary of the Army “to remove polluted bottom sediments from the Miami River and Seybold Canal in Miami, Florida, between the mouth of the Miami River and the salinity control structure at 36th Street.” JS ¶3; Water Resources Development Act of 1986, Pub.L. No. 99-662, § 1162, 100 Stat. 4082 (1986) (“WRDA”); PX 7 at 14. Follow *346 ing the passage of the WRDA, however, the Corps conducted a feasibility study of the Miami River and found that “no quantifiable National Economic Development benefits could be identified for the Miami River sediment removal” and, as a result, it did not recommend dredging the Miami River. PX 7 at 15 (1986 Draft Feasibility Report). After the public and governmental agencies voiced their opinions on the draft report, the Corps produced a final feasibility report titled “Navigation Study for Miami Harbor (Miami River)” in March 1990. PX 4. The final report concluded that although there was no apparent justification for removing sediment from the Miami River for water quality or environmental purposes or for “new navigation work,” “there [was] an apparent justification for maintenance dredging of the Miami River to provide the currently authorized dimensions for the Federal navigation project.” PX 4 at 29.

B. The Miami River Commission

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123 Fed. Cl. 341, 2015 U.S. Claims LEXIS 1180, 2015 WL 5313466, Counsel Stack Legal Research, https://law.counselstack.com/opinion/westonbean-joint-venture-v-united-states-uscfc-2015.