Yonkers Contracting Co. v. Maine Turnpike Authority

208 F. Supp. 517, 1962 U.S. Dist. LEXIS 3615
CourtDistrict Court, D. Maine
DecidedJanuary 4, 1962
DocketCiv. A. No. 5-41
StatusPublished
Cited by2 cases

This text of 208 F. Supp. 517 (Yonkers Contracting Co. v. Maine Turnpike Authority) is published on Counsel Stack Legal Research, covering District Court, D. Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Yonkers Contracting Co. v. Maine Turnpike Authority, 208 F. Supp. 517, 1962 U.S. Dist. LEXIS 3615 (D. Me. 1962).

Opinion

SWEENEY, Chief Judge (Designated upon disqualification of GIGNOUX, J.)

This is an action of contract growing out of the construction by the plaintiff of approximately eleven miles of the Maine Turnpike.

After an informal pre-trial hearing, counsel, whom I found most cooperative in this and in every other respect, filed a 31-page stipulation of facts which the Court adopted as its then pretrial order, subject to such modification as might be necessary to prevent manifest injustice. The remaining matters were very complicated and were referred to a Master under Fed.Rules Civ.Proc. Rule 53(b), 28 U.S.C.A. for findings of fact and conclusions of law with an agreement between the parties, which was approved by the Court, that his findings of fact would be final. After lengthy hearings, the Master on June 5, 1961 filed his report. Thereafter, objections to the report were filed by each side, the plaintiff objecting to the findings and rulings on Count II and the defendant objecting to the findings and rulings on Counts I, III and V. As a matter of orderly procedure, and apparently without objection of either counsel, the Master has transposed certain items from one Count to another and has consolidated his findings and rulings of Counts III and IV. Under Rule 53(e) (2), the Court is bound to accept the Master’s findings of fact unless clearly erroneous. The evidence amply supports the findings; and I, therefore, accept and adopt the Master’s report and treat it as my own findings of fact.

Defendant’s Objections to the Master’s Findings and Rulings on Count I

In this Count, which covers an amount retained by the defendant under its contract (known in the trade as a “retent”), the Master found that there is due to the plaintiff, and that the defendant admitted it by its answer, the sum of $89,215.74 which it, the defendant, stated that it had stood ready and willing to pay to the plaintiff. The last paragraph of Article 1.69 of the contract states as follows:

“The acceptance by the Contractor of payment under the said final estimate shall operate as and shall be a release to the Authority and its agents from all claims of or liability to the Contractor for anything done or furnished for or relating to the Work under the Contract, or for any [519]*519act or neglect of the Authority or any of its agents or employees, relating to or connecting with the Contract.”

The Master ruled as a matter of law that had the plaintiff accepted the sum of money acknowledgedly owed by the defendant that under its contract it would have been precluded from prosecuting the other Counts that now form part of his claim. On the basis of this ruling, the Master found that the plaintiff is entitled to recover from the defendant not only the sum of $89,215.74 but also interest at the rate of 6% from March 19, 1957, the date of the commencement of this action. There can be no question that the Master’s findings of fact as to the principal amount is correct, and I rule as a matter of law that the plaintiff is entitled to the interest as found by the Master. The defendant’s argument that it cannot be compelled to pay interest on a retent which was authorized by the contract is not well founded as the Master found that in the face of a request by the plaintiff to the defendant to waive Article 1.69 it refused to do so, and by such refusal it is in law and equity bound to pay interest on the sum that it admittedly owed. Something that was said recently about “exchanging an apple for an orchard” might be applicable here.

Defendant’s Objections to the Master’s Findings and Rulings on Count III (Consolidated, III and IV)

Under this Count, the Master found for the plaintiff in the sum of $247,-595.56 as damages in the form of extra expenses and costs to the plaintiff in connection with constructing embankments, compacting the same, wasting material and blending material under arbitrary, unreasonable and capricious orders and directions of the engineer. As the basis for its contention that the Master’s award of damages under this item cannot stand, the defendant relies upon Article 1.64 of the contract which reads as follows:

“Subject to the provisions of Article 1.30 entitled ‘Authority of Engineer’, the Engineer shall have the power, not only to alter the Plans and Specifications and to vary, increase and diminish the character, quantity and quality of, or to countermand, any Work now or hereafter required but also to require the performance of Extra Work * *

and upon Article 1.66 of the contract which reads as follows:

“No Extra Work shall be performed except pursuant to the written orders of the Engineer, expressly and unmistakably indicating its intention to treat the Work described therein as Extra Work. All Extra Work Orders will be approved by the Authority, and no Extra Work shall be performed pursuant to such an order unless the approval of the Authority is indicated on the place provided therefor on the Extra Work Order.
“In the absence of such an order signed by the Authority, if the Engineer shall direct, order or require any Work, whether orally or in writing, which the Contractor deems to be Extra Work, the Contractor shall nevertheless comply therewith but shall within forty-eight hours give written notice thereof to the Authority and the Engineer, stating why he deems it to be Extra Work, and shall moreover furnish to the Engineer time slips and memoranda as required by Article 1.65 entitled ‘Extra Work Orders’. Said notice, time slips and memoranda are for the purpose of affording to the Authority an opportunity to verify the Contractor’s claim at the time and (if it desires so to do) to cancel promptly such order, direction or requirement of the Engineer, of affording to the Engineer an opportunity of keeping an accurate record of the materials, labor and other items involved, and generally of affording to the Authority an opportunity to take such action as it may deem desirable in light of the Contractor’s claims. Accordingly, the failure of the Con[520]*520tractor to serve such notice or to furnish such time slips and memoranda shall be deemed to be a conclusive and binding determination on his part that the direction, order or requirement of the Engineer does not involve the performance of Extra Work, and shall be deemed to be a waiver by the Contractor of all claims for additional compensation or damages by reason thereof.”

In M. De Matteo Construction Co. v. Maine Turnpike Authority, 184 F. Supp. 907 (D.C.Maine 1960), in passing upon a similar contention by this defendant with regards to a contract for building another part of the highway, which was adjacent to the tract under construction here involved, the Court pointed out that the defendant apparently misconceives the theory of the plaintiff’s cause of action. That case as this case is based upon an alleged breach of contract by the defendant or its representatives, in that the engineer who was the defendant’s delegate on the job ordered the plaintiff to do certain things which were not within the specifications of “work” under the contract so as to call for the unit price nor were they within the definition of “extra work” as defined in the contract. If it was “extra work”, then the plaintiff is barred from recovery by reason of his failure to take the necessary steps of notice to the defendant. While this work was in addition to that required by the plans and specifications when the contract was signed, it did not differ in character from the items of work contained in the proposal.

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Cite This Page — Counsel Stack

Bluebook (online)
208 F. Supp. 517, 1962 U.S. Dist. LEXIS 3615, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yonkers-contracting-co-v-maine-turnpike-authority-med-1962.