201 Misc. 690 | New York Court of Claims | 1952
By written agreement dated August 20,1947, known as contract No. FA-VWE 47-2, claimant corporation agreed to construct for the State of New York a section of the Van Wyck Expressway in the borough of Queens on an itemized proposal totaling the sum of $2,558,748 of which sum nearly one half or $1,162,280 was bid for the construction of a trunk sewer including the sewer proper, which was about one and one-half miles in length, and also including various chambers, manholes, a parkway crossing, and an item for maintaining traffic. The contract provided that the quantities of materials to be furnished and the amount of work to be done as indicated in the proposal and on the plans were approximate only and that the State of New York was not to be held responsible that any of such quantities and amounts should obtain and that if during the construction of the work conditions should be encountered which ■ required the use of quantities in excess of quantities shown or indicated on the plans the contractor would be paid for the quantities at the prices bid for such items. The contract also provided that claimant agreed to accept the “ unit bid ” prices in compensation for any additions or deductions caused by variation in quantities due to more accurate measurement,
On May 4,1950, claimant sued the State of New York demanding judgment on twenty-four separate causes of action in the total amount of $368,855.82 less the sum of $75.33 which claimant said had been overpaid by the State on one item. These demands included the amount which the State, by its final audit, admittedly owed claimant. By order dated May 24,1950, entered upon application of the claimant, this court directed a severance of the claim and a separate trial of that portion thereof relating to certain moneys retained by the State and on May 29, 1950, a consent judgment was entered in favor of the claimant and against the State in the amount of $60,006.32, without interest. By order dated February 19, 1951, entered upon application of the Attorney-General, this court further directed a severance of the claim and a separate trial of that portion thereof relating to moneys retained by the State and on February 21, 1951, a consent judgment was entered in favor of the claimant and against the State of New York in the amount of $11,054.17, with
The dispute over payment for the excavation for the trunk sewer under item 5 of claimant’s itemized proposal and for Portland and natural cements under items 15 and 15D thereof arose soon after claimant commenced work on the contract. By letter dated December 12, 1947, addressed to the district engineer claimant informed the State of New York of its position in the following words: “ Under Estimate No. 3, we received payment for 672 linear feet of trunk sewer, Item 520C-D, installed under the above contract, but find that you have made no provision for payment under Item 5, Trench Excavation, required for trunk sewer, nor for payment under Items 15 and 15D for the Portland and Natural Cement used. Please see to it that payment for the above items is provided for in the next estimate.”
The reply of the District Engineer was dated December 16, 1947, and was as follows: “ To my mind, your letter of December 12th relative to payments under Estimate No. 3 is an obvious attempt to misconstrue the plans and specifications. I quote from the specifications: ‘ Items 520A, B, G and D, Trunk Sewer. The quantity of trunk sewer to be paid for shall be the number of feet of each size of sewer, measured along the center line of the work between payment lines of chambers and including the length through manholes, unless otherwise specified. The price bid per foot shall cover the price of all material, equipment, labor and incidental expense necessary to complete the work, except that Timber Sheeting and Bracing ordered left in place will be paid for under Item 83E and that separate payments for foundation timber and piles will be made under Item 520Q, 520R and 87S respectively.’ ”
The two letters above quoted were not offered and received as exhibits upon the trial but were read into the record by claimant’s counsel. Upon comparing the transcript of the stenographer’s minutes of trial with the contract document which is exhibit 7 before us we find that the quotations in the
There are other pertinent clauses in the contract which we are quoting at length in our formal findings which accompany this opinion. We shall not repeat them in full herein but shall quote in part or refer to their substance as we may find it necessary.
Claimant’s answer to the district engineer’s letter of December 16, 1947, was dated January 5, 1948, and stated in part as follows: “We do not agree with your construction of the specifications * * * In the meantime, please be advised that we are continuing the work under protest.”
The issue before this court is not altered from that joined between the parties in their correspondence hereinabove quoted. Their letters defined it as clearly as if it had been pleaded and counterpleaded by the most expert solicitors. The claimant has proved that in the installation of the trunk sewer it performed a total of 84,650.8 cubic yards of excavation. The figure is, in effect, conceded by the Attorney-General who offered no proof to contradict it. The question is: Is claimant entitled to recover for this excavation at $3 per cubic yard, the price bid under item 5 of claimant’s proposal? The claimant has further proved that in constructing the trunk sewer it used 12,210 barrels of Portland cement. The figure is, in effect, conceded by the Attorney-General who offered no proof to contradict it. The question is: Is claimant entitled to recover for this quantity of Portland cement at $3 per barrel, the price bid under item 15 of claimant’s proposal? The claimant has further proved that in constructing the trunk sewer it used 2,040 barrels of natural cement. The figure is, in effect, conceded by the Attorney-
Although the district engineer’s letter referred to four trunk sewer items, viz., items 520 A-D, we are not here concerned with item 520 D because, by mutual agreement, that item was eliminated from the contract on or about May 22, 1948. The section of trunk sewer to be built under item 520A was six feet six inches by eight feet; that under item 520B was eight feet by eight feet; that under 520C was nine feet by eight feet. For 520A and 520B claimant bid the sum of $125 per linear foot, for 5200 claimant bid the sum of $165 per linear foot. Claimant’s vice-president, who has been engaged in constructing public works for the State of New York since 1935 and who expressed familiarity with the State’s general specifications for contracts, testified that in making up his bid for items 520A, B, C and D he did not include any price for sewer excavation. He further testified that in preparing his estimate for submit
The contractor’s proposal was submitted in accordance with the specifications of the State of New York, Department of Public Works, adopted January 2,1942, and, except as modified on the plans or in the itemized proposal, these specifications formed a part of the contract. They were referred to therein as the general specifications. Among other things, they provided under the heading “ Item 5 — Trench, Culvert and Bridge Excavation ” as follows: “ this item will be paid for only in the construction of bridges, culverts, * * * sewers and pipe lines ”. On sheet 7 of the contract drawings there appeared a cross-section drawing which was entitled “ Trench and Culvert Excavation Payment Lines.” Immediately below that drawing appeared the following hand-printed notation: “ Except as noted under Item 520 ”. On sheet 55 of the contract drawings appeared the following recital: “ General Notes. The maximum payment line for unclassified excavation, Item 4S, as shown on the typical expressway section shall define the upper limit of excavation included in the prices bid for trunk sewer Items No. 520.” Claimant’s officers had the contract drawings before them when they made their bid. And although there is testimony by the claimant’s engineer that there was no such item as item 520 and by claimant’s vice-president on cross examination that “ all of this language throughout the specifications referring to Item 520 or Items 520 was meaningless ” to him when he prepared his bid, we do not believe that the use of the singular on one drawing and of the plural on another, or the reference in the general notes on page 1 to the trunk sewer in the singular and without the suffixes of A, B, C and D, created
In another argument advanced by counsel he refers to the special specifications for storm and sanitary sewers, which were items 525A to 525R of the contract, and calls attention that in repeated instances the recital of the special specifications is “ The price bid shall cover the cost of all material, labor, equipment and incidental expense, including excavation necessary to complete the work ”. Counsel argues that the explicit inclusion of the words “ including excavation ” in the several instances cited by him and their exclusion from items 520A-D demonstrates an intent on the part of the State to pay claimant in the
Claimant’s demand for pay at the barrel price bid for Portland and natural cements for the quantities used in constructing the trunk sewer items must likewise be denied. As quoted in the district engineer’s letter and as hereinabove set forth the price bid per foot covered the cost of all material necessary to complete the work. Claimant has not explained to us how it could have expected to build a concrete structure without cement. We find that the price bid per linear foot included the Portland cement and the natural cement necessary to complete the work. We deny claimant recovery for 12,210 barrels of Portland cement at $3 per barrel. We deny claimant recovery for 2,040 barrels of natural cement at $3.50 per barrel.
There remains for determination the question of claimant’s ' right to interest upon the amounts recovered by it pursuant to the directions of the two consent judgments. Claimant’s per
As recently pointed out by the Supreme Court, Appellate Division, Third Department, when reviewing on appeal a decision of this court in another suit between these same parties, “ it would be unfair to deprive a contractor of the interest on moneys due him upon the performance of his contract merely because he was pressing for or intended to present a claim for damages sustained as an incident to his full performance.” (Rusciano & Son Corp. v..State of New York, 278 App. Div. 999, 1000 [1951].) In that case the procedure followed was similar to that which obtained herein. An order of severance was entered, claimant recovered a judgment for the amount which the State admitted it owed and the question of the allowance of interest thereon was reserved until the trial of the issues for additional work which claimant alleged it had performed. There is nothing in the decision of this court nor in its affirmance on
This discussion brings up for examination the growing practice in this court of severing claims in suits on contract. The subject merits review at this time. Our study indicates that the practice was initiated in 1943 in the claim of Heating Maintenance Corp. of New York v. State of New York (Claim No. 27304) which was brought to recover upon a contract dated August 23,1940. That contract contained a clause substantially identical with that which appeared in a contract made by the City of New York and which is quoted in Cauldwell-Wingate Co. v. City of New York (269 N. Y. 539 [1935]). Apparently the State of New York did not incorporate such a clause in its public works contracts until after the decision in Oakhill Contr. Co. v.
Apparently the purpose of the severance practice is to avoid the effect of the final payment clause which the State of New York now writes into its contracts for the construction of public works, to enable the contractor to collect his debt and to relieve
Because of claimant’s concession here we start the running of interest in this case from August 20, 1949. As no one has testified to the computation of interest the court must assume that burden. (D’Angelo v. State of New York, supra.) We find that interest on $60,006.32 from August 20,1949, to May 29,1950, at 4% amounts to $1,860.20 and we award claimant that sum, with interest thereon from May 29,1950, to be computed by the clerk upon entry of judgment. We find that interest on $11,054.17 from August 20, 1949, to February 21, 1951, at 4% amounts to $664.48 and we award claimant that sum, with interest thereon from February 21, 1951.
Decision entered on formal findings in accordance with the foregoing.