FOR PUBLICATION
ATTORNEY FOR APPELLANT: ATTORNEYS FOR APPELLEE:
MATTHEW P. ZERBE ROBERT J. HOFFMAN
Zerbe Law Office Harrison & Moberly, LLP
Lawrenceburg, Indiana Carmel, Indiana
STEPHEN D. LEPAGE
Harrison & Moberly, LLP
Indianapolis, Indiana
IN THE
COURT OF APPEALS OF INDIANA
CITY OF LAWRENCEBURG, )
)
Appellant-Defendant, )
)
vs. ) No. 15A01-0308-CV-313
)
MILESTONE CONTRACTORS, L.P., )
)
Appellee-Plaintiff. )
(Appellants App. p. 80) (emphasis added). The notation on the plans S-8
and S-9 further detailed:
[n]ote: All piles shall [be] HP 12x53 and shall be driven to
a minimum tip elevation of 34.0 ft and pile bearing capacity of 70
tons.
(Appellants App. pp. 86, 88) (emphasis added).
However, the geotechnical investigation report by H.C. Nutting (Nutting Report), referred to in
the specifications and drawing note included within section 02010 of the project manual,
described two different estimated pile tip elevations and pile lengths required to achieve
the 70 ton bearing capacity. This difference in estimated pile tip elevations
depended on whether or not a plug would form at the top of
the piling as it was being installed: (1) tip elevation 34.0 feet
with a plug forming, and (2) tip elevation minus 5 feet without a
plug forming. (Appellants App. pp. 23-4). The contract documents further contained
a table of estimated quantities, prepared by Hrezo, for 11 different elements of
work, including an estimated quantity of 4,096 linear feet (LF) for the HP
12x53 piling work, which would translate to an average piling depth of about
93 feet.
On February 2, 2001, three days before bids were due, Lawrenceburg and Hrezo
issued addendum #2, which stated in pertinent part:
[i]n the event that the specified pile tip elevation is reached and the
adequate soil bearing capacity is not yet achieved, as witnessed by the project
engineer and the geotechnical engineer, the contractor shall be paid for an additional
HP 12x53 bearing pile required at a rate of $60 per lineal foot.
(Appellants App. p. 83) (emphasis added).
On or about February 5, 2001, Milestone submitted a lump sum bid of
$865,600.00 to perform the project in accordance with the provisions of the contract
documents. Lawrenceburg accepted Milestones bid and awarded it the contract for the
construction of the Front Street bridge project. Following the award, on March
21, 2001, both parties entered into and executed a written contract.
During the performance of the work, Milestone drove a total of 4,561.72 LF
of piling to achieve the specified 70 ton load bearing capacity for each
of the 44 piles. Of this amount, 2,365.48 LF was driven to
the 34.0 ft minimum pile tip elevation, and an additional 2,196.24 LF was
driven below such 34.0 ft. pile tip elevation to an actual depth which
achieved the specified 70 ton soil bearing capacity. Consequently, pursuant to addendum
#2, Milestone requested payment from Lawrenceburg in the amount of $131,774.40 for the
2,196.24 LF of additional piling driven below the 34.0 ft minimum pile tip
elevation point. However, Lawrenceburg approved only $28,814.40 of Milestones claim, stating that
the minus 5 ft elevation, as specified in the Nutting Report, should be
used as the specified pile tip elevation.
On July 2, 2002, Milestone filed its Complaint against Lawrenceburg demanding payment of
the remaining $102,960.00. Thereafter, on March 25, 2003, Milestone filed its Motion
for Summary Judgment, accompanied by a designation of materials and brief in support
of the motion. On April 28, 2003, Lawrenceburg responded by filing its
Motion for Summary Judgment, designated materials and brief in opposition to Milestones Motion
and in support of Lawrenceburgs cross-motion for summary judgment. On May 28,
2003, Milestone filed a reply brief. On June 11, 2003, the trial
court conducted a hearing on the cross motions for summary judgment. Subsequently,
on July 7, 2003, the trial court granted Milestones Motion for Summary Judgment,
and denied Lawrenceburgs cross-motion.
Lawrenceburg now appeals. Additional facts will be provided as necessary.
(Appellants App. p. 39) (emphasis added). Moreover, in explaining the different elevations,
the Nutting Report made the following statement:
[Discussing the 34 ft pile tip elevation] Research and pile load tests suggest
that when driving H-piles into dense to very dense sands, that the soil
tends to wedge between the flanges of the H-section, and a plug forms.
The entire enclosed box of the H-section end area is used to
compute bearing capacity. Using this method, the H-pile will achieve capacity at
a higher elevation. It is our opinion that this case is representative
of the project site.
[Discussing the minus 5 ft pile tip elevation] We have also shown the
estimated tip elevation, assuming a plug does not form at the bottom of
the cross-sectional area of the H-pile. In this case, the actual end
area of the pile is used to computed theoretical capacity and pile tip
elevation. This analysis indicates that the pile would be driven significantly deeper
to achieve capacity. We do not believe that this is the case
which will develop. However, we have had a past project where the
plug did not develop, and the piles were driven significantly deeper. This
analysis has been performed for reference.
(Appellants App. p. 38) (emphasis added). Thus, the Nutting report expressly endorsed
the 34.0 ft tip elevation as the piling depth considered to be the
most representative of the project site.
Therefore, based on all the contract documents before us, we conclude that the
contract language was clear and unambiguous. See Mid State Bank, 629 N.E.2d
at 914. A close reading of the contract supports Milestones position
that the specified tip elevation refers to the minimum tip elevation of 34.0
ft as included in the drawings.
Regardless of this reading of the contract documents, Lawrenceburg next contends that Milestone
assumed the risk of an improper interpretation of the contract. In support
of its assertion, Lawrenceburg points to the following clause included in the project
manual:
If any person contemplating submitting a bid for the proposed contract is in
doubt as to the true meaning of any part of the plans, specifications,
or other proposed contract documents, he may submit to the ENGINEER a written
request for any interpretation thereof. The person submitting this request will be
responsible for prompt delivery. Any interpretation of the proposed documents will be
made only by addendum duly issued and a copy of such addendum will
be mailed or delivered to each person receiving a set of such documents.
The OWNER will not be responsible for any other explanation or interpretations
of the proposed documents.
(Appellants App. p. 84). Although courts in Indiana recognize exculpatory clauses in
contracts and presume that the contracts present the freely bargained agreement of the
parties, we find the clause to be inapplicable to the situation at hand.
See, e.g., Crowe v. Boofter, 790 N.E.2d 608, 611 (Ind. Ct. App.
2003).
Todd Fawver, estimating manager of Milestones Indiana area office, testified in his affidavit
that:
In the process of studying and comparing [a]ddendum [#] 2 and comparing same
with the minimum tip elevation of 34.0 ft specified by the [n]otes on
[d]rawings S-8 and S-9, Milestone concluded that its lump sum bid should include
only the length of piling needed to reach the specified 34.0 ft minimum
tip elevation depth for each pile, and that any additional length of piling
required to be driven deeper to reach a 70 ton load bearing capacity
was to be paid by the $60 per foot unit price in accordance
with [a]ddendum [#]2.
(Appellants App. p. 31). Accordingly, no doubt existed as to the true
meaning of any part of the plans, specifications, or other proposed contract documents.
Moreover, assuming arguendo, that a bidder might have had any remaining doubts,
the exculpatory clause is permissive only, not mandatory in nature.
Therefore, in light of the clear and unambiguous language of the contract documents,
we find that there is no genuine issue of material fact. See
American Family Mut. Ins. Co., 764 N.E.2d at 783. We thus affirm
the trial courts grant of summary judgment in favor of Milestone.
DARDEN, Judge, dissenting
I respectfully dissent.
As the majority acknowledges, the Nutting Report was referred to in the specifications
and drawing note cited, as well as being included in the project manual.
The Report indicates both (1) a possible 34 foot "estimated tip elevation"
with a plug forming, which would be at an estimated 51 foot pile
length; and (2) a "-5" estimated tip elevation, with "the pile . .
. driven significantly deeper to achieve capacity" and an estimated 91 foot pile
length. (App. 38). The specifications then required that piling (1) be
"driven to batter and location shown and to the minimum bearing capacity as
noted in the plans," referencing the Nutting Report; and (2) "be driven to
a minimum tip elev. of 34.0 ft. and pile bearing capacity of 70
tons." (App. 80, 86).
The contract called for the installation of 44 pilings. On the drawing
note, the estimated quantity of 12x53 steel piling to be installed was 4,096
linear feet. Thus, the estimated average piling length was 93 feet.
As argued by Milestone, it "and other bidding contractors" faced the "predicament" of
being required to submit a lump sum bid for either the "worst-case" scenario
using a bid based upon the maximum estimated length or the
risk of guessing what "the actual total piling depth quantity might end up
being." Milestone's Br. at 6. Therefore, Milestone "prepared an initial bid
utilizing the worst-case number given in the estimated quantities table" 4,096 LF.
Id.
It was at this point that the City issued Addendum 2, providing
In the event that the specified pile tip elevation is reached and the
adequate soil bearing capacity is not yet achieved . . . the contractor
shall be paid for additional HP 12x53 bearing pile required at a rate
of $60 per lineal foot.
(App. 80). In the context of the factual scenario that preceded the
issuance of this provision, I believe that Addendum 2 addressed the "predicament" that
Milestone described, namely that it was unknown what "the actual piling depth quantity
might end up being." Id.
That being said, I turn to the law of contracts. It is
a court's duty to interpret a contract so as to ascertain the intent
of the parties. First Fed. Sav. Bank of Ind. v. Key Markets,
559 N.E.2d 600, 603 (Ind. 1990). We must accept an interpretation of
the contract which harmonizes its provisions as opposed to one which causes the
provisions to be conflicting. Id. In interpreting a written contract, the
court will attempt to determine the intent of the parties at the time
the contract was made as disclosed by the language used to express their
rights and duties. Id. When a contract is clear in its
terms and the intentions of the parties apparent, the court will require the
parties to perform consistently with the bargain they made. Id. at 604.
I would find that consistent with the intent of the parties, Addendum 2
provided that in the event the successful bidder had to install more than
4,096 LF of pilings in order to meet the required load bearing capacity,
then the additional quantity would be paid for at the rate of $60
per lineal foot. Therefore, I would reverse the trial court and order
that summary judgment be granted to the City.