Resolving Contract Disputes Based on Misrepresentations
Publication: Journal of Construction Engineering and Management
Volume 118, Issue 3
Abstract
This paper describes in a clear and understandable way the primary rules of law that are applied to construction contract disputes involving the misrepresentation of concealed or subsurface conditions. The rules are based on the judicial inquiries derived from more than 45 appellate court decisions. The rules are presented in the form of questions to be asked by contractors and contract administrators. The application of these questions should result in a correct determination of the dispute. The questions are organized in an easy‐to‐understand flow chart. The roles of the soil report and site visit and disclaimers clauses are also explained. The rules were tested using another 10 case decisions. The results show considerable consistency in the law and that the outcome is entirely dependent on the facts.
Get full access to this article
View all available purchase options and get full access to this article.
References
1.
Alpert v. Commonwealth, 357 Mass. 306, 258 N.E.2d 755 (1970).
2.
Ashton Co., Inc. v. State of Arizona, 9 Ariz. App. 564, 454 P2d 1004 (1969).
3.
C. W. Blakslee & Sons, Inc., et al. v. United States, 89 Ct. Cl. 226, 246 (1939), 309 U.S. 659, 60 S.Ct. 512, 84 L.Ed. 1007 (1940).
4.
Christie v. United States, 237 U.S. 232, 239, 59 L.Ed. 933, 35 S.Ct. 565 (1915).
5.
City of Indianapolis v. Twin Lakes Enterprises, Inc., 568 N.E.2d 1073 (1981).
6.
City of Salinas v. Souza & McCue Construction Co., 424 P.2d 921, 57 Cal.Rptr. 337, 66 Cal.2d 217 (1967).
7.
Coatsville Contractors & Engineers, Inc. v. Borough of Ridley Park, 506 A.2d 862 (1986).
8.
Con‐Plex Div. of U.S. v. Louisiana Department of Highways, 439 So.2d 567 (1983).
9.
Dravo Corp. v. Com. Dept. of Highways, 564 S.W.2d 16 (1977).
10.
E. H. Morrill Company v. State of California 423, P.2d 551, 554, 56 Cal.Rptr. 479, 65 Cal.2d 787 (1967).
11.
Elkan v. Sebastian Bridge Dist., 291 F. 532 (1923).
12.
Flippen Materials v. United States, 312 F.2d 408, 414, 160 Ct.Cl. 357 (1963).
13.
Foundation Co. v. State of New York, 135 N.E. 236, 238, 239, 233 N.Y. 177, (1922).
14.
Haggart Construction Co. v. State of Montana, State Highway Commission, 149 Mont. 422, 427 P.2d 686 (1967).
15.
Hollerback v. United States, 233 U.S. 165, 169, 172, 43 S.Ct. 533, 58 L.Ed. 898 (1914).
16.
J. A. Johnson & Son, Inc. v. State of Hawaii, 51 Hawaii 529, 465 P.2d 148 (1970).
17.
Jervis, B. M., and Levin, P. (1988). Construction law principles and practice, McGraw‐Hill Book Company, New York, N.Y., 139.
18.
Kiely Construction Co. v. State of Montana, State Highway Commission, 154 Mont. 363, 463 P.2d 888 (1970).
19.
Loulakis, M. (1986). “Disclaimers of liability.” Civ. Engrg. ASCE, 56, (10), 32.
20.
MacArthur Brothers Co. v. United States, 258 U.S. 6, 66 L.Ed. 433, 42 S.Ct. 255 (1922).
21.
Morrison‐Knudsen Company v. United States, 345 F.2d 535, 539, 540,170 Ct.Cl. 712 (1965).
22.
O'Neill Const. Co. v. City of Philadelphia, 6 A.2d 525, 528, 335 Pa. 359 (1939).
23.
Raymond International, Inc. v. Baltimore County, 45 Md.App. 247, 412 A.2d 1296 (1980).
24.
Restatement of the Law: Contracts, 159.2d, pp. 424 (1979).
25.
Sarno, G. G. (1978). “Public contracts: duty of public authority to disclose to contractor information allegedly in its possession, affecting cost or feasibility of project,” 86 ALR.3d 182, 246.
26.
Sasso Contracting Co. v. State of New Jersey, 414 A.2d 603, 605, 173 N.J. Super. 486, 85 N.J. 101, 425 A.2d 265 (1980).
27.
Sierra Blanc, Inc., ASBCA No. 30943, 91‐2 BCA, 23990 (1991).
28.
Sweet, J. (1989). Legal aspects of architecture, engineering, and the construction process, 4th Ed., West Publishing Company, New York, N.Y.
29.
United States v. Atlantic Dredging Co., 253 U.S. 1, 12, 40 S.Ct. 423, 64 L.Ed. 735 (1919).
30.
Valentini v. City of Adrian, 79 N.W.2d 885, 888, 347 Mich. 530 (1956).
31.
Vance, J. C., and Jones, A. A. (1978). “Legal effect of representations as to subsurface conditions.” Selected studies in highway law, Vol. 3, Transportation Research Board, Washington, D.C., 1471–1494.
32.
W. H. Lyman Const. Co. v. Village of Gurnee, 403 N.E.2d 1325,1328, 84 Ill. App.3d 28 (1980).
33.
Warner Construction Corp. v. City of Los Angeles, 466 P.2d 966, 1001, 2 Cal.3d 285, 85 Cal. Rptr. 444 (1970).
34.
Warren Bros. Co. v. New York State Thruway Auth., 309 N.Y.S.2d 139, 139, 34 N.Y.2d 770 (1974).
35.
Wiechmann Engineers v. State of California, Dept. of Public Works, 107 Cal.Rptr. 529, 535, 31 Cal.App.3d 741 (1973).
36.
Wunderlich v. State of California, Dept. of Public Works, 423 P.2d 545, 548, 56 Cal.Rptr. 473, 65 Cal.2d 777 (1967).
Information & Authors
Information
Published In
Journal of Construction Engineering and Management
Volume 118 • Issue 3 • September 1992
Pages: 472 - 487
Copyright
Copyright © 1992 ASCE.
History
Published online: Sep 1, 1992
Published in print: Sep 1992
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.