Certified Fire Prot. v. Precision Constr.

Respondent/cross-appellant Precision Construction, Inc. solicited bids from subcontractors for the design and installation of an early suppression, fast response sprinkler system. Certified Fire Protection, Inc. submitted a bid. Precision notified Certified that it won the bid, and Precision entered into a contract with the owner to complete the project. Certified obtained a copy of the subcontract along with a set of construction plans and sprinkler system specifications. The subcontract’s provisions required Certified to complete the preliminary design drawings of the sprinkler system within two weeks and to obtain a certificate naming Precision as an additional insured. Over the next few weeks, Precision asked Certified several times to sign the subcontract and provide the additional-insured certificate. Certified objected to the subcontract as imposing terms that differed from the bid specifications. It complained that the unanticipated terms changed the scope of work and that it would have to amend its bid accordingly. Certified also took exception to some of the generic contractual provisions, including the additional-insured requirement. Nonetheless, Certified hired specialists to work on the Precision contract, and began work. Precision and Certified communicated several more times about getting the subcontract signed. Eventually Precision terminated its relationship with Certified for refusing to sign the subcontract, for not providing the additional-insured endorsement, and for incorrect designs. At Precision’s request, Certified submitted an itemized billing for the work it had performed; its bill reported costs of $25,185.04, which included design work and permit fees for the project. Precision deemed the costs too high and never paid. Certified placed a mechanic’s lien on the property and sued to recover for its design-related work. Certified’s complaint sought to foreclose the mechanic’s lien and damages for unjust enrichment, quantum meruit, and breach of contract. On appeal, Certified argued that the district court failed to determine whether a contract for the design-only work existed but conceded that the parties never reached agreement on the full design and installation contract. Certified also asserted that the district court erred in concluding that Precision was neither unjustly enriched nor liable to Certified in quantum meruit because Precision did not benefit from the work performed. On cross-appeal, Precision argued that the district court abused its discretion in denying Precision’s motion for attorney fees. Because the Supreme Court agreed with the district court that Certified did not provide sufficient evidence to establish either an implied-in-fact contract or unjust enrichment, the Court affirmed. Additionally, the Court affirmed on cross-appeal the district court’s order denying attorney fees. View "Certified Fire Prot. v. Precision Constr." on Justia Law