SOUTHERN GULF UTILITIES, INC., APPELLANT,
v.
BOCA CIEGA SANITARY DISTRICT AND THE BOARD OF COUNTY COMMISSIONERS OF PINELLAS COUNTY, AS ITS GOVERNING BODY, APPELLEES
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Southern Gulf Utilities contracted to build a sewer line for Boca Ciega Sanitary District. The contract contained a no-damages clause excusing delays caused by the owner's failure to secure rights-of-way. The court held that while the no-damages clause is valid, it does not protect the public authority from liability for knowing, deliberate delays that transcend mere negligence or bureaucratic inefficiency.
The court held that the no-damages clause is valid and not void as against public policy, but it does not provide absolute protection to the public authority. A knowing or willful failure to provide rights-of-way that transcends ordinary negligence or bureaucratic bungling will not allow the public authority to hide behind the no-damages clause and escape liability.
[1] A "no damages" clause in a construction contract is not void as against public policy.
[2] A "no damages" clause in a construction contract does not protect a public authority from liability for damages caused by its willful failure to provide necessary rights-…
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Join FLexlaw to unlock all legal intelligence“The cases are clear that a wilful failure to provide the right-of-way will not allow the public authority to hide behind the no-damages clause.”
Establishes the core holding that willful conduct by the public authority cannot be shielded by the contractual no-damages clause.
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Join FLexlaw to unlock all legal intelligenceSouthern Gulf Utilities contracted to construct a sewer line for Boca Ciega Sanitary District. The contract required the District to obtain all necess…
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It speaks well for government in Florida that this is the first reported construction of a common clause that has provoked much litigation in other jurisdictions.
Appellant contracted to build a sewer line for appellee. The contract states that “all land and rights-of-way necessary for the proper completion of the work will be secured by the Owner as speedily as possible. In the event that they are not obtained as rapidly as comtemplated, the Contractor shall work upon such land and rights-of-way as have been obtained and no claim whatsoever for damages by reason of any consequent delay or additional cost involved will be allowed.” Appellant alleges that the appellee, despite ample authority for a quick taking under Florida Statutes c. 74 (1967), F.S.A., “negligently, wilfully and for a long time, after Plaintiff commenced work under [the] contract, did not take the reasonable and necessary steps” to acquire the rights-of-way. By its summary judgment for the appellee the trial judge determined that the contract afforded the contractor no right to recover damages.
We dispose of the polar positions first. The “no damages” clause is not void as against public policy, as a Louisiana court stated—unnecessarily to its decision, we think—in Sandel & Lastrapes v. City of Shreveport, La.App.1961, 129 So.2d 620. But that opinion shows as well as any why it cannot be read literally, as appellee contends. There a nine-months delay was caused by the city’s failure to provide five joints of concrete pipe five feet in diameter and sixteen feet long. The contract for the pipe was let at the same time as the contract for the construction of the project into which it was to be installed, but the city delayed procurement unreasonably and knew that its delay was causing damage. 129 So.2d at 625.
The cases are clear that a wilful failure to provide the right-of-way will not allow the public authority to hide behind the no-damages clause. Annotation, 10 A.L.R.2d 801. E.g., Norman Company v. County of Nassau, 27 A.D.2d 936, 278 N. Y.S.2d 719 (App.Div.1967); Ippolito-Lutz, Inc. v. Cohoes Housing Authority, 22 A.D.2d 990, 254 N.Y.S.2d 783 (App.Div.1964); Hallett Construction Co. v. Iowa State Highway Com’n, 154 N.W.2d 71 (Iowa 1967); Cunningham Brothers, Inc. v. City of Waterloo, 254 Iowa 659, 117 N.W.2d 46 (1962).
The question on simple negligence is closer, and in formulating a workable rule we must bear in mind that the delay can result from either a knowing or an ignorant failure. Neither party can rely unreasonably on the no-damages clause. The contractor cannot sit idly, comforted by the thought that he will either get his rights-of-way on time and earn a profit on the contract or, if delayed, obtain damages merely on account of the delay. On the other hand, the public authority cannot allow its employees to remain idle on the comfortable assumption that the no-damages clause is to be taken literally. We cannot precisely define the conceptual line to which the no-damages clause permits the authority to neglect the duties clearly assumed by it under the contract. Clearly there is some extent to which the no-damages clause would protect it against ordinary lethargy which is not counteracted by a good faith effort on the contractor’s part to expedite the acquisition of rights-of-way.
We hold that this complaint states a cause of action for damages caused by the knowing delay of the public authority which transcends mere lethargy or bureaucratic bungling. City of Orlando v. Murphy, 1936, 84 F.2d 531, appears to treat the clause as barring recovery, but there was in that case no allegation of conduct on the part of the city which would come within the rule followed in the other cases cited. To the extent that that case suggests an absolute barrier to recovery we do not agree.
Reversed and remanded.
HOBSON, C. J., and LILES, J., concur.
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Cnty. OF Brevard v. Miorelli Eng'g, Inc., 703 So. 2d 1049 (Fla. 1997)…rican Land Corporation v. Wain, 166 So. 2d 763, 764 (Fla. 3d DCA 1964), (b) an implied obligation not to knowingly delay unreasonably the performance of duties assumed under the contract, Southern Gulf Utilities Inc. v. Boca Ciega Sanitary District, 238 So. 2d 458, 459 (Fla. 2d DCA 1970), cert. denied, 240 So. 2d 813 (Fla.1970), and (e) an implied obligation to furnish information which would not mislead prospective bidders, Jacksonville Port Authority v. Parkhill-Goodloe Co. Inc., 362 So. 2d 1009 (Fla. 1st D…
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Champagne-Webber, Inc. v. City OF Fort Lauderdale a Mun. Corp., 519 So. 2d 696 (Fla. 4th DCA 1988)…and Corporation v. Wain, 166 So. 2d [*698] 763, 764 (Fla. 3d DCA 1964), (b) an implied obligation not to knowingly delay unreasonably the performance of duties assumed under the contract, Southern Gulf Utilities Inc. v. Boca Ciega Sanitary District, 238 So. 2d 458, 459 (Fla. 2d DCA 1970), cert, denied, 240 So. 2d 813 (Fla.1970), and (c) an implied obligation to furnish information which would not mislead prospective bidders, Jacksonville Port Authority v. Parkhill-Goodloe Co. Inc., 362 So. 2d 1009 (Fla. 1st D…
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McINTIRE v. Green-Tree Cmtys., Inc., 318 So. 2d 197 (Fla. 2d DCA 1975)…he reasonableness of the delay was what the clause was intended to avoid and that the unreasonableness of a delay alone does not avoid the operation of the clause.5 In Southern Gulf Utilities, Inc. v. Boca Ciega Sanitary District, Fla.App.2d, 1972, 238 So. 2d 458, this court held that a “no damages for delay” clause was valid but stated that it was not to be read literally so as to preclude every conceivable claim against the party it was designed to protect. In that case, the complaint was held to state a c…
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Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- City of Orlando v. Murphy, 84 F.2d 531 (5th Cir. 1936)