Opinion ID: 749857
Heading Depth: 2
Heading Rank: 3

Heading: The Tree and Stump Claims

Text: 34 With regard to the area to be graded for the road, it would be necessary to remove the standing timber, and then any stumps (and other remaining obstructions) would have to be cleared. With regard to those parts of the construction area outside the roadbed areas, the Forest Service contemplated removal of the larger trees as part of a timber sale, but did not necessarily require the removal of remaining stumps. 35 The contract with Brown was written to require that, within the construction area, Brown would clear and grub all trees and stumps, except that, in areas outside of the grading limits, stumps could not be more than six inches above the ground. Section 201.03. 1 The contract specifically noted that the Forest Service was conducting a sale of the timber within the construction limits of the project, and that all trees larger than nine inches in diameter would be cut and removed during the timber sale, which would occur prior to the date that construction was to begin. Section 201.02. 2 Brown adjusted its bid accordingly. 36 On October 19, 1984, the Forest Service awarded a contract to a third party for harvesting the larger trees within the construction limits of the project. The trees to be harvested under this contract had a minimum diameter of nine inches, the same size as that specified in subsection 201.02. However, the stumps which were to be left by the third party contractor were to be no higher than 12 inches, which differed by six inches from that specified in subsection 201.03(2). Brown was later required to cut the stumps left by the Forest Service contractor to the six inch height specified by the FHWA contract. Brown sought compensation for the extra stump trimming, which was denied. 37 The Board held that it was unreasonable for Brown to assume that the stumps left by the Forest Service contractor would be cut to the height specified by Brown's contact with FHWA. Brown should have anticipated that additional work would have been required, according to the Board, because Brown was responsible for clearing and grubbing the area after the timber contractor was finished. 38 It is undisputed that FHWA expressly warranted that all trees within the construction limits of the project which were larger than nine inches in diameter would be cut and removed prior to the start of construction. The question then is whether the warranty was breached when the stumps of these trees were not cut to the six inch height specified in Brown's contract. The Board concluded that it was unreasonable for Brown to have assumed that the logging contractor would be required to cut the stumps to the height specified in Brown's contract because the logging operation was governed by a separate contract. 39 We cannot agree. The only contract to which Brown was a party indicated that the Forest Service would arrange to cut and remove all trees larger than nine inches. Under the contract, Brown was responsible for cutting and removing all other trees, where permitted leaving stumps no more than six inches high. In light of this provision, we interpret the express warranty to include the obvious inference that the Forest Service, with regard to its responsibility to cut and clear, would ensure that no stumps higher than six inches would be left. Since the Government admits that the logging contractor left stumps greater than six inches in height, which Brown was required to remove, the Government breached its express warranty. 40 We therefore reverse the Board's denial of Brown's entitlement to compensation for the trimming of stumps, and remand for a determination of quantum. On remand, Brown should be given an opportunity to further develop the evidence necessary to prove its damages. See S.W. Electronics & Mfg. Corp. v. United States, 228 Ct.Cl. 333, 655 F.2d 1078, 1088 (1981) (in cases in which responsibility for damage is clear, it is not essential that the amount thereof be ascertainable with absolute exactness or mathematical precision.) (quoting Electronic & Missile Facilities, Inc. v. United States, 189 Ct.Cl. 237, 416 F.2d 1345, 1358 (1969)). 41 The contract also provided, in 201.04, for the removal by Brown of individual trees and stumps in areas other than those designated for clearing and grubbing. Brown was to be paid on either a unit basis or a square foot basis for the individual removal of trees. Under either basis, the diameter of the individual tree was to be measured at 54 inches above the ground. 42 After much of the clearing and grubbing work was complete, on August 1, 1995, Brown, through its attorney, asserted for the first time that it had been required to remove a substantial, but unspecified, quantity of trees with diameters larger than nine inches throughout the entire project. To substantiate its claim, Mr. Brown directed Mr. Alan Staehlin, a Brown superintendent, to survey a 2.7 acre area that had been logged but not cleared and grubbed to determine the tree density. Mr. Staehlin counted 400 stumps with diameters of nine inches or greater. Those stumps measured 748.53 square feet. Mr. Staehlin then extrapolated those results to arrive at a value representing the entire 58 acre site. Based on this data, Brown estimated that the total quantity of individual trees that it felled was 8,457 square feet. Brown sought payment for this amount at the item price for Individual Removal of Trees under subsection 201.04. 43 The contracting officer responded by noting that because Brown had failed to raise this issue earlier there was no way now to substantiate Brown's claim because any evidence of those trees had been eradicated by clearing and grubbing work. Brown eventually responded by stating that it was FHWA's responsibility to designate and measure trees covered by the Individual Removal of Trees Pay Item and that it could not escape liability by failing to fulfill its obligation. The contracting officer denied Brown's claim. Brown appealed to the Board. 44 The Board found that Brown failed to give the Government timely notice concerning the existence of the disputed trees throughout the project area and that such failure prejudiced the Government. The prejudice was due to the fact that the trees had been removed before the FHWA was able to quantify them. Rather than rule in the Government's favor on this ground, however, the Board instead placed a higher burden of persuasion on Brown to prove its claim. Under this standard, the Board held that Brown largely failed to carry its burden. 45 In particular, the Board found Brown's evidence unreliable. The Board questioned the accuracy of Brown's extrapolation on three grounds. First, the evidence of the size of the trees was unreliable because the size was measured at a height of six inches from the ground rather than the specified height of 54 inches as required by the contract. Second, Brown's survey extrapolated over the entire 54 acres even though a portion of that area was consumed by the old roadway where no trees existed. Third, and more significantly according to the Board, was the fact that the results failed to distinguish between those trees felled by Brown and those felled by the timber contractor. 46 The Board did find that Brown's evidence was corroborated to a limited extent based on the testimony of the FHWA's Assistant Engineer and inspector, Mr. Parea, whose knowledge the Board imputed to the contracting officer. Based on his testimony, the Board found that Brown was entitled to be compensated for the reasonable cost of clearing 22 trees with diameters larger than nine inches. The Board denied Brown's claim for compensation at the Individual Tree Removal rate, however, and instead compensated Brown under the Changes clause. 47 Brown argues on appeal that the Board erred by requiring Brown to give the Government notice per the contract's Changes Clause. See 48 C.F.R. § 52.243-4 (1996). The disputed work, according to Brown, is work specified by the contract. As such, there is no requirement for Brown to give notice. The FHWA's failure to track Brown's performance was a breach of the contract for which the FHWA should be held responsible, not Brown. 48 The Government counters by arguing that the contract explicitly excluded the removal of large trees. The Government points to the notice in the contract that informed contractors not to include any amount in their bids for clearing larger than 9 inch trees. Brown, according to the Government, is not requesting payment for performance authorized under the contract but rather for work that has not been agreed upon. This is a change to the contract for which notice is required. 49 We agree with the Government. We further agree with the Board that the appropriate course in this case is to apply a higher burden of persuasion rather than deny the claim outright. See Mingus Constructors, Inc. v. United States, 812 F.2d 1387, 1392 (Fed.Cir.1987) ([T]he existence of prejudice resulting from the dilatory notice usually serves to increase the burden of persuasion facing the contractor asserting its claim for equitable adjustment rather than to bar its claim entirely.). 50 Brown relies almost exclusively on the survey as evidence of the number of trees that it had to remove. As noted by the Board, however, the survey failed to distinguish between those trees felled by Brown and those by the timber contractor. Essentially, Brown's position is that, as far as the contract is concerned (in particular subsection 201.04), a stump is a tree. Thus, according to Brown, its survey was adequate to prove its claim even though it did not distinguish between stumps and trees. We disagree. Stump trimming is not tree cutting. Because this assumption underlay Brown's survey, it alone does not provide substantial evidence to prove the claim. The only portion of the claim that is supported by substantial evidence is, as the Board found, the 22 trees. That part of the Board's decision is affirmed.