Opinion ID: 170933
Heading Depth: 1
Heading Rank: 6

Heading: equitable adjustment claim for bond

Text: GIT was required to provide performance and payment bonds for the project. Under a termination-for-convenience paradigm, the contractor is entitled to recover only costs incurred for performance of the terminated work. See 48 C.F.R. 52.212-4( l ); see also Morrison Knudsen I, 175 F.3d at 1243 n. 26. The contract does not entitle GIT to compensation for its bond payments unless it furnish[es] evidence of full payment to the surety company. J.A. Vol. 10 at 2649. In its bid, GIT quoted $245,000 for the cost of providing a performance bond. MK argues that testimony at trial established GIT only furnished evidence to MK of its payment of $80,996 in premiums for its bond payments. GIT, however, sought as an equitable adjustment and was awarded an additional $164,004. This sum represents the difference between the $80,996 that MK had reimbursed GIT for its bond payments and the amount GIT quoted MK in its bid. After GIT rested, MK moved for judgment as a matter of law pursuant to Fed.R.Civ.P. 50(a) on GIT's claim for a bond equitable adjustment. The court denied the motion. At the close of all evidence, MK renewed its motion, which the court denied. After the court entered its judgment, including the $164,004 sum, MK requested the court amend the judgment to eliminate this damage award, arguing GIT never incurred this cost or provided evidence of payment and it was therefore not properly recoverable. The court denied the motion. This court reviews de novo a district court's denial of a motion for judgment as a matter of law under Fed. R.Civ.P. 50. Marshall v. Columbia Lea Reg'l Hosp., 474 F.3d 733, 738 (10th Cir. 2007). Judgment as a matter of law is appropriate only if the evidence points but one way and is susceptible to no reasonable inferences which may support the nonmoving party's position. Escue v. N. Okla. Coll., 450 F.3d 1146, 1156 (10th Cir. 2006) (quotation omitted); see also Miller v. Auto. Club of N.M., Inc., 420 F.3d 1098, 1131 (10th Cir.2005) (Judgment as a matter of law is only appropriate when `a party has been fully heard on an issue and there is no legally sufficient evidentiary basis for a reasonable jury to find for that party on that issue.' (quoting Fed. R.Civ.P. 50(a)(1))). All inferences are drawn in favor of the non-moving party. Escue, 450 F.3d at 1156. GIT argues it is entitled to $164,004 in bond costs as an equitable adjustment and sufficient evidence supports this award. First, it contends that the evidence at trial proved $164,004 in costs were incurred as mobilization costs. Second, it argues that MK's expert witness, Thomas Caruso, testified GIT was entitled to recover $245,000 for its bond expenses. We find neither argument persuasive. GIT never introduced evidence that it paid its surety the entire $245,000 included it its bid. In fact, the only testimony on this point establishes that GIT did not have evidence that it paid this sum. Robert Kinghorn of GIT testified about this specific claim: Q: Okay. And as I understand it, your claim for bond amount was $245,000. A. That was the price that was included on the bid. Q. And you were paid $80,996? A. Yes, that's correct. Q. Where is your check for $245,000? A. I don't have a check for $245,000. Q. Did you ever pay $245,000 to your bonding company? A. Yes. Q. Thank you. You don't have a receipt for that amount, do you? ..... A. No, sir. Q. And that payment is not reflected in your job-cost report, is it? A. No, the payment in the job-cost report is [$]80,996. Q. That is what you actually paid for your bond, isn't it? A. Yes, that's correct. R. Vol. VI at 422. Although this testimony is somewhat conflicting, GIT fails to establish it provided MK with evidence that it paid its surety $164,004. In fact, Kinghorn explicitly stated GIT only paid $80,996 for the bond. GIT does not identify evidence anywhere else in the record supporting its claim that it paid its surety $164,004. GIT's reliance on Caruso's testimony does not alter this result. Caruso testified that GIT requested $245,000 for its bond costs. This sum was also included in a payment request sent to MK, and Caruso testified he believed this sum would be due to GIT. He did not, however, testify that GIT had paid its surety the $164,004. Likewise, there is no evidence that mobilization costs somehow increased the cost of providing the performance bond. [21] Our task is merely to examine whether GIT offered evidence to show it paid $164,004 to its surety. The undisputed evidence supports MK's position: GIT failed to furnish evidence that it paid its surety any more than the $80,996 which MK reimbursed. See Escue, 450 F.3d at 1156. Under the terms of the contract, therefore, MK was entitled to judgment as a matter of law. On remand, the district court is instructed to enter judgment as a matter of law for MK on the bond equitable adjustment and reduce the judgment accordingly.