Opinion ID: 2514285
Heading Depth: 1
Heading Rank: 10

Heading: Change Order as Accord and Satisfaction or Waiver

Text: [ś 79] In its next issue, the City claims the district court erred by not instructing the jury on the issue of accord and satisfaction because it had presented evidence that the change order request the city council verbally approved on November 15, 2000, operated as an accord and satisfaction of HCI's delay claim under Article 7.2.1 of the contract. The City also claims that HCI waived its delay claim by accepting the change order and proceeding to perform under the contract without reserving the claim. HCI asserts there was no evidence to support such an instruction. HCI contends there was no evidence that either party intended the change order to operate as an accord and satisfaction. Without evidence of intent, HCI argues the district court properly refused to give the City's proposed instructions on waiver and accord and satisfaction. [ś 80] For the change order to operate as an accord and satisfaction, it must clearly have appeared that HCI intended it to operate as such and that the City either expressly agreed to it, or was bound to know of HCI's intention at the time it accepted the change order. Oedekoven v. Oedekoven, 538 P.2d 1292, 1297 (Wyo.1975). [ś 81] The evidence relevant to this issue showed that after the city council approved the change order request, HCI proceeded to perform under the contract. However, as previously mentioned, HCI also sent the November 28, 2000, letter to Mr. Gillette stating that although it would attempt to complete the project as efficiently as possible, the delays caused by the City had delayed the project, the original schedule was no longer possible and HCI would document the costs of the delay for the City's account. HCI referenced its earlier letter, dated October 30, 2000, in which it had advised Mr. Gillette that due to the ambiguous specifications there is a potential for a major impact on the schedule causing loss of productivity and increased costs. The October letter also referred to the cost of delays, litigation, etc. [ś 82] This documentation suggests that rather than intending to waive or release any claim for damages, HCI intended to keep track of the additional costs resulting from the delay for payment by the City. Mr. Hladky testified that he absolutely did not intend to waive any claim for delay by signing the change order. He testified if that had been his intent he would have put it in writing. He testified that the City representatives did not indicate they considered the change order to be a waiver and, if they had, he would not have signed it. [ś 83] Consistent with this evidence, the written change order Mr. Gillette finally prepared at the end January of 2001 contains no language, doubtful or otherwise, indicating that it was intended to operate as a waiver or an accord and satisfaction. An accord and satisfaction can never be implied from language of doubtful meaning. Oedekoven, 538 P.2d at 1297. If it cannot be implied from language of doubtful meaning, it certainly cannot be implied from a change order containing no language at all indicating that it was intended to operate as an accord and satisfaction or a waiver. We agree with the district court's conclusion that the change order did not contain language supporting the defenses of waiver or accord and satisfaction. The district court properly declined to submit these issues to the jury. [ś 84] Within its argument that the district court erred in not submitting the accord and satisfaction and waiver issues to the jury, the City also asserts that the district court erred when it prohibited Mr. Anderson, the city attorney, from testifying concerning the change order. Rulings on the admissibility of evidence are within the sound discretion of the trial court. Barnes v. State, 2008 WY 6, ś 11, 174 P.3d 732, 736 (Wyo. 2008). We will not disturb such rulings absent a clear abuse of discretion. Id. An abuse of discretion occurs when it is shown the trial court reasonably could not have concluded as it did. Id. [ś 85] The City claimed that Mr. Anderson's testimony was critical to rebut Mr. Hladky's testimony that he did not intend the change order to operate as an accord and satisfaction or waiver of his damage claim. The City asserted that Mr. Anderson was the City's trouble shooter with respect to the change order, he attended the city council meeting where it was addressed and he was the appropriate person to testify concerning the City's intent. [ś 86] In his deposition taken prior to trial, Mr. Anderson testified that he had no involvement in preparing the change order. He did not review it after it was drafted. He testified his only involvement with the written change order may have been in getting it signed. He testified his memory of the city council meeting was a conversation which he thought focused on the need to move the project forward by getting a precast panel supplier because the one selected by HCI was not certified. He did not remember anything Mr. Hladky or Mr. Roberts may have said at the meeting. He remembered something being said about no more change orders, which he thought upset Mr. Hladky. He also remembered being glad the change order had been approved and the project was moving forwardâ it got the contractor out of a horrible spot he was in, moved things on. [ś 87] We find no abuse of discretion in the district court's ruling. Mr. Gillette drafted the change order and was the best source for testimony concerning what the City intended. While Mr. Gillette may have had discussions with Mr. Roberts concerning the change order, no evidence was presented that Mr. Anderson was involved in those discussions. The city council and the mayor approved the change order and were the best source of testimony concerning what the City intended. No showing was made that Mr. Anderson had knowledge sufficient to allow him to testify concerning the City's intent.