Horton Construction Co., Inc. ( 2020 )


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  •                ARMED SERVICES BOARD OF CONTRACT APPEALS
    Appeal of --                                 )
    )
    Horton Construction Co., Inc.                )     ASBCA No. 61085
    )
    Under Contract No. W9124E-11-C-0021          )
    APPEARANCE FOR THE APPELLANT:                      Gregory D. Coleman, Esq.
    Johnson Hopewell Coleman, LLC
    Decatur, GA
    APPEARANCES FOR THE GOVERNMENT:                    Scott N. Flesch, Esq.
    Army Chief Trial Attorney
    MAJ Sean B. Zehtab, JA
    ChristinaLynn E. McCoy, Esq.
    Trial Attorneys
    OPINION BY ADMINISTRATIVE JUDGE OSTERHOUT
    Horton Construction Co., Inc. (Horton or appellant), appeals the decision by the
    United States Army (Army or the government) denying Horton’s claims for
    compensation due to a significant reduction in the amount of concrete to be crushed
    under a contract for concrete crushing and erosion control projects. In addition to a
    defense on the merits, the Army claims Horton signed a final release of these claims,
    although Horton counters that the employee who signed the release was not authorized
    to do so, invalidating the release. For the reasons discussed below, we hold that
    Horton executed an effective release and deny the appeal.
    FINDINGS OF FACT
    1. On September 12, 2011, the Army awarded Contract No. W9124E-11-C-0021
    (the contract) to Horton, with a total value of $1,943,148.51 (R4, tab 30 at 479-80). The
    contract incorporated by reference FAR 52.236-2, DIFFERING SITE CONDITIONS
    (APR 1984) and FAR 52.243-5, CHANGES AND CHANGED CONDITIONS
    (APR 1984) (R4, tab 1 at 43-44). Contract Line Item Number (CLIN) 0001 of the contract
    allocated $1,918,211.76 for concrete crushing and erosion control projects. However, the
    contract did not specify how much of this fund was for concrete crushing and how much
    was for erosion control projects, and used dollars to be spent as the unit identified. (R4,
    tab 30 at 481) Paragraph 5.2.1 of the Performance Work Statement provided only
    “approximately 69,000 Tons of concrete” to be crushed (id. at 488).
    2. Johnny Horton, Sr., appellant’s president, signed the contract for Horton in
    blocks 30A and 30B. Block 30A stated “NAME AND TITLE OF CONTRACTOR
    OR PERSON AUTHORIZED TO SIGN.” Block 14 identified “Horton Construction
    Co., Inc., Chauncy Horton” as the name of the offeror, since Chauncy Horton had
    submitted the proposal pursuant to Johnny Horton, Sr.’s approval. Johnny Horton, Sr.
    did not change Chauncy Horton’s name on the contract when he signed the forms. (Id.
    at 480; tr. 2/52-55)
    3. During the hearing, several of appellant’s employees testified about
    Chauncy Horton’s position within the company. When asked, Chauncy Horton rated
    himself lateral to Johnny Horton, Jr., in some situations, though Chauncy Horton was
    somewhat equivocal on this issue and also described himself as lower than
    Johnny Horton, Jr. (tr. 2/83-85, 99-100). Regardless of whether Chauncy Horton was
    lateral or lower, Johnny Horton, Jr., had medical issues that kept him from working for
    Horton during most of the performance of this contract and Chauncy Horton covered
    many of the duties that Johnny Horton, Jr., typically performed (tr. 2/100).
    Johnny Horton, Jr., was generally agreed to be a vice president, (id. at 84-85;
    tr. 1/164-65), though this position appeared to have no more power than
    Chauncy Horton had as a project manager (tr. 1/181-82, 2/30, 83-84).
    Chauncy Horton also testified that he was never a corporate officer (tr. 2/47).
    Dominique Washington testified that Chauncy Horton also had no authorization and
    was below Johnny Horton, Jr., though admits no description of his duties was written
    anywhere (tr. 1/183, 2/26-27, accord tr. 2/99) (“Q: You [Chauncy Horton] never had a
    written duty description? A: No.”); (see also tr. 1/190) (Dominique Washington
    calling Chauncy Horton a Project Manager), (R4, tab 6 at 63) (Chauncy Horton
    signing as Project Manager). Johnny Horton, Jr., did not seem to know
    Chauncy Horton’s title when asked (ex. K at 14).
    4. Each employee testified that almost all, if not all, authority in the company
    rested with Johnny Horton, Sr., the president (tr. 1/157) (Brandon Horton stating
    Johnny Horton, Sr., “kind of held all the power and he let it be known that I am Horton
    Construction.”); (tr. 1/162) (“whatever he says that’s how it goes”); (tr. 2/21-23)
    (Dominique Washington affirming all contractual matters, estimates, final decisions,
    and major changes went through Johnny Horton, Sr.); (tr. 2/86) (Chauncy Horton
    stating Johnny Horton, Sr., “was the judge, jury, verdict. Like he was the law”);
    (tr. 2/100; ex. K at 63-64, 68-69, 72-74, 88-89, 92-93). 1 Witnesses also consistently
    testified that any authorizations Johnny Horton, Sr., released to his employees were
    transaction-specific and conveyed verbally (tr. 1/188-90, 2/26, 40, 54; ex. K at 43, 50).
    Despite this, appellant’s employees also testified, and we so find, that they had
    1   Johnny Horton, Sr., passed away after the contract closed out but before Horton filed
    the appeal. Thus, we must rely on the employees’ testimony of their
    responsibilities instead of hearing from Johnny Horton, Sr., directly.
    2
    authority to run operations day to day and, in some instances, had purchasing power
    and power over other substantive matters (tr. 1/117, 119, 133, 139-41, 2/22, 28-29, 86,
    100, 119, 152; ex. K at 35, 42). Chauncy Horton testified that one of his duties was to
    decide whether he could sign a document or Johnny Horton, Sr., needed to see a
    document requiring signature (tr. 2/103). Further, appellant’s employees also agreed
    that they never communicated this organizational authority structure or individual
    employees’ limited authority to the government (tr. 1/37, 150, 194-95, 2/27, 35, 87,
    103-04, 119, 135, 151; ex. K at 37, 43) (Johnny Horton, Jr., stating appellant didn’t
    inform the government of its authority structure because “[t]hey wouldn’t have to
    [know]”) (id. at 44). Therefore, we find appellant did not delineate the limits of
    Chauncy Horton’s authority to sign contractual documents to the government.
    5. Appellant registered both Johnny Horton, Sr., and Chauncy Horton as
    contacts within the Central Contractor Registration (CCR) system (R4, tab 29 at 477).
    The purpose of this system was to establish points of contact for government
    contractors across all of their contracts (tr. 2/180). Appellant’s staff updated these
    entries annually, with Johnny Horton, Sr.’s approval (tr. 2/39-40, 149-50). In addition
    to his identification as a point of contact in contractual documentation, Chauncy Horton
    served as the central point of contact with the government for this particular contract
    (tr. 1/37, 56, 83, 149-50, 159, 2/176-77, 180). Multiple witnesses testified that
    Johnny Horton, Sr., had very limited direct interaction with the government, and did not
    sign documents directly (tr. 1/56, 83, 2/152, 166-67, 174-76). Testimony indicated he
    was present at some initial meetings with other employees, but no documentation of the
    dates those meetings took place or what was done at them was presented or provided in
    the record (tr. 2/35).
    6. During a pre-bid meeting, staff from appellant, a subcontractor, and the
    government were on site and discussed that only “about 20,000” tons of concrete were
    at the site. When appellant raised this issue, a Project Manager with the government
    stated that there would be more concrete brought to the site as the contract progressed.
    (Tr. 1/109-10, 2/48-51; ex. K at 38-39) Johnny Horton, Jr., testified that several of
    appellant’s employees frequently but informally brought up the issue of the extra
    concrete during performance of the contract (ex. K at 119-21).
    7. After award of the contract to appellant, the government issued a Notice to
    Proceed on September 20, 2011, which Chauncy Horton signed on the line reading
    “Signature of Authorized Official” (R4, tab 34 at 249). Chauncy Horton reportedly
    received authorization to sign this document from Johnny Horton, Sr. (ex. K at 55).
    8. During performance of the contract, Chauncy Horton handled the collection of
    invoices and, with a subordinate employee, was frequently on site (tr. 1/161, 2/36-37,
    90). He also communicated to the government designs for erosion control projects
    created by a subcontractor early in the contract (R4, tab 35 at 326; tr. 2/111-13).
    3
    9. The record indicates that 8,000-9,000 additional tons of concrete arrived by
    June 2012, but it is unclear how much of this appellant eventually crushed (R4, tab 15
    at 133, 136, tabs 52-53; tr. 2/94-95). Horton considered the contract to be
    approximately one-third rock crushing and two-thirds erosion control and landscaping
    even though both types of work were contained within one CLIN (tr. 1/30). The
    government considered modifying the contract to use more of the remaining funds for
    erosion control projects as early as February 1, 2012 (R4, tab 39). Chauncy Horton
    communicated to the government that he believed no contract modifications would be
    necessary to accomplish this, and provided an estimate for the projects (id. at 595,2
    603; tr. 2/125-30).
    10. By email dated January 13, 2012, Chauncy Horton provided the
    government a breakdown for concrete crushing and erosion control. He stated it was
    appellant’s intent to “produce 70,000 tons of crushed material and perform the erosion
    control tasks as specified by the government on each case. The [sic] included
    breakdown delivers the crushed rock at a rate of $20.69/ton.” (App. supp. R4, tab 104
    at 1) After negotiation via emails between the government’s contract specialist and
    Chauncy Horton, both parties arrived at a rate of $18.93/ton on January 20, 2012 (R4,
    tab 7 at 96; see also tab 5 at 56, 58; app. supp. R4, tab 105).
    11. By email dated January 27, 2012, Chauncy Horton requested “that the rate
    of production be adjusted so that our costs can be recovered,” as only 30,000 tons of
    concrete were available to be crushed, rather than the approximated 69,000 tons (R4,
    tab 8 at 100). The contracting officer (CO) denied this request by correspondence
    dated February 1, 2012. She pointed out that the contract “plainly” stated there was
    “approximately” 69,000 tons of concrete, which she viewed as an estimate only. She
    also noted that the contract did not end until June, and more concrete could be added
    in that time. (R4, tab 9 at 102)
    12. Through the course of the contract, Chanucy Horton signed several
    modifications on behalf of appellant. Modification No. 1 altered the Statement of
    Work, and contained the following language: “This modification does not incur any
    additional cost to the Government. . . . RELEASE OF CLAIMS. Contractor
    unconditionally waives any charge(s) against the Government arising under the revised
    statement of work of this contract.” Chauncy Horton signed this modification on
    January 25, 2012. (R4, tab 6 at 63) Modification No. 3, signed by Chauncy Horton on
    June 29, 2012, was “issued to extend the ending period of performance to August 29,
    2012 due to excusable delays at no additional cost to the Government,” and contained
    2   The Board notes that there are two sets of bates-labeled page numbers on this tab,
    and will use the lower numbers contained therein.
    4
    almost identical3 release language to Modification No. 1 (R4, tab 13 at 126).
    Modification No. 4 extended the period of performance to September 5, 2012,
    contained release language identical to Modification No. 3, and was signed by
    Chauncy Horton on August 29, 2012 (R4, tab 14 at 129). Chauncy Horton testified,
    and we so find, that he had authority to sign the modifications (tr. 2/87).
    13. By email dated November 8, 2012, the government’s contract specialist
    emailed Chauncy Horton and a subordinate employee with the subject line “Rock
    Crushing Contract Final Payment.” The email read, in its entirety, “[p]lease fill out
    ‘Release of Claims’ form and send it to me. Please see attached approved payment
    request. Thank you.” (R4, tab 63 at 729) She testified “[a]s a part of our process we
    have to have the final release of claim[s] to have the contractor paid” (tr. 2/182).
    14. The attached form’s heading read “CERTIFICATION OF FINAL
    PAYMENT” and “CONTRACTORS RELEASE OF CLAIMS” and had two lines for
    signatures of witnesses. It contained the following language:
    [T]he contractor, upon payment of the said sum by the
    United States of America . . . does remise, release, and
    discharge the Government, its officers, agents, and
    employees, of and from all liabilities[,] obligations, claims,
    and demands whatsoever under or arising from the said
    contract, other than claims in stated amounts as listed
    below.
    Nothing is written below this text in the relevant field. Chauncy Horton signed and
    dated the form November 12, 2012. In the witness fields are signatures of
    Brandon Horton with the title of Estimator, and Dominique Washington with the title
    of Secretary, both employees of appellant. (R4, tab 16 at 138)
    15. Brandon Horton testified that Chauncy Horton asked him to sign the
    release as a witness, and that he did so without reading it, as he typically relied on
    Chauncy’s review of the document (tr.1/163). Dominique Washington testified that
    she also signed the form without reading it, as she was new to the company and
    unfamiliar with the contract closing process (tr. 1/189-92). Both witnesses agreed that
    Chauncy Horton did not have freestanding authority to sign such a document (id.;
    tr. 1/164). Chauncy Horton, for his part, testified that he understood it to only be a
    “prerequisite to collecting the funds,” having read just “[p]arts of it” (tr. 2/88). He
    stated further that he would have gone to Johnny Horton, Sr., and suggested they get
    3   Modification No. 3 released claims arising under the “change in the period of
    performance” instead of under the “revised statement of work” that the
    government wrote in Modification No. 1.
    5
    legal advice, if he had understood the document to release all claims (tr. 2/89). This
    document was executed within the home office where all of these employees, as well
    as Johnny Horton, Sr., worked (tr. 1/167-68).
    16. Chauncy Horton emailed the contracting specialist on November 15, 2012,
    requesting the following clarification for the form: “Should the dollar amount listed on
    the release of claims reflect the total amount of the contract or the final amount paid . . . ?”
    The email bore the subject line “Claims Release.” (R4, tab 65 at 737)
    17. The final invoice was paid on November 27, 2012 (R4, tab 17). Funds that
    were left on the contract, totaling $17,747.27, were de-obligated from the contract on
    February 25, 2014, via Modification No. 5. This included $3,900.60 in assessed
    liquidated damages and $13,846.67 in unused funds. This modification included a
    release of claims provision, which reads as follows: “The Contractor unconditionally
    waives any further charge(s) for work performed under this modification over and above
    those charges included and agreed to, which are directly associated with the de-obligation
    of unused funds listed in this contract modification.” (R4, tab 18 at 144) Modification
    No. 5 was signed by Chauncy Horton on March 5, 2014 (id. at 145).
    18. At the hearing, the contracting officer testified that she never interacted
    with Johnny Horton, Sr. She also testified that she never had a need to interact with
    him. On cross-examination, she testified that she did not believe anyone in her office
    had interacted with him and that she was certain that the contracting officer who
    initially wrote the contract and the contract specialist had not interacted with
    Johnny Horton, Sr. (Tr. 2/166-67)
    19. The contract specialist also testified at the hearing. Throughout the contract,
    the contract specialist only interacted with Chauncy Horton and a subordinate Horton
    employee (tr. 2/174). Chauncy Horton never told the government he did not have
    authority to sign documents (tr. 2/175). When the contract specialist asked the
    subordinate employee if he could sign a modification, he answered that Chauncy Horton
    would need to sign the modification (tr. 2/177). The contract specialist never met and
    never talked to Johnny Horton, Sr., although she regularly conducted business with
    Chauncy Horton (tr. 2/179).
    20. Appellant filed a claim for $274,599.00 by letter dated May 27, 2016,
    claiming it only crushed 28,997 tons of the contract’s original estimated 69,000 tons of
    concrete (R4, tab 27 at 174). By letter dated December 16, 2016, the contracting officer
    denied the claim (R4, tab 28 at 278, 284). Appellant timely appealed the decision to the
    Board by letter dated March 8, 2017.
    21. The Board docketed the appeal as number 61085.
    6
    22. The Board held a hearing on the merits of this appeal on March 18-19,
    2019, in Lake Charles, Louisiana.
    DECISION
    I. The Parties’ Arguments
    Appellant seeks compensation for lack of concrete at the site under several legal
    theories which we do not address in detail here because we resolve this appeal on the
    waiver issue advanced by the government. That argument is that appellant waived its
    right to appeal when Chauncy Horton signed a final release. (Gov’t br. at 17) The
    government argues that appellant did not reserve any claims in the final release, which
    Chauncy Horton had at least apparent authority to sign, and which released all claims
    without any reservations. (Gov’t br. at 17-21, 23-31) Appellant argues the
    government has not met its burden to demonstrate that Chauncy Horton had actual or
    apparent authority to sign the final release. (App. br. at 21-24; app. reply br. at 6-18)
    Appellant argues, without factual or legal support, that signatures on modifications to
    the contract, which Chauncy Horton was authorized to sign, were “not acts that
    naturally r[o]se to the level of authority necessary for the signing of a Final Release,”
    as the mods “often arose in the course of daily operations and had no financial
    consequence.” (App. reply br. at 8)
    II. Horton Released Its Claims
    A. A Valid Release has the Effect of Precluding Claims
    Appellant’s signing a final release as well as several releases during
    performance of the contract dispose of this appeal. When a release is clear,
    unequivocal, and unconditional, the release “must be given its plain meaning and
    effect.” New Iraq AHD Co., ASBCA No. 59304, 15-1 BCA ¶ 35,849 at 175,292
    (citing Bell BCI Co., v. United States, 
    570 F.3d 1337
    (Fed. Cir. 2009)). When such a
    release exists, it “bars any and all claims for additional compensation based upon
    events occurring prior to the execution of the release.” New Iraq AHD, 15-1 BCA
    ¶ 35,849 at 175,292 (citing Todd Pacific Shipyards Corp., ASBCA No. 55126, 08-2
    BCA ¶ 33,891 at 167,759).
    Here, the government asserts that appellant signed several releases (gov’t br.
    at 23-31). Chauncy Horton, in fact, did sign several modifications that contained
    releases (findings 12, 17). Further, and more importantly, he signed a final release
    before receiving final payment (finding 15). Thus, any claims for additional
    compensation should be barred if his signature bound appellant.
    7
    However, appellant disputes the final release signature, arguing that
    Chauncy Horton, lacked the authority to sign the release (app. br. at 21-24). For the
    reasons set forth below, we disagree. Thus, the release is valid and additional claims
    for compensation are barred.
    B. Chauncy Horton Possessed Authority To Sign The Releases
    1. Actual Authority
    Appellant argues that “[t]he government did not meet its burden to show that
    Chauncy Horton, Project Manager for Horton Construction, had the requisite authority
    to sign a Final Release” (app. br. at 21). The government argues that the evidence
    demonstrates that Chauncy Horton did possess such authority, as demonstrated by the
    evidence of how business was typically conducted by appellant and what appellant’s
    employees did in this matter (gov’t br. at 26-28). We agree with the government that
    Chauncy Horton had actual authority to sign the final release, as demonstrated below.
    “A principal may give his agent express authority only by express form of
    communication.” Strann v. United States, 
    2 Cl. Ct. 782
    , 789 (1983) (citing
    Restatement (Second) of Agency § 7 (1958)). Though appellant now seeks to disavow
    such authority having been granted, the circumstantial case that Johnny Horton, Sr.
    conferred such authority upon Chauncy Horton is quite strong. First, Chauncy Horton
    was listed as the offeror on the proposal, which is consistent with his having the
    authority to bind appellant contractually. Relatedly, in block 14 of the contract, itself,
    executed by Johnny Horton, Sr., Chauncy Horton was expressly named in the offeror
    box (finding 2), which implies that Mr. Horton, Sr., had expressly agreed to
    Chauncy Horton’s role in contract administration.
    Second, Johnny Horton, Sr., assigned Chauncy Horton to be his back up, which
    authorized Chauncy Horton to act on behalf of the contract. While Johnny Horton, Jr.,
    was the unofficial vice president of the company and was sometimes seen as
    Chauncy Horton’s superior, appellant had Chauncy Horton act in Johnny Horton, Jr.’s
    place during the bulk of the performance of this contract, making Chauncy Horton
    effectively a vice president of the company (finding 3). Even during times when
    Johnny Horton, Jr., was present, appellant designated both Johnny Horton, Sr., and
    Chauncy Horton as contractual points of contact in the CCR and updating it annually
    (finding 5). Thus, as publicly announced and repeatedly affirmed, Chauncy Horton
    had express authority to act in contractual matters for appellant.
    Third, Chauncy Horton signed several contractual documents during performance
    of the contract and testified that he had authority to sign those documents (findings 7-8,
    12). He signed the notice to proceed in the space labeled “Signature of Authorized
    Official” (finding 7). And he signed Modifications Nos. 1, 3, and 4, all of which
    8
    contained release of claims statements (finding 12). Chauncy Horton also signed the last
    modification, which de-obligated funds and assessed liquidated damages (finding 17).
    We find it unlikely that the authority expressly granted to Chauncy Horton by
    Johnny Horton, Sr., included his being the offerror, the signatory on multiple change
    orders, an acting vice president and the “point of contact” in the CCR, but did not
    include the execution of the final release. Thus, we find that the government
    sufficiently demonstrated that Chauncy Horton had actual authority to act on behalf of
    Horton, including having authority to sign the final release.
    2. Apparent Authority
    Even if we found that Chauncy Horton did not have actual authority to bind
    appellant, the government argues he met the requirements to have apparent authority
    to contractually bind Horton, including with the final release (gov’t br. 28-30). We
    agree.
    “To begin our analysis, we note that the doctrine of apparent authority, although
    not applicable to the government, can be applied to contractors.” Seven Seas
    Shipchandlers, ASBCA No. 57875 et al., 13-1 BCA ¶ 35,193 at 172,678 (citing
    Peter Bauwens Bauunternehmung GmbH & Co. KG, ASBCA No. 44679, 98-1 BCA
    ¶ 29,551 at 146,497, aff'd, 
    194 F.3d 1338
    (Fed. Cir. 1999) (table)). “Apparent
    authority is established when a third party reasonably believes the actor to possess
    authority to act for the principal.” Seven Seas Shipchandlers, LLC, ASBCA
    No. 57875 et al., 15-1 BCA ¶ 35,908 at 175,530 (citing RESTATEMENT (THIRD)
    OF AGENCY, § 2.03 (2006); United States v. Great American Insurance Co. of NY,
    
    738 F.3d 1320
    , 1334 (Fed. Cir. 2013)). The restatement further defined apparent
    authority as “[t]he power held by an agent or other actor to affect a principal's legal
    relations with third parties when a third party reasonably believes the actor has
    authority to act on behalf of the principal and that belief is traceable to the principal’s
    manifestations.” RESTATEMENT (THIRD) OF AGENCY, § 2.03 (2006).
    Here, Chauncy Horton was an agent for Horton whose actions throughout
    contract performance, assigned and approved by Horton, caused the Army to
    reasonably believe he had authority to act on behalf of Horton. As stated in the actual
    authority section, Chauncy Horton was listed on the contract as an authorized official,
    was input in the CCR as a point of contact, and signed several contract modifications
    that he testified he was authorized to sign.
    Additionally, Chauncy Horton served as the central point of contact to the
    government during contract performance (finding 5). Chauncy Horton was the main
    Horton contact to the government employees, including the contracting officer and
    contract specialist (findings 18-19). He interacted with the government and he
    9
    handled all of the invoices (finding 8). He also negotiated the rate for crushing
    concrete (finding 10). Even other Horton employees believed Chauncy Horton was
    the appropriate Horton official who signed contractual documents (finding 19),
    including those who signed the final release as witnesses (finding 15).4 The
    government had no reason to doubt Chauncy Horton’s authority to execute this
    document if it raised no eyebrows from appellant’s own employees.
    Relying largely upon a decision of the Civilian Board of Contract Appeals, Safe
    Haven Enterprises, LLC., v. Dep’t of State, CBCA Nos. 3871, 3912, 16-1 BCA
    ¶ 36,444, appellant argues that there can be no exercise of apparent authority if the
    principal does not somehow convey its consent for that exercise and that it cannot do
    so if it is unaware of its exercise. Appellant then argues that, since there was no
    evidence presented that Mr. Horton, Sr., knew of Chauncy Horton’s signing the
    release, it cannot have been done with apparent authority. (App reply br. at 6-8)
    While we are not bound by this decision, it appears to be consistent with our case law
    and other binding authorities. However, appellant badly misreads it: under the law
    cited by Safe Haven, the principal need not be conscious of every action by the person
    acting with apparent authority in order to convey his consent for it; rather, it is enough
    that the principal acquiesce in actions that imply that the actor possessed the level of
    authority necessary to bind the company in the way he undertook to. Safe Haven, 16-1
    BCA ¶ 36,444 at 177,625-26. Here, because of the way that appellant was run, with
    Johnny Horton Sr. seen as the final arbiter of all significant decisions made by the
    company, it is implausible that he was unaware of the numerous and daily interactions
    with the Army undertaken by Chauncy Horton that conveyed to it his apparent
    authority to act on appellant’s behalf in matters of contract administration.
    Appellant’s argument that the government never demonstrated that
    Chauncy Horton had ever signed a final release before, supposedly refuting his
    apparent authority to do so, (see app. reply br. at 6-9) is similarly misguided. As
    discussed above, he presented as having apparent authority to do all things related to
    the contract’s administration without reservation. Nothing about his behavior or
    appellant’s acquiescence gave the government cause to doubt that his authority should
    not extend to executing the final release.
    CONCLUSION
    Chauncy Horton’s signature of the final release of claims with no reservations
    is valid and binding on Horton Construction Company. Further, because
    Chauncy Horton had authority to sign the release that he signed, it is unnecessary to
    4   Even though some Horton employees testified that they believed Johnny Horton, Sr.,
    was the only person who could act on behalf of appellant, they also testified
    that this information was never provided to the government (finding 4).
    10
    consider appellant’s other arguments concerning what clauses should be considered
    part of the contract.
    For the foregoing reasons, this appeal is denied.
    Dated: June 2, 2020
    HEIDI L. OSTERHOUT
    Administrative Judge
    Armed Services Board
    of Contract Appeals
    I concur                                        I concur
    RICHARD SHACKLEFORD                             J. REID PROUTY
    Administrative Judge                            Administrative Judge
    Acting Chairman                                 Vice Chairman
    Armed Services Board                            Armed Services Board
    of Contract Appeals                             of Contract Appeals
    I certify that the foregoing is a true copy of the Opinion and Decision of the
    Armed Services Board of Contract Appeals in ASBCA No. 61085, Appeal of Horton
    Construction Co., Inc., rendered in conformance with the Board’s Charter.
    Dated: June 2, 2020
    PAULLA K. GATES-LEWIS
    Recorder, Armed Services
    Board of Contract Appeals
    11
    

Document Info

Docket Number: ASBCA No. 61085

Judges: Osterhout

Filed Date: 6/2/2020

Precedential Status: Precedential

Modified Date: 6/26/2020