Miller Trucking, LLC, et al. v. APAC Mid-South, Inc., et al.
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Miller Trucking, LLC, Ben Miller, and Miriam Miller ("the Miller plaintiffs) appeal a summary judgment in favor of APAC Mid-South, Inc. (APAC), Oldcastle Materials, Inc., and Steve Reynolds (defendants). The facts of this appeal were based on contracts between the Alabama Department of Transportation ("ADOT") and APAC and between APAC and Miller Trucking. ADOT hired APAC to provide aggregate materials for distribution to counties, and APAC, in turn, hired Miller Trucking to haul the aggregate materials to the counties purchasing the aggregate materials from the State. At issue in this appeal were adjustments to the compensation of APAC paid Miller Trucking based on the cost of fuel during the time of the contract. Upon review of the matter, the Supreme Court reversed the circuit court's summary judgment in favor of defendants and remanded the case for further proceedings. A genuine issue of material fact existed as to whether a 2008 APAC-Miller Trucking contract and a 2009 hired-truck qualification agreement were modified to include fuel-price-adjustment agreements and, if so, what the terms of those agreements were.
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Rel: 01/11/2013 Notice: T h i s o p i n i o n i s s u b j e c t t o formal r e v i s i o n b e f o r e p u b l i c a t i o n i n t h e advance s h e e t s o f Southern R e p o r t e r . R e a d e r s a r e r e q u e s t e d t o n o t i f y t h e R e p o r t e r o f D e c i s i o n s , A l a b a m a A p p e l l a t e C o u r t s , 300 D e x t e r A v e n u e , M o n t g o m e r y , A l a b a m a 3 6 1 0 4 - 3 7 4 1 ( ( 3 3 4 ) 2 2 9 ¬ 0 6 4 9 ) , o f a n y t y p o g r a p h i c a l o r o t h e r e r r o r s , i n o r d e r t h a t c o r r e c t i o n s may b e made b e f o r e t h e o p i n i o n i s p r i n t e d i n Southern R e p o r t e r . SUPREME COURT OF ALABAMA OCTOBER TERM, 2012-2013 1110724 Miller T r u c k i n g , LLC, e t a l . v. APAC Mid-South, Inc., e t a l . Appeal from J e f f e r s o n C i r c u i t (CV-10-901966) PARKER, Court Justice. Miller (hereinafter plaintiffs") Trucking, L L C , Ben M i l l e r , collectively appeal a summary referred to and Miriam as "the Miller Miller j u d g m e n t i n f a v o r o f APAC M i d - S o u t h , I n c . ("APAC"), O l d c a s t l e M a t e r i a l s , I n c . ( " O l d c a s t l e 1110724 Materials"), and Steve Reynolds r e f e r r e d t o as " t h e d e f e n d a n t s " ) . (hereinafter collectively We r e v e r s e t h e j u d g m e n t a n d remand t h e c a s e . Facts The facts of this and P r o c e d u r a l appeal History a r e b a s e d on c o n t r a c t s b e t w e e n the Alabama Department o f T r a n s p o r t a t i o n b e t w e e n APAC a n d M i l l e r T r u c k i n g . company w i t h quarries manager for materials greater detail materials counties APAC i s an aggregate-supply i n Alabama; Reynolds i s APAC's i n Alabama. be d i s c u s s e d i n As w i l l b e l o w , ADOT h i r e d APAC t o p r o v i d e f o rd i s t r i b u t i o n hired Miller ("ADOT") a n d APAC a n d Trucking purchasing to counties, sales aggregate a n d APAC, i n t u r n , t o haul the aggregate m a t e r i a l s t o the the aggregate m a t e r i a l s from t h e S t a t e . Of p a r t i c u l a r i m p o r t a n c e t o t h i s a p p e a l a r e a d j u s t m e n t s t o t h e c o m p e n s a t i o n APAC p a i d M i l l e r f u e l during t h e times The Trucking relevant to this M i l l e r p l a i n t i f f s ' complaint undisputed b a s e d on t h e c o s t o f appeal. set forth thefollowing facts: " I n 2007, [ A D O T ] o f f e r e d c o u n t y g o v e r n m e n t s i n Alabama road b u i l d i n g m a t e r i a l s a t u n i f o r m p r i c e s . [ADOT] s o l i c i t e d c o m p e t i t i v e b i d s from m a t e r i a l s companies t o cover t h e c o s t o f t h e m a t e r i a l and t h e h a u l i n g c o s t w h i c h v a r i e d d e p e n d i n g on t h e l o c a t i o n of t h e b i d d e r ' s quarry and other factors. For 2 1110724 e x a m p l e , a b i d d e r m i g h t b i d $14 t o b u y a n d h a u l r i p rap rock from t h e A l e x a n d e r C i t y q u a r r y t o Coosa C o u n t y b u t m i g h t b i d $ 2 6 t o h a u l t h e same m a t e r i a l t o a d i s t a n t c o u n t y s u c h as C l a r k e C o u n t y . " In order for t o s u b m i t a b i d t o ADOT, APAC s o u g h t p r o p o s e d statewide, county-by-county hauling rates from t r u c k i n g companies, i n c l u d i n g M i l l e r T r u c k i n g . bids various Using Miller T r u c k i n g ' s b i d t o APAC, APAC s u b m i t t e d i t s b i d t o ADOT. the time Miller Trucking submitted i t s b i d t o APAC unaware t h a t t h e c o n t r a c t e v e n t u a l l y e n t e r e d APAC w o u l d i n c l u d e a f u e l - p r i c e - a d j u s t m e n t On June 24, 2007, M i l l e r Trucking i t was i n t o b y ADOT a n d clause. entered into a T r u c k e r Agreement" w i t h O l d c a s t l e M a t e r i a l s S o u t h e a s t , d/b/a to SRM A g g r e g a t e s as " t h e 2007 h i r e d - t r u c k point SRM ("SRM A g g r e g a t e s " ) which was agreement"). a wholly O l d c a s t l e M a t e r i a l s , merged w i t h APAC. agreement perform, for d i d not specify t h e work owned The 2007 Miller 3 into, subsidiary of hired-truck Trucking t h e u n s p e c i f i e d work, a n d d i d n o t i n c l u d e clause. Inc., I n 2007, a t some d i d n o t s p e c i f y how APAC w o u l d p a y M i l l e r adjustment "Hired (hereinafter referred a f t e r t h e 2007 h i r e d - t r u c k a g r e e m e n t was e n t e r e d Aggregates, At was t o Trucking a fuel-price- 1110724 A f t e r c o n s i d e r i n g t h e s u b m i t t e d b i d s , ADOT c h o s e APAC t o s u p p l y a p o r t i o n of the aggregate m a t e r i a l s to the ADOT and APAC e n t e r e d i n t o t h a t was effective until APAC c o n t r a c t " ) . entitled On a contract a t some p o i n t September 30, March 4, " S p e c i a l Terms and 2008 ("the Conditions," an c h a r g e t o be adjusted p r i c e of g a s o l i n e ("the clause"). the Under down b a s e d on 2007 ADOT-APAC 2007 document f r o m J a n u a r y 15, 2008, a l l o w i n g t h e p r i c e o f t h e or a addendum t o S e p t e m b e r 30, up i n 2007 2007 ADOT- 2008, ADOT i s s u e d 2007 ADOT-APAC c o n t r a c t , e f f e c t i v e counties. the 2008, to final delivery the then current fuel-price-adjustment ADOT-APAC fuel-price-adjustment c l a u s e , as t h e p r i c e o f g a s o l i n e i n c r e a s e d o r d e c r e a s e d , ADOT would i n c r e a s e or decrease the 2007 ADOT-APAC fuel-price-adjustment much as a 15% d e c r e a s e and hauling rates owed A P A C ; t h e clause allowed for as a 20% increase in the as much as h a u l i n g r a t e s owed t o APAC. Ben Miller's deposition testimony p r i c e s began i n c r e a s i n g d u r i n g that he c o n t a c t e d APAC a b o u t t h e e m p l o y e e o f APAC, had t h e r e was the i n f o r m e d Ben a fuel stipulation" f i r s t quarter increase. M i l l e r by i n the 4 indicates Joe that fuel o f 2008 Hughes, telephone 2007 ADOT-APAC and an "that contract 1110724 t h a t a l l o w e d APAC t o r e c o v e r i n c r e a s e d c h a r g e s f r o m ADOT b a s e d on t h e r i s i n g c o s t o f f u e l . On M a r c h 19, 2008, Ben M i l l e r e¬ m a i l e d L i n d a L a n d r e s s , h i s p r i m a r y c o n t a c t a t APAC, a s k i n g h e r if she h a d responded " h e a r d a n y t h i n g on t h e f u e l t o Ben Miller's situation." Landress i n q u i r y w i t h the f o l l o w i n g e-mail: "From my u n d e r s t a n d i n g , we have someone i n [ t h e ] a c c o u n t i n g d e p a r t m e n t who i s going back to a l l d e l i v e r i e s and, b a s e d on r u l e s on s t a t e b i d , b i l l i n g t h e s t a t e e n t i t i e s a f u e l s u r c h a r g e . Once t h e y pay, we w i l l r e i m b u r s e you t h a t s u r c h a r g e amount. G o i n g f o r w a r d , we w i l l be a d d i n g t h e s u r c h a r g e p e r c e n t a g e t o y o u r h a u l r a t e s as we s e t up o r d e r s t o d e l i v e r . " Ben M i l l e r s t a t e d as f o l l o w s i n h i s d e p o s i t i o n t e s t i m o n y a b o u t t h e e - m a i l e x c h a n g e b e t w e e n h i m and Landress: "Q. ... [ W ] h a t was y o u r u n d e r s t a n d i n g o f what was g o i n g t o t a k e p l a c e i n r e s p o n s e t o t h e f u e l s i t u a t i o n t h a t you r e f e r e n c e d i n y o u r e - m a i l ? "[Ben M i l l e r : ] T h a t t h e r e was a surcharge b e t w e e n APAC and t h e s t a t e , and t h e y w o u l d o b v i o u s l y a t t e m p t t o p r o c u r e t h e money. "Q. Okay. I n o t h e r w o r d s , APAC h e a r d what were s a y i n g , and t h e y were g o i n g t o i n v o k e s u r c h a r g e t h a t was p a r t o f t h e i r c o n t r a c t w i t h state? "[Ben M i l l e r : ] R i g h t , b e c a u s e c o u l d n o t h a u l and no one c o u l d . "Q. I told APAC Under the c u r r e n t f u e l ? "[Ben M i l l e r : ] I n t h e c u r r e n t 5 you the the situation. I 1110724 "Q. The c u r r e n t s i t u a t i o n b e i n g f u e l p r i c e s were g o i n g up d r a m a t i c a l l y ? "[Ben M i l l e r : ] Yes. "Q. Okay. So n o t o n l y i n r e s p o n s e t o what you had a s k e d d i d APAC s a y we're g o i n g t o make s u r e t h a t t h e -- t h a t we've i n v o k e [ s i c ] t h e f u e l - s u r c h a r g e p r o v i s i o n w i t h t h e s t a t e , b u t g o i n g f o r w a r d , we're a l s o g o i n g t o be a d d i n g t h e s u r c h a r g e p e r c e n t a g e t o your h a u l r a t e s , c o r r e c t ? "[Ben Miller:] T h a t i s what t h i s e-mail says, yes. "Q. ... [ D ] i d y o u have an u n d e r s t a n d i n g t h a t APAC was g o i n g t o go b a c k a n d make s u r e t h a t t h e s t a t e f o r a l l t h e p r e v i o u s h a u l s t h a t y o u h a d done had u p p e d i t s f u e l p r i c e b a s e d on t h e s u r c h a r g e i n t h e APAC a n d s t a t e c o n t r a c t ? "[Ben Miller:] "Q. P r e v i o u s Previous hauls? hauls? "[Ben M i l l e r : ] I'm n o t aware t h a t t h e y d i d t h a t . Yeah, I'm n o t aware. "Q. Okay. B u t t h e n on a g o i n g - f o r w a r d b a s i s , d i d you h a v e an u n d e r s t a n d i n g t h a t t h e y were g o i n g t o be i n v o k i n g t h e f u e l - s u r c h a r g e p r o v i s i o n and making s u r e t h a t i t was i n p l a c e so t h a t t h e p r i c e t h a t they r e c e i v e d on t h e s t a t e w o r k was adjusted accordingly? "[Ben M i l l e r : ] Yes. "Q. Okay. A n d t h a t ... w o u l d o b v i o u s l y f l o w down to M i l l e r Trucking? "[Ben M i l l e r : ] Yes. 6 1110724 "Q. And "[Ben d i d that take place Miller:] To i n 2008? t h e b e s t o f my knowledge, i t did." In f a c t , was f r o m J a n u a r y 15, during 2008, t o September 30, 2008, w h i c h t h e t e r m o f t h e 2007 ADOT-APAC c o n t r a c t , APAC p a i d M i l l e r Trucking a p p r o x i m a t e l y $1,000,000 f o r h a u l i n g s e r v i c e s ; a p p r o x i m a t e l y $200,000 o f t h a t amount was upward adjustment APAC Trucking payments. It appears that fuel-pricepaid i n accordance w i t h the b i d M i l l e r T r u c k i n g t o APAC i n June 2007 and Trucking's Miller submitted i n a c c o r d a n c e w i t h APAC's and negotiations concerning the escalating Miller cost of fuel. As the completion, 2007 ADOT-APAC ADOT a g a i n s o l i c i t e d bids aggregate m a t e r i a l s to Miller's testimony deposition counties APAC r e q u e s t e d t h a t M i l l e r t h a t APAC c o u l d , contract was to bid the indicates that APAC, Ben supplying state. Ben i n August i n t u r n , s u b m i t a b i d t o ADOT. to its 2008 s u b m i t a b i d t o APAC deposition testimony i n d i c a t e s that, before Trucking's continue throughout Trucking nearing Miller Ben Miller's submitting spoke with so Miller Reynolds c o n c e r n i n g f u e l p r i c e s f o r the coming c o n t r a c t u a l p e r i o d ; Ben Miller the stated that, "from that 7 discussion, I drew 1110724 c o n c l u s i o n t h a t I n e e d e d t o b i d on l a s t y e a r ' s f u e l M i l l e r Trucking prices." s u b m i t t e d a b i d t o APAC on September 3, 2008, w h i c h assumed f u e l p r i c e s o f $2.50 t o $2.70 p e r g a l l o n . b a s e d on M i l l e r bid Trucking's w i t h ADOT i n an e f f o r t S e p t e m b e r 3, 2008, b i d , p l a c e d t o secure a contract APAC was a w a r d e d a p o r t i o n o f t h e work b y ADOT. 2008, ADOT i s s u e d APAC, a contract between a f r o m ADOT. On A u g u s t 30, i t a n d APAC f o r the p e r i o d O c t o b e r 1, 2008, t o S e p t e m b e r 30, 2009 ("the 2008 ADOTAPAC c o n t r a c t " ) ; t h e c o n t r a c t i n c l u d e d a f u e l - p r i c e - a d j u s t m e n t clause The ("the 2008 ADOT-APAC 2008 ADOT-APAC fuel-price-adjustment fuel-price-adjustment clause clause"). stated, i n part: "SHOULD AVERAGE FUEL PRICES EXCEED THE HIGHEST PRICE PER GALLON INDICATED I N THE CHART ABOVE, (OR DECREASE BELOW THE LOWEST-LISTED P R I C E ) , THE MILEAGE ADJUSTMENT RATE WILL CONTINUE TO INCREASE (OR DECREASE) I N 5% INCREMENTS FOR EACH $0.20 PER GALLON INCREASE OR DECREASE I N THE REFERENCED AVERAGE FUEL INDEX." (Capitalization i n original.) adjustment clause d i d not The 2007 ADOT-APAC contain similar fuel-price- language b u t , i n s t e a d , l i m i t e d t h e amount o f f u e l - p r i c e - a d j u s t m e n t o r d e c r e a s e s t h a t c o u l d be a s s e s s e d a g a i n s t APAC. increases On November 20, 2008, APAC s e n t Ben M i l l e r , v i a e - m a i l , n o t i c e o f t h e 2008 8 1110724 ADOT-APAC f u e l - p r i c e - a d j u s t m e n t t o Ben Ben Miller Miller c l a u s e ; the call clause. i n d i c a t e d t h a t R e y n o l d s was that day to discuss r e c o r d does not the e - m a i l f r o m APAC going to telephone fuel-price-adjustment i n d i c a t e whether t h a t telephone occurred. I n December 2008, APAC a s s e s s e d fuel-price a retroactive, downward a d j u s t m e n t a g a i n s t M i l l e r T r u c k i n g i n t h e amount o f $11,001.30 f o r w o r k M i l l e r Ben The Miller requested i n J a n u a r y 2009. t h a t meeting i s as Trucking had p e r f o r m e d f o r APAC. a meeting w i t h Reynolds, which Reynolds's deposition testimony occurred concerning follows: " [ R e y n o l d s : ] We d i s c u s s e d t h e s i t u a t i o n and t h e S t a t e c o n t r a c t . current economic "Q. D i d [ B e n M i l l e r ] l e t you know a t t h a t t i m e that t h i s i s a very distressing s i t u a t i o n here as f a r a s [ M i l l e r T r u c k i n g ' s ] a b i l i t y t o h a u l and make any k i n d o f money on t h e h a u l ? "[Reynolds:] Yes. " "Q. ... I s i t t r u e t h a t i n t h i s m e e t i n g [Ben M i l l e r ] s a i d , l o o k , you know, we d i d n ' t know a b o u t t h e s e d e d u c t i o n s u n t i l a f t e r we had a l r e a d y b e e n p a i d , and we had a l r e a d y p a i d o u r h a u l e r s ; and s o , what we n e e d i s a s i t u a t i o n i n t h e f u t u r e where [APAC] q u o t e [ s ] a r a t e t o u s , and t h e n [Miller Trucking] decide[s] whether [Miller Trucking] 9 1110724 w a n t [ s ] t o h a u l u n d e r t h a t r a t e ? D i d y o u [ a n d Ben M i l l e r ] have t h a t k i n d o f d i s c u s s i o n ? " [ R e y n o l d s : ] We d i d . "Q. A n d d i d APAC a g r e e a t t h a t t i m e when t h e y tendered a l o a d t o M i l l e r [Trucking] t h a t i t would be tendered with the adjusted r a t e so [Miller T r u c k i n g ] c o u l d make a d e c i s i o n as t o w h e t h e r [ i t ] c o u l d p r o f i t a b l y do t h e h a u l ? " [ R e y n o l d s : ] N o , t h a t ' s n o t my r e c o l l e c t i o n a t all. "Q. What i s y o u r recollection understanding or that discussion? about that " [ R e y n o l d s : ] T h a t ' s when we a g r e e d t h a t we w o u l d ask t h e c o u n t i e s t o a c c e p t l e s s o f a d i s c o u n t a t t h e 10 p e r c e n t r a t e . "Q. A c c e p t l e s s t h a n t h e 10 percent? " [ R e y n o l d s : ] N o , a c c e p t 10 p e r c e n t , r a t h e r t h a n t h e f u l l 50 o r 40 [ p e r c e n t ] o r w h a t e v e r i t m i g h t have b e e n a t t h e t i m e . "Q. D i d y o u t e l l [Ben M i l l e r ] t h o u g h t t h a t c o u l d be a r r a n g e d ? "[Reynolds:] No, I t o l d a t t e m p t t o do t h a t . ... [Ben M i l l e r ] "Q. A n d what d i d y o u c o n t e m p l a t e w o u l d make up y o u r a t t e m p t ? that we at that you would time " [ R e y n o l d s : ] W e l l , when t h e o r d e r s came i n , we w o u l d a s k . We w o u l d e x p l a i n t h e s i t u a t i o n a n d a s k t h e c o u n t i e s , w h i c h t h e p r i c e t h a t t h e y w o u l d be p a y i n g was s t i l l l o w e r t h a n t h e b i d , s o t h e y w o u l d accept i t . 10 1110724 " "Q. ... A f t e r t h i s m e e t i n g , d i d you t e l l Ms. L a n d r e s s t o do a n y t h i n g d i f f e r e n t i n t h e way t h a t she c o m m u n i c a t e d t h e h a u l s t o M i l l e r T r u c k i n g ? "[Reynolds:] Yes. "Q. T e l l me what was o l d and what was new. " [ R e y n o l d s : ] W e l l , what was new was t h a t t h e c o u n t i e s t h a t h a d a c c e p t e d t h e 10 p e r c e n t d i s c o u n t , she was t o l e t [ M i l l e r T r u c k i n g ] know t h a t t h e y h a d a c c e p t e d t h a t . The ones t h a t d i d n ' t a c c e p t i t , she was t o l e t [ M i l l e r T r u c k i n g ] know t h a t , as w e l l . " "Q. I u n d e r s t a n d you t o s a y t h a t t h e r e was no a g r e e m e n t r e a c h e d . You deny t h e r e was an a g r e e m e n t reached about whether M i l l e r [Trucking] w o u l d be tendered a l o a d w i t h the exact rate that they would g e t q u o t e d so t h a t t h e y c o u l d make a d e c i s i o n . I u n d e r s t a n d you s a y t h e r e was no a g r e e m e n t t o do t h a t . B u t what I'm a s k i n g you i s : A f t e r that m e e t i n g , w o u l d M i l l e r T r u c k i n g be t o l d b y APAC what t h e a c t u a l r a t e w o u l d be t h a t t h e y w o u l d be h a u l i n g at i f they accepted the load? " "[Reynolds:] Yes. " "Q. Was t h e r e any d i s c u s s i o n a t t h a t t i m e t h a t if Miller [Trucking] w o u l d hang i n t h e r e , s o t o s p e a k , and c o n t i n u e t o h a u l t h a t M i l l e r [Trucking] w o u l d be a p r e f e r r e d h a u l e r f o r o t h e r more l u c r a t i v e projects i n the future? 11 1110724 " [ R e y n o l d s : ] Y e s , we t o l d Ben [ M i l l e r ] t h a t we w o u l d t r y t o h e l p h i m on o t h e r c o n t r a c t s o u t s i d e o f [ t h e 2008 ADOT-APAC c o n t r a c t ] , t h a t we w o u l d t r y t o h e l p him, because t h i s i s a s m a l l p o r t i o n o f t h e total business that we d o . So, with other o p p o r t u n i t i e s o u t t h e r e , y e s , we c e r t a i n l y w a n t e d t o a s s i s t him w i t h h i s d i f f i c u l t i e s . " Ben M i l l e r ' s d e p o s i t i o n t e s t i m o n y c o n c e r n i n g t h e same m e e t i n g states: "Q. Okay. A n d what was t h e g i s t o f what was d i s c u s s e d a t t h e m e e t i n g t o t h e e x t e n t t h a t you recall? "[Ben Miller:] We were g e t t i n g r e t r o a c t i v e d e d u c t i o n s i n a r r e a r s . We c o u l d n ' t -- we were p a y i n g t h e t r u c k s X amount, a n d we were g e t t i n g random d e d u c t i o n s . [ ] We d i d n ' t know what we were g e t t i n g p a i d t o h a u l f o r , a n d we n e e d e d t o do s o m e t h i n g . A n d a t t h i s p o i n t , t h e b e s t o f my memory, [ R e y n o l d s ] was g o i n g t o i n s t r u c t [ L a n d r e s s ] t o g i v e me t h e r a t e as she h a d done i n t h e p r e v i o u s y e a r ; a n d she d i d do t h a t f o r a couple o f e - m a i l s , and then i t stopped. 1 "And t h e n we were a l s o t o l d t h a t t h e r e was a 10 p e r c e n t , a k i t t y o f some s o r t , a n d o u r u n d e r s t a n d i n g was t h e r e was money b e i n g p u t i n t o t h a t k i t t y , t h a t 10 p e r c e n t , o r w o u l d be p u t i n t o t h a t 10 p e r c e n t -¬ w o u l d be p u t i n t o t h e k i t t y o f 10 p e r c e n t , a n d t h e y w o u l d u s e t h a t f o r any f u t u r e d e d u c t i o n s . A n d t h e r e would be no more monstrosity deductions of [ $ ] 4 0 [ , 0 0 0 ] t o $50,000 way a f t e r t h e f a c t . " M i l l e r T r u c k i n g s u b c o n t r a c t e d t h e h a u l i n g w o r k t h a t APAC h i r e d i t t o perform. M i l l e r T r u c k i n g d i d n o t own any e q u i p m e n t a n d d i d n o t have any d r i v e r s who w o r k e d d i r e c t l y f o r it. 1 12 1110724 "Q. Okay. So you w a l k e d away f r o m t h a t meeting w i t h the understanding of the f o l l o w i n g p o i n t s , t h a t number where one, t h e y they h a d some s o r t would set aside of a k i t t y 10 p e r c e n t s e t up of a l l the h a u l i n g t h a t y o u were g o i n g t o be d o i n g -¬ "[Ben M i l l e r : ] "Q. -- g o i n g Yes. forward? "[Ben M i l l e r : ] Yes. " "Q. Okay. And t h e r e w o u l d be no more d e d u c t i o n s ? "[Ben M i l l e r : ] That i s c o r r e c t . " "Q. Okay. Was t h e g i s t o f t h e m e e t i n g s o m e t h i n g needs t o change o r we c a n ' t h a u l any more u n d e r t h i s contract? "[Ben M i l l e r : ] Yes. " "Q. ... I n t h e [ J a n u a r y 2009] m e e t i n g did you u n d e r s t a n d , b a s e d on what Mr. R e y n o l d s said, t h a t [APAC was] g o i n g t o g i v e [ M i l l e r T r u c k i n g ] t h e r a t e -- when [APAC] t e n d e r e d a h a u l t o [ M i l l e r Trucking], [APAC was] going to give [Miller T r u c k i n g ] t h e r a t e and a l s o w h e t h e r t h e r e w o u l d be any adjustment, based on t h e f u e l cost, where [ M i l l e r T r u c k i n g ] c o u l d make a d e c i s i o n ? "[Ben point." Miller:] Absolutely, 13 yes. That's my 1110724 On F e b r u a r y 7, 2009, f o l l o w i n g Ben M i l l e r ' s m e e t i n g Reynolds, Ben Miller with sent the f o l l o w i n g e-mail to Landress: " T h i s i s a d i r e emergency. I met w i t h [ R e y n o l d s ] two weeks ago a b o u t t h e f u e l s i t u a t i o n c o n c e r n i n g t h e S t a t e . I t was my i m p r e s s i o n [ t h a t ] he was g o i n g t o i n s t r u c t [ a n o t h e r APAC e m p l o y e e ] t o b i l l a t t h e quoted r a t e from January 9, 2009, f o r w a r d , and r e [ - ] b i l l a l l p r i o r h a u l i n g a t s a i d r a t e . I even s p o k e w i t h [ a n o t h e r APAC e m p l o y e e ] a b o u t t h e same i s s u e t o make s u r e a l l was w e l l , and she a s s u r e d me J a n u a r y 9, 2009, w o u l d be t h e l a s t c h e c k w i t h any t y p e o f d e d u c t i o n . We have now i n c u r r e d a $43,371.52 ( t h i s money was p a i d t o t h e t r u c k owners ... g o n e ) l o s s t h i s f i s c a l y e a r f o r n e g a t i v e f u e l c h a r g e s , and a r e s t i l l owed a p p r o x i m a t e l y $1600.00 i n u n p a i d f u e l s u r c h a r g e s f o r t h e p r e v i o u s y e a r . No company can h a n d l e t h i s t y p e o f l o s s . A t t h i s r a t e we w i l l be u n a b l e t o meet p a y r o l l f o r t h e c o m i n g week. We must a d d r e s s t h i s as soon as p o s s i b l e . We do n o t want t o q u i t h a u l i n g on t h e S t a t e C o n t r a c t , b u t a t t h i s p o i n t i t l o o k s as i f we must. P l e a s e c a l l me as soon as p o s s i b l e . T h i s i s an e m e r g e n c y . " On February 9, 2009, Landress responded via e-mail, f o l l o w s : " W e l l , you m i g h t know, my f i r s t t i m e a f t e r b e i n g as told t o p u t t h e h a u l r a t e on t h e s e e - m a i l s -- I f o r g o t . Anyway, t h e haul rate testimony is $5.40 indicates per ton that, " Reynolds's following his meeting M i l l e r i n J a n u a r y 2009, he had i n s t r u c t e d L a n d r e s s the h a u l r a t e i n her e-mails t o M i l l e r deposition with Ben to include Trucking. On J a n u a r y 5, 2009, M i l l e r T r u c k i n g s i g n e d a " H i r e d T r u c k Qualification Agreement" w i t h APAC 14 and Oldcastle Materials 1110724 ("the 2009 h i r e d - t r u c k q u a l i f i c a t i o n agreement"). The 2009 h i r e d - t r u c k q u a l i f i c a t i o n a g r e e m e n t s e t f o r t h t h e work M i l l e r Trucking "accept The was or 2009 t o p e r f o r m and reject any hired-truck M i l l e r Trucking 10th calendar tendered qualification to [APAC] ... and s h a l l be f o l l o w i n g month." clause was not included i n the Further, agreement c o n t a i n e d the APAC. states at the p a i d m o n t h l y , by the agreement. to that requests/applications of qualification i t " by agreement day qualification the r i g h t [APAC] h o u r l y r a t e s i n e f f e c t work i s p e r f o r m e d adjustment assignments " s h a l l submit to f o r payment b a s e d on the gave M i l l e r T r u c k i n g the time the A fuel-price- 2009 hired-truck 2009 hired-truck following provision: "11.3 Complete Agreement. This agreement c o n t a i n s a l l c o v e n a n t s , s t i p u l a t i o n s and p r o v i s i o n s a g r e e d upon b e t w e e n [APAC] and [ M i l l e r Trucking] r e l a t i n g t o [ M i l l e r T r u c k i n g ' s ] Work. No p r i o r o r c o n t e m p o r a n e o u s a g r e e m e n t o r u n d e r s t a n d i n g w i t h any employee, agent or r e p r e s e n t a t i v e of [APAC] or [ M i l l e r T r u c k i n g ] p e r t a i n i n g t o t h e same s h a l l be valid o r o f any force or e f f e c t . No changes, amendments o r m o d i f i c a t i o n s o f t h i s A g r e e m e n t s h a l l be v a l i d o r o f any e f f e c t u n l e s s r e d u c e d t o w r i t i n g and s i g n e d by t h e p a r t i e s h e r e t o . " D u r i n g t h e t e r m o f t h e 2008 ADOT-APAC c o n t r a c t , APAC p a i d M i l l e r Trucking w h i c h sum a p p r o x i m a t e l y $800,000 f o r h a u l i n g reflected services, a p p r o x i m a t e l y $125,000 i n downward 15 fuel- 1110724 p r i c e adjustments. Miller The Trucking's b e e n b a s e d on amount APAC p a i d M i l l e r hauling an h o u r l y truck qualification services does not r a t e , as r e q u i r e d by Trucking appear the to during a g r e e m e n t , b u t upon M i l l e r T r u c k i n g ' s i t s d e l i v e r i e s on b e h a l f On December 11, 2009, APAC s u b m i t t e d of Adjustment with the (Miller a claim fuel Trucking). deductions Hauler already documentation)." In from asking for hauler based on attached a Microsoft created indicates by Ben that Miller. the Reynolds's amount claimed, the t o t a l of the f u e l surcharge deducts t h a t returned 2010, APAC's c l a i m on $147,014.75. aggregate party relief filed " a t t a c h e d d o c u m e n t a t i o n " was The (Please The the claim "State 3rd [APAC] had on t h e b o o k s a t t h e t i m e . " f a i l e d to i d e n t i f y the see testimony $147,014.75, "was is taken. Power P o i n t p r e s e n t a t i o n deposition deducted Miller t o the Alabama B o a r d f o r $147,014.75. adjustments bid, o f APAC. B o a r d o f A d j u s t m e n t , APAC s t a t e d : contract have 2009 h i r e d - w h i c h a p p e a r s t o have b e e n b a s e d on m i l e a g e t r a v e l e d by Trucking for the The J a n u a r y 11, Board of Adjustment s t a t e a g e n c y t h a t was parties 16 do not b e c a u s e APAC had responsible for state whether APAC 1110724 supplied the Adjustment. On June 4, 2010, alleging information, enrichment. compel information to the the breach Miller of plaintiffs contract, misrepresentation, arbitration, court's order sued the suppression conversion, which the c i r c u i t and court The d e f e n d a n t s d i d n o t a p p e a l d e n y i n g t h e i r m o t i o n t o compel On O c t o b e r 5, 2010, t h e d e f e n d a n t s f i l e d plaintiffs' counterclaim complaint. of unjust against relations" under denied the M i l l e r plaintiffs on the c i r c u i t arbitration. answers t o t h e I n a d d i t i o n , APAC judgment d e c l a r i n g t h e p a r t i e s ' " r i g h t s , legal of On J u l y 26, 2010, t h e d e f e n d a n t s f i l e d a m o t i o n A u g u s t 30, 2010. Miller Board 2 defendants to requested filed a requesting a d u t i e s , s t a t u s and t h e 2007 h i r e d - t r u c k a g r e e m e n t , t h e 2009 h i r e d - t r u c k q u a l i f i c a t i o n a g r e e m e n t , t h e 2007 ADOT-APAC c o n t r a c t , a n d t h e 2008 ADOT-APAC c o n t r a c t . APAC a l s o a s s e r t e d On J a n u a r y 4, 2010, APAC a n d M i l l e r T r u c k i n g e n t e r e d i n t o a " r e n e w a b l e t r u c k i n g a g r e e m e n t " ( " t h e 2010 r e n e w a b l e t r u c k i n g agreement"). The f a c t s f o r m i n g t h e b a s i s o f t h i s a p p e a l h a d t r a n s p i r e d b e f o r e t h e p a r t i e s e n t e r e d i n t o t h e 2010 r e n e w a b l e trucking agreement; thus, t h e 2010 r e n e w a b l e trucking a g r e e m e n t does n o t a p p e a r t o have any r e l e v a n c e t o t h i s appeal. 2 17 1110724 in i t s counterclaim claims of breach o f c o n t r a c t and u n j u s t enrichment. On May 20, 2011, t h e M i l l e r p l a i n t i f f s f i l e d a m o t i o n f o r a partial summary Trucking] judgment, d i d not arguing c o n t r a c t u a l l y agree adjustments p r i o r to January Trucking] plaintiffs pre-2010 also prior argued concerning parties their are that issues 4, any 2010." "[b]ecause fuel-cost the The terms and u n a m b i g u o u s , any construction proper to [Miller h a d no any f u e l - c o s t a d j u s t m e n t s upon to January contracts are p l a i n "because 4, 2010, t h e [ d ] e f e n d a n t s proper l e g a l b a s i s f o r imposing [Miller that and to be legal by of the questions effect decided Miller upon a the summary judgment." On October following 24, 2011, the circuit court entered the order: "The p a r t i e s a r e r e l i e v e d o f t h e i r o b l i g a t i o n under the s c h e d u l i n g order t o mediate t h e i r d i s p u t e b y O c t o b e r 3 1 , 2 0 1 1 . C r o s s - m o t i o n s f o r summary j u d g m e n t -- r e f e r a b l e t o t h e c o n t r a c t p r o v i s i o n t h a t a p p e a r s t o be t h e r o a d b l o c k t o e f f o r t s t o r e s o l v e t h i s m a t t e r -- a r e t o be f i l e d b y November 10, 2 0 1 1 , w i t h c r o s s r e s p o n s e s t o be f i l e d b y November 2 1 , 2011." It i s unclear to which contract, the c i r c u i t contract p r o v i s i o n , o r even c o u r t was r e f e r r i n g i n i t s o r d e r . 18 which 1110724 On November 10, 2011, a summary judgment. the defendants f i l e d The defendants argued a motion f o r that "Miller T r u c k i n g ' s b i d r a t e s and t h e f u e l - p r i c e a d j u s t m e n t clause[s] in ADOT-APAC the [20 07 ADOT-APAC contract and the 2008 c o n t r a c t ] g o v e r n e d t h e manner and method o f APAC's p a y m e n t s t o Miller Trucking." The defendants argued that "[t]he fuel-price adjustment clause applies to M i l l e r T r u c k i n g b e c a u s e ( 1 ) t h e [2007 ADOT-APAC c o n t r a c t and t h e 2008 ADOT-APAC c o n t r a c t were] i n c o r p o r a t e d b y r e f e r e n c e i n t o t h e [2007 h i r e d - t r u c k agreement], ( 2 ) a course of d e a l i n g e s t a b l i s h e d t h a t APAC p a i d M i l l e r T r u c k i n g ' s b i d r a t e a s m o d i f i e d b y t h e f u e l - p r i c e a d j u s t m e n t c l a u s e , and (3) i t c a n n o t take the b e n e f i t s of the S t a t e C o n t r a c t , but r e j e c t i t s burdens." Following a h e a r i n g on court entered i t s f i n a l January 30, 2012, j u d g m e n t on F e b r u a r y 7, the circuit 2012: "Pending i n t h i s a c t i o n are cross-motions f o r summary j u d g m e n t . The [ M i l l e r ] p l a i n t i f f s have f i l e d a m o t i o n f o r p a r t i a l summary j u d g m e n t , s e e k i n g a d e c l a r a t i o n t h a t 'because [ M i l l e r T r u c k i n g ] d i d not a g r e e t o any f u e l - c o s t a d j u s t m e n t s p r i o r t o J a n u a r y 4, 2010, t h e D e f e n d a n t had no p r o p e r l e g a l b a s i s f o r i m p o s i n g any f u e l c o s t a d j u s t m e n t s upon [Miller T r u c k i n g ] p r i o r t o J a n u a r y 4, 2 0 1 0 . ' The d e f e n d a n t s ' motion a l s o seeks a d e c l a r a t i o n of the p a r t i e s ' r i g h t s and o b l i g a t i o n s p u r s u a n t t o t h e a g r e e m e n t t h a t e x i s t e d among t h e p a r t i e s . "In a d d r e s s i n g the motions, the Court c o n f r o n t s a s i t u a t i o n i n w h i c h t h e r e e x i s t e d an a g r e e m e n t b e t w e e n M i l l e r T r u c k i n g , LLC and APAC M i d - S o u t h , I n c . (or a p r e d e c e s s o r t h e r e o f ) , but the agreement 19 1110724 d i d not c o m p l e t e l y d e f i n e the r e l a t i o n s h i p between t h e p a r t i e s , w h i c h r e l a t i o n s h i p was d e v e l o p e d o v e r t h e c o u r s e o f a c o u p l e o f y e a r s . The C o u r t f i n d s t h a t t h e c o n t i n u i n g c o u r s e o f d e a l i n g s and c o u r s e o f performance during this period of time is d e t e r m i n a t i v e i n d e f i n i n g the p a r t i e s ' r e s p e c t i v e r i g h t s and o b l i g a t i o n s . " I t i s p r o p e r t o examine such circumstances, which f a l l o u t s i d e the c o n f i n e s o f any written a g r e e m e n t t h a t m i g h t e x i s t . The ... 2007 [ h i r e d t r u c k ] [ a ] g r e e m e n t c o n t a i n s no i n t e g r a t i o n c l a u s e . The ... 2009 [ h i r e d - t r u c k q u a l i f i c a t i o n ] [ a ] g r e e m e n t does contain an integration clause, but that contract does not accurately describe payment arrangements, p r o v i d i n g only t h a t M i l l e r Trucking s h a l l s u b m i t r e q u e s t s f o r payment on ' h o u r l y r a t e s i n e f f e c t a t t h e t i m e t h e work i s p e r f o r m e d . ' W h i l e t h a t c o n t r a c t f u r t h e r p r o v i d e s t h a t any m o d i f i c a t i o n must be i n w r i t i n g t o be e f f e c t i v e , A l a b a m a l a w has h e l d t h a t such language i s e s s e n t i a l l y surplusage, as p a r t i e s may orally m o d i f y even a contract requiring that any m o d i f i c a t i o n be in writing (absent a s t a t u t e of frauds i s s u e ) . See, e.g., Duncan v. R o s s u c k , 621 So. 2d 1313, 1315 (Ala. 1993). I t i s t h e r e f o r e p r o p e r t o l o o k beyond the c o n t r a c t t o a s c e r t a i n how t h e p a r t i e s ' a c t i o n s and u n d e r s t a n d i n g s have m o d i f i e d t h e w r i t t e n c o n t r a c t s e x i s t i n g b e t w e e n them. "In d o i n g so, the C o u r t r e l i e s (Second) o f C o n t r a c t s § 202 ( 1 9 8 1 ) , i n p a r t the f o l l o w i n g : on R e s t a t e m e n t which provides " ' ( 4 ) . Where an a g r e e m e n t involves repeated occasions for performance by e i t h e r p a r t y w i t h knowledge of the n a t u r e o f t h e p e r f o r m a n c e and opportunity for o b j e c t i o n t o i t by t h e o t h e r , any c o u r s e o f performance accepted or acquiesced in without o b j e c t i o n i s given great weight i n the i n t e r p r e t a t i o n of the agreement. 20 1110724 "'(5). Wherever reasonable, the manifestations of i n t e n t i o n of the p a r t i e s to a promise o r agreement a r e i n t e r p r e t e d as c o n s i s t e n t w i t h e a c h o t h e r a n d w i t h any r e l e v a n t course of performance, course of d e a l i n g , o r usage o f t r a d e . ' "Further, '[w]hen the p a r t i e s to a bargain s u f f i c i e n t l y d e f i n e d t o be a c o n t r a c t have n o t agreed w i t h r e s p e c t t o a term which i s e s s e n t i a l t o a d e t e r m i n a t i o n o f t h e i r r i g h t s and d u t i e s , a term which i s reasonable i n the circumstances i s s u p p l i e d by t h e c o u r t . ' R e s t a t e m e n t (Second) o f C o n t r a c t s a t § 204. " B a s e d on t h e e v i d e n c e p r e s e n t e d b y t h e p a r t i e s , the C o u r t c o n c l u d e s t h a t t h e r e was an u n d e r s t a n d i n g t h a t any e f f e c t o f f u e l c o s t a d j u s t m e n t s i m p o s e d b y the S t a t e o f A l a b a m a w o u l d be p a s s e d on b y APAC t o Miller Trucking. M i l l e r Trucking enjoyed the b e n e f i t s of such adjustments d u r i n g the f i r s t year of i t s r e l a t i o n s h i p w i t h A P A C ; i t s h o u l d b e a r t h e burden of the adjustments o c c u r r i n g i n the second year. " A l t e r n a t i v e l y , e v e n i f an e n f o r c e a b l e c o n t r a c t c a n n o t p r o p e r l y be f o u n d t o a r i s e f r o m t h e f a c t s , [ M i l l e r T r u c k i n g i s ] e q u i t a b l y estopped from d e n y i n g b e i n g bound by t h e f u e l a d j u s t m e n t p r o v i s i o n i n t h e s e c o n d y e a r o f APAC's a r r a n g e m e n t w i t h t h e S t a t e o f Alabama, h a v i n g e n j o y e d t h e f r u i t s o f t h a t p r o v i s i o n d u r i n g t h e f i r s t y e a r a n d h a v i n g w o r k e d w i t h APAC for s e v e r a l months d u r i n g t h e s e c o n d y e a r w i t h knowledge o f t h e f u e l a d j u s t m e n t p r o v i s i o n . "The [ M i l l e r ] p l a i n t i f f s ' motion f o r p a r t i a l summary j u d g m e n t i s a c c o r d i n g l y d e n i e d , w h i l e t h e d e f e n d a n t s ' summary j u d g m e n t m o t i o n i s g r a n t e d . "With t h i s r u l i n g , the Court d i s m i s s e s [the Miller] plaintiffs' claims i n this action, with 21 1110724 p r e j u d i c e . The C o u r t f i n d s i n f a v o r o f APAC on i t s c o u n t e r c l a i m f o r a d e c l a r a t o r y j u d g m e n t and f i n d s that APAC's other counterclaims need not be addressed. This order concludes t h i s litigation, w i t h c o s t s t a x e d as p a i d . " The Miller plaintiffs appealed. Standard of Our standard for reviewing Review a summary judgment is settled: "'The s t a n d a r d o f r e v i e w a p p l i c a b l e t o a summary j u d g m e n t i s t h e same as t h e s t a n d a r d f o r g r a n t i n g t h e m o t i o n . . . . ' M c C l e n d o n v. M o u n t a i n Top Indoor F l e a M a r k e t , I n c . , 601 So. 2d 957, 958 ( A l a . 1 9 9 2 ) . "'A summary j u d g m e n t i s p r o p e r when t h e r e i s no g e n u i n e i s s u e o f m a t e r i a l f a c t and the moving p a r t y i s e n t i t l e d to a j u d g m e n t as a m a t t e r o f l a w . R u l e 5 6 ( c ) ( 3 ) , A l a . R. C i v . P. The b u r d e n i s on t h e m o v i n g p a r t y t o make a p r i m a f a c i e s h o w i n g t h a t t h e r e i s no g e n u i n e i s s u e o f m a t e r i a l f a c t and t h a t i t i s e n t i t l e d t o a j u d g m e n t as a m a t t e r of law. In d e t e r m i n i n g whether the movant has c a r r i e d t h a t b u r d e n , t h e c o u r t i s t o v i e w t h e e v i d e n c e i n a l i g h t most f a v o r a b l e t o t h e n o n m o v i n g p a r t y and to draw a l l r e a s o n a b l e i n f e r e n c e s i n f a v o r o f t h a t p a r t y . To d e f e a t a p r o p e r l y s u p p o r t e d summary j u d g m e n t m o t i o n , the nonmoving p a r t y must p r e s e n t " s u b s t a n t i a l e v i d e n c e " c r e a t i n g a genuine i s s u e of m a t e r i a l f a c t -- " e v i d e n c e o f s u c h w e i g h t and q u a l i t y t h a t f a i r - m i n d e d persons i n the e x e r c i s e of i m p a r t i a l j u d g m e n t can r e a s o n a b l y i n f e r t h e e x i s t e n c e o f t h e f a c t s o u g h t t o be p r o v e d . " Ala. Code 1975, § 12-21-12; West v. 22 well 1110724 F o u n d e r s L i f e A s s u r a n c e Co. o f F l o r i d a , 54 7 So. 2d 870, 871 ( A l a . 1 9 8 9 ) . ' " C a p i t a l A l l i a n c e I n s . Co. v. T h o r o u g h - C l e a n , I n c . , 639 So. 2d 1349, 1350 ( A l a . 1 9 9 4 ) . Q u e s t i o n s o f l a w a r e r e v i e w e d de novo. A l a b a m a R e p u b l i c a n P a r t y v. M c G i n l e y , 893 So. 2d 337, 342 ( A l a . 2 0 0 4 ) . " Pritchett (Ala. v. ICN Med. Alliance, I n c . , 938 So. 2d 933, 935 2006). Discussion As final set forth order above, the c i r c u i t " t h a t t h e r e was court concluded i n i t s an u n d e r s t a n d i n g t h a t any effect o f f u e l c o s t a d j u s t m e n t s i m p o s e d by [ A D O T ] w o u l d be p a s s e d on by APAC t o M i l l e r T r u c k i n g . " there was Trucking court no written agreement dealings, that, t h e r e was based on no g e n u i n e t h e p a r t i e s had agreed ADOT-APAC f u e l - p r i c e - a d j u s t m e n t fuel-price-adjustment T r u c k i n g by APAC. there between c o n t a i n i n g such a p r o v i s i o n . concluded whether As t h e c i r c u i t c o u r t clause the recognized, APAC and Miller Instead, the circuit parties' course i s s u e of m a t e r i a l f a c t that the e f f e c t of as t o of the 2007 c l a u s e and t h e 2008 ADOT-APAC would be passed on to Miller The M i l l e r p l a i n t i f f s a r g u e on a p p e a l t h a t i s a g e n u i n e i s s u e o f m a t e r i a l f a c t as t o w h e t h e r 23 APAC 1110724 and M i l l e r T r u c k i n g a c t u a l l y e n t e r e d i n t o s u c h an a g r e e m e n t . We a g r e e w i t h t h e M i l l e r First, the 2007 hired-truck enforceable contract. LLC, plaintiffs. agreement was not an I n W h i t e Sands Group, L.L.C. v. PRS I I , 998 So. 2d 1042, 1051 ( A l a . 2008) , we h e l d t h a t " ' [ t ] o be enforceable, the sufficiently definite H a c k n e y , 329 N.C. [essential] terms of a and c e r t a i n contract must be ( q u o t i n g B r o o k s v. 166, 170, 404 S.E.2d 854,857 (1991)). We a l s o h e l d i n W h i t e Sands t h a t " ' [ a ] l a c k o f d e f i n i t e n e s s i n an a g r e e m e n t may c o n c e r n t h e t i m e o f p e r f o r m a n c e , t h e p r i c e t o be paid, work to miscellaneous be done, property stipulations to be transferred, or i n t h e agreement.' 1 Richard A. L o r d , W i l l i s t o n on C o n t r a c t s § 4:21, a t 644 ( 4 t h e d . 2 0 0 7 ) . " 998 So. 2d a t 1 0 5 1 . c o n t a i n any d e t a i l s to any perform, details Trucking's The 2007 h i r e d - t r u c k a g r e e m e n t d i d n o t c o n c e r n i n g what work M i l l e r when M i l l e r concerning services. T r u c k i n g was t o p e r f o r m the p r i c e APAC contract and M i l l e r Trucking i n 2007 when APAC the 2007 hired-truck agreement. d i d , however, accepted 24 t h e work, o r APAC w o u l d p a y f o r M i l l e r Therefore, a g r e e m e n t was n o t an e n f o r c e a b l e T r u c k i n g was Miller enter into a Trucking's b i d 1110724 ("the 2007 A P A C - M i l l e r Miller Trucking hauling Miller Trucking specified contract"). the r a t e s i t would charge s e r v i c e s i t was t o p e r f o r m Trucking's Trucking b i d , thereby contract. In i t s f o r APAC. APAC bid, f o r the accepted c r e a t i n g t h e 2007 A P A C - M i l l e r APAC a n d M i l l e r Trucking operated under t h e 2007 A P A C - M i l l e r T r u c k i n g c o n t r a c t f o r t h e d u r a t i o n o f t h e 2007 ADOT-APAC c o n t r a c t . As s e t f o r t h a b o v e , i n e a r l y 2008 when f u e l p r i c e s b e g a n escalating, Miller Trucking a p p r o a c h e d APAC t o r e q u e s t APAC i n c r e a s e t h e p r i c e APAC was p a y i n g its hauling services; the p r i c e s APAC T r u c k i n g were b a s e d on t h e b i d M i l l e r to APAC. Essentially, Miller was that Trucking f o r paying Miller T r u c k i n g had s u b m i t t e d Miller Trucking sought t o modify t h e t e r m s o f t h e 2007 A P A C - M i l l e r Trucking contract. Trucking's than request, the b i d rate, Miller's APAC a g r e e d b a s e d on t h e e s c a l a t i n g the r i s i n g fuel costs. Ben not T r u c k i n g i n c r e a s e d c o m p e n s a t i o n b a s e d on cost of f u e l so i s s u b s t a n t i a l were T r u c k i n g more d e p o s i t i o n t e s t i m o n y t o t h e e f f e c t t h a t APAC d i d n o t begin t o pay M i l l e r do t o pay M i l l e r At M i l l e r operating until Miller evidence under Trucking requested t h a t APAC a n d M i l l e r t h e 2007 25 ADOT-APAC APAC Trucking fuel-price- 1110724 adjustment Trucking clause from contract. the outset During o f t h e 2007 t h e term APAC-Miller o f t h e 2007 ADOT-APAC c o n t r a c t , APAC p a i d M i l l e r T r u c k i n g a p p r o x i m a t e l y $1,000,000, of which Miller $200,000 was Trucking's i n c r e a s e d payments based modification of the Trucking c o n t r a c t t o take i n t o account 2007 on APAC a n d APAC-Miller the e s c a l a t i n g cost of fuel. APAC and M i l l e r T r u c k i n g e n t e r e d i n t o a new a g r e e m e n t on o r a b o u t S e p t e m b e r 3, 2008, when M i l l e r Trucking submitted a b i d t o APAC, w h i c h APAC a c c e p t e d , so t h a t APAC c o u l d , i n t u r n , submit 2008 a contract"). basis bid to ADOT ("the APAC-Miller Trucking APAC's b i d was a c c e p t e d b y ADOT, w h i c h f o r m e d t h e o f t h e 2008 ADOT-APAC c o n t r a c t . The 2008 APAC-Miller Trucking contract d i d not include a p r o v i s i o n f o r f u e l - p r i c e adjustments b u t was b a s e d upon s t a t i c f u e l p r i c e s o f $2.50 t o $2.70 p e r g a l l o n . In December 2008, APAC a s s e s s e d a retroactive, downward f u e l - p r i c e a d j u s t m e n t a g a i n s t M i l l e r T r u c k i n g i n t h e amount o f $11,001.30; APAC's a u t h o r i t y t o a s s e s s a r e t r o a c t i v e , downward fuel-price adjustment i s the primary There i s s u b s t a n t i a l evidence issue i n this appeal. t o i n d i c a t e t h a t t h e 2008 APAC- 26 1110724 Miller Trucking contract d i d not adjustment provision and t h a t contacted APAC object adjustment. Miller to Miller to the Reynolds's deposition Trucking was unaware include that a fuel-price- Trucking immediately downward fuel-price testimony APAC was indicates going that t o assess downward f u e l - p r i c e a d j u s t m e n t s b e f o r e APAC a c t u a l l y d i d so i n December 2008. negotiate into R e y n o l d s a n d Ben M i l l e r met i n J a n u a r y 2009 t o how M i l l e r consideration Trucking w o u l d be c o m p e n s a t e d , the varying fuel prices, from taking that time On J a n u a r y 5, 2009, APAC a n d M i l l e r T r u c k i n g entered into 2009 h i r e d - t r u c k However, t h e forward. the qualification agreement. 2009 h i r e d - t r u c k q u a l i f i c a t i o n a g r e e m e n t s p e c i f i e d t h a t M i l l e r Trucking clear w o u l d be p a i d on an h o u r l y b a s i s , w h i c h , d e s p i t e t h e and unambiguous qualification language i n the 2009 hired-truck a g r e e m e n t , has n e v e r b e e n t h e p r a c t i c e b e t w e e n APAC a n d M i l l e r Trucking. I t i s unclear from t h e r e c o r d i f R e y n o l d s a n d Ben M i l l e r ' s e a r l y J a n u a r y 2009 m e e t i n g before o r a f t e r APAC a n d M i l l e r T r u c k i n g h i r e d - t r u c k q u a l i f i c a t i o n agreement. whether the n e g o t i a t i o n s occurred entered i n t o t h e 2009 Therefore, i t i s unclear t h a t t o o k p l a c e between R e y n o l d s and 27 1110724 Ben Miller modify a t the January 2009 t h e 2008 A P A C - M i l l e r meeting an e f f o r t to contract o r t h e 2009 h i r e d - t r u c k q u a l i f i c a t i o n agreement. Regardless, as e v i d e n c e d by e-mail Ben M i l l e r ' s Landress's February February 9, Trucking were 7, 2009, 2009, e-mail t o Landress response, and the p a r t i e s c o n t i n u e d t o n e g o t i a t e t h e c o m p e n s a t i o n M i l l e r T r u c k i n g was t o r e c e i v e f r o m APAC a f t e r APAC a n d M i l l e r T r u c k i n g e n t e r e d the 2009 h i r e d - t r u c k q u a l i f i c a t i o n We c a n n o t c o n c l u d e , is agreement. as d i d t h e c i r c u i t c o u r t , t h a t no g e n u i n e i s s u e o f m a t e r i a l f a c t Miller Trucking agreed that into there as t o w h e t h e r APAC a n d t h e 2007 ADOT-APAC a d j u s t m e n t c l a u s e a n d t h e 2008 ADOT-APAC fuel-price- fuel-price-adjustment c l a u s e were i n c o r p o r a t e d i n t o t h e c o n t r a c t s b e t w e e n APAC a n d Miller Trucking. Reynolds's deposition s u b s t a n t i a l e v i d e n c e t h a t APAC was g o i n g with the counties testimony to negotiate r e c e i v i n g the aggregate m a t e r i a l s is a deal pursuant to which t h e c o u n t i e s would pay l e s s than t h e b i d p r i c e , b u t more t h a n the p r i c e c a l l e d price-adjustment clause. f o r b y t h e 2008 ADOT-APAC Therefore, there e v i d e n c e i n t h e r e c o r d t h a t APAC a n d M i l l e r simply agree to incorporate into 28 their fuel- i s substantial Trucking agreements d i d not t h e 2007 1110724 ADOT-APAC f u e l - p r i c e - a d j u s t m e n t fuel-price-adjustment APAC a n d M i l l e r over the period downward APAC-Miller clause. Trucking relevant fuel-price c l a u s e a n d t h e 2008 ADOT-APAC entered to this into appeal. adjustments during Trucking contract several and contracts APAC the periods the 2009 imposed t h e 2008 hired-truck q u a l i f i c a t i o n a g r e e m e n t were i n e f f e c t , w h i c h p e r i o d s may have overlapped. nor Neither t h e 2008 A P A C - M i l l e r t h e 2009 h i r e d - t r u c k q u a l i f i c a t i o n fuel-price-adjustment clause Trucking contract agreement c o n t a i n e d authorizing APAC to assess downward f u e l - p r i c e a d j u s t m e n t s a g a i n s t M i l l e r T r u c k i n g . and Miller formation Trucking engaged negotiations o f t h e 2008 A P A C - M i l l e r 2009 h i r e d - t r u c k q u a l i f i c a t i o n of in t h e 2008 A P A C - M i l l e r hired-truck APAC after contract the and t h e agreement t o modify t h e terms Trucking qualification a l l o w i n g APAC t o a s s e s s Trucking a contract and/or agreement t o i n c l u d e t h e 2009 a provision downward f u e l - p r i c e a d j u s t m e n t s . As e v i d e n c e d b y t h e s u b s t a n t i a l e v i d e n c e i n t h e r e c o r d , APAC a n d Miller APAC Trucking d i d not agree t o i n c o r p o r a t e fuel-price-adjustment agreements but negotiated clause their 29 into own t h e 2008 ADOT- either of those fuel-price-adjustment 1110724 agreement, which m o d i f i e d Trucking contract agreement. as to court's [between of f u e l cost APAC fact finding that there "that and M i l l e r adjustments p a s s e d on b y APAC t o M i l l e r We a l s o h o l d APAC-Miller qualification a genuine i s s u e of m a t e r i a l f a c t circuit understanding effect a n d / o r t h e 2009 h i r e d - t r u c k Therefore, the t h e t e r m s o f t h e 2008 there Trucking] imposed by exists was that [ADOT] an any w o u l d be Trucking." i s a genuine i s s u e of m a t e r i a l concerning the findings supporting alternative holding. The c i r c u i t the c i r c u i t court held court's that "even i f an e n f o r c e a b l e c o n t r a c t c a n n o t p r o p e r l y be found t o a r i s e from t h e f a c t s , [ M i l l e r T r u c k i n g i s ] e q u i t a b l y e s t o p p e d from d e n y i n g b e i n g bound by t h e [2008 f u e l - p r i c e - a d j u s t m e n t c l a u s e ] , h a v i n g e n j o y e d the fruits of [ t h e 2007 fuel-price-adjustment c l a u s e ] a n d h a v i n g w o r k e d w i t h APAC f o r s e v e r a l months d u r i n g t h e s e c o n d y e a r w i t h k n o w l e d g e o f t h e [2008 f u e l - p r i c e - a d j u s t m e n t c l a u s e ] . " The c i r c u i t court d i d not conclude, that M i l l e r Trucking the and, the 2007 ADOT-APAC thus, ADOT-APAC term was a t h i r d - p a r t y b e n e f i c i a r y o f e i t h e r contract that M i l l e r 2007 ADOT-APAC o r t h e 2008 ADOT-APAC Trucking ADOT-APAC clause. contract, 30 contract was r e c e i v i n g t h e b e n e f i t o f fuel-price-adjustment fuel-price-adjustment o f t h e 2007 a n d no p a r t y h a s a r g u e d , clause Instead, o r t h e 2008 during the as s e t f o r t h above, 1110724 M i l l e r T r u c k i n g went t o APAC a n d n e g o t i a t e d a m o d i f i c a t i o n t o the 2007 APAC-Miller Trucking contract allowing Miller T r u c k i n g t o r e c e i v e i n c r e a s e d payment f o r i t s h a u l i n g s e r v i c e s b a s e d on e s c a l a t i n g f u e l the 2008 Trucking APAC-Miller again and L i k e w i s e , d u r i n g the term of Trucking entered c o m p e n s a t i o n due M i l l e r fuel prices. costs. contract, into negotiations Trucking APAC and Miller concerning as a r e s u l t the of the f a l l i n g M i l l e r T r u c k i n g h a s n e v e r c o n t r a c t e d w i t h ADOT, nothing indicates that M i l l e r T r u c k i n g was a t h i r d - p a r t y b e n e f i c i a r y o f e i t h e r t h e 2007 ADOT-APAC c o n t r a c t o r t h e 2008 ADOT-APAC contract. Rather, APAC a n d M i l l e r m a i n t a i n e d t h e i r own c o n t r a c t u a l r e l a t i o n s h i p . circuit court's conclusion that Miller Trucking have Therefore, the Trucking gained a b e n e f i t u n d e r t h e 2007 ADOT-APAC c o n t r a c t a n d , t h e r e f o r e , must c a r r y t h e b u r d e n o f t h e 2008 ADOT-APAC c o n t r a c t i s c o n t r a r y t o the f a c t s b e f o r e us. Therefore, we reverse the circuit court's summary judgment i n f a v o r o f t h e d e f e n d a n t s . The M i l l e r p l a i n t i f f s present s e v e r a l other arguments; however, o u r d e c i s i o n t o r e v e r s e t h e c i r c u i t c o u r t ' s 31 summary 1110724 judgment i n f a v o r o f t h e d e f e n d a n t s p r e t e r m i t s d i s c u s s i o n o f those issues. Conclusion B a s e d on t h e f o r e g o i n g , summary j u d g m e n t i n favor we r e v e r s e of the defendants case f o r f u r t h e r proceedings. fact exists as the c i r c u i t t o whether A genuine t h e 2008 court's a n d remand t h e issue of m a t e r i a l APAC-Miller Trucking c o n t r a c t a n d t h e 2009 h i r e d - t r u c k q u a l i f i c a t i o n a g r e e m e n t were modified to include fuel-price-adjustment s o , what t h e t e r m s o f t h o s e agreements and, agreements a r e . REVERSED AND REMANDED. M a l o n e , C . J . , a n d S t u a r t , Shaw, a n d W i s e , J J . , c o n c u r . 32 i f
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