contains a change order clause.
3 9
Since such clauses are
c o m m o n l y, if not always, used in public contracts, this
limitation effectively eliminates abandonment claims on
such projects in Michigan. Unlike Michigan, most juris-
dictions that allow abandonment claims have not
imposed this limitation.
4 0
Other than Michigan and, of course, California, most
jurisdictions that have recognized abandonment for pri-
vate projects would likely recognize the doctrine for pub-
lic projects as well. California’s refusal to allow abandon-
ment claims on public jobs depends on its “void contract
r u l e , ”
4 1
which is not the law in most states. Without that
rule, California’s rationale for distinguishing between pri-
vate and public jobs for purposes of allowing contractor
recovery would not apply.
The remaining 22 states have neither recognized nor
rejected recovery for abandonment. The courts in 22
states have not yet considered abandonment or cardinal
change in any reported decision. In most, if not all, of
these jurisdictions, contractors could assert claims under
either theory based on basic contract and waiver princi-
ples. The courts in these jurisdictions would likely follow
the majority rule and allow recovery on private and pub-
lic jobs, unless they have a void contract rule similar to
that in California.
Conclusion
When projects go bad, contractors need to look at the
possibility of asserting abandonment or cardinal change
claims. In some jurisdictions, such claims have been
explicitly recognized for public projects. Many other juris-
dictions have recognized either or both theories in the
context of private jobs, but have not addressed whether
they would allow recovery for public jobs. In still others,
the door is open under the right facts to assert an aban-
donment or cardinal change claim under basic contract
and waiver principles. For public projects in California
and all projects in Mississippi, however, that door has been
shut. Whether other jurisdictions choose to follow Cali-
fornia or Mississippi in this regard remains to be seen.
PL
Endnotes
1. See, e.g., In re Boston Shipyard Corp., 886 F.2d 451, 456 (1st
Cir. 1989); Edward R. Marden Corp. v. United States, 442 F.2d
364, 369 (Ct. Cl. 1971); Air-A-Plane Corp. v. United States, 408
F.2d 1030, 1033 (Ct. Cl. 1969).
2. A l a b a m a : Hutchinson v. Cullum, 23 Ala. 622 (1853);
A r i z o n a : County of Greenlee v. Webster, 25 Ariz. 183 (1923);
A r k a n s a s : Hous. Auth. of Texarkana v. E. W. Johnson Constr.
Co., 264 Ark. 523 (1978); C a l i f o r n i a : C. Norman Peterson Co. v.
Container Corp. of Am., 172 Cal. App. 3d 628 (1985); C o l o r a d o :
H.T.C. Corp. v. Olds, 486 P.2d 463, 466 (Colo. App. 1971);
I l l i n o i s : Cook County v. Harms, 108 Ill. 151 (1883); I n d i a n a :
Rudd v. Anderson, 285 N.E.2d 836 (Ind. App. 1972); K e n t u c k y :
L.K. Comstock & Co. v. Becon Constr. Co., 932 F. Supp. 906, 933
(E.D. Ky. 1993) (applying Kentucky law); L o u i s i a n a : Nat Harrison
Assoc., Inc. v. Gulf States Utilities Co., 491 F.2d 578, 583, r e h ’ g
d e n i e d , 493 F.2d 1405 (5th Cir. 1974) (applying Louisiana law);
M a r y l a n d : Westinghouse Elec. Corp. v. Garrett Corp., 437 F.
Supp. 1301, 1332 (D. Md. 1977) (applying Maryland law);
M i c h i g a n : R. M. Taylor, Inc. v. General Motors Corp. 187 F.3d
809 (8th Cir. 1999), cert. denied, 528 U.S. 1159 (2000) (applying
Michigan law); M i n n e s o t a : Fuller Co. v. Brown Minneapolis Tank
& Fabricating Co., 678 F. Supp. 506, 509 (E.D. Pa. 1987) (applying
Minnesota law); M i s s o u r i : Baerveldt & Honig Constr. Co. v. Dye
Candy Co., 212 S.W.2d 65, 69 (Mo. 1948); Havens Steel Co. v.
Randolph Eng’g Co., 613 F. Supp. 514, 533 (W.D. Mo. 1985);
N e v a d a : Paterson v. Condos, 55 Nev. 134 (1934); New York:
Kole v. Brown, 13 A.D.2d 920 (1961); O h i o : Oberer Constr. Co.
v. Park Plaza, Inc., 179 N.E.2d 168, 171 (Oh. Ct. App. 1961);
O r e g o n : Hayden v. Astoria, 74 Or. 525, 533 (1915); Puerto Rico:
Paul N. Howard Co. v. Puerto Rico Aqueduct & Sewer Auth., No.
80–0743(RA), slip op. (D.P.R. 8/23/83) at 37b, a f f ’ d, 744 F.2d 880
(1st Cir. 1984), cert. denied, 469 U.S. 1191 (1985); South Dakota:
Peter Kiewit Sons’ Co. v. Summit Constr. Co., 422 F.2d 242,
254–55 (8th Cir. 1969) (applying South Dakota law); T e x a s : N a t ’ l
Envtl. Service Co., Inc. v. Homeplace Homes, Inc., 961 S.W.2d
632, 635 (Tex. App. 1998); U t a h : Rhodes v. Clute, 53 P. 990 (Ut.
1898); W a s h i n g t o n : Kieburtz v. City of Seattle, 84 Wash. 196
(1915); W i s c o n s i n : Olbert v. Ede, 156 N.W.2d 422 (Wis. 1968);
and W y o m i n g : Scherer Constr., LLC v. Hedquist Constr., Inc., 18
P.3d 645, 656 (Wyo. 2001).
3. District of Columbia: Blake Constr. Co., Inc. v. C. J.
Coakley Co., Inc., 431 A.2d 569, 578–79 (D.C. Ct. App. 1981);
M a i n e : Claude Dubois Excavating v. Kittery, 634 A.2d 1299,
1301–02 (Me. 1993); O k l a h o m a : Watt Plumbing, Air
Conditioning & Elec., Inc. v. Tulsa Rig, Reel & Mfg. Co., 533 P.2d
980 (Okla. 1975) (rejecting subcontractor’s claim, and distinguish-
ing cardinal change cases, based on express agreements between
subcontractor and contractor regarding compensation for each
change before altered work was performed); P e n n s y l v a n i a : E . C .
Ernst, Inc. v. Koppers Co., Inc., 476 F. Supp. 729, 757–58 (W.D.
Pa. 1979); Rhode Island: Clark-Fitzpatrick, Inc./Franki Found. Co.
v. Gill, 652 A.2d 440, 442 (R.I. 1994) (judgment below awarded
contractor damages for cardinal change claim).
4. 27 Cal. 4th 228 (2002). The California Supreme Court
denied Amelco’s application for rehearing on March 13, 2002.
Amelco Elec. v. City of Thousand Oaks, 2002 Cal. LEXIS 1689
( 3 / 1 3 / 0 2 ) .
5. Litton Sys., Inc. v. Frigitemp Corp., 613 F. Supp. 1377 (S.D.
Miss. 1985) (applying Mississippi law) (citing Jackson v. Sam
Finley, 366 F.2d 148 (5th Cir. 1966)); Citizens Nat’l Bank v. L.L.
Glascock, Inc., 243 So. 2d 67 (Miss. 1971); Delta Constr. Co. v.
City of Jackson, 198 So. 2d 592 (Miss. 1967); and Redd v. L&A
Contracting Co., 151 So. 2d 205 (Miss. 1963)). In L i t t o n, the
District Court quotes R e d d, 151 So. 2d at 208, stating that “where
there is a contract, parties may not abandon same and resort to
quantum meruit.” 613 F. Supp. at 1382. The court then concludes
that “Mississippi does not subscribe to the cardinal change doc-
trine.” I d . at 1384.
6. 932 F. Supp. 906 (E.D. Ky. 1993).
7. Id. at 939.
8. I d . at 935–36, 946; see also Scheck Mech. Corp. v. Borden,
Inc., 186 F. Supp. 2d 724, 734–35 (W.D. Ky. 2001).
9. 27 Cal. 4th 228, 238 (2002).
10. 27 Cal. 4th 228, 238 (2002).
11. See supra note 5.
12. I d. at 1382–84 (citing Jackson v. Sam Finley, 366 F.2d 148
(5th Cir. 1966)) (“Mississippi does not subscribe to the cardinal
change doctrine. . . .”).
13. I d . at 1381.
14. I d . at 1382 (citing Citizens Nat’l Bank v. L.L. Glascock, Inc.,
243 So. 2d 67 (Miss. 1971); Delta Constr. Co. v. City of Jackson,
198 So. 2d 592 (Miss. 1967); Redd v. L&A Contracting Co., 151
So. 2d 205 (1963)).
15. 27 Cal. 4th 228 (2002).
16. A m e l c o, 27 Cal. 4th at 251-52 (J. Werdegar, dissenting).
Number 3 • Volume 39 • Spring 2004 • American Bar Association • The Procurement Lawyer • 20
“Abandonment & Cardinal Change on State & Local Construction” by Aaron P. Silberman, published in The Procurement Lawyer, Volume 9, No.3,
Spring 2004 © 2004 by the American Bar Association. Reproduced by permission. All rights reserved. This information or any portion thereof may not be
copied or disseminated in any form or by any means or stored in an electronic database or retrieval system without the express written consent of the
American Bar Association.
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