Fairbanks Builders v. Morton Delima

Appellant Fairbanks Builders entered into a contract with the United States Army Corps of Engineers for the construction of anti-erosion works along the Yukon River in the vicinity of Galena, Alaska. Appellant subcontracted with appellee Morton DeLima for the earthwork portion of the prime contract. The subcontract obligated Morton DeLima to furnish 600 cubic yards of gravel daily. In light of the total gravel requirements specified in the prime contract, it was anticipated that approximately 27 days would be required for Morton DeLima to complete its performance of the subcontract. Shortly after Morton DeLima commenced work, Fairbanks Builders encountered difficult conditions in the course of driving pilings along the banks of the Yukon. These circumstances caused Fairbanks Builders to change its operating procedures which resulted in delayed performance by Fairbanks Builders of the prime contract, and in turn prevented Morton DeLima from completing its performance of the subcontract until some 173 days had elapsed from the time work was initiated. Morton DeLima then sued Fairbanks Builders for additional labor and equipment expenses it allegedly incurred during the period of time its performance of the subcontract was delayed. After trial to the superior court without jury, Morton DeLima was awarded a judgment of $8,220 with interest from May 1, 1963.