Watson Bowman Acme Corp. v. RGW Construction, Inc.

INTRODUCTION

RGW Construction, Inc. (RGW), was the successful low bidder on a Department of Transportation (Caltrans) project for the construction of a Highway 99 overpass near Merced. RGW entered into a contract with Watson Bowman Acme Corporation (Watson) for the delivery of 146 sealed expansion joints for use on the overpass. Caltrans rejected Watson’s two-cell expansion joint but subsequently approved Watson’s larger, four-cell expansion joint for the project.

Watson and RGW disagreed on the compensation owed Watson for delivery of the four-cell expansion joints. Watson filed a breach of contract action, contending it was entitled to an adjustment of the price on RGW’s original purchase order because the items ordered were changed. Watson argues that RGW’s purchase order was ambiguous as to exactly what was ordered because the references to Caltrans’s specifications were not consistent with the specific description that used the two-cell expansion joint’s model number. Watson argues parol evidence showed it advised RGW that the two-cell expansion joint would not be approved by Caltrans and, despite this warning, RGW specifically requested a quote from Watson for the…