Allgood Electric Co. v. Martin K. Eby Construction Co.

959 F. Supp. 1573, 1997 U.S. Dist. LEXIS 4254, 1997 WL 168657
CourtDistrict Court, M.D. Georgia
DecidedApril 3, 1997
Docket5:93-cv-00125
StatusPublished
Cited by3 cases

This text of 959 F. Supp. 1573 (Allgood Electric Co. v. Martin K. Eby Construction Co.) is published on Counsel Stack Legal Research, covering District Court, M.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allgood Electric Co. v. Martin K. Eby Construction Co., 959 F. Supp. 1573, 1997 U.S. Dist. LEXIS 4254, 1997 WL 168657 (M.D. Ga. 1997).

Opinion

ORDER

OWENS, District Judge.

This case is again before the court on defendants’ second and third motions for summary judgment. Oral arguments were held on the pending motions on March 3, 1997. Based upon the oral arguments of counsel, the relevant case law, and the record as a whole, the court issues the following order.

J. Procedural history

On April 13, 1994, this court granted summary judgment for defendants on all claims except for plaintiff Allgood’s claim for re-tainage due. 1 The order held that the completion certificate signed June 8, 1992, by Allgood’s president, Gloria Alday, was unambiguous and barred any claims for damages other than the claim for retainage. On June 25, 1996, the Eleventh Circuit reversed the grant of summary judgment and remanded this case for further proceedings. Allgood Electric Co. v. Martin K. Eby Construction Co., 85 F.3d 1547 (11th Cir.1996). The Court of Appeals held, citing Lackey v. *1575 McDowell, 262 Ga. 185, 415 S.E.2d 902 (1992), that the release contained in the completion certificate was invalid because Eby was not specifically named therein. The Court further ruled that certain waiver and release language in payment applications signed by Allgood released only the hen claims against the property. The Court of Appeals remanded this case for a determination whether certain letters sent by All-good to Eby complied with the contractual notice requirements for delay and whether Allgood was able to calculate the value of any or all of its delay demands prior to the completion of construction. This court was also instructed to focus upon remand on the effect of language on the payment application forms which stated:

I hereby certify that the work performed and the materials supplied to date, as shown on the above, represent the actual value of accomplishment under the terms of the contract (and all authorized changes thereto) between the undersigned and Martin K. Eby Construction Co., Inc., relating to the above referenced project.

II. Background

A. Contract provisions

Defendant Martin K. Eby Construction Co., Inc. was the prime contractor for the construction of the Dooly Correctional Institution in Unadilla, Georgia. The owner of the building project was Georgia Building Authority (Penal) (“GBA”). GBA subsequently assigned administration of the prime contract to the Georgia State Financing and Investment Commission (“GSFIC”). Defendants Federal Insurance Company and Fidelity & Deposit Company of Maryland were sureties and provided a payment bond for the project.

Article E-37 of the prime contract between GBA and Eby, contained the following terms: THE SUBCONTRACTOR AGREES

(1) To be bound to the contractor by the terms of the contract documents and to assume toward the contractor all the obligations and responsibilities that the contractor by the aforesaid documents assumes toward the owner.
(2) To submit to the contractor applications for payment in such reasonable time as to enable the contractor to apply for payment under Article E-24 of the general conditions.
(3)to make all claims for extras, for extensions of time (See Articles E-18 and E-36) or for damages to the contractor in the manner provided in the general conditions for like claims by the contractor upon the owner, except that the time for making claims for extra expense is one week.

Articles E-16(b) and (c) of the contract provided:

(b) Damages. — If either party to this contract should suffer damages in any manner because of any wrongful act or neglect of the other party or of anyone employed by the other party, then he shall be reimbursed by the other party for such damage. No claim of the contractor for damage shall be valid unless written notice thereof shall have been received by the owner by registered mail within 15 days after occurrence of the event on which the claim is based.
(e) Protest. — All references to arbitration are deleted from the contract documents. Decisions of the architect shall be rendered in all eases as provided for under the general conditions of the contract, but no decision of the architect shall deprive the owner or the contractor of any form of redress which may be available under the laws of the State of Georgia to contracting parties. Any decision of the architect shall be final and binding on the contractor in the absence of written notice of protest from the contractor received by the owner by registered mail within twelve days of the date of the decision of the architect____ The owner shall have twelve days from the date of receipt of a protest within which to investigate and make reply. There is no provision under the contract for execution of work “under protest.”

Article E-37, subparagraph 5 of the contract required Eby:

to pay the subcontractor upon the payment of certificates issued under the schedule of *1576 values described in Article E-24 of the general conditions the amount allowed [Eby] on account of the subcontractor’s work

On January 29, 1990, Eby entered into a subcontract with Allgood to perform the electrical work on the project for the amount of $1,280,000.00. The term of the subcontract contract was 540 calendar days from Notice to Proceed Phase II. Allgood began work on the project in April of 1990. Because of delays, the time for completion of the project extended to 1,000 days. Allgood submitted twenty-eight applications for payment during the term of the contract or contract extensions. The last application, covering the period from 02/20/93 through 9/06/94, was dated September 6, 1994, and showed a total amount completed and stored of $1,415,-180.75.

The subcontract between Eby and Allgood contained the following provision:

SECTION 11. DELAYS. Subcontractor shall not be entitled to an adjustment in time or Subcontract price for delays or damages caused by the Owner and/or Architect-Engineer, inclement weather, strikes, or other delays or damages unless such price change or time extension is approved in "writing by the Owner or its authorized representative. Any damages which Subcontractor alleges that the Owner, Architect-Engineer, Contractor, other Subcontractor, or any other party for whom Contractor may be liable has caused him or is causing him must be filed in writing with the Contractor within ten (10) days from the commencement of the alleged damage and a full accounting filed within ten (10) days after the extent of damage is known or the cause for damage ceases, whichever is the sooner; otherwise, any such claims will be considered void. [Emphasis added.]

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Bluebook (online)
959 F. Supp. 1573, 1997 U.S. Dist. LEXIS 4254, 1997 WL 168657, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allgood-electric-co-v-martin-k-eby-construction-co-gamd-1997.