Bryan v. City of Cotter

2009 Ark. 457, 344 S.W.3d 654, 2009 Ark. LEXIS 616
Supreme Court of Arkansas·Decided October 1, 2009·No. 08-811·Published·Cited by 4 cases

Opinion

ANNABELLE CLINTON IMBER, Justice.

liThis case involves the interpretation of exculpatory clauses in a construction contract and the determination of when the statute of limitations begins to run on a contractor’s professional malpractice claim against an engineering firm. Jurisdiction is in this court pursuant to Ark. Sup.Ct. R. 1 — 2(b)(5).

In 2002, the City of Cotter and the City of Gassville (the Cities) retained the services of Garver, Inc. (Garver), to act as the design and supervision engineer on the expansion of a wastewater treatment facility in Baxter County, Arkansas. Garver contracted with Grubbs, Hoskyn, Barton, & Wyatt, Inc. (GHBW), to conduct soil tests at the proposed construction site. GHBW completed and prepared a report on its findings on September 30, 2001. The soils report became part of the materials disseminated by the Cities in soliciting | abids for the construction of the wastewater facility at the proposed site. Appellant Justin Bryan, doing business as J & L Construction (Bryan), was the successful bidder on the project and entered into a contract with the Cities on June 7, 2002. The contract made reference to several documents that were to be considered as part of the agreement, one of which was a “Special Conditions” document. That document included a clause setting forth limitations on liability for information contained in the soils report. It also contained a clause addressing the affirmative duty of a contractor to inspect the proposed site and inform himself about the conditions at the proposed site. Because the project would involve financing through the Arkansas Soil and Water Conservation Commission Revolving Loan Fund, the contract contained a federally mandated “Differing Site Conditions” clause.

Once construction of the water facility began, the contractor encountered dolomite rock. That discovery meant that Bryan would have to use blasting techniques to remove the dolomite rock, as well as a backfill process to compensate for the excavation, both of which were not anticipated or included in the original bid. Bryan requested additional time and compensation for these additional' construction methods, but the Cities denied the request.

Bryan filed suit on May 24, 2005, asserting negligence against GHBW and Garver, and breach of contract, breach of warranties, equitablé modification of contract, and quantum meruit against the Cities. GHBW initially filed a motion to dismiss, claiming that Bryan’s complaint was barred by the statute of limitations. After a hearing, the circuit court granted GHBW’s motion. Garver then filed a motion to dismiss, asserting that the contract | ¡¡between Bryan and the Cities contained clauses releasing it from any claims for negligence. The court dismissed the claims against Garver by summary judgment.

The Cities also filed a motion for summary judgment, arguing that any claims regarding extra work were waived by the same contractual provisions that Garver relied upon in its earlier motion to dismiss. The circuit court granted partial summary judgment on all claims against the Cities except for one claim arising out of the Cities’ denial of Bryan’s request to substitute a pump. Bryan’s initial appeal was dismissed by the Arkansas Court of Appeals for lack of a final order. Formal Order, CA 08-00307, June 4, 2008. Upon the circuit court’s entry of a final order dismissing the remaining claim with prejudice, Bryan filed a notice of appeal seeking review of the court’s summary-judgment orders of dismissal.

The law is well settled regarding the standard of review used by this court in reviewing a grant of summary judgment. Brock v. Townsell, 2009 Ark. 224, 309 S.W.3d 179. A trial court will grant summary judgment only when it is apparent that no genuine issues of material fact exist requiring litigation and that the moving party is entitled to judgment as a matter of law. Id. The burden of proof shifts to the opposing party once the moving party establishes a prima facie entitlement to summary judgment; the opposing party must demonstrate the existence of a material issue of fact. Id. After reviewing the undisputed facts, the trial court should deny summary judgment if, under the evidence, reasonable minds might reach different conclusions from the same undisputed facts. Id. On appeal, this court determines if summary judgment was appropriate based on whether the evidentiary |4items presented by the moving party leave a material question of fact unanswered. Id. This court views the evidence in a light most favorable to the party against whom the motion was filed, resolving all doubts and inferences against the moving party. Id. This review is not limited to the pleadings but also includes the affidavits and other documents filed by the parties. Id.

I. Statute of Limitations

For his first point on appeal, Bryan contends that the circuit court erred in ruling that Bryan’s professional malpractice claim against GHBW was barred by the statute of limitations period. The circuit court determined that the statute of limitations period began to run on September 30, 2001, the date GHBW prepared its soils report. Thus, the statute of limitations had already expired when Bryan filed his complaint on May 24, 2005. Bryan asserts on appeal, as he did below, that the statute of limitations period did not begin to run until June 7, 2002, the date Bryan signed the construction contract with the Cities. In support of this assertion, Bryan posits that the necessary elements for the cause of action were not present before June 7, 2002, because Bryan could not have been injured until the construction contract was signed. Thus, according to Bryan, his malpractice action against GHBW did not accrue until June 7, 2002.

The statute of limitations period for an action based on negligence is three years. Ark.Code Ann. § 16-56-105 (Repl.2005). In determining when the statute of limitations begins to run in an action for professional malpractice, this court has consistently followed the 1 .-occurrence rule, meaning that, in the absence of concealment of the wrong, the applicable period begins when the negligent act occurred, not when it was discovered. Moix-McNutt v. Brown, 348 Ark. 518, 521, 74 S.W.3d 612, 613 (2002); Ragar v. Brown, 332 Ark. 214, 964 S.W.2d 372 (1998); Chapman v. Alexander, 307 Ark. 87, 817 S.W.2d 425 (1991). The alleged negligent act in the instant case occurred when GHBW prepared the soils report on September 30, 2001.

Notwithstanding this court’s consistent refusal to retreat from the occurrence rule, Bryan argues that his cause of action for professional malpractice against GHBW was not complete until he signed the contract and began excavation. He asserts that the errors in the soils report could not have been discovered until he began to excavate. For authority on this point, Bryan cites to our holding in State v. Diamond Lakes Oil Co., 347 Ark. 618, 66 S.W.3d 613 (2002). The Diamond Lakes case, however, involved a property owner’s action for trespass, not an action for professional malpractice. Thus, Bryan’s reliance on that case is misplaced. Likewise, our court’s decisions in Martin v. Arthur, 339 Ark.

Free access — add to your briefcase to read the full text and ask questions with AI

Bryan v. City of Cotter, 2009 Ark. 457, 344 S.W.3d 654, 2009 Ark. LEXIS 616 (Ark. 2009).

2009 Ark. 457 (Bryan v. City of Cotter) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Bowie v. Labua
E.D. Arkansas, 2022
Early v. Baker
2013 Ark. 505 (Supreme Court of Arkansas, 2013)