Building Erection Svcs. Co. v. Walton Construction Co.

CourtSupreme Court of Kansas
DecidedNovember 20, 2020
Docket117839
StatusPublished

This text of Building Erection Svcs. Co. v. Walton Construction Co. (Building Erection Svcs. Co. v. Walton Construction Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Building Erection Svcs. Co. v. Walton Construction Co., (kan 2020).

Opinion

IN THE SUPREME COURT OF THE STATE OF KANSAS

No. 117,839

BUILDING ERECTION SERVICES COMPANY, INC., Appellant.

v.

WALTON CONSTRUCTION COMPANY, INC., and AMERICAN HOME ASSURANCE COMPANY, Appellees,

WALTON CONSTRUCTION COMPANY, INC., Appellee,

SYLLABUS BY THE COURT

1. While different panels of the Court of Appeals hearing successive appeals in the same case may, in exceptional circumstances, depart from the law of the case, under Kansas law no exceptional circumstances permit a lower court to circumvent the mandate of a higher court.

2. A party who fails to petition the Kansas Supreme Court for review of a Court of Appeals decision is bound by the holding of that decision.

1 3. Upon the facts of this case—where liability has been established, the record clearly shows the injured party has sustained damages, and the only remaining question is the proper apportionment of damages to be awarded—it was error for the Court of Appeals to decline to remand the matter to the district court.

Review of the judgment of the Court of Appeals in an unpublished opinion filed July 20, 2018. Appeal from Johnson District Court; KEVIN P. MORIARTY, judge. Opinion filed November 20, 2020. Judgment of the Court of Appeals reversing the judgment of the district court is affirmed in part, reversed in part, and vacated in part. Judgment of the district court is reversed, and the case is remanded with directions.

R. Scott Beeler, of Lathrop Gage LLP, of Overland Park, argued the cause, and Carrie E. Josserand, of the same firm, and Kurt S. Brack, of Brown & Ruprecht, of Kansas City, Missouri, were with him on the briefs for appellant.

Danne W. Webb, of Horn Aylward & Bandy, LLC, of Kansas City, Missouri, argued the cause and was on the briefs for appellee.

The opinion of the court was delivered by

WALL, J.: This decision resolves the third appeal in this Odyssean litigation between Walton Construction Company (Walton) and Building Erection Services Company (BESCO) over liability and damages resulting from faulty construction on the University of Kansas' Memorial Stadium. This appeal arises from the district court judge's third attempt at entering a damages award in favor of Walton. Below, the Court of Appeals reversed the damages and attorney fee award for failure to abide by the law of the case and the mandate rule and lack of substantial competent evidence. The Court of Appeals also declined to remand for determination of a new award amount.

2 We affirm the Court of Appeals' finding that the district court judge violated the mandate rule with the third damages award. Because we reverse the damages award on this ground, we need not reach the second question of whether the most recent award is supported by substantial competent evidence. Finally, we hold that the Court of Appeals erred by declining to remand this case to the district court for a new award. Accordingly, we remand this case to the district court for a damages and attorney fee award that complies with the binding mandates from the first two appeals in this case.

FACTS AND PROCEDURAL BACKGROUND

More than a decade into litigation, we assume that the parties are well-acquainted with the facts and procedural history of this case. The issue of liability has been decided and consistently affirmed in favor of Walton, leaving only the question of damages and attorney fees at issue. As such, we recite only those facts necessary to explain our holding.

In 1999, the University of Kansas (KU) built a new press box for its football stadium. Walton was the project's general contractor. Walton hired BESCO to install structural steel and the press box's glass curtain wall. The parties' relationship was memorialized in a subcontractor agreement, through which BESCO agreed to indemnify Walton against claims and losses related to BESCO's work.

Shortly after the press box was completed, KU discovered that the new construction leaked badly. Because of the leaks, KU withheld a more than $400,000 payment from Walton. Walton, in turn, did not pay BESCO the remaining $26,548.54 it was owed. During the ongoing dispute between KU and Walton, KU brought in an external engineering contractor to identify the source of the leaking near the press box's windows and propose solutions. This contractor produced the "Slemmons report." The report did not delve into subcontractor liability for the leaks but merely allocated

3 responsibility between KU and Walton. The report found KU 10% responsible for the leaks, the architects 10% responsible, and Walton 80% responsible.

In 2002, BESCO sued Walton and KU to recover the $26,548.54 payment that was being withheld, thus beginning this trail of litigation.

After a series of studies and attempted fixes, KU decided to take apart a section of the press box in 2004 to determine and remedy the source of the leaks. During this examination, KU discovered that BESCO had used inadequate screws to attach the glass curtain wall to the press box's steel structure. This posed a large safety risk. KU opted to fix both the leaks and the fastener issue at the same time. To do so, they removed and replaced all the glass and the metal walls. BESCO was again subcontracted on the press box project, this time to remediate the glass.

In 2005, Walton and KU settled their dispute over liability for the leaks and fastener issue. Walton acknowledged it had breached its contract. Walton paid KU over $600,000, and KU assigned its claims against BESCO to Walton. BESCO was not a party to this agreement. Walton then sued BESCO for indemnification for its damages and KU's damages, as well as both Walton's and KU's attorney fees. A district court judge consolidated this case with BESCO's earlier suit.

After a bench trial, the district judge found that BESCO breached its contract with Walton when it failed to follow the correct shop drawings and used inadequate screws for fastening. The district judge ordered BESCO to pay Walton over a million dollars, including the entire cost of the press box repairs and Walton's attorney fees. BESCO appealed. In Building Erection Services Co. v. Walton Construction Co., No. 100,906, 2009 WL 4639486 (Kan. App. 2009) (unpublished opinion) (BESCO I), a Court of Appeals panel affirmed BESCO's liability to Walton for breach of contract but reversed and remanded the damages award for lack of substantial competent evidence.

4 On remand, the district judge entered a new award of almost $900,000, accounting for all of Walton's and KU's attorney fees and half the cost of removing and replacing the press box's glass and metal panels. BESCO again appealed. In Building Erection Services Co. v. Walton Construction Co., No. 111,706, 2015 WL 4879075 (Kan. App. 2015) (unpublished opinion) (BESCO II), a different Court of Appeals panel again reversed the amount of damages for lack of substantial competent evidence. Neither party petitioned for review of that decision.

On remand for the second time, the district judge entered his third award. This time, he ordered BESCO to pay 85% of the cost of removing and replacing the metal panels, and 50% of the cost of removing and replacing the glass. Also, the district judge again ordered BESCO to pay the attorney fees that the Court of Appeals reversed in BESCO II, as well as further fees Walton accrued during the continuing litigation. BESCO appealed again. In Building Erection Services Co. v. Walton Construction Co., No. 117,839, 2018 WL 3485670 (Kan. App. 2018) (unpublished opinion) (BESCO III), yet another panel of the Court of Appeals again reversed the damages award and attorney fee award for failure to abide by the law of the case and the mandate rule and lack of substantial competent evidence.

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

Related

Cerretti v. Flint Hills Rural Electric Cooperative Ass'n
837 P.2d 330 (Supreme Court of Kansas, 1992)
State v. Collier
952 P.2d 1326 (Supreme Court of Kansas, 1998)
In Re the Estate of Loughmiller
629 P.2d 156 (Supreme Court of Kansas, 1981)
Building Erection Services Co., Inc. v. Walton Const. Co., Inc.
219 P.3d 1243 (Court of Appeals of Kansas, 2009)
LSF FRANCHISE REO I, LLC v. Emporia Restaurants, Inc.
152 P.3d 34 (Supreme Court of Kansas, 2007)
Gannon v. State
368 P.3d 1024 (Supreme Court of Kansas, 2016)
In re Estate of Einsel
374 P.3d 612 (Supreme Court of Kansas, 2016)
State v. Tafoya
372 P.3d 1247 (Supreme Court of Kansas, 2016)
West v. Springfield Fire & Marine Insurance
185 P. 12 (Supreme Court of Kansas, 1919)
Snider v. American Family Mutual Insurance Co.
298 F.3d 1120 (Supreme Court of Kansas, 2013)
State v. Prine
303 P.3d 662 (Supreme Court of Kansas, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
Building Erection Svcs. Co. v. Walton Construction Co., Counsel Stack Legal Research, https://law.counselstack.com/opinion/building-erection-svcs-co-v-walton-construction-co-kan-2020.