Burlington v. Arnold Construction Co.

727 S.W.2d 241, 1987 Tenn. App. LEXIS 2421
CourtCourt of Appeals of Tennessee
DecidedJanuary 7, 1987
StatusPublished
Cited by1 cases

This text of 727 S.W.2d 241 (Burlington v. Arnold Construction Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burlington v. Arnold Construction Co., 727 S.W.2d 241, 1987 Tenn. App. LEXIS 2421 (Tenn. Ct. App. 1987).

Opinion

OPINION

TODD, Presiding Judge.

This is a suit for defective performance of a contract to fill a ravine. The Chancellor awarded the property owner a judgment against the contractor and its surety and dismissed the countersuit of the contractor against the owner and the cross-suit of the contractor against a co-defendant engineer. The contractor and its surety have appealed.

Plaintiff is the owner of a tract of land which contained a ravine which required filling for purposes of development. On August 21, 1981, plaintiff and defendant, Arnold Construction Company, Inc., (hereafter defendant) entered into a contract for filling the ravine. Another defendant, Auto Owners (Mutual) Insurance Company of Lansing, Michigan executed the contract as surety for the defendant. Another defendant, Miller, Wihry and Lee, Inc., (hereafter engineers) were engaged to design and supervise the construction of the development, including excavation and grading. In April, 1982, Geologic Associates, Inc. at the request of plaintiff, inspected the fill and determined that it was defective. The contractor denied that its work was defective, and this suit ensued.

The Chancellor’s memorandum contains the following:

The contract provided that the contractor “shall be solely responsible for the means, methods, techniques, sequences and procedures of construction,” and that it “shall be responsible to see that the finished work complies accurately with the contract documents.” (Exh. 6-Gen.Cond.P. 12, § 6.1)
The contractor guaranteed the work would be of good quality free from faults or defects and would be performed in accordance with the contract documents. (Exh. 6-Gen.Con.P. 20, § 13.1)

The contract also provided:

§ 13.4 — Neither observations by engineer nor inspections, tests, or approvals by persons other than contractors shall relieve contractor from his obligation to perform the work in accordance with requirements of the contract documents, and
§ 13.9 — If required by engineer prior to approval of final payment, contractor shall promptly, without cost to owner and as specified by engineer, either correct any defective work, whether or not fabricated, installed or completed, or, if the work has been rejected by engineer, remove it from the site and replace it with nondefective work. If contractor does correct such defective work or remove and replace such rejected work within a reasonable time, all as specified in a written notice from engineer, owner may have the deficiency corrected or the rejected work removed and replaced.
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The work was completed in Spring of 1982. At the completion, the Metro Building Inspectors would not approve the work as building sites.
The engineer on the job employed Geologic Associates, a geotech engineering firm, to evaluate the fill installed by the contractor. Test pits were dug and an inspection made.
Geologic Associates found the fill contained a mixture of large rocks and soil, an excessive amount of organic materials, and was poorly compacted and unsuitable to support a foundation. Construction debris, burned materials, tree limbs, roots and large boulders were found in the fill and top-soil below the fill.
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The owner could not build on Lot 6, 8 and 9 using conventional foundations because the contractor in blasting over-shot the rock causing a fracture of the underlying earth.
Following the contractors refusal to redo the work, the owner removed the defective fill and redesigned the foundations. The cost of correcting the defec[243]*243tive work less what it should have cost amounts to $145,321.72.
The redesigning of the foundations resulted in a loss of one unit at building four valued at $29,000.00 The owner suffered additional damages of $409.51 to a gas pipe.
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The owner withheld $10,000.00 from the contract price due the contractor.
CONCLUSIONS OF LAW
1. The work performed by the contractor was defective.
2. The contractor failed to perform the work in accordance with the plans and specifications.
3. Specifically the contractor violated Sec. A — 3, 4B, 5D, 5E(b), and I of the contract. (Exh. 6)
4. The proper measure of the damages to the plaintiff is the cost of correcting the defective work.
5. Plaintiff is entitled to recover from the contractor and surety jointly $164,-731.23.

Judgment was entered against the contractor and surety for $164,000, and defendant’s countersuit and cross-suit were dismissed.

Appellants’ first issue is as follows:

I. In finding that the defendant-contractor breached its contract with the plaintiff-developer, did the chancellor err in refusing to consider evidence of pre-con-struction geological studies prepared by the plaintiff-developer’s expert?

As indicated above, the alleged defects were discovered and reported to plaintiff by Geologic Associates, Inc. in April, 1982. The cross-examination of Ronald W. Spivy, representative of Geologic Associates, the following is recorded:

Q. Mr. Spivy, you addressed your April 6th, 1982 report to Miller, Wihry & Lee, did you not?
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Q. To the attention of Mr. Walter Davidson, I believe?
A. I believe that is correct.
Q. Now, did you deal with Mr. Davidson as the representative of the owner of Burlington in this case?
A. Yes, sir.
Q. And in your April 6th report, Mr. Spivy, you say, “Pursuant to your request,” meaning Mr.. Davidson, “We have completed an investigation of the in-place fill at the project and herewith present the data and our comments and recommendations regarding the suitability of fill. Your attention is called to our earlier geotechnical report dated August 25, 1981.” Now, why did you call Mr. Davidson’s attention to that?
MR. DAY: Objection, Your Honor, not relevant.
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THE COURT: Let me see. You go ahead and answer the question, and I will rule on the objection.
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A. That report contained a recommendation that we made based on our initial investigation that included things that were pertinent to the construction.
Q. Why did you feel like it was necessary in the April 6, 1982 report to make mention of that?
A. In subsequent reporting, we normally try to make reference to a prior report as a foundation for the subsequent report to recreate a link between the reports.
Q. Does that earlier report, that August 25, 1981 report—
THE COURT: I will overrule the objection.

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Cite This Page — Counsel Stack

Bluebook (online)
727 S.W.2d 241, 1987 Tenn. App. LEXIS 2421, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burlington-v-arnold-construction-co-tennctapp-1987.