Carrier Corp. v. Rollins, Inc.

730 S.E.2d 103, 316 Ga. App. 630, 2012 Fulton County D. Rep. 2343, 2012 WL 2580806, 2012 Ga. App. LEXIS 623
CourtCourt of Appeals of Georgia
DecidedJuly 5, 2012
DocketA12A0481, A12A0482
StatusPublished
Cited by11 cases

This text of 730 S.E.2d 103 (Carrier Corp. v. Rollins, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carrier Corp. v. Rollins, Inc., 730 S.E.2d 103, 316 Ga. App. 630, 2012 Fulton County D. Rep. 2343, 2012 WL 2580806, 2012 Ga. App. LEXIS 623 (Ga. Ct. App. 2012).

Opinion

MlKELL, Presiding Judge.

These companion cases arise from a dispute in which Rollins, Inc., sued Carrier Corporation alleging damages for breach of contract and other claims related to Carrier’s agreement to install a more [631]*631than $2 million heating, ventilation, and air-conditioning (“HVAC”) system at Rollins’s headquarters. Carrier counterclaimed for unpaid invoices. The case went to trial, and the jury awarded Rollins $350,000 on its claims and awarded Carrier $88,000 on its counterclaim. Both parties appealed, and the cases have been consolidated for our review. In Case No. A12A0481, Carrier alleges that the trial court erred in denying its motions for a directed verdict; refusing to give certain jury charges; and awarding sanctions for Carrier’s failure to comply with discovery orders. In Case No. A12A0482, Rollins appeals from the judgment against it on Carrier’s counterclaims, alleging that the trial court erred in its award of prejudgment interest. We affirm in Case No. A12A0481 and reverse in Case No. A12A0482.

“A jury verdict, after approval by the trial court, and the judgment thereon will not be disturbed on appeal if supported by any evidence, in the absence of any material error of law.”1

Viewed in the light most favorable to the jury’s verdict,2 the record reflects that Rollins entered into several contracts with Carrier for the installation of a HVAC system at Rollins’s corporate headquarters. Among those contracts were a March 11,2005,11-phase “Heating, Ventilation and Air Conditioning Renovation Plan” (the “HVAC contract” or “the contract”) and a March 9, 2005, letter agreement. that sets forth items and services to be included in Carrier’s bid on the project.3 The HVAC system installed pursuant to the HVAC contract never functioned properly, with the result that Rollins’s headquarters building was as cold as a “meat locker” in one area and hot as “an oven” in another. Deficiencies included “significant temperature variations” in the chairman’s office, “lack of sufficient return air out of the space,” and a lack of heat in the winter so severe that Rollins’s approximately 300 employees used more than 100 personal space heaters at their desks to stay warm. Despite Carrier’s attempts at correction, the problems persisted. When Rollins, after paying more than $2 million for the system, eventually refused to pay additional Carrier invoices of about $61,000, Carrier sent notice that it was leaving the job effective December 2008. [632]*632Rollins then hired another contractor to finish the work at an estimated cost of $702,000. Rollins filed this breach of contract action, and Carrier counterclaimed for the unpaid invoices.

Case No. A12A0481

1. On appeal, Carrier argues that the trial court erred in denying its motion for a directed verdict because Rollins’s complaint was filed outside of the HVAC contract’s one-year limitation period.

A trial court may grant a motion for directed verdict “only when no conflict exists in the evidence and the evidence presented, with all reasonable inferences therefrom, demands a particular verdict.”4 On appellate review of the denial of a motion for directed verdict, “we construe the evidence in the light most favorable to the verdict and resolve any doubts or ambiguities in favor of the verdict.”5 We review the trial court’s denial of a motion for a directed verdict using the “any evidence” standard.6

The HVAC contract provides that “[a]ny suits arising from the performance or non-performance of this Agreement, whether based upon contract, negligence, strict liability or otherwise, shall be brought within one (1) year from the date the claim arose.”7

Rollins filed an arbitration claim on February 17, 2009, and filed the complaint in this case on March 30, 2009. Carrier argues that although the term “the date the claim arose” is not defined in the HVAC contract, the time should be measured from the date of “substantial completion” of construction, which occurred about two years before Rollins filed suit. Specifically, Carrier argues that substantial completion occurred in March 2007, when its installation personnel left the job site, and that, therefore, Rollins’s complaint was time-barred.

Rollins counters that its action was not time-barred because Carrier personnel continued to work at Rollins’s headquarters, attempting to assess and fix the malfunctioning system, through at least December 2008, when Carrier sent its notice of termination. Rollins further argues that “substantial completion” is a statutory, rather [633]*633than contractual, concept, that the term does not appear in the HVAC contract, and that it therefore has no bearing on the issue of the contractual limitation.

Pursuant to the terms and conditions of the contract, Carrier agreed to provide Rollins with a “complete operational system”8, and further agreed that its “scope of work will include incidental work that is not specifically described but is required for a complete operational system .”9 The contract also provided that “[a]ny deficiencies that are identified by the owner’s representative will be corrected before final system acceptance can be approved.” While the record contains evidence that malfunctions occurred in a number of the phases of the contract, counsel for Carrier admitted at trial that Rollins never accepted the phase covering the executive areas of the building.10 The contract provides that suit must be brought within one year of “the date the claim arose.” Thus, the issue before us is, when did Rollins’s claim against Carrier arise?

“When the question is raised as to whether an action is barred by a statute of limitations, the true test to determine when the cause of action accrued is to ascertain the time when the plaintiff could first have maintained his action to a successful result.” 11 Generally, “a cause of action for breach of a construction contract accrues upon the project’s substantial completion.”12 In the case sub judice, however, the contract does not contain the term “substantial completion,” instead referring to a “complete operational system.”

Evidence supports the jury’s conclusion that Rollins’s HVAC system was not a complete operational system because, for example, Rollins never accepted the phase of the contract covering its executive suites. Rollins’s senior vice president, Michael Knottek, who signed the contract with Carrier, testified that there were “constantly problems with the thermostats in the executive area, where they would not maintain the setpoints.” He further testified that when the rooftop unit in the executive meeting room turned on, the lights would dim in the board meeting room next door to the point where Knottek had to have a Carrier technician on-site to fix problems every time a board meeting occurred. Knottek also testified that executives and other workers had to be temporarily relocated to other parts of [634]*634the building while problems were being fixed, and that rooftop cooling units, when examined by an outside consultant, were found to be undersized. Asked if there were ever a month where the system functioned as a “complete operational system,” Knottek responded, “No.”

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Bluebook (online)
730 S.E.2d 103, 316 Ga. App. 630, 2012 Fulton County D. Rep. 2343, 2012 WL 2580806, 2012 Ga. App. LEXIS 623, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carrier-corp-v-rollins-inc-gactapp-2012.