Carroll-Boone Water District v. M. & P. Equipment Co.

661 S.W.2d 345, 280 Ark. 560, 1983 Ark. LEXIS 1559
CourtSupreme Court of Arkansas
DecidedNovember 14, 1983
Docket83-38
StatusPublished
Cited by21 cases

This text of 661 S.W.2d 345 (Carroll-Boone Water District v. M. & P. Equipment Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carroll-Boone Water District v. M. & P. Equipment Co., 661 S.W.2d 345, 280 Ark. 560, 1983 Ark. LEXIS 1559 (Ark. 1983).

Opinion

John I. Purtle, Justice.

The issues of this case were submitted to a Carroll County jury on interrogatories. The jury determined that: the engineering firm of McGoodwin, Williams & Yates, Inc., proximately contributed 100% of the negligence in regard to the damages in this case; McGoodwin was the agent of the owner, Carroll-Boone; the absence of builder’s risk insurance on behalf of the contractor, M. & P., materially altered Safeco’s performance bond for M. & P.; the owner sustained damages in the amount of $639,927.33; M. & P. sustained damages in the amount of $219,279.71; and the owner still owed M. & P. $174,735. The owner, Carroll-Boone and the engineer, McGoodwin, appeal from the findings and judgment of the trial court. The arguments will be set out and discussed below. We modify the judgment and remand the case.

The facts reveal that on April 28, 1976, Carroll-Boone Water District engaged the services of McGoodwin, Williams & Yates, Inc. as engineer to plan and follow construction of a water intake structure on Beaver Lake in Carroll County, Arkansas. McGoodwin prepared the plans and specifications for the intake structure and invited bids on same. M. & P. Equipment Company was the successful bidder and as such obtained a performance bond, as required by the contract, from Safeco Insurance Company of America. The contract between the owner and the contractor dated July 27,1977, required a builder’s risk policy be obtained by the contractor. The owner and the contractor were to be insured by the policy as their interests might appear. The owner, engineer and contractor were all charged with seeing that the builder’s risk policy was obtained. Although the engineer informed the contractor that all was in order to proceed with construction, the builder’s risk policy was never procured.

After the intake apparatus was constructed it became necessary to remove the land mass between the completed structure and the lake in order to allow the water to be received by the water intake system. The area to be removed contained mostly rock and it was necessary to use blasting procedures in order to loosen the rock for removal. The contractor had originally wanted to tunnel to create an access between the water and the intake but the engineers overruled the idea and required open blasting.

M. & P. contracted with Hercules, Inc. to furnish the blasting material and a supervisor for the blasting sequences. It was agreed that the blasting would be done in three separate shots on different dates. The first two went off without any problems. The contractor, engineer, owner and Hercules were present for the first two shots. The Hercules representative was not present for the third and final blast; however, he did approve the contractor’s plans for this last shot. The contractor had prepared the completed structure in accordance with the engineers’ plans and specifications. After the third blast it was discovered that the intake unit had suffered severe damage which the contractor unsuccessfully attempted to repair. The engineer refused to give instructions for repairs but did draw up plans or solicit bids from other contractors. M. & P. spent $219,279.71 trying to repair the damage. Safeco refused to undertake repairs because no builder’s risk policy had been procured.

The owner filed suit against M. 8c P., Safeco and Hercules, and eventually filed a cross complaint against McGoodwin. M. & P. filed a counterclaim against Carroll-Boone and a third party complaint and suit for contribution against McGoodwin, alleging McGoodwin was an agent for the owner. A claim for the balance due under the contract was included in the contractor’s counterclaim against the owner. At the conclusion of the 14 day trial the matter was submitted to the jury on interrogatories. The interrogatories and the jury’s answers to them are set out as follows:

INTERROGATORY NO. 1: Do you find from a preponderance of the evidence that M. 8c P. Equipment Company was guilty of negligence which was a proximate cause of the occurrence?
ANSWER: No. DATE: 4/14/82
INTERROGATORY NO. 2: Do you find from a preponderance of the evidence that Hercules, Inc. was guilty of negligence which was a proximate cause of the occurrence?
ANSWER: No. DATE: 4/14/82
INTERROGATORY NO. 3: Do you find from a preponderance of the evidence that McGoodwin, Williams & Yates, Inc. was guilty of negligence which was a proximate cause of the occurrence?
ANSWER: Yes. DATE: 4/14/82
INTERROGATORY NO. 5: Do you find that M. & P. Equipment Company breached its agreement with Carroll-Boone Water District to build the project in accordance with the plans and specifications which failure resulted in damages to Carroll-Boone Water District?
ANSWER: No. DATE: 4/14/82
INTERROGATORY NO. 6: Do you find that Jack Barton was incompetent to perform the work that he undertook in connection with the blasting on this project, and that such incompetence was a proximate cause of the occurrence?
ANSWER: No. DATE: 4/14/82
INTERROGATORY NO. 8: Do you find from a preponderance of the evidence that during the course of the project McGoodwin, Williams & Yates was acting as the agent of Carroll-Boone Water District?
ANSWER: Yes. DATE: 4/14/82
INTERROGATORY NO. 9: Do you find from a preponderance of the evidence that the absence of builders risk insurance for the project constituted a material alteration to the contract bonded by Safeco?
ANSWER: Yes. DATE: 4/14/82
INTERROGATORY NO. 10: State the amount of any damages (exclusive of liquidated damages as provided in the contract between Carroll-Boone and M. & P.) which you find from a preponderance of the evidence were sustained by Carroll-Boone Water District as a result of the damage to the intake structure.
ANSWER: $639,927.33 DATE: 4/14/82
INTERROGATORY NO. 11: State the amount of any liquidated damages as provided in the construction contract which you find from a preponderance of the evidence Carroll-Boone Water District is entitled to recover from M. & P. Equipment Company, Inc.
ANSWER: None. DATE: 4/14/82
INTERROGATORY NO. 12: State the amount of any damages which you find from a preponderance of the evidence were sustained by M. & P. as a result of the occurrence.
ANSWER: $219,279.71 DATE: 4/14/82

The court then entered judgments as follows:

Carroll-Boone was awarded judgment against McGoodwin in the amount of $639,927.33 for their negligence;
M. & P.

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

Related

Cave Quarries Inc. v. Warex, LLC
Indiana Supreme Court, 2024
Cave Quarries Inc. v. Warex, LLC
Indiana Court of Appeals, 2023
Travis Lumber Co. v. Deichman
2009 Ark. 299 (Supreme Court of Arkansas, 2009)
Swink v. Lasiter Construction, Inc.
229 S.W.3d 553 (Court of Appeals of Arkansas, 2006)
Graham Const. Co., Inc. v. Earl
208 S.W.3d 106 (Supreme Court of Arkansas, 2005)
Cinnamon Valley Resort v. EMAC Enterprises, Inc.
202 S.W.3d 1 (Court of Appeals of Arkansas, 2005)
Finagin v. Arkansas Development Finance Authority
139 S.W.3d 797 (Supreme Court of Arkansas, 2003)
Ozarks Unlimited Resources Cooperative, Inc. v. Daniels
969 S.W.2d 169 (Supreme Court of Arkansas, 1998)
Loenco v. Londonderry
D. New Hampshire, 1996
Tommy L. Griffin Plumbing & Heating Co. v. Jordan, Jones & Goulding, Inc.
463 S.E.2d 85 (Supreme Court of South Carolina, 1995)
Griffin Plumbing & Heating Co. v. Jordan, Jones & Goulding, Inc.
463 S.E.2d 85 (Supreme Court of South Carolina, 1995)
Precision Steel Warehouse, Inc. v. Anderson-Martin MacHine Co.
854 S.W.2d 321 (Supreme Court of Arkansas, 1993)
John Martin Co. v. Morse/Diesel, Inc.
819 S.W.2d 428 (Tennessee Supreme Court, 1991)
Garver & Garver, P.A. v. Little Rock Sanitary Sewer Committee
781 S.W.2d 24 (Supreme Court of Arkansas, 1989)
Hill Construction Co. v. Bragg
725 S.W.2d 538 (Supreme Court of Arkansas, 1987)
Vogel v. Simmons First National Bank of Pine Bluff
689 S.W.2d 576 (Court of Appeals of Arkansas, 1985)

Cite This Page — Counsel Stack

Bluebook (online)
661 S.W.2d 345, 280 Ark. 560, 1983 Ark. LEXIS 1559, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carroll-boone-water-district-v-m-p-equipment-co-ark-1983.