Clearwater Construction Co. v. McClung

584 S.E.2d 61, 261 Ga. App. 789, 2003 Ga. App. LEXIS 772
CourtCourt of Appeals of Georgia
DecidedJune 19, 2003
DocketA03A0325
StatusPublished
Cited by8 cases

This text of 584 S.E.2d 61 (Clearwater Construction Co. v. McClung) 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
Clearwater Construction Co. v. McClung, 584 S.E.2d 61, 261 Ga. App. 789, 2003 Ga. App. LEXIS 772 (Ga. Ct. App. 2003).

Opinion

Andrews, Presiding Judge.

Clearwater Construction Company (Clearwater) appeals the judgment entered against it, .following a bench trial, awarding $41,000 on McClung’s breach of warranty claim and $26,000 for attorney fees. Clearwater contends that the trial court improperly awarded MeClung attorney fees under OCGA § 13-6-11.

OCGA § 13-6-11 allows recovery of attorney fees if “the defendant has acted in bad faith, has been stubbornly litigious, or has caused the plaintiff unnecessary trouble and expense.” It is only necessary for recovery that the plaintiff show any one of these three conditions exists. Further, an award of attorney fees under OCGA § 13-6-11 is to be affirmed if there is any evidence to support it. City of Gainesville v. Waters, 258 Ga. App. 555, 559 (4) (574 SE2d 638) (2002). In addition, “[q]uestions concerning bad faith, stubborn litigiousness, and unnecessary trouble and expense under OCGA § 13-6-11 are generally questions for the [factfinder] to decide.” Jones v. Ceniza, 257 Ga. App. 806, 810 (5) (572 SE2d 362) (2002).

Viewed with all inferences in favor of the findings of the trial court, sitting as factfinder, the evidence was that Ginny Powell, whose past employment was as a receptionist/bookkeeper, formed Clearwater Construction Company in April 1994, with two men from Atlanta, intending to buy land in the Gainesville area and build spec houses for sale. Powell had previously built a wood home with a friend in Dawson County and became interested in the process, but otherwise had no construction experience. In the spring of 1995, construction began on the home eventually purchased by MeClung. Prior to this, Clearwater had built two houses using synthetic stucco, referred to as an External Foam Insulation System (EFIS).

Gardner, Clearwater’s construction supervisor, was responsible for bidding jobs to subcontractors, scheduling them, and overseeing the job. Pirkle, who worked in stucco, did the EFIS on the MeClung house, installing a Colormatch product. Prior to 1995, Pirkle had done only one other EFIS home and was not certified as an installer by the manufacturers of the EFIS products until 1997. During the construction of McClung’s home, when the stucco finish appeared complete, a neighbor walking his dog noticed work being done on the stucco and was told by Gardner that “we’re fixing the stucco.” Pirkle testified that, while the house was for sale, he was in the neighborhood and noticed some problems with the EFIS. He made some repairs at that time, which included cutting holes in the stucco surface, pumping glue into the foam, board, and nailing the foam board to the sheathing in an attempt to repair it.

*790 McClung was looking for a home in 1996, following her divorce, and Rice was her real estate agent. Because Rice had a home with EFIS which had some problems, she and McClung discussed artificial stucco. McClung had also seen reports on television and in magazines concerning industry-wide problems with EFIS. McClung believed that Dryvit was the best EFIS available, and she wanted that product on her home. When she and Rice, along with Mr. and Mrs. Powell, 1 initially walked through the house, an inquiry was made regarding the type EFIS on the home. Either Mr. or Mrs. Powell said it was Dryvit.

In November 19.96, McClung and Clearwater signed a sales contract on the house. A special stipulation to the contract was “seller to furnish purchaser in writing a binding warranty covering any and all defects of structure for a period of one (1) year from date of closing.” 2 As provided in the contract, McClung had an inspection done of the house by Bailey of All Pro Home Inspection and problems with the stucco were noted by Bailey in his report. With his report, he provided McClung with the Dryvit installation instructions.

After this inspection, an amendment to the sales contract was prepared by Rice, McClung’s agent, and provided, among other items, “seller to correct Drivet system at all windows, doors, openings and deck per the ‘Dryvit Corporation Installation Instructions’ which are attached.” Duncan, Clearwater’s listing agent for the house, marked out that provision and wrote in “correction of Drivet System was done according to Inspection Report.”

The sale closed, and McClung moved into the house. In October 1997, McClung noticed further problems with the EFIS, including gaps between the stucco and other surfaces. She retained Mary Dil-lingham of EFIS, Stucco Inspections to inspect the house and prepare a report. Dillingham’s evaluation dated November 24, 1997, stated that

[t]he EIF System application on this home has failed on almost every wall. Wall softness and delamination is [sic] excessive. Most of the EFIS application details and specifications recommended by Dryvit or any major manufacturer were not followed at the time of construction — lack of compliance has resulted in failure of varying degrees.

*791 Dillingham recommended removal and replacement of the EFIS. The report contained a one and one-half page single spaced list of needed repairs. McClung forwarded this report to Clearwater with her letter requesting that the home be brought up to building specifications and EFIS specifications. From November through March 1998, Clearwater’s Powell and McClung exchanged letters regarding the problem. It was not until February 1998 that Clearwater had Anderton of Southern Home Inspection go evaluate the house. Anderton, whose college degree was in animal science, had become involved in plastering in 1991. In the fall of 1997, he attended a seminar on moisture analysis of EFI systems. According to him, his inspection was not to determine whether the system had been installed pursuant to manufacturer’s requirements, but only to determine whether the EFIS was functioning as a moisture barrier. Although acknowledging that there were a number of problems with the EFIS in this regard, Anderton recommended that only spot repairs be made. By letter of March 30, 1998, McClung again demanded that Clearwater remove the EFIS and replace it, but Clearwater refused, stating that it would only make those repairs suggested by Anderton. Powell acknowledged that Clearwater had never offered to remove and replace the EFIS.

Tarbutton, a civil engineer retained by McClung, testified regarding the extensive moisture damage to her home as a result of the improperly installed EFIS. He also examined both Anderton’s and Dillingham’s reports and concluded that Anderton’s moisture testing had not been done in accordance with standard procedures. For example, one of the moisture probes had been inserted into an area above the garage door, an area not likely to have water damage. Tarbutton agreed with many of Dillingham’s conclusions and also recommended removal and replacement of the EFIS.

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Bluebook (online)
584 S.E.2d 61, 261 Ga. App. 789, 2003 Ga. App. LEXIS 772, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clearwater-construction-co-v-mcclung-gactapp-2003.