Coffee Iron Works v. Qore, Inc.

744 S.E.2d 114, 322 Ga. App. 137
CourtCourt of Appeals of Georgia
DecidedJune 5, 2013
DocketA13A0613; A13A0616, A13A0617
StatusPublished
Cited by8 cases

This text of 744 S.E.2d 114 (Coffee Iron Works v. Qore, 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
Coffee Iron Works v. Qore, Inc., 744 S.E.2d 114, 322 Ga. App. 137 (Ga. Ct. App. 2013).

Opinion

DOYLE, Presiding Judge.

Plaintiffs Coffee Iron Works (“Coffee”), Floriece Spivey, and Ronnie Spivey appeal from the grant of summary judgment to defendant QORE, Inc., in the plaintiffs’ suits against QORE for damages allegedly caused by erroneous analytical work done by QORE for the Georgia Department of Transportation (“DOT”). The plaintiffs each filed similar lawsuits based on the same set of facts, and they appeal from orders entered on similar grounds, so we have consolidated their appeals for review. For the reasons that follow, we affirm in each case.

Summary judgment is proper when there is no genuine issue of material fact and the movant is entitled to judgment as a matter of law. A de novo standard of review applies to an appeal from a grant of summary judgment, and we view the evidence, and all reasonable conclusions and inferences drawn from it, in the light most favorable to the nonmovant.1

The three cases share the same factual background. In the late 1990s, the DOT contracted with Douglas Asphalt Company to per[138]*138form highway paving on a section of 1-95. By 2003, an alleged defect in the paving emerged, so the DOT hired QORE to perform certain materials testing specified by the DOT on samples taken from the Douglas Asphalt work. The tests were done to determine the amount of hydrated lime in the asphalt.2 QORE performed the testing, but according to the plaintiffs, the work was not scientifically valid, and it produced inaccurate results that led the DOT to place Douglas Asphalt into default with respect to several contracts for highway work. Douglas Asphalt also allegedly lost other contracts because of the test results.

The DOT presented a claim to the bonding company providing a surety for Douglas Asphalt’s highway work. The bonding company prevailed, but the plaintiffs alleged that the DOT’s litigation caused the bonding company to expend $3,000,000 in legal fees, which Douglas Asphalt became responsible for under an indemnity agreement. In a separate case, Douglas Asphalt sued QORE in federal court, challenging the validity of the testing and arguing that QORE’s negligent testing caused the DOT to default Douglas Asphalt. The district court granted summary judgment to QORE, and the judgment was affirmed on appeal by the Eleventh Circuit Court of Appeals.3

The plaintiffs in the present case also sued QORE, seeking damages based on the testing done by QORE, which allegedly caused the DOT to default Douglas Asphalt and stop awarding contracts to it. Ronnie Spivey and Coffee were guarantors of the Douglas Asphalt surety bond and allegedly suffered financial damage as a result of the DOT’s claims. Floriece Spivey, a Douglas Asphalt shareholder, alleged that she was damaged by the loss of work awarded to Douglas Asphalt, which ultimately led to its demise. After discovery in each case, the trial court entered orders granting QORE’s summary judgment motions against all three plaintiffs. Coffee appeals in Case No. A13A0613, Floriece appeals in Case No. A13A0616, and Ronnie appeals in Case No. A13A0617.

Case No. A13A0613

1. In each case, the trial court ruled that the claims were barred by res judicata based on the federal litigation. “Although we conclude [139]*139the trial court erred [by] granting summary judgment based on res judicata, the trial court’s rulings support the grant of summary judgment based on the closely-related doctrine of collateral estoppel.”4 Accordingly, we affirm under the right for any reason rule.5

The doctrine of res judicata prevents the re-litigation of all claims which have already been adjudicated, or which could have been adjudicated, between identical parties or their privies in identical causes of action. Three prerequisites must be satisfied before res judicata applies — (1) identity of the cause of action, (2) identity of the parties or their privies, and (3) previous adjudication on the merits by a court of competent jurisdiction.
On the other hand, the related doctrine of collateral estoppel precludes the re-adjudication of an issue that has previously been litigated and adjudicated on the merits in another action between the same parties or their privies. Like res judicata, collateral estoppel requires the identity of the parties or their privies in both actions. However, unlike res judicata, collateral estoppel does not require identity of the claim so long as the issue was determined in the previous action and there is identity of the parties, that issue may not be re-litigated, even as part of a different claim6

(a) Identity of claims or issues. The prior litigation, Douglas Asphalt’s federal suit against QORE, involved a nearly identical theory of liability, i.e., that QORE negligently performed the material testing in an unscientific manner, which caused the DOT to improperly reject the work done by Douglas Asphalt and declare it in default under the contract for highway work. Under that theory, if QORE had done the testing properly, the DOT would not have found fault with Douglas Asphalt’s work. The district court in that case characterized this cause of action as an ordinary negligence claim.7 But in this case, the complaints allege professional negligence, supported by affidavits attached pursuant to OCGA § 9-11-9.1 and OCGA § 24-9-67.1 [140]*140(2010). Therefore, because this cause of action is not identical to the one in the federal litigation, the res judicata bar, strictly speaking, does not attach.8

Nevertheless, the issues decided by the district court and affirmed on appeal are identical to the issues presented in this case. In the federal case,

Douglas [Asphalt] asserted that QORE . . . “negligently developed and/or utilized the [particular materials] tests to purportedly determine the amount of hydrated lime contained in the asphalt used for the 1-95 project.” It maintained that [QORE] “should have known that the tests were inaccurate and provided unreliable results,” and thus [was] liable for any harm that Douglas [Asphalt] suffered when [QORE] provided them to GDOT without any appropriate warnings to qualify them.9

This argument was rejected on appeal, when the Eleventh Circuit ruled that QORE had no duty to Douglas Asphalt.10

Here, Coffee alleged that QORE breached its duty to properly perform the materials testing or qualify the results reported to the DOT, and this caused Coffee damage as a result of the harm to Douglas Asphalt. The underlying issue, the existence of QORE’s duty to avoid harming Douglas Asphalt with inaccurate test results, is the same in both the federal litigation and this litigation. Therefore, there is sufficient identity of issues for purposes of collateral estoppel.

(b) Identity of parties or their privies. Coffee alleges that it was harmed by virtue of its status as a guarantor of surety bonds on Douglas Asphalt’s work.

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Bluebook (online)
744 S.E.2d 114, 322 Ga. App. 137, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coffee-iron-works-v-qore-inc-gactapp-2013.