CULLUM MECHANICAL v. SC Baptist Hosp.

520 S.E.2d 809, 336 S.C. 423
CourtCourt of Appeals of South Carolina
DecidedJuly 13, 1999
Docket2985
StatusPublished

This text of 520 S.E.2d 809 (CULLUM MECHANICAL v. SC Baptist Hosp.) is published on Counsel Stack Legal Research, covering Court of Appeals of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CULLUM MECHANICAL v. SC Baptist Hosp., 520 S.E.2d 809, 336 S.C. 423 (S.C. Ct. App. 1999).

Opinion

336 S.C. 423 (1999)
520 S.E.2d 809

CULLUM MECHANICAL CONSTRUCTION, INC., Plaintiff,
v.
SOUTH CAROLINA BAPTIST HOSPITAL, a/k/a Baptist Medical Center, Jenkins, Hancock & Sides Architects and Planners, Inc., Miller-Sharpe, Inc., John M. Miller, Donald R. Sharpe, and General Accident Insurance Company of America, Defendants.
Fairfield Flooring, Inc., Plaintiff,
v.
South Carolina Baptist Hospital, a/k/a Baptist Medical Center, Jenkins, Miller-Sharpe, Inc., John M. Miller, Donald R. Sharpe, and General Accident Insurance Company of America, Defendants.
Ross Wallcovering Co., Inc., Plaintiff,
v.
South Carolina Baptist Hospital, a/k/a Baptist Medical Center, Miller-Sharpe, Inc., John M. Miller, Donald R. Sharpe, and General Accident Insurance Company of America, Defendants.
Spratlin Electric Co., Inc., Plaintiff,
v.
South Carolina Baptist Hospital, a/k/a Baptist Medical Center, Miller-Sharpe, Inc., John M. Miller, Donald R. Sharpe, and General Accident Insurance Company of America, Defendants.
Sumter Lumber Company, Inc., Plaintiff,
v.
South Carolina Baptist Hospital, a/k/a Baptist Medical Center, Miller-Sharpe, Inc., John M. Miller, Donald R. Sharpe, and General Accident Insurance Company of America, Defendants, Palmetto Automatic Sprinkler Co., Inc., Plaintiff,
v.
South Carolina Baptist Hospital, a/k/a Baptist Medical Center, Miller-Sharpe, Inc., John M. Miller, Donald R. Sharpe, and General Accident Insurance Company of America, Defendants.
Columbia Glass, Inc., Plaintiff,
v.
South Carolina Baptist Hospital, a/k/a Baptist Medical Center, Miller-Sharpe, Inc., John M. Miller, Donald R. Sharpe, and General Accident Insurance Company of America, Defendants, *424 of whom Cullum Mechanical Construction, Inc., Fairfield Flooring, Inc., Ross Wallcovering Co., Inc., Spratlin Electric Co., Inc., Sumter Lumber Company, Inc., Palmetto Automatic Sprinkler Co., Inc., and Columbia Glass, Inc., are Appellants, and
Jenkins, Hancock & Sides Architects and Planners, Inc., and General Accident Insurance Company of America, are Respondents.

No. 2985.

Court of Appeals of South Carolina.

Heard February 9, 1999.
Decided May 3, 1999.
Refiled July 13, 1999.
Rehearing Denied July 24, 1999.

*425 Daniel T. Brailsford and J. Kershaw Spong, both of Robinson, McFadden & Moore, of Columbia, for appellants.

R. Davis Howser and Andrew E. Haselden, both of Howser, Newman & Besley; and D. Cravens Ravenel, of Baker, Barwick, *426 Ravenel & Bender, all of Columbia; and John V. Burch, of Bovis, Kyle & Burch, of Atlanta, GA, for respondents.

ORDER DENYING PETITION FOR REHEARING AND SUBSTITUTING OPINION

PER CURIAM:

After careful consideration of the Petition for Rehearing, the Court is unable to discover any material fact or principle of law that has been either overlooked or disregarded and, hence, there is no basis for granting a rehearing. It is, therefore, ordered that the Petition for Rehearing be denied. We withdraw the previously filed opinion and substitute the attached opinion.

HEARN, Judge:

Cullum Mechanical Construction, Inc. filed this action against South Carolina Baptist Hospital, a/k/a Baptist Medical Center (Owner), Jenkins, Hancock & Sides Architects and Planners, Inc. (Architect), Miller-Sharpe, Inc. (General Contractor), John M. Miller, Donald R. Sharpe, and General Accident Insurance Company of America (Surety), seeking $426,728.87 for unpaid goods and services on a project to upfit areas of the Baptist Medical Center.[1] The trial court granted Architect's summary judgment motion, finding it owed no legal or contractual duty to Cullum, a subcontractor. After a bench trial, the trial court ruled in favor of Surety, finding Cullum was not a third-party beneficiary under the bid bond. Cullum appeals both orders. We affirm.

FACTS

In the fall of 1992, Owner retained Architect to upfit the 8th and 9th floors of Baptist Hospital. Architect prepared a Project Manual dated April 11, 1993, to be used by potential contractors in submitting bids. General Contractor was among those contractors invited to bid on the project. On May 4, 1993, General Contractor submitted its bid of $3,540,700.00. *427 After some initial changes, Owner executed a contract on June 10, 1993, with General Contractor for $3,260,430.00. The Notice to Proceed date was June 11, 1993.

As portions of the work were completed, Architect certified payments to General Contractor: (1) $77,670.00 on June 28, 1993; (2) $114,967.80 on July 26, 1993; (3) $463,784.40 on August 30, 1993; (4) $476,515.80 on October 4, 1993; (5) $384,043.50 on November 3, 1993; and (6) $449,082.00 on December 3, 1993.

Despite receiving these monies, totaling $1,966,063.50, General Contractor did not pay its subcontractors. On October 11, 1993, Cullum wrote General Contractor, stating: "[A]s of September, we had billed you $442,065.60 and haven't received any payments. Please get our July and August payments to us immediately." It was not until November 10, 1993, however, that Cullum executed its contract with General Contractor. The contract's cover letter also acknowledged payment problems: "We billed $225,499.50 on August 19, 1993, and received this payment on November 9, 1993. This is not promptly or timely as indicated by the contract. We have also billed $127,712.70 on September 20, 1993, and payment is due but not received."

Other subcontractors began to complain about nonpayment. In response to Owner's inquiry, Architect requested a copy of General Contractor's payment bond on November 12, 1993. On December 7, 1993, General Contractor submitted a "General Agreement of Indemnity" issued by Chubb Group of Insurance Companies dated August 24, 1993. Despite not receiving a payment bond from General Contractor, Architect apparently approved reducing the retainage from ten to five percent in December 1993. Moreover, Architect certified additional payments totaling $1,284,893.95: (1) $635,911.45 on December 23, 1993; (2) $503,063.85 on January 31, 1994; (3) $94,819.95 on March 2, 1994; and (4) $51,098.70 on April 14, 1994.[2]

*428 Finally, on May 13, 1994, General Contractor admitted there was no payment bond on the project and that the monies it received from Owner had been used to pay unrelated legal bills. Cullum and other subcontractors sued Owner, General Contractor, Surety, and two principals of General Contractor; Cullum also sued Architect. Uncollectible default judgments were obtained against General Contractor. Cullum's claims against Owner were settled.[3] The trial judge granted Architect's motion for summary judgment. Cullum appeals this order. After a trial concerning Surety's liability, the trial judge found for Surety. Cullum, on behalf of all plaintiffs, appeals this order.

APPEAL AS TO ARCHITECT

Cullum first argues the trial court erred by granting Architect's summary judgment motion. We disagree.

"Summary judgment is proper where there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law." Tupper v. Dorchester County, 326 S.C. 318, 325, 487 S.E.2d 187, 191 (1997); see Rule 56(c), SCRCP.

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Cullum Mechanical Construction, Inc. v. South Carolina Baptist Hospital
520 S.E.2d 809 (Court of Appeals of South Carolina, 1999)

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520 S.E.2d 809, 336 S.C. 423, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cullum-mechanical-v-sc-baptist-hosp-scctapp-1999.