Day Island Yacht Harbor, V General Construction Co

Court of Appeals of Washington·Decided August 12, 2014·No. 44402-0·Unpublished

Opinion

FILED

COURT OF APPEALS

DIVISION II

20! AUG 12 PM ! 2: 136

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON DIVISION II

GENERAL CONSTRUCTION CO., No. 44402 -0 -II

Appellant,

v.

DAY ISLAND YACHT HARBOR, INC., UNPUBLISHED OPINION

Respondent.

HUNT, P. J. — General Construction Company appeals a $ 1. 25 million jury verdict based on its finding that General Construction breached its construction contract with Day Island Yacht Harbor, Inc. General Construction argues that ( 1) the trial court erred as a matter of law in

admitting Brian McGuire' s testimony about the value of his marina, ( 2) the jury verdict lacked substantial supporting evidence, and ( 3) the trial court erred in denying General Construction' s motion for new trial for these foregoing two reasons and also because ( a) the verdict did not " do substantial justice" and ( b) the trial court improperly ruled that General Construction waived its right to challenge McGuire' s opinion testimony about the diminution in value of his marina. Br. of Appellant at 37. We affirm.

No. 44402 - -II

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FACTS

I. MARINE CONSTRUCTION CONTRACT

Day Island Yacht Harbor, Inc. is a Washington corporation, which Brian McGuire acquired in 1970. Beginning in 1988, Day Island contracted with General Construction, a construction company specializing in marine- related construction work, whenever Day Island needed piling replaced or other marine construction work.

On May 20, 2008, Day Island and General Construction entered into a construction agreement for dredging and piling work at Day Island Yacht Harbor, for an agreed price in excess of $ 800,000. The agreement provided that General Construction would furnish the

necessary personnel, equipment, and facilities for the project and that its duties included ( 1)

mobilizing and demobilizing cranes, anchors, buckers, and material barges; ( 2) demolishing float piles; ( 3) moving the floats and boathouses to temporary anchorage; ( 4) dredging ( " all work to

clamshell dredge into small barges "); ( 5) driving new piles; and ( 6) installing long wood piles between existing wood piles. Clerk' s Papers ( CP) at 12. General Construction also agreed to

dredge the marina down to a depth of minus ten feet with a one -foot allowance. The agreement

stipulated that the project would commence July 16, 2008. The agreed price was in excess of

800,000.

General Construction began dredging in July 2008, but it encountered difficulties and could not dredge to the required minus 10 -foot depth. General Construction told McGuire that it

was experiencing resistance " in hardpan" and was unable to dredge the north and south ends of the marina. Verbatim Report of Proceedings ( VRP) at 281. McGuire paid General Construction

615, 000 for its work to date.

No. 44402 -0 -II

Concerned that General Construction had not completed its work in some areas, McGuire

hired Wilson & Associates to survey the area. The survey revealed that General Construction had not properly dredged the area: For example, under three boathouses in the north end, there

was still material that needed dredging. The south end of the moorage basin was not fully dredged. And the boathouses on the eastern end appeared to have shifted eastward. The survey also revealed that although General Construction was supposed to have dredged 12, 800 cubic

yards of material, it had dredged only about 7, 000 cubic yards.

Finishing the project required taking the marina apart and " starting over "; it involved

such work as re- wiring, removing material underwater, pumping sediment onto the shore, removing and replacing pilings at the north and south ends of the marina, re- wiring the facility, and potentially obtaining a new permit. VRP at 319. McGuire' s attempt to have General

Construction finish the dredging failed. So McGuire contacted other marine construction

companies and sought price estimates for finishing the dredging: McGuire contacted Frank

Immel at Global Divers about the cost of removing underwater material and pumping sediment on shore. McGuire contacted Thompson Pile Driving about removing the pilings. And he

contacted Sound Rock and Bulkhead about dredging the material that General Construction had failed to dredge and refused to complete.

II. PROCEDURE

On May 19, 2011, Day Island sued General Construction for breach of contract, alleging that ( 1) General Construction had breached its duty to perform dredging and marina operations in accordance with their written agreement; and ( 2) as a result of this breach, Day Island was entitled to specific performance or damages. General Construction responded with a set of

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interrogatories asking Day Island to list specific damages, which it did. There was a jury trial in October 2012.

A. Trial Testimony

1. Day Island' s witnesses Jeffrey Layton, a coastal civil engineer with Layton & Sell, had worked as an engineer

with General Construction since 1977. In 2002, McGuire had contacted Layton to help with permitting for the Day Island project. Layton testified that the main dispute between McGuire

and General Construction involved the south area of Day Island and the diagonal boathouses. The plan was for General Construction ( 1) to dig out a small area around the south end to allow material to flow down the channel into the marina before dredging underneath the boathouse, ( 2)

to remove the boathouses in the basin and to store them offshore, and ( 3) then to return the

boathouses to their original positions. But General Construction did not move all the boathouses.

McGuire testified about the agreement into which Day Island had entered with General Construction. He stated that General Construction had failed to dredge 200 to 250 cubic yards at

the north end of the marina and 250 cubic yards at the south end. McGuire had first noticed a

problem before General Construction left the site in September 2008; and he had complained to

Tom Jirava, General Construction' s employee in charge of site operations, that General

Construction had not completed dredging the south and north ends. In September 2008,

McGuire contacted General Construction, asking it to complete the promised dredging; General Construction refused. Nor did General Construction assist McGuire to fix the problems its

incomplete dredging had caused. Instead, General Construction told McGuire to contact Frank

No. 44402 -0 -II

Immel and to hire a diver to " suck the mud up and put it up on [ the] property," which would

have cost over $500,000. VRP at 308.

McGuire had been unable to find another contractor to " fix" General Construction' s

failure to dredge the north and south ends of the marina and its failure to move the boathouses, without first taking the marina apart and starting over. VRP at 318. The cost of rebuilding the marina, including rewiring, would be at least $ 1 9 million, the amount McGuire had already spent on the project. When McGuire' s counsel asked if he had an opinion about how much the

value of the marina had dropped as a result of General Construction' s failure to dredge properly, General Construction objected on grounds of lack of foundation and expertise. The trial court

overruled the objection, stating that McGuire could answer and that the weight " goes to the

jury."

Marty Jackson testified that Day Island had hired him and his former partner John Patterson to work with General Construction to replace the boathouses back into the basin and to

secure them in place with pilings. General Construction had to " get certain piling in place" before Jackson and General Construction could bring in the first row of boathouses; General Construction would then install pilings outside the boathouses to secure them before the next row

of boathouses could be brought in and secured. Jackson saw General Construction dredge and

pile drive using two barges, which Jackson believed were rather large for working in Day Island' s small basin, " sort of like a bull in a china shop." General Construction' s large barges'

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