Day Island Yacht Harbor, V General Construction Co

CourtCourt of Appeals of Washington
DecidedAugust 12, 2014
Docket44402-0
StatusUnpublished

This text of Day Island Yacht Harbor, V General Construction Co (Day Island Yacht Harbor, V General Construction Co) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Day Island Yacht Harbor, V General Construction Co, (Wash. Ct. App. 2014).

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DAY ISLAND YACHT HARBOR, INC., UNPUBLISHED OPINION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 0

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.

2 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

3 No. 44402 - -II 0

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

4 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

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