Donnelly Construction Co. v. Oberg/Hunt/Gilleland

677 P.2d 1298, 138 Ariz. 190, 1983 Ariz. App. LEXIS 668
CourtCourt of Appeals of Arizona
DecidedMay 17, 1983
DocketNo. 1 CA-CIV 5551
StatusPublished
Cited by1 cases

This text of 677 P.2d 1298 (Donnelly Construction Co. v. Oberg/Hunt/Gilleland) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Donnelly Construction Co. v. Oberg/Hunt/Gilleland, 677 P.2d 1298, 138 Ariz. 190, 1983 Ariz. App. LEXIS 668 (Ark. Ct. App. 1983).

Opinion

OPINION

JACOBSON, Presiding Judge.

We are asked in this case to reassess whether an architect’s liability in tort for negligent preparation of plans and specifications is limited to those individuals with whom the architect has contractual “privity”. In particular, does a contractor who relies upon those allegedly defective plans in submitting bids to an owner have a cause of action in negligence against the architect?

Since this matter was disposed of on a motion to dismiss for failure to state a claim for relief, the pleadings determine the facts. Appellant, Donnelly Construction Company (Donnelly) brought an action against Page School District No. 8 (Page School) and appellees, Oberg/Hunt/Gilleland Architects, Inc. (Architects) for damages arising out of a construction project in which Donnelly, as the contractor, was to perform site improvements at Page School.

Page School employed the Architects to prepare plans and specifications in connection with the site improvement and these plans and specifications were provided to prospective contractors for bidding purposes. Donnelly alleged that it relied on these plans and specifications in submitting its bid to perform the contemplated construction. It further alleged that as a result of the errors in the plans and specifications it incurred additional costs beyond the contract bid price. It is not contended that Donnelly’s cause of action against the Architects did not sound basically in negligence and sought to collect from these Architects its pecuniary losses proximately caused by the alleged errors.

The Architects filed a motion to dismiss or in the alternative a motion for summary judgment. The gist of the motion to dismiss was that Donnelly’s complaint failed to state a cause of action against the Architects as the Architects owed no duty to Donnelly as a contractor, its duty being limited to those with whom it had a contractual relationship, in this case, Page School. In essence, the Architects argued that since there is a lack of privity between itself and the contractor, it owed no duty to the contractor and therefore was not liable in negligence to it.

[192]*192The alternative motion for summary judgment took somewhat a different tack, that is, that the Architects undertook to prepare plans and specifications only for conformance with the design concept of the project and not to verify its accuracy, and that Donnelly was to verify by its own tests and investigation the conditions of the job site. This concept was supported by an affidavit attached to the motion from Kenneth I. Oberg, president of the Architects.

The trial court granted the motion to dismiss the complaint as to the Architects1 for “failure to state a cause of action upon which relief can be granted and pursuant to Rule 12(b)(6) of the Arizona Rules of Civil Procedure____”

Before reaching the merits of this matter, we need to define what issues are properly before us on appeal. The Architects argue that since they supported their motion to dismiss by the Oberg affidavit, and Donnelly did not controvert that affidavit, the trial court’s action in dismissing the complaint can be supported as the granting of a motion for summary judgment by the resolution of the uncontested factual issue presented by the Oberg affidavit.

We disagree. It is apparent that the trial court did not treat this motion as one for summary judgment. Not only is the trial court’s order specific in granting the motion to dismiss on the basis of Rule 12(b)(6), Rules of Civil Procedure, it did not rule on Donnelly’s motion for a continuance in order to present evidence to support a response to the motion for summary judgment at the urging of the Architects that a continuance was unnecessary because the motion could be disposed of by the grounds raised for dismissal. We thus have clearly before us the issue of whether the trial court was legally correct in granting the motion to dismiss Donnelly’s complaint sounding in negligence because of a lack of privity between Donnelly and the Architects.

The Architects argue that the issue of whether a contractor has a cause of action against an architect, in absence of contractual privity, has been decided in Arizona in the case of Blecick v. School District No. 18 of Cochise County, 2 Ariz.App. 115, 406 P.2d 750 (1965). In Blecick, a contractor, who had been awarded a contract to build improvements for a school, sued both the school district and the architects alleging that because of errors in the architect’s plans and specifications, problems developed in the construction work and as a result the architect refused to certify completion and the school district refused to pay the balance of the contract price. While the gravamen of the contractor’s complaint is somewhat unclear, Division Two of this court framed the issue thusly:

Is an architect liable to a contractor for the preparation of defective plans and specifications?

2 Ariz.App. at 119, 406 P.2d at 754.

In holding that such liability did not exist, the court stated:

There is no privity between plaintiffs and the architects by virtue of the first contract nor are plaintiffs third-party beneficiaries thereof. The obligations of performance due thereunder by the architects are owed solely to the School District and only the School District can assert claims for breach of said contract. ******
The mere co-existence of the two contracts with one contracting party (the School District) common to both, does not give the plaintiffs a right to enforce obligations owned by the architects to the School District.

2 Ariz.App. at 120, 406 P.2d at 755.

While, as indicated, the contractors’ cause of action in Blecick is unclear, it appears that the Division Two holding requiring privity between the architect and the contractor is as equally applicable to tort actions by the contractor as it is to actions for breach of contract. See Harbor [193]*193Mechanical, Inc. v. Arizona Electric Power Cooperative, Inc., 496 F.Supp. 681 (D.Ariz.1980).

Donnelly’s attack on the Blecick holding is double barrelled. First, it is contended that the Blecick holding is directly contrary to the Arizona Supreme Court’s decision in Craviolini v. Scholer & Fuller Associated Architects, 89 Ariz. 24, 357 P.2d 611 (1960). In particular, Donnelly relies on the following statement in Craviolini:

Thus the architect has no immunity as an architect; immunity attaches only when he is performing ... in the capacity of a judge.

89 Ariz. at 28, 357 P.2d at 614 (Emphasis in original).

From this statement, Donnelly urges that it is only when the architect is acting in its quasi-judicial capacity to settle disputes under the contract that it is immune from liability for its actions and that when not so acting in this capacity, it is liable to the contractor. Since Donnelly does not seek to impose liability for the Architects acting in a quasi-judicial function, it is contended under Craviolini, the Architects are liable to the contractor. While it is true that in Craviolini,

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Donnelly Const. Co. v. Oberg/Hunt/Gilleland
677 P.2d 1298 (Court of Appeals of Arizona, 1983)

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Bluebook (online)
677 P.2d 1298, 138 Ariz. 190, 1983 Ariz. App. LEXIS 668, Counsel Stack Legal Research, https://law.counselstack.com/opinion/donnelly-construction-co-v-oberghuntgilleland-arizctapp-1983.