Electric Controls v. Ponderosa Fibres of America

19 S.W.3d 222, 1999 Tenn. App. LEXIS 678, 1999 WL 1097981
CourtCourt of Appeals of Tennessee
DecidedOctober 6, 1999
Docket02A01-9712-CH-00304
StatusPublished
Cited by17 cases

This text of 19 S.W.3d 222 (Electric Controls v. Ponderosa Fibres of America) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Electric Controls v. Ponderosa Fibres of America, 19 S.W.3d 222, 1999 Tenn. App. LEXIS 678, 1999 WL 1097981 (Tenn. Ct. App. 1999).

Opinion

FARMER, J.

Defendant Vanderbilt Industrial Contracting Corporation (VICC) appeals the trial court’s judgments which awarded attorney’s fees to two of VICC’s co-defendants in this lawsuit, Kajima International, Inc., and Titan Contracting and Leasing *224 Company. We reverse the trial court’s judgments based upon our conclusion that the relief awarded exceeds the scope of the relief requested by the parties’ pleadings.

This litigation began in June 1992 when Electric Controls and Service Company, on behalf of itself and other creditors, filed suit to enforce a mechanics’ and material-men’s hen on the real property located at 1535 North Thomas in Memphis, Tennessee. Electric Controls previously had provided labor, material, services, and equipment for a construction project on the property known as the Shelby Tissue Project. Electric Controls’ complaint named as defendants, among others, the project’s owner, the project’s general contractor, and various subcontractors. According to Electric Controls’ complaint, Kajima, the general contractor of the Shelby Tissue Project, had subcontracted the construction of the project to Titan and VICC. Titan, in turn, subcontracted its portion of the construction to VICC. Consequently, VICC and its subcontractors, including Electric Controls, performed all of the construction on the Shelby Tissue Project. Kajima, Titan, and VICC are the only parties to this appeal.

Shelby Tissue, Inc., the project’s owner, filed an answer to Electric Controls’ complaint. In addition to answering the complaint, Shelby Tissue filed a cross-claim for breach of contract against Kajima and its surety. Shelby Tissue’s cross-claim alleged that Kajima had breached the parties’ construction contract by, inter alia.

(a) Failing to complete the Project within the time required by the Contract;
(b) Fading to pay the subcontractors, suppliers and materialmen for work, labor and materials incorporated into the Project;
(c) Failing to employ subcontractors and materialmen with adequate skills and knowledge to execute and perform work on the Project in a skillful and workmanlike fashion;
(d) Failing to keep the Project free and clear of Mechanics’ and Material-men’s Liens and other encumbrances;
(e) Failing to construct the Project in accordance with plans and specifications for the Project;
(f) Failing to indemnify and hold Shelby Tissue harmless from claims and liens of subcontractors and material suppliers to the Project.

Faced with Shelby Tissue’s breach of contract claim, Kajima filed two cross-claims for indemnity, one against Titan and its surety and the other against VICC. Kajima’s cross-claim against VICC sought damages “for breach of contract, contribution, indemnity and/or compensatory and punitive damages, including attorneys fees, costs of litigation and pre-judgment interest.” In support of Kajima’s request for attorney’s fees, which is the subject of this appeal, Kajima’s crosscomplaint alleged that,

(a) [Shelby Tissue] has sued Kajima, claiming that work performed on the job site was defective. Kajima denies those allegations, but if any of the allegations of [Shelby Tissue] are found to be true, Kajima is entitled to indemnity, contribution and/or damages from [VICC] for any such work that may be deemed to be defective and which was performed by [VICC] or at its direction or under its supervision. The damages claimed by Kajima are equal to that amount which might be awarded against Kajima, plus attorney fees and costs and pre-judgment interest.
(c) Kajima has been sued by [Shelby Tissue] in this matter, on the basis that the work performed on [the Project] was not performed in a timely manner. Ka-jima denies these allegations, but in the event these allegations are held to be true to the extent [VICC] is responsible, Kajima is entitled to an award of damages against [VICC], equal to any amount awarded against Kajima, plus *225 attorney fees, costs and pre-judgment interest.
(d) Kajima has been sued by [Shelby Tissue] on the basis that a subcontractor of [VICC], [Electric Controls], lacked the financial wherewithal to properly perform work on [the Project], Kajima denies this allegation, but if that allegation is held to be true, and if Kajima is assessed damages as a result of that allegation, Kajima claims that to the extent [VICC] is responsible, [VICC] should be liable to Kajima for any damages assessed against Kajima, plus attorney fees, costs and pre-judgment interest.
(e) Kajima has been sued in this matter by [Shelby Tissue] for alleged improper design and/or improper workmanship in connection with [the Project], To the extent such design or workmanship is attributable to [VICC] and/or its subcontractors, Kajima is entitled to an award of damages against [VICC], in an amount equal to that assessed against Kajima, plus attorney fees, costs and pre-judgment interest.
(f) To the extent [VICC] was obligated to perform a significant and substantial portion of the work on [the Project], Kajima is entitled to contribution, indemnity and/or breach of contract damages, or other damages against [VICC], equal to any judgment or award of damages against Kajima in connection with that Project, plus attorney fees, costs and pre-judgment interest. This claim 'of Kajima encompasses not only all causes of action alleged by [Shelby Tissue], but also all causes of action in connection with this job site against Ka-jima by any party.

Kajima attached to its cross-complaint a copy of the subcontract executed by Kaji-ma and VICC, which contained the following indemnification clause:

[VICC] shall indemnify, hold harmless and defend [Kajima], [Shelby Tissue] and [Shelby Tissue’s] lender and all of their agents and employees from and against all claims, damages, losses and expenses, including attorney’s fees, arising out of, or resulting from, the performance of [VICC’s] Work under this Subcontract, provided that any such claim, damage, loss, or expense (a) is attributable to bodily injury, sickness, disease, or death, or patent infringement, or to injury to or destruction of tangible property (other than the Work itself) including the loss of use resulting therefrom, and (b) is caused in whole or in part by any negligent act or omission of [VICC] or anyone directly or indirectly employed by [VICC] or anyone for whose acts [VICC] may be liable, or is caused by or arises out of the use of any products, material or equipment furnished by [VICC] regardless of whether it is caused in part by a party indemnified hereunder.

Titan answered Kajima’s cross-claim and filed its own cross-claim for indemnity against VICC. Like Kajima’s, Titan’s cross-complaint sought an award of damages and attorney’s fees against VICC, and Titan’s requests for this relief closely mirrored the allegations of Kajima’s cross-complaint. Titan attached to its cross-complaint a copy of its subcontract with VICC, which contained essentially the same indemnification clause found in Kaji-ma’s subcontract with VICC.

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Cite This Page — Counsel Stack

Bluebook (online)
19 S.W.3d 222, 1999 Tenn. App. LEXIS 678, 1999 WL 1097981, Counsel Stack Legal Research, https://law.counselstack.com/opinion/electric-controls-v-ponderosa-fibres-of-america-tennctapp-1999.