Energy Contractors, Inc. v. Georgia Metal System & Engineering, Inc.

367 S.E.2d 324, 186 Ga. App. 475
CourtCourt of Appeals of Georgia
DecidedMarch 18, 1988
Docket75596, 75597
StatusPublished
Cited by14 cases

This text of 367 S.E.2d 324 (Energy Contractors, Inc. v. Georgia Metal System & Engineering, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Energy Contractors, Inc. v. Georgia Metal System & Engineering, Inc., 367 S.E.2d 324, 186 Ga. App. 475 (Ga. Ct. App. 1988).

Opinions

Sognier, Judge.

Georgia Metal Systems & Engineering, Inc. (GMS), a subcontractor, brought an action against Energy Contractors, Inc. (EC), its general contractor, and EC’s president, Alex Jordan, alleging that EC had breached its contract by wrongfully terminating GMS from a particular construction job, and that both EC and Jordan had tortiously interfered with its contractual relations. EC answered and counterclaimed for damages against GMS, alleging that it, and not EC, had breached the contract in question and others and that GMS was guilty of fraud in its performance of the contracts. At the close of GMS’s evidence, the trial court denied EC’s motion for a directed verdict based on GMS’s failure to prove its damages, but granted Jordan’s motion for a directed verdict and dismissed Jordan as a defendant. The trial court subsequently granted EC’s motion for a directed verdict as to the tort claim. The case went to the jury on the claim for breach of contract, and the jury returned a verdict in favor of GMS for $20,000. Both parties appeal.

The evidence at trial showed that EC and GMS entered into a written contract whereby GMS was to fabricate and install an air conditioning ventilation system at a project known as Charles Evans BMW. EC and GMS also entered into an oral contract whereby GMS was to perform similar services at a project known as Lawrenceville Medical/Dental Center.

After GMS had initiated work on these projects, EC terminated [476]*476its manager in charge of the Charles Evans BMW project, Robert Tiller. Shortly thereafter, Tiller began working for GMS. Jordan did not want Tiller working on EC’s projects as an employee of GMS and, by letter dated May 28, 1985, Jordan informed GMS “[t]he next time [Mr. R. H. Tiller] steps foot on one of [EC’s] jobs I will. . . [r]emove your Firm from the job, . . . [withhold all payments until such time as the job is complete whereupon all charges for completing your portion of the work will be deducted from any monies due you, . . . [o]btain a Restraining Order, and . . . [, i]f necessary obtain a Bond to satisfy any Lien you might record. I regret this action but I will not tolerate immature and unprofessional individuals even remotely associated with our Company.” GMS received four other letters from EC, dated May 28, 1985. In one of the letters Jordan threatened to repudiate the GMS/EC construction contracts if certain demands were not fulfilled by EC and, in another letter, Jordan threatened to “[o]btain a Restraining Order and . . . File Suit against . . .” GMS if Mr. Tiller “contacts” EC’s office.

Via letters dated May 29, 1985, EC repudiated its Charles Evans BMW and Lawrenceville Medical/Dental Center contracts with GMS, ordered GMS to leave the construction sites and advised GMS that both projects would be completed by other resources, the cost of which would be deducted “from [GMS’s] original quotation . . .”

1. In the main case, EC contends the trial court erred by admitting into evidence certain of its intra-office memoranda, because they were not relevant and were introduced to inflame the jury. “ ‘Any fact is relevant which, when taken alone or in connection with another or others would warrant the drawing by the jury of a logical inference with reference to the issue on trial.’ [Cits.]” Pope v. Triangle Chem. Co., 157 Ga. App. 386-387 (1) (277 SE2d 758) (1981). In the case sub judice, the intra-office memoranda shed light on EC’s motives for breaching the contracts with GMS. “ ‘Questions of relevancy of evidence, which includes the issue of materiality, are for the [trial] court, and in the absence of an abuse of judicial discretion, this court will not interfere.’ [Cit.]” Metro. Property &c. Co. v. Shepherd, 166 Ga. App. 300, 301 (1) (304 SE2d 74) (1983). We find no abuse of that discretion here, and consequently the trial court did not err by admitting into evidence the intra-office memoranda. See generally Smith v. State, 255 Ga. 685, 686 (2) (341 SE2d 451) (1986).

2. EC next maintains the trial court erred by failing to grant its motion for a directed verdict, arguing that GMS failed to carry its burden of proving damages. In this vein, EC contends that the jury’s $20,000 verdict was not supported by the evidence.

“The basic component of damages recoverable by a contractor when a construction contract is wrongfully breached ... is the net profit to which the contractor would have been entitled had full per[477]*477formance of the contract been permitted. That figure is reached by subtracting from the contract price the amount which full performance would have cost the contractor. If performance by either party had begun prior to the breach, adjustments must be made to ensure that the contractor receives the full amount of the profit, but no more. First, there must be added to the profit figure the amount of the contractor’s net loss up to the point of the breach. That figure is reached by subtracting from the expenses incurred by reason of the contractor’s performance the salvage or resale value of the material left on hand. The sum of those figures (the profit which would have been realized from full performance plus net loss incurred by performance to the date of breach) may in no event exceed the contract price. Second, there must be deducted from the recovery those amounts received by the contractor from the owner as prepayment or progress payment.” Williams v. Kerns, 153 Ga. App. 259, 260 (1), 266, 267 (265 SE2d 605) (1980).

In the case sub judice, GMS presented evidence showing that the contract price for the Charles Evans BMW project was $30,000; that the amount of contract “extras” (items authorized by EC to be added to the contract price) was $2,504.15; that the total amount of progress payments paid by EC was $13,500; that the amount of “invoices” (expenses) unpaid by EC was $13,215 and that the amount of GMS’s lost profits was $734. Applying the above formula, this was sufficient evidence upon which the jury could determine damages within a reasonable degree of certainty. See Williams v. Kerns, supra at 268 (2), and Cobb & Eldridge, Ga. Law of Damages (2d ed.) § 17-17. Further, in light of GMS’s evidence regarding attorney fees, interest and other expenses incurred by GMS as a result of EC’s alleged “bad faith” in breaching the contract, we do not find the jury’s verdict of $20,000 to be unreasonable. Consequently, the trial court did not err by failing to grant EC’s motion for directed verdict, and the jury’s verdict was not disproportionate to the evidence adduced at trial. Compare Story v. Monteith, 180 Ga. App. 517 (349 SE2d 760) (1986).

3. Lastly, EC asserts the general grounds, arguing that there was no evidence upon which the jury could have found against EC on its counterclaim for breach of contract against GMS as to the Lawrence-ville Medical/Dental Center project. We do not agree.

“In the absence of legal error, an appellate court is without jurisdiction to interfere with a verdict supported with some evidence, even where the verdict may be against the preponderance of evidence. [Cits.]” Thompson v. Hill, 143 Ga. App. 272, 275 (4), 276 (238 SE2d 271) (1977). In the case sub judice, not only was there conflicting evidence as to the subject matter and terms of the oral contract for materials and services to be supplied by GMS at the Lawrenceville Medical/Dental Center project, but there was evidence which author[478]*478ized a finding that EC breached this contract by ordering GMS off the project prematurely.

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Energy Contractors, Inc. v. Georgia Metal System & Engineering, Inc.
367 S.E.2d 324 (Court of Appeals of Georgia, 1988)

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367 S.E.2d 324, 186 Ga. App. 475, Counsel Stack Legal Research, https://law.counselstack.com/opinion/energy-contractors-inc-v-georgia-metal-system-engineering-inc-gactapp-1988.