Everman's Elec. v. Evan Johnson & Sons

955 So. 2d 979, 2007 WL 1334396
CourtCourt of Appeals of Mississippi
DecidedMay 8, 2007
Docket2005-CA-01544-COA
StatusPublished

This text of 955 So. 2d 979 (Everman's Elec. v. Evan Johnson & Sons) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Everman's Elec. v. Evan Johnson & Sons, 955 So. 2d 979, 2007 WL 1334396 (Mich. Ct. App. 2007).

Opinion

955 So.2d 979 (2007)

EVERMAN'S ELECTRIC CO., INC., Appellant
v.
EVAN JOHNSON & SONS CONSTRUCTION, INC. and W.G. Yates Construction Company, Inc., Appellees.

No. 2005-CA-01544-COA.

Court of Appeals of Mississippi.

May 8, 2007.

*980 Thomas W. Prewitt, attorney for appellant.

W. Edward Hatten, Jr., Haley N. Broom, Gulfport, Donald C. Dornan, Jr., attorneys for appellees.

Before LEE, P.J., GRIFFIS and ROBERTS, JJ.

GRIFFIS, J., for the Court.

¶ 1. Everman's Electric Company, Inc. ("Everman") brought this action against Evan Johnson & Sons Construction, Inc., ("Johnson") and W.G. Yates Construction Company, Inc. ("Yates") for damages arising out of work performed at a construction project, on which all three were co-prime contractors. The Harrison County Circuit Court granted summary judgment in favor of Johnson and Yates. Everman appeals and argues the trial court erred in using the contract language to bar recovery. We reverse and remand the summary judgment entered in favor of Johnson and affirm the summary judgment entered in favor of Yates.

FACTS

¶ 2. In 2001, the Biloxi Public School District ("BPSD") began construction of a new Biloxi High School. Rather than hire a general contractor, which would be responsible for hiring subcontractors, BPSD directly contracted with each contractor. On February 1, 2000, BSPD had contracted with Yates to serve as the Construction Manager. Yates was responsible, among other things, for managing, scheduling, and supervising all the contractors. Also, according to its contract, Yates was to act as BPSD's agent and representative with the other contractors. BPSD contracted with Johnson to serve as the general works contractor. Johnson likewise was responsible for coordinating its work with the other contractors. On February 7, 2001, BPSD contracted with Everman to serve as the project's electrical contractor. The separate contracts of Everman, Yates, and Johnson each incorporated by reference the General Conditions, the Project Manual, and written modifications executed after the date of the agreement.

¶ 3. During the project, scheduling confusion caused Everman delays and the need to rework wiring and stubs which it had already set up in the building. Specifically, Everman took issue with the block mason contractor who ran over its wiring, poured floors, and erected walls and ceilings before Everman was scheduled to perform the wiring. At the end of the project, Everman accepted final payment, *981 which included deductions for "fire proofing performed by others," "door and frame damage," and "damages to installed ceiling tiles."

¶ 4. Everman and its president Tyrone Everman, individually, brought this action against Johnson and Yates. Everman alleged that Johnson and Yates negligently performed their duties under their respective contracts with BPSD. As a result, Everman claimed that it did not realize as much profit as it otherwise would have received. Mr. Everman also claimed individual damages for emotional distress.[1]

¶ 5. The trial court granted the motions for summary judgment filed by Johnson and Yates on the ground that Everman waived its claims. Everman appeals the grants of summary judgment.

STANDARD OF REVIEW

¶ 6. This Court employs a de novo standard of review of a lower court's grant or denial of summary judgment and examines all the evidentiary matters before it — admissions in pleadings, answers to interrogatories, depositions, affidavits, etc. McMillan v. Rodriguez, 823 So.2d 1173, 1176-77(¶ 9) (Miss.2002). The evidence must be viewed in the light most favorable to the party against whom the motion has been made. Id. at 1177(¶ 9). If, in this view, there is no genuine issue of material fact, and the moving party is entitled to judgment as a matter of law, summary judgment should forthwith be entered in his or her favor. Id. Issues of fact sufficient to require reversal of a summary judgment obviously are present where one party swears to one version of the matter in issue, and another says the opposite. Id.

ANALYSIS

I. Whether Mississippi extends liability to third parties damaged by the negligence of professionals performing the duties Johnson and Yates performed.

¶ 7. Everman argues that Mississippi has long recognized the rule that engineers/architects are liable to a contractor or third party not in privity when damaged by the negligent performance of a contractual duty owed to the owner. Everman cites us to State v. Malvaney, 221 Miss. 190, 210, 72 So.2d 424, 431 (1954), where the supreme court held that an architect's obligation to supervise the performance of the contract created a duty which extended to a third party (the surety) in the absence of privity of contract, stating, "[t]he architect, therefore, undertook the performance of an act which, it was apparent, if negligently done would result in loss to the surety, and the law imposed upon him the duty to exercise due care to avoid such loss. . . ." Hence, Everman claims that this principle makes an architect or engineer liable to a third party for negligently failing to supervise, schedule and coordinate construction, and it applies to Johnson and Yates because they assumed similar duties.

¶ 8. Johnson and Yates counter by arguing that Everman's claims are for negligence and not of contract. Johnson and Yates claim that Everman cannot point to any legal duty which it could contend was breached by either Johnson or Yates.

¶ 9. Everman's complaint asserted two claims — delay damages and liquidated damages. First, on the claim for delay *982 damages, Count I claimed both Johnson and Yates:

negligently interfered with, hindered, delayed and made Everman's work more expensive; negligently prevented Everman and Mr. Everman from organizing and running Everman's crews so that its work could be performed efficiently. . . . Their negligence made Everman's operations much more costly and Mr. Everman was unable to schedule Everman's manpower so that it performed effectively and efficiently; instead . . . Everman's operations [were] made much more expensive th[a]n it should have been since Everman was required to move its labor force from location to location. . . . [,] expensive delays and other reductions in efficiency experienced by Everman at the Project and caused the conditions in which Everman was required to work to be different and more expensive than they would and should have been. . . .

¶ 10. Second, on the claim for liquidated damages, Count II asserted that Yates negligently caused liquidated damages to be assessed against Everman. According to the contract, time was of the essence. If Everman caused a delay in construction, the liquidated damages clause applied, and Everman was liable to BPSD for liquidated damages in the amount of $1,000 a day. If Everman's work was delayed through no fault of its own, then the delay clause applied, and Everman was entitled to additional time. Everman asserts that Yates knew or should have known that the delays were not Everman's fault.

¶ 11. The trial court held that Everman waived these claims by virtue of the "no damages for delay" clause in its contract and by accepting final payment.

A. No damage for delay clause

¶ 12. The General Conditions, incorporated into Everman's contract, provided:

If [Everman] is delayed, hindered, or impede[d] at any time in the progress of the Work for any reason or by any alleged act or neglect of . . . [Yates] . . .

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Cite This Page — Counsel Stack

Bluebook (online)
955 So. 2d 979, 2007 WL 1334396, Counsel Stack Legal Research, https://law.counselstack.com/opinion/evermans-elec-v-evan-johnson-sons-missctapp-2007.