Falls Sales Co. v. Board of Transportation

233 S.E.2d 569, 292 N.C. 437, 1977 N.C. LEXIS 1104
CourtSupreme Court of North Carolina
DecidedApril 14, 1977
Docket47
StatusPublished
Cited by21 cases

This text of 233 S.E.2d 569 (Falls Sales Co. v. Board of Transportation) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Falls Sales Co. v. Board of Transportation, 233 S.E.2d 569, 292 N.C. 437, 1977 N.C. LEXIS 1104 (N.C. 1977).

Opinion

COPELAND, Justice.

Asheville first contends the Court of Appeals erred in affirming the trial court’s denial of its motions to dismiss, for summary judgment, and for a directed verdict. Asheville claims its various motions should have been allowed because neither the plaintiff nor the defendant Board of Transportation has ever alleged or proven that Asheville performed its work in a negligent manner or in any manner inconsistent with prevailing good practices in the construction industry.

*441 It is a well settled rule in this jurisdiction that a contractor who is employed by the Board of Transportation to do work incidental to the construction or maintenance of a public highway and who performs the work with proper care and skill cannot be held liable to a property owner for damages resulting to property from the performance of the work. In such a case, the injury to the property constitutes a taking of the property for public use for highway purposes. Highway Commission v. Reynolds Co., 272 N.C. 618, 159 S.E. 2d 198 (1968) ; Insurance Co. v. Blythe Brothers Co., 260 N.C. 69, 131 S.E. 2d 900 (1963) ; Moore v. Clark, 235 N.C. 364, 70 S.E. 2d 182 (1952). The only remedies available to the owner are a special condemnation proceeding against the Board of Transportation under G.S. 136-19 or an action for “inverse condemnation” against the Board to recover compensation for the property taken or damaged. Reynolds, supra; Insurance Co., supra. But if the contractor employed by the Board of Transportation performs his work in a negligent manner and thereby proximately injures the property of another, he is personally liable to the owner therefor. Reynolds, supra; Insurance Co., supra; Moore, supra.

We do not believe these established rules bar the third-party action involved in the instant case. While nothing else appearing, the contractor employed by the Board of Transportation is not absolutely liable for damages to a property owner, we have never held that a contractor may not contract to assume this liability. In Reynolds, supra, an action brought by the Highway Commission against a contractor to recover compensation paid to the owner of a building damaged by the contractor in the construction of a highway for the plaintiff, this Court had occasion to construe § 7.14 of the standard specifications, the general damage responsibility clause of the contract. In that case, we held that the parties did not contemplate or intend that the contractor should reimburse the Highway Commission for any amount paid by the Commission in discharge of its own primary liability and that reimbursement was contemplated and intended only in instances in which the Commission was called upon to discharge a liability to which it was subject on account of some wrongful act of the contractor and for which the contractor was primarily liable. Reynolds, supra.

Reynolds is distinguishable in several respects from the case at bar. First, the trial court found as a fact in Reynolds that the damages to the building did not result from blasting operas *442 tions but were the result of the use of standard and accepted machinery and road-building’ equipment according to standard and accepted methods and techniques in the road construction industry. The contractor in Reynolds, supra, thus did not appear to be engaged in an ultrahazardous activity. We have held that blasting is an inherently dangerous or extrahazardous activity and that persons using explosives are strictly liable for damages proximately caused by an explosion. Insurance Co., supra. Thus, when a contractor employed by the Board of Transportation uses explosives in the performance of his work we believe that he is primarily and strictly liable for any damages proximately resulting therefrom. See Insurance Co., supra.

Fifty years ago, the Fourth Circuit Court of Appeals found Asheville Construction Co. (possibly a predecessor of the third-party defendant in this case?), an independent contractor, strictly liable on the theory of trespass for damages caused by rock and debris thrown on the property of another as a result of blasting operations. Asheville Construction Co. v. Southern Ry. Co., 19 F. 2d 32 (1927) (Parker, J.). That court held the fact that the contractor was employed by an agency of the Staté to construct the highway did not entitle it to any immunity from liability. Asheville Construction Co., supra.

Assuming arguendo that the contractor is not primarily and strictly liable to the property owner for damages resulting from blasting, Reynolds is nevertheless distinguishable because of .§ 7.11 of the standard specifications. That specific liability clause of the contract states explicitly and without qualification that “[t]he contractor shall be responsible for any and all damage resulting from the use of explosives.” The Board of Transportation, which is liable for any “taking” of property through the use of explosives by its contractors, Insurance Co., supra, has the right to enter into an indemnity contract with the contractor. Clearly, the Board of Transportation by the insertion of .§ 7.11 into the contract specifications intended to insure itself against the highly unpredictable and dangerous consequences of blasting. “Ordinarily, when parties are on equal footing, competent to contract, enter into an agreement on a lawful subject, and do so fairly and honorably, the law does not permit inquiry as to whether the contract was good or bad, whether it was wise or foolish.” Roberson v. Williams, 240 N.C. 696, 700-1, 83 S.E. 2d 811, 814 (1954). “It is the simple law of contracts that ‘as a man consents to bind himself, so shall he be bound.’ ” (Cases *443 omitted.) Troitino v. Goodman, 225 N.C. 406, 414, 335 S.E. 2d 277, 283 (1945).

We conclude that allegation and proof of negligence by the Board of Transportation in its action against Asheville is unnecessary and Asheville’s motions to dismiss, for summary judgment, and for a directed verdict were properly denied.

Asheville next assigns as error the trial court’s allowance of the Board’s motion for a directed verdict. This issue is not properly before us. Asheville did not present and discuss the assignment in its brief before the Court of Appeals as required by Rule 28(a) of the North Carolina Rules of Appellate Procedure. Accordingly, under Rule 28(a) the assignment was “deemed abandoned” and that court did not consider the question. After there has been a determination by the Court of Appeals, review by this Court, whether by appeal of right or by discretionary review, is to determine whether there is any error of law in the decision of the Court of Appeals and only the decision of that court is before us for review. State v. Colson, 274 N.C. 295, 163 S.E. 2d 376 (1968); State v. Williams, 274 N.C. 328, 163 S.E. 2d 353 (1968); Rule 16(a), N. C. Rules of Appellate Procedure.

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Bluebook (online)
233 S.E.2d 569, 292 N.C. 437, 1977 N.C. LEXIS 1104, Counsel Stack Legal Research, https://law.counselstack.com/opinion/falls-sales-co-v-board-of-transportation-nc-1977.