First Charter Land Corp. v. Middle Atlantic Dredging, Inc.

237 S.E.2d 145, 218 Va. 304, 1977 Va. LEXIS 193
CourtSupreme Court of Virginia
DecidedSeptember 1, 1977
DocketRecord No. 760857
StatusPublished
Cited by20 cases

This text of 237 S.E.2d 145 (First Charter Land Corp. v. Middle Atlantic Dredging, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First Charter Land Corp. v. Middle Atlantic Dredging, Inc., 237 S.E.2d 145, 218 Va. 304, 1977 Va. LEXIS 193 (Va. 1977).

Opinion

Harman, J.,

delivered the opinion of the Court.

This action was commenced by a motion for judgment filed by Middle Atlantic Dredging, Inc. (Middle Atlantic or plaintiff) against First Charter Land Corporation (First Charter or defendant) seeking to recover the sum of $83,293.43 which plaintiff alleged was due it under a contract for diking, dredging and filling in connection with the defendant’s real estate development known as “Captain’s Cove” in Accomack County. First Charter, in addition to its answer and various grounds of defense, filed a counterclaim against Middle Atlantic asking $10,000,000 for damages it alleges were caused by Middle Atlantic’s breach of contract. First Charter also filed and served a third party motion for judgment seeking to recover damages from East Coast Dredging, Inc. (East Coast), the parent company of Middle Atlantic, which had guaranteed Middle Atlantic’s performance of its contract with First Charter.

After a lengthy trial, the jury returned a verdict against First Charter awarding Middle Atlantic $75,148.03 and a verdict in favor of Middle Atlantic on the defendant’s counterclaim. On March 2, 1976, the trial court entered judgment on the jury’s verdict. We granted a writ of error with supersedeas.

[306]*306The questions posed by this appeal are:

(1) Whether the trial court erred in permitting Middle Atlantic to introduce into evidence its “Exhibit 4” which it had not produced for defendant’s inspection on discovery prior to trial;
(2) Whether the trial court erred in holding Chapter 7 of Title 54 of the code (Code § 54-113 et seq.) did not bar the plaintiff’s recovery or create a jury question on that issue, where it was conceded that the plaintiff had failed to register with the State Registration Board for Contractors; and
(3) Whether the trial court erred in granting and refusing certain instructions.

The parties began negotiating in November, 1969, and reached an oral agreement on or about February 4, 1970. The parties acknowledge that Middle Atlantic, under the oral agreement, was to receive 47 cents per cubic yard for material dredged and filled, 70 cents per linear foot of dike and a “one time mobilization charge” of $5000 for moving a dredge to the work site. They also agreed that an estimated 800,000 cubic yards of material were to be dredged and filled by Middle Atlantic in completing the contract.

Diking was commenced shortly after the agreement was reached, and dredging and filling started in late March or early April after the plaintiff’s dredge arrived at the project. The plaintiff continued to work on the project until August, 1970, when a “stop order” against further dredging was entered by the Virginia State Water Control Board after a “clam kill”. The “clam kill” occurred when one of the dikes on the project failed and spilled dredging spoils into the adjacent waters. As a result of the stop order, the dredging came to the attention of a federal agency, the United States Army Corps of Engineers. Since no permit had been obtained by First Charter from the federal agency to dredge in public waters adjoining Captain’s Cove, criminal charges were lodged against First Charter. No further dredging took place between the stop order and trial, as First Charter was not successful in obtaining a dredging permit.

On October 20, 1970, approximately two months after the dredging at Captain’s Cove was stopped, First Charter, Middle [307]*307Atlantic and East Coast signed an agreement dated February 4, 1970. This agreement described the work to be performed by Middle Atlantic as follows:

“Hydraulic dredge all canals and channels to a depth of -5' (-6' allowed for pay) mean sea level; dike all canals and perimeter at water’s edge, for sod or bulkhead to be applied by others; spread and grade dredged material to +4' mean sea level, grade to sheet drain.”

The same unit prices and mobilization fee agreed upon orally were set forth in the written agreement, with a proviso for “tq]uantities to be determined by Prince William Engineering Co.” B. Calvin Burns, owner of Prince William Engineering Co., is a certified civil engineer and was one of the three stockholders in First Charter.

Between March and October of 1970, First Charter made partial payments of $187,935.37 to Middle Atlantic on monthly estimates of work performed. $40,000 of that sum was paid on October 20, contemporaneously with the execution of the written agreement. When First Charter refused to pay Middle Atlantic’s final bill for $83,293.43, action was instituted by Middle Atlantic.

First Charter’s first assignment of error is directed to the action of the trial court in admitting Middle Atlantic’s “Exhibit 4”. This exhibit is a summary sheet and supporting documents prepared by Middle Atlantic’s field office manager, based upon soundings made at the job site by one of the company’s field crews. The exhibit was crucial to the plaintiff’s case as it showed that Middle Atlantic dredged and filled 485,467.66 cubic yards of material while working at Captain’s Cove. Middle Atlantic’s final bill for dredging was based on the quantities dredged as shown by this summary.

When the exhibit was proffered at trial, the defendant objected to its admission because it had not been produced for inspection and copying at pretrial discovery proceedings under Rule 4:9 1. Middle Atlantic concedes here, as it did in the trial court, that the exhibit was covered by the defendant’s discovery request.

[308]*308Inquiry by the trial court disclosed that the exhibit was not produced because it had been lost or misplaced by the plaintiff. Upon its discovery the week preceding trial, plaintiffs attorney promptly notified defense counsel by telephone that additional documents had been located, and a copy of the exhibit was hand delivered to defense counsel on the first morning of the six day trial.

Based on this information, the trial court indicated that it would admit the exhibit but, to alleviate the surprise claimed by the defendant, offered it a recess for sufficient time to study, examine and check the exhibit, or alternatively, if the defendant chose to then proceed, the court would require plaintiff to make its witnesses available for further cross-examination after the defendant had sufficient time and opportunity to fully check, study and examine the exhibit. Defendant, reserving its objection, chose the alternative.

Conceding that the trial court is vested with broad discretion under Rule 4:12 in determining what sanctions will be imposed upon a party who fails to disclose upon discovery, First Charter argues that the trial court nevertheless erred in failing to hold “Exhibit 4” inadmissible because of plaintiff’s failure to produce it on discovery.

We affirm the trial court’s ruling on this point. Proof of the quantity of material dredged by Middle Atlantic was the heart of its case. First Charter knew, from the allegations in the motion for judgment and from Middle Atlantic’s final bill, that Middle Atlantic claimed that it had dredged 485,467.66 cubic yards of material at Captain’s Cove.

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Bluebook (online)
237 S.E.2d 145, 218 Va. 304, 1977 Va. LEXIS 193, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-charter-land-corp-v-middle-atlantic-dredging-inc-va-1977.