General Federal Construction, Inc. v. D. R. Thomas, Inc.

451 A.2d 1250, 52 Md. App. 700, 1982 Md. App. LEXIS 360
CourtCourt of Special Appeals of Maryland
DecidedNovember 4, 1982
Docket213, September Term, 1982
StatusPublished
Cited by8 cases

This text of 451 A.2d 1250 (General Federal Construction, Inc. v. D. R. Thomas, Inc.) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Federal Construction, Inc. v. D. R. Thomas, Inc., 451 A.2d 1250, 52 Md. App. 700, 1982 Md. App. LEXIS 360 (Md. Ct. App. 1982).

Opinion

Lowe, J.,

delivered the opinion of the Court.

This is an appeal from the Circuit Court for Prince George’s County which culminated in a $38,000 verdict for a subcontractor, D. R. Thomas, Inc. (Thomas), against the general contractor, General Federal Construction, Inc. (General) and, under a "payment” bond, The Hartford Accident & Indemnity Company (Company).

— limitations —

One of the issues, which gives us but momentary pause, arises from the fact that the suit regarding the insurer arose *702 under the "Little Miller Act”, Md. Ann. Code, Art. 21, § 3-501, which has a one year period of limitations from the date of final acceptance of the work performed under the contract. Appellants complain that appellee initially sued only General and The Hartford Insurance Group (Group) but did not include Company until May 28, 1981 which, they allege, was over one year after final acceptance of the work performed under the contract. It follows, they contend, that as to Company, limitations was not tolled until the amended declaration adding Company was filed.

Factually they contend, that final acceptance of the work performed under the contract took place in March of 1980, "when the necessary electrical inspection was completed”, pointing to extracted testimony as follows:

"Q. Has there ever been a final acceptance on the Social Science Building, to your knowledge?
A. I don’t know whether the final acceptance has ever been given but, to the best of my recollection, they accepted the building when they moved into the building as far as substantial completion goes. There was one item wherein we had to give an electrical certificate, and we couldn’t get that because there had been some pipes run over a switch gear, and I believe that was resolved sometime in March of 1980. And I would assume that that was by the State final acceptance because they at that time, I believe, agreed to pay us any and all monies.
Q. Only after this final acceptance; is that correct?
A. After the certificate was obtained.”

"Final acceptance”, for purposes of the accrual of a cause of action, is like the discovery rule, a mixed question of law and fact.-The trial judge must determine factually when that occurred in order to apply the appropriate limitations law. Here the uncertainty of appellants’ witness as to the facts relating to final acceptance was given calendrical certainty on cross-examination when appellee produced the electrical inspection certificate dated August 15, 1980.

*703 "MR. HAYES [of counsel for appellants]: I will object.
THE COURT: Is that the electrical certificate for the Social Science Building?
THE WITNESS: Yes, sir, that is the certificate that we resolved, I believe, in March of 1980.
THE COURT: It wasn’t issued until August?
THE WITNESS: From the date on that —
THE COURT: From the date on that, you have to assume it was issued in August?
THE WITNESS: Yes.
THE COURT: All right, 17 is admitted.
MR. KERNS [counsel for appellee]: Thank you.
(Plaintiffs Exhibit No.
17 Admitted in evidence.)”

Although appellants did not inform us whether the court specifically addressed the limitations issue we infer from the result that the defense of limitations was rejected by the court. The evidence we have noted is clearly sufficient to support a holding that the cause of action did not accrue until August 15, 1980, Md. Rule 1086; Moy v. Bell, 46 Md. App. 364, 370 (1980), and limitations did not preclude the inclusion of appellant Company prior to that date, one year hence. We need not address appellee’s supportive argument that the amendment including Company along with Group was simply a specification that fell within the umbrella trade name Hartford Insurance Group, encompassing Company among others.

— demurrers —

Appellants next allege that their demurrers should have been sustained because the respective counts of the Declaration lacked "the sufficiency of substance required by the Maryland Rules in that they do not provide facts sufficient to inform the defendant and the court of the claims advanced .. ..” The Declaration set forth in separate counts *704 that appellant General had subcontracted with appellee to supply labor and material subsidiary to General’s contract with the State of Maryland. The labor and materials to be supplied under the subcontract (which was appended to, and incorporated in, the Declaration) were supplied by appellee. The breach alleged was that General had not paid either as contracted or for additions and changes under the contract.

Appellee further alleged a breach by General in a portion of the appended contract which gave appellee the opportunity to be present and submit evidence in any matter involving appellee’s rights.. That, said appellee, was breached when General sued the State under its prime contract involving appellee’s labor and material, then dismissed the action against the wishes of appellee.

The counts involving Company added that it was responsible for General’s nonpayment under its bond required pursuant to Md. Real Prop. Code Ann., § 9-113 (the "Little Miller Act”). 1 It further alleged that Hartford was contractually responsible because it had taken control of General and made all management decisions, thus assuming responsibility for the ensuing indebtedness.

Relying on Continental Masonry v. Verdel Constr., 279 Md. 476 (1977), appellants complain that the complexities of this case required a more detailed contention by appellee. They point in retrospect to the evidentiary facts proving the charges alleged and the apparent reasons underlying the failure to pay which were shown to be the delays by General which interfered with Thomas’s work.

"In essence, the Court permitted the case to go to trial based upon an Amended Declaration which, because of its lack of sufficiency of substance or specificity permitted DRT [Thomas] to offer proof on any alleged breach which DRT [Thomas] thought of at any time up to the close of its case.”

Therein lies appellants’ error. "To withstand a demurrer a party need only allege facts which, if proven, would entitle him to relief.” Hooke v. Equitable Credit Corp., 42 Md. App. *705 610, 616 (1979). There is no requirement of "specificity” which appellants equate with the "substance” requirement. Appellee alleged facts that would have proven a contract, its compliance and appellants’ respective liabilities thereunder and General’s breach by nonpayment.

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Bluebook (online)
451 A.2d 1250, 52 Md. App. 700, 1982 Md. App. LEXIS 360, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-federal-construction-inc-v-d-r-thomas-inc-mdctspecapp-1982.