Inland Construction Co. v. Cameron Park II, Ltd.

640 S.E.2d 415, 181 N.C. App. 573, 2007 N.C. App. LEXIS 259
CourtCourt of Appeals of North Carolina
DecidedFebruary 6, 2007
DocketCOA06-264
StatusPublished
Cited by9 cases

This text of 640 S.E.2d 415 (Inland Construction Co. v. Cameron Park II, Ltd.) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Inland Construction Co. v. Cameron Park II, Ltd., 640 S.E.2d 415, 181 N.C. App. 573, 2007 N.C. App. LEXIS 259 (N.C. Ct. App. 2007).

Opinion

McGEE, Judge.

Cameron Park II (Defendant), a North Carolina limited liability corporation, appeals from an order granting summary judgment in favor of Inland Construction Company (Plaintiff). We affirm.

Plaintiff and Defendant entered into a contract on 12 July 2002, whereby Plaintiff agreed to construct improvements to a building (the project) owned by Defendant. The improvements were to be provided according to the design of Defendant’s architect, Robert E. Nussear, Jr. (Nussear), with HR Associates (HRA). The contract required that any “changes in scope, systems, kinds and quality of materials, finishes or equipment” be incorporated by change order. The dispute at issue in this case is who was responsible for the cost of installing an additional heating, ventilation, and air conditioning (HVAC) unit to the first floor of the building.

As originally designed, the project included two phases. Phase one involved improvements to the first floor of the building, including the installation of a four ton HVAC unit. Phase two was to involve improvements to the second floor of the building, including the installation of multiple HVAC units, and a restaurant. However, after phase one of the project was completed, Defendant eliminated phase two. The elimination of phase two left only the four ton HVAC unit that had been installed on the first floor to cool the space. Defendant also increased the lighting on the first floor, but did not inform HRA of the additional lighting. All parties agreed that the four ton unit was inadequate to cool the space.

Plaintiff, through its project manager, Ron Hawkins (Hawkins), proposed to replace the existing four ton HVAC unit with a 7.5 ton unit. HRA rejected that option and concluded that adding an additional four ton unit would be a better alternative. Hawkins sent an email (the Hawkins email) to Defendant on 6 June 2003 informing Defendant that the HVAC revisions would be made on 9 June 2003. *575 The email further stated “[t]he cost for these revisions will be resolved between [Plaintiff] and [HRA]. The owner will have no cost associated with this change in the mechanical system.” According to Robert Johnson (Johnson), an owner of Defendant corporation, Plaintiff also verbally advised him that Defendant would not be responsible for the cost of the additional HVAC unit. No change order regarding the additional HVAC work was presented to Defendant prior to the completion of the work. Plaintiff arranged for the installation of an additional HVAC unit by a subcontractor.

Nussear contacted Plaintiffs President, Jim Edwards (Edwards), in writing on 9 June 2003. Nussear disputed Hawkins’ conclusion that the cost of the additional HVAC unit would be resolved between Plaintiff and HRA. Nussear noted that HRA was working directly with Defendant, that no design-build relationship existed between Plaintiff and HRA, and that Hawkins “assumed that a relationship exists between [Plaintiff] and HRA other than that of general contractor and architect working for an owner.” Nussear also stated that “the cooling problem [was] caused by changes to the project scope that occurred after the design was complete.” Nussear reiterated the substance of these concerns in another letter dated 18 June 2003.

Plaintiff requested payment in the amount of $9,924.50 for the installation of the additional HVAC unit. Defendant refused payment based upon the Hawkins email. Plaintiff filed a complaint on 24 September 2003 alleging, inter alia, breach of contract. Defendant answered, asserting affirmative defenses including equitable estop-pel, and a counterclaim. Defendant filed a motion for judgment on the pleadings on 25 May 2004. Plaintiff moved for summary judgment on 26 May 2004 and filed an amended motion for summary judgment on 24 June 2004. Plaintiffs amended motion for summary judgment was supported by the affidavits of Edwards and Nussear. Defendant’s motion for judgment on the pleadings was supported by the affidavits of Hawkins and Johnson.

Both motions were heard by the trial court on 6 July 2004. In an order filed 6 September 2004, the trial court granted Plaintiff’s amended motion for summary judgment and denied Defendant’s motion for judgment on the pleadings. The trial court stated: “Plaintiff is entitled to recover from . . . Defendant the sum of $9,924.50 for the additional HVAC unit’s installation required as a result of . . . Defendant’s decision not to complete the second story part of the project as originally designed, together with interest as allowed by law.” Defendant appeals.

*576 Defendant argues that the trial court erred by granting Plaintiffs amended motion for summary judgment. Defendant contends that no express or implied contractual obligation required Defendant to pay for the extra HVAC work. Defendant further relies on the absence of a change order for the extra HVAC work to support its position that it was not responsible for the cost of the additional HVAC unit.

Similarly, Defendant also argues that the trial court erred by failing to grant its motion for judgment on the pleadings which, pursuant to N.C. Gen. Stat. § 1A-1, Rule 12(c), was converted to a motion for summary judgment when the trial court heard and received evidence outside the pleadings. Defendant asserts that the Hawkins email created an express contract as to the additional HVAC unit and argues that the following facts demonstrate that the trial court should have granted summary judgment in Defendant’s favor: (1) Hawkins represented to Defendant that Defendant would bear no cost associated with the change to the HVAC system; (2) Defendant reasonably relied on the representation by Hawkins; (3) the contract required a change order for alterations in the contracted work and no change order 'was obtained for the change to the HVAC system; and (4) the change to the system was made after Defendant was advised that it would bear no financial responsibility for the costs associated with the change. Because of the significant overlap in Defendant’s arguments, we address them together.

Summary judgment is proper where “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that any party is entitled to a judgment as a matter of law.” N.C. Gen. Stat. § 1A-1, Rule 56(c) (2005). “The party moving for summary judgment bears the burden of bringing forth a forecast of evidence which tends to establish that there is no triable issue of material fact.” Creech v. Melnik, 347 N.C. 520, 526, 495 S.E.2d 907, 911 (1998). The nonmoving party must respond with a forecast of evidence demonstrating an ability to make out a prima facie case at trial. Id.

Defendant’s assertion that the Hawkins email created a contractual obligation on the part of Plaintiff to perform the work without seeking payment from Defendant is unavailing. As Plaintiff points out, the Hawkins email was not supported by consideration. “An enforceable contract is one supported by consideration.” Lee v. Paragon Group Contractors, 78 N.C. App. 334, 337, 337 S.E.2d 132, 134 (1985). “[A] mere promise, without more, is unenforceable.” Id.

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Bluebook (online)
640 S.E.2d 415, 181 N.C. App. 573, 2007 N.C. App. LEXIS 259, Counsel Stack Legal Research, https://law.counselstack.com/opinion/inland-construction-co-v-cameron-park-ii-ltd-ncctapp-2007.