Lindsay Manufacturing Co. v. Universal Surety Co.

519 N.W.2d 530, 246 Neb. 495, 1994 Neb. LEXIS 180
CourtNebraska Supreme Court
DecidedJuly 29, 1994
DocketS-91-703, S-91-704
StatusPublished
Cited by107 cases

This text of 519 N.W.2d 530 (Lindsay Manufacturing Co. v. Universal Surety Co.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lindsay Manufacturing Co. v. Universal Surety Co., 519 N.W.2d 530, 246 Neb. 495, 1994 Neb. LEXIS 180 (Neb. 1994).

Opinion

Lanphier, J.

Lindsay Manufacturing Company (Lindsay) appeals the *498 judgment of the district court for Platte County following a jury trial. Lindsay sought to recover costs incurred by it in remediating contamination of an aquifer underlying Lindsay’s manufacturing plant. Lindsay claimed the contamination resulted from the improper construction of a new acid waste treatment facility (facility). Each defendant received judgment in its favor. Causes of action against Bruce Gilmore & Associates, Inc. (Gilmore), the engineering firm hired by Lindsay to design and oversee the construction of the facility, were dismissed by the district court as time barred by the statute of limitations. Although Lindsay asserted multiple causes of action against Christiansen Construction Company (Christiansen), the contractor hired by Lindsay to build the facility, the only action to reach the jury was breach of contract. Likewise, the only action to survive against Layne-Western Company, Inc. (Layne-Western), the subcontractor who dug the monitoring wells which are the subject of this litigation, was an action for negligence. The district court properly determined that the actions against Gilmore were time barred. Although the district court erred in failing to grant Christiansen’s and Layne-Western’s motions for directed verdict at the close of all evidence, the judgment of the district court rendered in favor of Christiansen and Layne-Western was proper. The liability of Universal Surety Company, the surety for Christiansen, is dependent upon the liability of Christiansen. We, therefore, affirm.

BACKGROUND

Lindsay manufactures galvanized center-pivot irrigation equipment. As a part of the galvanization process, components are cleaned in a sulfuric acid solution. When the solution loses its effectiveness it is called spent pickle liquor (SPL). Lindsay disposed of the SPL, a hazardous waste, by draining it into an unlined earthen lagoon. After this practice became illegal, Lindsay sought to construct a new disposal facility.

Lindsay retained and contracted with Gilmore in 1982 to provide design and engineering services and to prepare the plans, specifications, and contract documents for the design and construction of the new facility. Gilmore designed the new *499 facility and prepared plans and specifications which were submitted to and approved by the Nebraska Department of Environmental Control.

On December 6, 1982, Lindsay entered into a contract with Christiansen to construct the facility using the plans and specifications prepared by Gilmore. The plans called for the installation of two lined reservoirs, or impoundments, and four monitoring wells.

The monitoring wells were required to detect leakage from the new SPL impoundments. The monitoring wells were originally designed to be 110 feet deep, but later the depth was changed. The borehole was to have a 10-inch diameter. After the borehole was dug, PVC pipe 4 inches in diameter was to be inserted into the middle of the hole. All but the top 3 feet of the space in between the pipe and the wall of the hole, referred to as the “annular space,” was to be filled with road gravel. The last 3 feet of the annular space was to be filled with bentonite clay.

Christiansen orally subcontracted with Layne-Western to do the actual digging and installation of the monitoring wells. Layne-Western dug and installed the monitoring wells during the period of December 15 to 21,1982.

Prior to the drilling of the wells, the aquifer was tested for contamination, but none was detected. The wells were drilled between December 15 and 21. On December 16, the aquifer was tested again and found to be contaminated. Gilmore alleges that on January 1, 1983, all of its work with the monitoring wells was complete. On September 25, 1984, Lindsay was informed that deterioration of the aquifer was accelerated by the introduction of the wells. On July 15, 1985, Gilmore certified that the entire construction project was complete. Lindsay contends that it was not until June 12,1986, that it was informed that contamination was due solely to the wells. Lindsay filed its initial petition on December 11,1986.

Most of the evidence adduced at trial was directed at establishing how the leakage into the aquifer occurred. It is undisputed that some of the contamination of the underlying aquifer was caused by leakage from one level of the aquifer to another through the annular spaces of the monitoring wells. Also, experts on both sides concluded that the disposal of the *500 SPL into the unlined pit caused some contamination of the aquifer prior to the introduction of the monitoring wells.

The district court granted summary judgment in favor of Gilmore, which had claimed that Lindsay’s causes of action were time barred by the statute of limitations.

At the close of Lindsay’s case, the court sustained the defendants’ motions to dismiss each cause of action except for the cause of action against Layne-Western for negligence and part of Lindsay’s action against Christiansen for breach of contract. The defendants’ motions for directed verdict were overruled. At the close of all evidence, the defendants moved to dismiss the remaining causes of action. The motions were sustained in part. The defendants renewed their motions for directed verdict, but the motions were overruled.

After the ruling on the foregoing motions, Lindsay’s remaining allegations against Christiansen were that Christiansen breached its contract (1) in failing to fulfill and comply with the plans and specifications and contract documents of the facility; (2) in not performing the contract monitoring wells’ installation pursuant to the best known workmanship; and (3) in not performing its work and services in a skillful, careful, diligent, and workmanlike manner.

Lindsay’s remaining allegation against Layne-Western was that Layne-Western was negligent (1) in “failing to adequately and properly design, select and install proper and sufficient materials, drill, fabricate, assemble and install the ground water monitoring wells for their intended use”; (2) in failing to adequately and properly investigate, examine, inspect, sample, test, analyze, and study the subsurface soil and hydrogeological conditions on the premises; (3) in failing to consult with, retain, or engage the services of a trained, qualified, and competent hydrogeologist regarding the subsurface soil and hydro-geological conditions at the premises; (4) in failing to perform its work in a reasonably good and workmanlike manner; (5) in failing to warn and notify Lindsay of the risk and danger of pollution and contamination of aquifer and ground water that would result from the manner and materials that Layne-Western used in installation of the ground water *501 monitoring wells; and (6) in failing to provide and install the proper and sufficient materials in the ground water monitoring wells in compliance with the applicable federal laws and industry standards.

After a trial on these remaining causes of action, the jury returned a verdict for the defendants.

ASSIGNMENTS OF ERROR

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Bluebook (online)
519 N.W.2d 530, 246 Neb. 495, 1994 Neb. LEXIS 180, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lindsay-manufacturing-co-v-universal-surety-co-neb-1994.