Little Rock School District v. Celotex Corp.

574 S.W.2d 669, 264 Ark. 757, 25 U.C.C. Rep. Serv. (West) 666, 1978 Ark. LEXIS 2183
CourtSupreme Court of Arkansas
DecidedDecember 18, 1978
Docket78-137
StatusPublished
Cited by22 cases

This text of 574 S.W.2d 669 (Little Rock School District v. Celotex Corp.) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Little Rock School District v. Celotex Corp., 574 S.W.2d 669, 264 Ark. 757, 25 U.C.C. Rep. Serv. (West) 666, 1978 Ark. LEXIS 2183 (Ark. 1978).

Opinions

George Howard, Jr., Justice.

This appeal involves an action, instituted in the Pulaski Circuit Court, by the Little Rock School District for breach of both an express and implied warranties and negligence, in the construction of a roof for a new high school facility, against the following firms:

(a) Matson, Inc., a general contractor, hereinafter called Matson;
(b) Ginocchio, Cromwell, Carter and Neyland, Inc., an architectural firm that prepared the plans and specifications for the project, hereafter referred to as Cromwell;
(c) Knox Gill Company, a sub-contractor who performed the roofing work and sold the roofing materials, hereinafter designated as Knox; and,
(d) Celotex Corporation, the manufacturer of the roofing material used in constructing the roof.

We are to determine essentially whether the trial court committed error in holding, as a matter of law, that there was neither an expressed nor an implied warranty involved; and that the statute of limitations rendered the negligence claim unenforceable and that limitations would be equally effective against any warranties had there been any warranties involved. The trial court’s holding resulted in the following:

1. Summary judgment granted in behalf of Matson during a pre-trial conference on the ground that the District’s action was barred by statute of limitations;
2. Summary judgment granted to Knox and Cromwell immediately prior to trial on the theory that the District’s action was barred by the statute of limitations;
3. Summary judgment to Celotex on the negligence claim immediately prior to trial; and,
4. Directed a verdict in favor of Celotex on the issue of expressed and implied warranties at the close of the District’s case.1

THE FACTS

On November 1, 1966, the District entered into a contract with Matson, as geñeral contractor, for the construction of Parkview High School. Matson entered into a sub-contract with Knox for performance of the roofing work, for a total consideration of $77,859.00. The roofing materials, also referred to as “roofing system,” used in the construction of the roof was a “celotex two-ply 20 year roof” containing a 20 year bond to cover defects caused by normal wear and tear. The roofing material was sold by Knox, but was manufactured and marketed by Celotex.

The roofing system consisted of two plies of coated roofing felts which would be used in lieu of the traditional four-plies. Celotex advertised extensively that this system was equivalent to the traditional four-ply system.

Cromwell prepared the plans and specifications for the facility, including the roofing specification based on information supplied to Cromwell by Celotex regarding the integrity of the two-ply roofing system in meeting the District’s job requirements and needs.

The structure was completed in 1968, and almost immediately, the District discovered leaks in the roof. These leaks continued intermittently from 1968 to March 25, 1975. During the period between 1968 and March 25, 1975, numerous repairs were made to the roof, through the joint activity of Cromwell and Knox and, for a substantial part of the period, by Celotex.2 However, the District was led to believe that the general condition of the roof was excellent; and that in spite of the numerous problems registered about the roofing system, it was feasible that the roof would last through its normal expectancy of 20 years.3

On March 25, 1975, Cromwell advised the District that the Celotex two-ply roofing system was a failure and had to be replaced. The District took steps to have the entire roof removed and replaced by a different contractor at a cost of $155,120.00.

The District instituted its lawsuit, on March, 25, 1975, against Matson, Knox and Celotex.

HOLDING OF THE TRIAL COURT

In granting a directed verdict in behalf of Celotex, at the close of the District’s case, the court stated, in part:

“In summary, for the purpose of review, the decision to direct a verdict for defendant is based on the following principles.
“1. There was no express warranty. A breach of contract was barred by the Statute of Limitations.
“2. There was an implied warranty of fitness but again this action was brought some seven years later after installation and thus the Statute of Limitations applied.
“3. Plaintiffs strongly urge that the case of Louisville Silo and Tank Co. v. Thweatt, 174 Ark. 437, supports its theory that the Statute of Limitations is tolled by the making of repairs. I disagree because in said case an express warranty was involved.
“4. Plaintiff’s relief in this matter, after four years from date of installation, must be restricted to the remedial repairs under provisions of the bond.”4

THE DECISION

EXPRESS WARRANTY

It is clear from the evidence in this record that the plans and specifications, relating to the roof, were prepared by Cromwell, with input from Celotex in the form of information regarding the merits of Celotex’s two-ply roofing system, to meet the requirement of the District, which had traditionally used the four-ply system, for a roof with a durable life span of 20 years.

Literature and brochures supplied by Celotex, in connection with its advertising and promotion program of the two-ply system, contain, among other things, the following affirmations and statements as to the quality and condition of the two-ply roofing system:

1. 1 + 1 = 4. Meaning that two plies of Celotex’s bond ply are equivalent to four plies of conventional roofing.
2. You are assured of GREATER QUALITY, WEATHER PROTECTION and LONG LIFE than ever before possible.
3. Provides excellent weather protection even before the surface operation is complete.
4. You get what you specify.
5. Bonded for up to 20 years.
6. The revolutionary new system that takes the guess work out of built-up roofing.
7. A Smash Hit!
8. Trouble-free roofing system in a large number of installations.

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LITTLE ROCK SCH. DIST. OF PULASKI CTY. v. Celotex
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Bluebook (online)
574 S.W.2d 669, 264 Ark. 757, 25 U.C.C. Rep. Serv. (West) 666, 1978 Ark. LEXIS 2183, Counsel Stack Legal Research, https://law.counselstack.com/opinion/little-rock-school-district-v-celotex-corp-ark-1978.