Magnolia Const. Co. v. MISS. GULF S. ENG.

518 So. 2d 1194
CourtMississippi Supreme Court
DecidedJanuary 6, 1988
Docket57324
StatusPublished
Cited by14 cases

This text of 518 So. 2d 1194 (Magnolia Const. Co. v. MISS. GULF S. ENG.) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Magnolia Const. Co. v. MISS. GULF S. ENG., 518 So. 2d 1194 (Mich. 1988).

Opinion

518 So.2d 1194 (1988)

MAGNOLIA CONSTRUCTION CO., INC., a Corporation
v.
MISSISSIPPI GULF SOUTH ENGINEERS, INC., A Corporation.
CITY OF HATTIESBURG
v.
TRAVELERS INDEMNITY COMPANY.

No. 57324.

Supreme Court of Mississippi.

January 6, 1988.

*1195 H.A. Moore, III, Samuel J. Duncan, More, Jones & Fowler, Hattiesburg, for appellant.

S. Wayne Easterling, Easterling & Varnado, P. Richard Lambert, D. Gary Sutherland, Joseph A. O'Connell, Heidelberg, Sutherland & McKenzie, Hattiesburg, Richard F. Yarborough, Jr., Aultman, Tyner, McNeese & Ruffin, Columbia, for appellees.

Before DAN M. LEE, P.J., and SULLIVAN and ANDERSON, JJ.

DAN M. LEE, Presiding Justice, for the Court:

On October 21, 1982, Magnolia Construction Co., Inc. (hereinafter "Magnolia"), a Louisiana corporation, filed a complaint *1196 against Mississippi Gulf South Engineers, Inc. (hereinafter "Gulf South") and the City of Hattiesburg in the Circuit Court of Forrest County. Magnolia sought to recover $350,000 which it spent correcting construction work it had done on a sewer project for the City of Hattiesburg. Magnolia alleged that Gulf South, engineer for the project, was liable to Magnolia for the losses, claiming that Gulf South damaged Magnolia by negligently preparing the plans and specifications, negligently supervising the construction, negligently employing an untrained or inadequately trained resident inspector, negligently inspecting the construction and negligently approving the construction when it knew or should have known that Magnolia was relying on the engineers to see to it that the project progressed according to specifications. Magnolia claims that Gulf South breached its duty of due care owed to the plaintiff and as a direct and proximate result of the negligent acts of the engineers, Magnolia suffered damages. Magnolia's claim against the City of Hattiesburg resulted from the City retaining $84,000 of the contract funds which Magnolia claims should have been disbursed. Gulf South answered, denying that it was liable for any of Magnolia's losses, and also interposed a counterclaim against Magnolia as well as a cross-claim against the City of Hattiesburg for the payment of $47,000 for engineering fees and expenses for the defective work's removal and replacement. In its response to Magnolia's suit, the City interpled the retainage funds and deposited them in the court's registry, and in addition, filed a counterclaim against Magnolia and a cross-claim against Gulf South in order to assert an indemnity claim against each of them. Gulf South also filed a motion to join Travelers Indemnity Company (hereinafter "Travelers"), Magnolia's surety, as a counter-defendant in its counterclaim against Magnolia. This motion was granted. Upon completion of extensive discovery, Gulf South filed a motion for summary judgment in which it sought dismissal of all the claims asserted against it by Magnolia. The City of Hattiesburg filed a separate motion for summary judgment against Magnolia, seeking the same relief as well as filing a motion for summary judgment on its indemnity cross-claim against Gulf South. On April 24, 1986, the trial court entered its order granting these three summary judgment motions. In its order the trial court also dismissed Magnolia's suit against the City, since it found that the City's alleged liability was predicated upon Magnolia being able to establish its claim against Gulf. The trial court granted the City a summary judgment on its cross-claim for indemnity from Gulf South, even though the claim for which the City was seeking indemnity had already been dismissed. Magnolia appeals the entry of that order, assigning nine errors:

I. THE CIRCUIT COURT ERRED IN GRANTING SUMMARY JUDGMENTS IN FAVOR OF THE APPELLEES FOR THE REASON THAT GENUINE ISSUES OF MATERIAL FACT EXIST.
II. THE CIRCUIT COURT ERRED IN GRANTING SUMMARY JUDGMENTS IN FAVOR OF THE APPELLEES FOR THE REASON THAT APPELLEES FAILED TO MEET THEIR BURDEN OF DEMONSTRATING THAT NO GENUINE ISSUES OF MATERIAL FACT EXIST.
III. THE CIRCUIT COURT ERRED IN GRANTING SUMMARY JUDGMENTS IN FAVOR OF THE APPELLEES FOR THE REASON THAT THE CIRCUIT COURT TRIED ISSUES OF FACT IN REACHING ITS DECISION TO GRANT SUMMARY JUDGMENTS.
IV. THE CIRCUIT COURT ERRED IN GRANTING SUMMARY JUDGMENTS IN FAVOR OF THE APPELLEES FOR THE REASON THAT THE COURT IMPROPERLY RESOLVED AMBIGUOUS CONTRACT TERMS.
V. THE CIRCUIT COURT ERRED IN GRANTING SUMMARY JUDGMENTS IN FAVOR OF THE APPELLEES FOR THE REASON THAT THEY WERE NOT ENTITLED *1197 TO SUMMARY JUDGMENT AS A MATTER OF LAW.
VI. THE CIRCUIT COURT ERRED IN GRANTING SUMMARY JUDGMENTS IN FAVOR OF THE APPELLEES FOR THE REASON THAT APPELLANT'S CONSTITUTIONAL RIGHT TO TRIAL BY JURY WAS ABRIDGED.
VII. THE CIRCUIT COURT ERRED IN GRANTING SUMMARY JUDGMENTS IN FAVOR OF THE APPELLEES FOR THE REASON THAT IT WAS MANIFEST ERROR.
VIII. THE CIRCUIT COURT ERRED IN GRANTING SUMMARY JUDGMENTS IN FAVOR OF THE APPELLEES FOR THE REASON THAT APPELLANT IS SUBROGATED TO THE RIGHTS OF THE CITY AGAINST GULF SOUTH ENGINEERS, INC.
IX. THE CIRCUIT COURT ERRED IN GRANTING GULF SOUTH'S MOTION IN LIMINE REGARDING THE E.P.A. INSPECTION GUIDE AND THE G.A.O. REPORT ON RESIDENT INSPECTORS.

FACTS

In the mid-1970's the City of Hattiesburg, Mississippi, began taking measures to rehabilitate its sewage collection and treatment facilities. One of the City's first acts was to enter into an engineering agreement with Gulf South Engineers. Under the terms of that agreement, Gulf South provided engineering and administrative services needed to obtain certain EPA grants which were then available to cover a portion of the cost of the sewer rehabilitation work. After the EPA grant was obtained, Gulf South acted as the City's consulting engineer for that project. In doing so, Gulf South prepared the EPA-approved contract documents which were viewed by various contractors in bidding on the sewer rehabilitation construction project. Magnolia, as the successful low bidder, entered into a construction contract with the City of Hattiesburg to perform the rehabilitation work covered by the grant. The construction work extended from 1978 through 1980.

During the construction, Gulf South furnished an on-site resident field representative. As construction began, Magnolia's crew dug up old sewer pipe and replaced it with new pipe. Shortly after the work began, Gulf South replaced the original resident field representative with another who worked for approximately two weeks. About a month after construction began, Gulf South again changed resident field representatives. Periodically Magnolia sought payment for work performed to date by completing a Periodic Estimate for Partial Payment form which was required by the contract documents. These forms were submitted to Gulf South for approval prior to being presented to the City. The Partial Payment Request forms contain a certificate by the resident field representative and the field engineer concerning the inspections made and the quality of work performed by the contractor. During the course of construction 18 such Partial Payment Requests were submitted and approved by Gulf South and Magnolia received these payments. In 1980, after two years of work, the sewer project was finished and Magnolia applied for its final payment. The final payment request was not approved and still has not been paid.

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Bluebook (online)
518 So. 2d 1194, Counsel Stack Legal Research, https://law.counselstack.com/opinion/magnolia-const-co-v-miss-gulf-s-eng-miss-1988.