Malta Construction Co. v. Henningson, Durham & Richardson Inc.

694 F. Supp. 902, 1988 U.S. Dist. LEXIS 9897, 1988 WL 92810
CourtDistrict Court, N.D. Georgia
DecidedSeptember 7, 1988
Docket1:88-CV-2029-RHH
StatusPublished
Cited by3 cases

This text of 694 F. Supp. 902 (Malta Construction Co. v. Henningson, Durham & Richardson Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Malta Construction Co. v. Henningson, Durham & Richardson Inc., 694 F. Supp. 902, 1988 U.S. Dist. LEXIS 9897, 1988 WL 92810 (N.D. Ga. 1988).

Opinion

ORDER

ROBERT H. HALL, District Judge.

This matter is currently before the court on defendants’ second motions for summary judgment. The defendants’ first motions for summary judgment pertained solely to the issues of release and satisfaction. The court concluded that material issues of fact precluded the grant of defendants’ motions. Defendants again move for summary judgment on the issues of release and satisfaction. They also base their summary judgment motions on a variety of state law tort and contract doctrines. For the reasons stated below, the court DENIES VSL’s motion and PARTIALLY DENIES and PARTIALLY GRANTS HDR’s motion. The court also GRANTS plaintiff’s motion to file a supplemental memorandum.

FACTS

This action arises out of delays in the construction of post tension bridges on the South Atlanta Freeway (1-675). The facts of the case are set out in full in this court’s order dated June 2, 1987 and will not be fully reiterated here. It suffices to say that plaintiff (“Malta”), the general contractor, alleges it was economically damaged by delays in building the post tension bridges allegedly caused by delays in the preparation and approval of shop drawings prepared by defendants (“VSL” and “HDR”). HDR is an engineering firm which entered into a contract with the Georgia Department of Transportation (“GDOT”) to design ten post tension bridges. VSL entered into a contract with Malta’s subcontractor, Metropolitan Erection, Inc. (“Metro”) to prepare the post tension bridge shop drawings and supply certain materials and equipment for the construction of the post tension bridges. Malta entered into contracts with the GDOT and Metro but was not a named party to the contracts with HDR or VSL.

There is no dispute that Malta’s construction of the post tension bridges was substantially delayed and Malta concedes that it suffered only economic damage as a result of the delay. Malta initially brought suit against the GDOT in the Superior Court of Fulton County, Georgia seeking more than $6,000,000 for delay damages allegedly caused in part by GDOT and in part by VSL and HDR. In August of 1986 Malta and GDOT entered into a settlement agreement under which GDOT paid to Malta $2,650,000 in final settlement of Malta’s claims against GDOT and Malta executed a release of its claims against GDOT. Although Malta’s officials concede that, through their lawsuit against GDOT, they initially sought to be compensated for losses allegedly caused by GDOT, HDR and VSL, they state that their intention upon settling the lawsuit with GDOT was to settle only for those damages caused by GDOT. Malta contends that the settlement with GDOT was in partial satisfaction of its claims and that the release it executed was in favor only of GDOT and not HDR or VSL. In the instant action, Malta brings suit against HDR and VSL in tort and in contract, claiming to be a third party beneficiary of the Metro-VSL and GDOT-HDR contracts. 1

*904 Both HDR and VSL move for summary judgment on the ground that Malta’s settlement with and release of GDOT inure to them. Specifically, HDR argues that it was GDOT’s agent and that, as a matter of law, the release of the principal serves to release the agent. 2 VSL argues, as it did in its first motion for summary judgment, that the settlement between Malta and GDOT was in full satisfaction of Malta’s claims which included the claims currently raised by Malta against VSL and HDR. Both parties refer to the deposition testimony of GDOT officials who stated that, when they settled with Malta they intended to compensate Malta for its claims against HDR and in full satisfaction of all the claims initially raised by Malta in its suit against GDOT. 3 Although such was the apparent intent of the GDOT, however, Malta officials contend that in settling with GDOT for substantially less than they initially sought in their State court complaint, they did not intend to include the claims against HDR and VSL and did not intend the payment by GDOT to constitute full satisfaction of Malta’s original complaint. In addition, Malta submits that HDR was not GDOT’s agent but rather acted in the capacity of an independent contractor.

In addition to arguing that the release and satisfaction between Malta and GDOT inure to them, both defendants argue that, because Malta allegedly suffered only pecuniary damages and since it was not in privity with either defendant, the economic loss rule under Georgia law precludes Malta from bringing this action against them in tort. Both defendants also move for summary judgment on the ground that the doctrine of concurrent delay disallows plaintiff’s recovery in this action. Defendant VSL moves for summary judgment on two alternative grounds. It contends that Malta is not a third party beneficiary of the contract between Metro and VSL and that even if it is such a beneficiary, VSL did not breach its contract with Metro. VSL also moves for partial summary judgment on its counterclaim seeking monies allegedly undisputedly owed by Malta on the amounts VSL invoiced Malta. Further facts will be disclosed as necessary for discussion of the motion.

DISCUSSION

I. Satisfaction and/or Release

As this court stated in its June 2, 1987 order, under Georgia law a release of one joint tortfeaser no longer automatically releases all joint tortfeasers. A release of one joint tortfeaser will not serve to release others for the same harm “unless it is agreed that it will discharge” the other tortfeasers. Posey v. Medical Center-West, Inc., 257 Ga. 55, 59, 354 S.E.2d 417 (1987). An injured party may release one tortfeaser without releasing another “if that is his intention, at least until he has full satisfaction.” Id. at 58, 354 S.E.2d 417. As noted by this court in its June 2 order, the release executed by Malta against the GDOT on its face does not release either HDR or VSL. There exists a material question of fact as to whether both Malta and GDOT intended to release the defendants in the instant action. Even though GDOT officials now state that they intended the release to inure to these defendants, the release does not name HDR or VSL and Malta officials now state that they did not intend to release HDR or VSL through the release Malta executed with GDOT.

As they did in their first motion for summary judgment, however, the defendants argue that Malta obtained full satisfaction for its claims when it settled the State court action with GDOT. The court recognizes that, even if an injured party releases only one of several tortfeasers, that party *905 may not recover against other joint tortfeasers if its recovery against the first tortfeaser was in full satisfaction of its claims. Under Georgia law, however, proof of full satisfaction “is a question of fact that cannot be resolved unless the evidence submitted clearly and unequivocally shows full satisfaction by the first defendant.” Rowland v. Vickers, 233 Ga. 67, 68, 209 S.E.2d 592 (1974). See also Williams v.

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Bluebook (online)
694 F. Supp. 902, 1988 U.S. Dist. LEXIS 9897, 1988 WL 92810, Counsel Stack Legal Research, https://law.counselstack.com/opinion/malta-construction-co-v-henningson-durham-richardson-inc-gand-1988.