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

716 F. Supp. 1466, 1989 U.S. Dist. LEXIS 8449, 1989 WL 80033
CourtDistrict Court, N.D. Georgia
DecidedApril 28, 1989
DocketNo. 1:86-CV-2029-RHH
StatusPublished
Cited by3 cases

This text of 716 F. Supp. 1466 (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., 716 F. Supp. 1466, 1989 U.S. Dist. LEXIS 8449, 1989 WL 80033 (N.D. Ga. 1989).

Opinion

ORDER

ROBERT H. HALL, District Judge.

This action is currently before the court on (1) Henningson, Durham & Richardson Inc.’s (HDR) motion to strike Contention 11 of the Pretrial Order, (2) HDR’s motion to strike plaintiff’s claim for prejudgment interest and (3) YSL Corporation’s (YSL) motion in limine. For the reasons stated below, the court GRANTS HDR’s motion to strike Contention 11, GRANTS HDR’s motion to strike plaintiff's claim for prejudgment interest and GRANTS VSL’s motion in limine.

FACTS

(The facts of the case are set out in this court’s order of June 2, 1987 and will not be reiterated entirely here).

This action arises out of certain alleged delays in the construction of post tension bridges on the South Atlanta Freeway (I-675). Plaintiff Malta Construction (Malta) is the general contractor. Plaintiff alleges that it was economically damaged by delays in the building of post tension bridges allegedly caused by delays in the preparation and approval of plans and shop drawings prepared by defendants HDR and VSL. HDR is an engineering firm which entered into a contract with the Georgia Department of Transportation (GDOT) to design several post tension bridges. VSL entered into a contract with Malta’s subcontractor, Metropolitan Erecting Company, Inc. (Metro) to prepare the shop drawings for the post tension bridges and to supply certain materials and equipment for the construction of the post tension bridges. Malta entered contracts with GDOT and Metro; however, Malta was not a named party to the contracts with either HDR or VSL.

Malta’s construction of the post tension bridges was substantially delayed. Malta concedes that it suffered only economic damage as a result of the delay.

Malta and GDOT entered into a settlement agreement in August of 1986 in which GDOT paid Malta $2,650,000 in final settlement of Malta’s claims against GDOT. In the instant action Malta sues HDR in tort and VSL in both tort and contract, claiming to be a third party beneficiary of the Metro-VSL contract.1 Further facts will be disclosed as necessary for discussion of the three pending motions. DISCUSSION

I. Motion to Strike Contention 11

Defendant has filed a motion to strike Contention 11 of the Consolidated Pretrial Order, Attachment “C,” Section (c). Contention 11 reads as follows:

HDR was negligent in representing that the shop-drawings for bridges 3, 5 and 6 were satisfactory for construction by approving them in December 1983.

HDR claims that this court’s order of September 7, 1988, which granted HDR summary judgment as to paragraph 10 of plaintiff’s Complaint, prohibits plaintiff from presenting Contention 11 of the Pretrial Order at trial.

[1468]*1468In its order of September 7, 1988, this court discussed the Georgia economic loss rule which bars recovery in tort where the parties are not in privity and where plaintiffs damages are purely economic. The court noted that the Georgia Supreme Court has carved out a narrow exception to the strict privity-economic loss rule. Robert & Company v. Rhodes-Haverty Partnership, 250 Ga. 680, 300 S.E.2d 503 (1983). See also Gulf Contracting v. Bibb County, 795 F.2d 980 (11th Cir.1986). The Robert & Company court essentially adopted the position of the Restatement 2d Torts in holding that:

One who supplies information during the course of his business, profession, employment, or in any transaction in which he has a pecuniary interest has a duty of reasonable care and competence to parties who rely upon the information in circumstances in which the maker was manifestly aware of the use to which the information was to be put and intended that it be so used.

Roberts & Company, 250 Ga. at 681-682, 300 S.E.2d 503.

This court held that the allegations in plaintiffs Complaint which pertain to the alleged negligence of the defendants in preparing the plans appear to fit in the exception to the strict privity-economic loss rule. However, this court also determined that paragraph 10 of the Complaint did not fall within the exception to the rule. Paragraph 10 provides:

Defendant, HDR failed to promptly and adequately review shop drawings submitted by Malta for bridges 2L, 2R, 8, 4, 5, 6, 7, 9, 10 and 15. These failures in shop drawing review constituted negligence by HDR.

The court held that paragraph 10 did not fall within the exception to the economic loss rule because a claim for negligent review of shop drawings is not like a claim for negligent misrepresentation, supply or omission of information. It is more like a claim for failure to supervise and approve change orders, which the Gulf Contracting court determined would not fall within the exception to the economic loss rule. Gulf Contracting, 795 F.2d at 982, n. 2.

HDR now claims that plaintiffs Contention 11 raises exactly the same claim as was dismissed in paragraph 10 of the Complaint. Plaintiff, however, contends that Contention 11 raises a claim that is distinguishable from the claim in paragraph 10 of the Complaint. “(S)hop-drawings provide construction requirements and their approval by HDR constituted negligent misrepresentation as the shop-drawings are but another form of plans and drawings provided to Malta for use in construction.” Response to Motion to Strike, p.p. 2-3.

The court finds that Malta’s Contention 11 is essentially a reformulation of the claim contained in paragraph 10 of the Complaint, which was dismissed pursuant to this court’s order of September 7, 1988. Accordingly, the court reaffirms its previous ruling dismissing paragraph 10 of the Complaint and strikes Contention 11 of the Pretrial Order. HDR’s motion to strike is GRANTED.

II. Motion to Strike Plaintiffs Claim for Prejudgment Interest

HDR has also filed a motion to strike plaintiff’s claim for prejudgment interest through the date of trial.

HDR notes that, in tort actions, damages must be proven by evidence before they can be regarded as liquidated. O.C.G.A. § 51-12-14(a) provides:

Where a claimant has given written notice by registered or certified mail to a person against whom claim is made for unliquidated damages in a tort action and the person against whom such damage is made fails to pay such amount within thirty days from the mailing of the notice, the claimant shall be entitled to receive interest on the claimed sum if, upon trial of the case in which the claim is made, the judgment is for an amount not less than the sum claimed.

Where the requisite statutory notice is not given, an award of prejudgment interest on a tort claim is not available. Georgia Ports Authority v. Mitsubishi International Corp., 156 Ga.App. 304, 274 S.E.2d [1469]*1469699 (1980).

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Malta Construction v. Henningson
927 F.2d 614 (Eleventh Circuit, 1991)

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Bluebook (online)
716 F. Supp. 1466, 1989 U.S. Dist. LEXIS 8449, 1989 WL 80033, Counsel Stack Legal Research, https://law.counselstack.com/opinion/malta-construction-co-v-henningson-durham-richardson-inc-gand-1989.