Masonry Specialists of Georgia, Inc. v. United States Fidelity & Guaranty Co.

616 S.E.2d 103, 273 Ga. App. 774, 2005 Fulton County D. Rep. 1482, 2005 Ga. App. LEXIS 443
Court of Appeals of Georgia·Decided May 6, 2005·No. A05A0512·Published·Cited by 3 cases

Opinion

Ellington, Judge.

Masonry Specialists of Georgia, Inc., appeals from the trial court’s grant of summary judgment in favor of United States Fidelity & Guaranty Company (“USF&G”) in this contract action. Masonry Specialists contends that material issues of fact remain for jury consideration, the controlling statute is unconstitutionally vague, and the trial court abused its discretion in refusing its request for a continuance. Finding no error, we affirm.

To prevail on motion for summary judgment under OCGA § 9-11-56, the moving party must demonstrate that there is no genuine issue of material fact, and the undisputed facts warrant judgment as a matter of law. A defendant may do this by either presenting evidence negating an essential element of the plaintiffs claims or by establishing from the record an absence of evidence to support the plaintiffs claims.

(Footnotes omitted.) Ceasar v. Shelton, 266 Ga. App. 271 (596 SE2d 755) (2004). Our review of the court’s judgment is de novo. Rubin v. Cello Corp., 235 Ga. App. 250 (510 SE2d 541) (1998).

So viewed, the record shows that, in January 2001, Masonry Specialists contracted with D & R Group (“D & R”) to provide masonry labor and materials as a subcontractor on a community center project D & R was building for the Gwinnett County Parks and Recreation Department. USF&G was the surety under payment and performance bonds issued in connection with the project; D & R was the principal on the bonds.1D & R defaulted on the project in March 2001. Pursuant to its performance bond, USF&G hired another contractor to complete the project. Masonry Specialists did not work on the project after D & R’s default. Masonry Specialists filed a claim with USF&G under the payment bond for an outstanding balance of $26,682 on the masonry work it had performed for D & R. On [775] November 19, 2001, USF&G denied Masonry Specialists’ claim on the basis that the cost of correcting the defects in the company’s masonry work exceeded the amount of the company’s claim.

The record shows that the community center was completed, occupied, accepted by the county, and formally dedicated by August 17, 2002. Fifteen months later, on November 26, 2003, Masonry Specialists filed suit against D & R for the outstanding balance of $26,682 under its subcontractor agreement or, in the alternative, under theories of implied contract, promissory estoppel, unjust enrichment, and bad faith breach of contract. The suit also asked for punitive damages and bad faith attorney fees. Masonry Specialists named USF&G as a co-defendant pursuant to the payment bond. USF&G answered and, in an amended response, raised the affirmative defense that the suit was filed outside the applicable statute of limitation period. Following a hearing on USF&G’s motion for summary judgment, the trial court found that the suit was time-barred and granted the motion, dismissing USF&G as a co-defendant. Masonry Specialists appeals from this ruling.

1. Masonry Specialists contends that the trial court erred in finding the statute of limitation period had run on its contract claim, arguing that material issues of fact remain on when the project was completed and accepted by the county. Under OCGA§ 36-91-95, “[n]o action can be instituted on the payment bonds or security deposits after one year from the completion of the contract and the acceptance of the public works construction by the proper public authorities.” In USF&G Co. v. Rome Concrete Pipe Co., 256 Ga. 661, 662 (353 SE2d 15) (1987), the Supreme Court of Georgia construed the former statute governing bonds for public contractors2 and held that the one-year statute of limitation period for filing suit on a payment bond “commences at the completion of the actual construction work and acceptance thereof by the public authority.” (Footnote omitted.) The Court also held that “[cjompletion, . . . refers not only to total completion, but also to substantial completion, with only punch-list items remaining to be done.” (Citation and punctuation omitted.) Id. at 662, n. 1. Further, in Dixie Roof Decks v. Borggren/Dickson Constr., 195 Ga. App. 881, 882 (2) (395 SE2d 19) (1990), this Court held that, for the purpose of determining when the statute of limitation period began to run for filing suit on a payment bond, a high school building construction contract was complete as soon as the building was fully occupied and in use and no later than the date the building was dedicated.

[776] In this case, USF&G produced the affidavit of the program manager for the county’s Parks and Recreation Division, who was responsible for managing and administering the construction contract for the project. The affidavit stated that he accepted the community center on behalf of the county on August 7, 2002; the center was completed with only punch list items remaining at that time; the county issued a certificate of occupancy on August 16, 2002; and the center was dedicated on August 17, 2002.

When a summary judgment motion is supported by an affidavit pursuant to OCGA § 9-11-56 (e), the burden of coming forward with any evidence to create a material issue of fact for the jury is shifted to the nonmovant, who may not rest upon mere allegations or denials, but must present specific facts, by affidavit, deposition testimony, or answers to interrogatories, that show there is a genuine issue for trial. Ceasar v. Shelton, 266 Ga. App. at 272. If the nonmovant fails to meet this burden, the movant is entitled to summary judgment. Id.

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Masonry Specialists of Georgia, Inc. v. United States Fidelity & Guaranty Co., 616 S.E.2d 103, 273 Ga. App. 774, 2005 Fulton County D. Rep. 1482, 2005 Ga. App. LEXIS 443 (Ga. Ct. App. 2005).

616 S.E.2d 103 (Masonry Specialists of Georgia, Inc. v. United States Fidelity & Guaranty Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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