National Distributing Co. v. Department of Transportation

283 S.E.2d 470, 248 Ga. 451, 1981 Ga. LEXIS 1017
CourtSupreme Court of Georgia
DecidedOctober 27, 1981
Docket37500
StatusPublished
Cited by19 cases

This text of 283 S.E.2d 470 (National Distributing Co. v. Department of Transportation) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Distributing Co. v. Department of Transportation, 283 S.E.2d 470, 248 Ga. 451, 1981 Ga. LEXIS 1017 (Ga. 1981).

Opinions

Gregory, Justice.

We granted certiorari to consider whether the Department of Transportation of the State of Georgia (DOT) is subject to suit for damages for breach of contract. The Court of Appeals held, as did the trial court, that the doctrine of sovereign immunity is a complete defense to such a suit. National Distributing Co. v. Department of Transportation, 157 Ga. App. 789 (278 SE2d 648) (1981). We agree.

DOT entered into a written agreement in 1978 with National Distributing Company, Inc. (National) and others. The writing was denominated a “soil easement.” The purpose was to provide material for a construction project of DOT. A certain amount of material was to be removed from the site by DOT and a stated price per cubic yard paid to National. Furthermore, DOT was to grade, slope and revegitate the site. DOT was also required to furnish a topographic map at the completion of the work. Rights under this agreement were assigned by DOT to a private corporation which was engaged in the project. The corporation elected not to use material from the site which was a choice it was entitled to make under the assignment. The [452]*452material was not removed from the site nor was any of the other site work done. The topographic map was not furnished. National then filed its complaint seeking damages from DOT for breach of the agreement. The trial court granted summary judgment in favor of DOT on its motion setting forth, among others, the ground of sovereign immunity. The Court of Appeals affirmed on the basis of sovereign immunity.

It is the contention of National that, while the doctrine of sovereign immunity generally applies to suits against DOT, there has been a waiver of the doctrine which affects the action in this case. National points to Georgia Laws 1973, pp. 947,983 as constituting the waiver. In particular, that portion of the Act codified as Code Ann. § 95A-304 is noted:

“Suits by or against the department
(a) Suits and settlement of claims
The department shall have the authority to bring suits, and it may be sued in such actions as are permitted by law.... (Emphasis supplied.)
(b) Venue and service of process
All suits brought ex contractu by or against the department shall be brought in a county where any part of the work is to be or has been performed. . . .”

Clearly, the statute purports to allow suits against the department. However, the language of the statute does not tell us whether all suits are permitted, or if not, what type suits are permitted. We are told only that the DOT may be sued in “such actions as are permitted by law.” Assuming, as the parties have, that sovereign immunity generally applies to suits against DOT, we must resolve two preliminary questions in order to answer the certiorari question. (1) May sovereign immunity be waived by legislative enactment? (2) If sovereign immunity may be waived by legislative enactment, are suits for damages for breach of contract included within the language used by the legislature in Code Ann. § 95A-304 so as to create a waiver?

We deal with the first question. We have recognized that the doctrine of sovereign immunity came to us in Georgia through the common law of England. Crowder v. Dept. of State Parks, 228 Ga. 436 (185 SE2d 908) (1971). (See the collection of cases cited at page 439 which have acknowledged the force of the doctrine down through our history.) Running parallel with our recognition of the doctrine has been the further observation by the courts that the legislature may expressly consent that the state be sued and thereby waive the protection afforded to the state by the doctrine. This court pointed out in 1939 that if the doctrine is harsh and does not have the [453]*453approval of the people, they should give their consent that the state be sued acting through their elected representatives in the legislature. Roberts v. Barwick, 187 Ga. 691, 694 (1 SE2d 713) (1939). Instead of disapproving, the people expressly gave their approval of the general application of the doctrine by way of a constitutional amendment voted upon in 1974. Code Ann. § 2-3401. At the same time they specifically authorized the General Assembly to provide for waiver. So it is, the General Assembly has power to waive sovereign immunity, as was held by the courts prior to 1974, and as commanded by the Constitution since.

We now consider the second question. The position taken by National is that the language of Code Ann. § 95A-304 is a waiver of sovereign immunity in such actions as were permitted by law in 1973 at the time of the enactment of the statute. National contends that suits for damages for breach of contract were permitted in 1973 by áuthority of the courts in cases beginning with Regents of University System v. Blanton, 49 Ga. App. 602 (176 SE 673) (1934). Blanton holds that the state sheds its sovereignty by entering into a contract and thereby impliedly waives sovereign immunity. A number of Court of Appeals’ decisions have followed Blanton in recognizing the existence of implied waiver by the act of entering into a contract. State Hwy. Dept. v. W. L. Cobb &c. Co., 111 Ga. App. 822 (143 SE2d 500) (1965); Hewitt Const. Co. v. State Hwy. Dept., 113 Ga. App. 770 (149 SE2d 735) (1966); State Hwy. Dept. v. Knox-Rivers Const. Co., 117 Ga. App. 453, 462 (160 SE2d 641) (1968). The rule of implied waiver found in Blanton was repudiated by the Court of Appeals in 1977 in Meadows Motors, Inc. v. Dept. of Administrative Services, 141 Ga. App. 224 (233 SE2d 14) (1977). National points out that the opinion in Meadows Motors (and in Busbee v. University Professors, 235 Ga. 752, 758 (221 SE2d 437) (1975) upon which Meadows Motors partially relied) was rendered after the passage of Code Ann. § 95A-304 so that the statute incorporated the then existing rule of Blanton and not the later rule of Meadows Motors. We cannot agree. As observed in Meadows Motors, the implied waiver rule of Blanton was never adopted by this court, which has always required an express waiver. Busbee v. University Professors, supra; James v. State, 225 Ga. 809 (171 SE2d 533) (1969); Maddox v. Coogler, 224 Ga. 806 (165 SE2d 158) (1968); Peters v. Boggs, 217 Ga. 471 (123 SE2d 258)(1961); Roberts v. Barwick, supra; Cannon v. Montgomery, 184 Ga. 588 (192 SE 206) (1937); Western Union v. Western & A. R., 142 Ga. 532 (83 SE 135) (1914); and Georgia Military Institute v. Simpson, 31 Ga. 273 (1860). Thus, the law of Georgia as expressed by this court, did not permit suits for breach of contract against the State in 1973 on the theory of an implied waiver of the doctrine of [454]*454sovereign immunity. Therefore, the statute of 1973 using the language “such actions as are permitted by law” did not incorporate an implied waiver theory.

Decided October 27, 1981 Rehearing denied November 12, 1981. George B. Haley, Kevin B. Buice, for appellants. Charles H. Ivy, amicus curiae. Arthur K. Bolton, Attorney General, Roland F. Matson, Michael E. Hobbs, Assistant Attorneys General, for appellee.

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National Distributing Co. v. Department of Transportation
283 S.E.2d 470 (Supreme Court of Georgia, 1981)

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Bluebook (online)
283 S.E.2d 470, 248 Ga. 451, 1981 Ga. LEXIS 1017, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-distributing-co-v-department-of-transportation-ga-1981.