Rissler & McMurry Co. v. Sheridan Area Water Supply Joint Powers Board

929 P.2d 1228, 1996 Wyo. LEXIS 182, 1996 WL 729633
CourtWyoming Supreme Court
DecidedDecember 20, 1996
Docket95-227
StatusPublished
Cited by33 cases

This text of 929 P.2d 1228 (Rissler & McMurry Co. v. Sheridan Area Water Supply Joint Powers Board) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rissler & McMurry Co. v. Sheridan Area Water Supply Joint Powers Board, 929 P.2d 1228, 1996 Wyo. LEXIS 182, 1996 WL 729633 (Wyo. 1996).

Opinion

TAYLOR, Chief Justice.

Rissler & McMurry Company (Rissler) appeals summary judgment granted in favor of the Sheridan Area Water Supply Joint Powers Board (the Board) and HKM Associates (HKM), the engineer, in a dispute over the contract price for construction of a water distribution system in Sheridan County, Wyoming (the Project). When the Board denied Rissler’s claim for an increase in contract price and extension of time after completion of the Project, Rissler sued the Board under contract theories. Rissler later added HKM as a defendant, claiming HKM was negligent in providing the plans and specifications for the Project. The district court granted sum *1230 mary judgment in favor of the Board on Rissler’s contract claims because Rissler failed to comply with the written notification requirements of the contract. The district court separately granted summary judgment in favor of HKM on Rissler’s negligence claims because Rissler sought purely economic damages and the duty owed by HKM to Rissler, if any, arose solely from the contract between the Board and Rissler.

We affirm.

I.ISSUES

The issues presented by Rissler in its initial brief are:

ISSUE I
Did the court error as a matter of law when it granted summary judgment to ap-pellee Sheridan Area Water Supply Joint Power Board for the reason that:
A. Appellant had a cause of action for breach of implied warranty for' defective plans and specifications; and
B. Appellant presented a genuine issue of material fact that appellee had waived the written notice provisions of the contract by subsequent course of conduct.
ISSUE II
Did the court error as a matter of law when it granted summary judgment in favor of co-appellee HKM for the reason that the Wyoming law of torts does not preclude actions for economic damages suffered by a contractor as a result of defective engineering plans and specifications?

In response, the Board articulates the issues as follows:

A. Did the District Court err, in granting Summary Judgment to JPB [Sheridan Area Water Supply Joint Powers Board], by reason of the existence of an implied warranty of sufficiency of plans and specifications?
B. Was there a genuine issue of material fact as to whether the Appellant and JPB had, by course of conduct, waived provisions of a written construction contract?

HKM presents the following issues for consideration:

Interference with Contract Claim
1. Did the District Court correctly rule that the Board did not breach its construction contract with Rissler and, therefore, HKM did not induce any breach?
Negligence and Negligent Misrepresentation Claims
2. Can Rissler as a general contractor pursue a tort claim against HKM as the engineer to recover purely economic damages?
3. Did HKM owe a duty to protect the economic interests of Rissler, a non-client?
4. Did Rissler contractually agree that HKM would have no liability except for failure to act in good faith thus barring Rissler’s claims for negligence and negligent misrepresentation?
Negligent Misrepresentation
5. Did HKM misrepresent an “existing fact” to Rissler?
6. Could Rissler justifiably rely on the plans and specifications to show all underground utilities?
7. Was Rissler paid in full for all damages and delays associated with unlo-cated underground utilities?
8. Should negligence misrepresentation claims be recognized in the context of detailed construction contracts?

On its second bite at the apple, Rissler rephrases and presents these issues:

I. Did the court err when it ruled appellant had no claim for interference with contract?
II. Did the court err when it ruled that the economic loss doctrine bared [sic] appellant’s claim of negligence against the engineer?
III. Are genuine issues of material fact raised in regard to appellant’s negligent misrepresentation claim?
IV. Are genuine issues of material fact raised in regard to appellant’s claim SJPB [Sheridan Area Water Supply *1231 Joint Powers Board] waived the notice provisions of the contract by subsequent course of dealings?
V. Do specific notice provisions of the contract nevertheless bar appellant’s claim for breach of contract and implied warranty against the owner?

II. FACTS

During the summer of 1992, the Board advertised for bids for the construction of a water distribution system to serve the Little Goose Valley, Big Horn and the City of Sheridan. Prior to the bidding, the Board contracted with HKM for the design and preparation of site plans to be used in the bidding process and during construction. Rissler submitted the low bid and was awarded the contract. Rissler and the Board proceeded to negotiate a detailed construction contract which incorporated the plans and specifications provided by HKM and identified HKM as the engineer referred to throughout the contract. The job was to be completed within 270 days once notice to proceed was given. The duties and responsibilities of the parties were set forth in detail, including several provisions which required written notice of claims for an adjustment to the terms of the contract. These provisions, as they are relevant to this case, will be presented in detail in our discussion.

On November 2, 1992, Rissler was given notice to proceed. As construction ensued, Rissler quickly encountered several problems. By November 13, 1992, water began to appear in the trenches and, by the end of November, it was apparent to Rissler’s supervisor that the bedding material required by HKM’s specifications would not support the pipe in high ground water areas. Ris-sler’s supervisor verbally complained about these conditions to HKM and believed that his complaints were memorialized in notes kept by HKM during the weekly project meetings. Rissler informed HKM that it believed rock was necessary to provide proper support, but HKM did not agree to deviate from the original specifications. Rissler was also frustrated by the inaccuracy of the utility locations as represented on the original plans, necessitating additional time and costs in determining the actual locations and completing any repairs resulting from unexpected encounters with underground facilities. However, Rissler did not submit any written complaints or claims regarding these problems during construction of the Project.

By the end of April 1993, all the waterlines had been fully laid and buried.

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Bluebook (online)
929 P.2d 1228, 1996 Wyo. LEXIS 182, 1996 WL 729633, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rissler-mcmurry-co-v-sheridan-area-water-supply-joint-powers-board-wyo-1996.