State Department Of Transportation v. Seattle Tunnel Partners

CourtCourt of Appeals of Washington
DecidedFebruary 5, 2019
Docket51025-1
StatusUnpublished

This text of State Department Of Transportation v. Seattle Tunnel Partners (State Department Of Transportation v. Seattle Tunnel Partners) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Department Of Transportation v. Seattle Tunnel Partners, (Wash. Ct. App. 2019).

Opinion

Filed Washington State Court of Appeals Division Two

February 5, 2019

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II WASHINGTON STATE DEPARTMENT OF TRANSPORTATION,

Plaintiff, No. 51025-1-II

v.

SEATTLE TUNNEL PARTNERS, a joint venture; TUTOR PERINI CORP.; and DRAGADOS USA, INC.,

Defendant. UNPUBLISHED OPINION

SEATTLE TUNNEL PARTNERS, a joint venture,

Third Party Plaintiff/Respondent,

HITACHI ZOSEN U.S.A., LTD., a Delaware corporation; HITACHI ZOSEN CORP., a foreign corporation; and HNTB CORP., a Delaware corporation.

Third Party Defendants. No. 51025-1-II

HITACHI ZOSEN U.S.A., LTD., a Delaware corporation,

Fourth Party Plaintiff,

FIDELITY AND DEPOSIT COMPANY OF MARYLAND; ZURICH AMERICAN INSURANCE COMPANY; LIBERTY MUTUAL INSURANCE COMPANY; TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA; FEDERAL INSURANCE COMPANY; and SAFECO INSURANCE COMPANY OF AMERICA,

Fourth Party Defendants. HITACHI ZOSEN U.S.A. LTD., a Delaware corporation,

Plaintiff,

WASHINGTON STATE DEPARTMENT OF TRANSPORTATION and SHANNON & WILSON, INC.,

Defendants. SEATTLE TUNNEL PARTNERS, a joint venture,

Plaintiff/Respondent,

SHANNON & WILSON, INC., a Washington corporation; and WSP USA, Inc., formerly known as PARSONS BRINCKERHOFF, INC., a New York corporation,

Defendants/Petitioners.

2 No. 51025-1-II

SUTTON, J. — In early 2011, Washington State Department of Transportation (WSDOT)

contracted with Seattle Tunnel Partners (STP), Respondent, to construct an underground bored

tunnel in Seattle. In December 2013, during excavation of the tunnel, the boring machine

encountered the steel casing of an abandoned test well and could not continue its progress.

WSDOT filed suit against STP for breach of contract related to the stoppage. STP investigated

the boring machine’s trouble and ultimately brought a counterclaim suit against WSDOT, in part,

for failing to disclose the well. Six months later, STP filed suit against Shannon and Wilson

(S&W) and WSP USA, Inc.1 (Collectively, “Appellants”).

On discretionary review, Appellants appeal the superior court’s denial of their joint motion

for summary judgment dismissal of STP’s negligence and implied indemnity claims against them.

Appellants argue that all of STP’s claims against Appellants are barred by the three-year statute of

limitations. STP responds that the discovery rule applied to toll the statute of limitations on its

negligence claims because STP was unable to determine the necessary facts regarding causation

until after it had completed its investigation into the boring machine’s breakdown. STP also

responds that Appellants never properly challenged STP’s implied indemnity claims and therefore,

the issue is not preserved for appeal.

We agree with Appellants that the superior court erred by denying their motion for

summary judgment of STP’s negligence claims. However, we also hold that Appellants failed to

sufficiently challenge STP’s implied indemnity claims before the superior court. Consequently,

we reverse in part and remand for further proceedings.

1 WSP USA, Inc. was formerly known as Parsons Brinckerhoff, Inc.

3 No. 51025-1-II

FACTS

I. BACKGROUND

In 2001, WSDOT engaged WSP, an engineering and design firm, as a consultant to assist

in the process of evaluating the repair or replacement of the Alaskan Way Viaduct. As part of its

contract with WSDOT, WSP engaged S&W, a Seattle based geotechnical engineering firm, to

conduct geologic profile logs, groundwater pumping tests, and to prepare technical memoranda

relating to the Alaskan Way Viaduct replacement alternatives and related geotechnical issues.

Between 2001 and 2010, WSP and S&W conducted various investigative field explorations. In

2002, they installed a pumping well identified as Test Well 2 (TW-2). TW-2 had an eight-inch

steel casing.

In 2009, WSDOT determined that a bored underground tunnel stretching approximately

1.7 miles long and 57 feet in diameter was the best option for the viaduct replacement project. In

2010, S&W and WSP jointly issued a geotechnical baseline report (GBR) for the tunnel project.

The purpose of the GBR was for “[s]etting the baseline subsurface site conditions expected to be

encountered in the performance of the [w]ork.” Clerk’s Papers (CP) at 1011. S&W additionally

prepared a Geotechnical and Environmental Data Report, the stated purpose of which was to

“present[] geotechnical and environmental data collected for the current and previous alignments

of the project.” CP at 1022.

In January 2011, WSDOT and STP entered into a design-build contract to execute the

tunnel plan. As part of the contract, STP procured a tunnel boring machine (TBM). STP

commissioned the TBM through Hitachi Zosen U.S.A., Ltd. (Hitachi). STP launched the TBM

and started boring the tunnel on July 30, 2013.

4 No. 51025-1-II

On approximately December 4, 2013, STP employees observed that a hollow steel casing

had emerged from the surface of the project site, directly above the TBM. The TBM continued

tunneling, but the advance rate slowed and the temperature of the TBM rose until, on

approximately December 6, STP stopped the TBM to investigate. That same day, Juan Luis

Magro, a construction manager for STP, e-mailed other employees of STP about the problem,

acknowledging that the TBM had encountered steel casings. He observed, “the extension of the

damages in the cutterhead and/or screw conveyor produced by encountering these steel art[i]facts

is unknown at this point, although it is a given that there will be some.” CP at 893.

On December 9, STP project manager Chris Dixon sent an e-mail to STP’s chief executive

officer, stating:

Matt Preedy just informed us that the obstruction encountered by the TBM is an 8 inch diameter steel pipe, 160 feet long, that was used by WSDOT as an observation well on a previous alignment. We hit it right where WSDOT left it in the ground. The [differing site condition2] has been identified. We (WSDOT and STP) have been receiving media questions all day about why [the TBM] is stopped and what [the TBM] has encountered. It will be interesting to see how WSDOT responds to these questions now that the obstruction has been identified.

CP at 872.

WSP seemed less sure as to what had caused the stoppage. On December 10, a WSP

engineer responded, “[n]o one knows,” when a WSP colleague asked “what’s going on?” CP at

1198.

2 Differing site condition, as defined in the design-build contract.

5 No. 51025-1-II

On December 12, 2013, STP wrote a letter to WSDOT explaining that STP was beginning

an investigation into the cause of the stoppage. STP explained that it had learned on December 9

that the TBM had encountered an 8-inch diameter steel pipe that WSDOT installed in 2002. The

letter stated:

In the event that the encountering of this pipe is determined to be, upon the completion of STP’s investigation, the cause for the stoppage in tunneling and/or the cause for an increase in STP’s cost and time for performance, STP hereby reserves its right to request a Change Order to provide an extension of the Completion Deadlines and an increase in compensation.

CP at 866. That same day, e-mails between WSP engineers stated that theories as to why the TBM

had stopped were “[a]ll speculative.” CP at 1203.

On December 17, WSDOT wrote to STP identifying the steel pipe the TBM encountered

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