TMS Contracting, LLC v. SmithGroup JJR, INC.

CourtCourt of Appeals of Tennessee
DecidedSeptember 9, 2022
DocketM2020-01028-COA-R3-CV
StatusPublished

This text of TMS Contracting, LLC v. SmithGroup JJR, INC. (TMS Contracting, LLC v. SmithGroup JJR, INC.) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
TMS Contracting, LLC v. SmithGroup JJR, INC., (Tenn. Ct. App. 2022).

Opinion

09/09/2022 IN THE COURT OF APPEALS OF TENNESSEE AT NASHVILLE October 7, 2021 Session

TMS CONTRACTING, LLC v SMITHGROUP JJR, INC. ET AL.

Appeal from the Chancery Court for Montgomery County No. DT-15-3 Laurence M. McMillan, Jr., Chancellor ___________________________________

No. M2020-01028-COA-R3-CV ___________________________________

The general contractor on a park and marina project brought a professional negligence action against the engineering firm that designed the project and administered the construction contract. The jury returned a verdict for the general contractor. And the trial court approved the verdict. On appeal, the engineering firm argues that it is entitled to a new trial. It contends that: (1) the jury verdict must be set aside because it is irreconcilably inconsistent; (2) the general contractor’s expert witness was not qualified to testify on the engineering standard of care; (3) and there is no material evidence to support the jury’s findings as to liability or delay damages. Discerning no reversible error, we affirm.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Chancery Court Affirmed

W. NEAL MCBRAYER, J., delivered the opinion of the court, in which ANDY D. BENNETT and JOHN W. MCCLARTY, JJ., joined.

Robert H. Green and Michael S. Kelley, Knoxville, Tennessee, and Kevin J. Gleeson, Southfield, Michigan, for the appellant, SmithGroup JJR, Inc.

Gregory L. Cashion and J. Ross Hutchison, Nashville, Tennessee, for the appellee, TMS Contracting, LLC. OPINION

I.

A.

SmithGroup JJR, Inc., an architectural and engineering company, designed a large park and marina complex for the City of Clarksville. The project spanned 131 acres near the Cumberland River. The City retained TMS Contracting, LLC as the general contractor for the first three phases of the project.

SmithGroup also oversaw construction of the project. It was SmithGroup’s responsibility to observe the work in progress and “make a judgment” about whether it met the contract specifications. Jessie Fink, a landscape architect, was the project manager for SmithGroup. During construction, she was in daily communication with the resident project representative.1 And she personally visited the job site about once a month. During each visit, she alerted City representatives of any installed work she believed fell short of the contract specifications. She documented her observations in written field reports. For major problems, she issued TMS a formal notice of nonconformance.

After the project was completed, TMS sued SmithGroup2 for professional negligence in the design and administration of the project. SmithGroup denied liability and asserted comparative negligence.

The jury heard testimony from multiple fact witnesses but only one expert. The expert witness was offered by TMS. SmithGroup did not offer any expert testimony.

Thom Spigner, the owner of TMS, explained this was a “very large, complex project.” TMS began work in 2009 and obtained final acceptance of all three phases in April 2012. During that time, the contractor excavated a 28-acre marina, created a 10-acre fishing pond, and installed miles of underground utilities. It also built a four-lane boat ramp, two bridges, and six buildings and completed several miles of walking trails, roads, and parking lots.

Mr. Spigner acknowledged that his company made its share of mistakes along the way. But “others did as well.” Kyle Jones, project manager for TMS, echoed that sentiment: “I’m not saying we were perfect on this project. Any time there was a mistake, 1 SmithGroup subcontracted with Westbrook Associated Engineers, Inc. to act as the resident project representative. A Westbrook employee was on site almost every day. 2 TMS also sued two other entities. TMS voluntarily dismissed its claims against one, and the other is not a party to this appeal. Thus, we focus on the facts relevant to the claims against SmithGroup. 2 we corrected it.” TMS’s claims against SmithGroup were limited to five discrete aspects of the project—settlement monitoring at Liberty Plaza; on-site stormwater runoff and erosion; concrete work; walking trails; and the north window wall at Freedom Point Pavilion.

1. Settlement Monitoring

During excavations, SmithGroup learned that the soil in one area of the park was unsuitable for building. The soil report from the City’s geotechnical engineer, Earth Science Engineering, LLC, showed a layer of soft sediment that could compress under weight. Because of the instability of the soil, the design for the building structures in that area had to change. Freedom Point Pavilion was built on piles—61-foot steel beams— resting on the underlying bedrock. And, after much discussion between SmithGroup, the City, and Earth Science, “the decision was made” to support Liberty Plaza’s retaining walls with piles but let the plaza itself float.

SmithGroup issued a construction bulletin notifying TMS of these design changes. Among other things, the bulletin directed TMS to install settlement monitoring plates in the plaza area. TMS also learned from the bulletin that the geotechnical engineering firm would evaluate the data from the settlement monitoring plates and notify SmithGroup when the contractor could proceed with construction of the plaza. It was anticipated that construction would be delayed for about 60 days. Monitoring began on April 22, 2011. Sixty days later, SmithGroup told TMS that additional monitoring was necessary. Construction on the plaza was delayed indefinitely. Landscaping, sidewalks, and other items in that vicinity were also on hold. But TMS moved forward with construction of the pavilion.

SmithGroup did not release TMS to begin construction of the plaza until January 13, 2012—205 days later than anticipated. Because of increased costs, TMS asked the City to remove Liberty Plaza from its contract. The City agreed.

Mr. Spigner and Mr. Jones complained that settlement monitoring delayed substantial completion of the project for 205 days. According to Mr. Spigner, most of the major work on the project was “all but finished” when the initial 60-day monitoring period expired. But TMS still had to set a bridge, pour concrete, and add stone pavers around the plaza. All of this work required heavy equipment that needed construction access. So TMS could not install landscaping and sidewalks near the plaza. And some items at Freedom Point Pavilion could not be completed. This was a significant component of the project.

Mr. Spigner asserted that “[e]very day . . . we were delayed cost us money.” Mr. Jones explained that on a typical project, “[a]s you knock items off the to do list, porta johns can go away. Personnel can go down. General conditions are reduced.” The delay 3 on the plaza kept TMS from “cross[ing] items off the list.” So its daily overhead costs during the period of delay remained steady at $2,604 per day.

Jerry Clark, TMS’s expert witness, faulted SmithGroup for not exploring other options for the construction of the plaza. In his opinion, it was a breach of the standard of care for the project designer to simply accept Earth Science’s recommendation of settlement monitoring without considering the impact of the delay on the construction project as a whole.

SmithGroup’s project manager, Ms. Fink, claimed that SmithGroup was not responsible for the settlement monitoring delay. Earth Science—the City’s geotechnical engineer—proposed this solution. Earth Science reviewed the monthly reports and decided when plaza construction could start.

She also denied that settlement monitoring delayed substantial completion of the project. All that was delayed was the construction of the plaza itself. Other work was being done during this time, including the construction of Freedom Point Pavilion.

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