Tyger Construction Co. v. Commonwealth

435 S.E.2d 659, 17 Va. App. 166, 10 Va. Law Rep. 347, 1993 Va. App. LEXIS 454
CourtCourt of Appeals of Virginia
DecidedSeptember 28, 1993
DocketNo. 0771-92-1
StatusPublished
Cited by4 cases

This text of 435 S.E.2d 659 (Tyger Construction Co. v. Commonwealth) is published on Counsel Stack Legal Research, covering Court of Appeals of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tyger Construction Co. v. Commonwealth, 435 S.E.2d 659, 17 Va. App. 166, 10 Va. Law Rep. 347, 1993 Va. App. LEXIS 454 (Va. Ct. App. 1993).

Opinion

Opinion

BENTON, J.

Tyger Construction Company, Incorporated, and Pensacola Construction Company, joint venturers doing business as Tyger-Pensacola (Tyger), appeal from the circuit judge’s grant of partial summary judgment in favor of the Department of Highways and Transportation (VDOT). The circuit judge ruled that Tyger, a general contractor, who entered into a contract in 1985 with VDOT to construct portions of an interstate highway, could not assert a claim that its subcontractor incurred additional work not anticipated by Tyger in its contract with VDOT. Tyger contends that the circuit judge erred in finding that Tyger was not the proper party to assert the claim. We reverse the decision.

I.

The pleadings established that after the making of the construction contract between Tyger and VDOT, Tyger, with the approval of VDOT, entered into a subcontract with the Norfolk Dredging Company to perform the dredging of areas designated as the North [168]*168Island and South Island. During the progress of construction, the subcontractor encountered subsurface conditions at the North Island site that the subcontractor deemed to be substantially different than those described in the contract documents provided by VDOT. The subcontractor sent Tyger a “notice of an impending claim,” stating that the subcontractor had encountered material at the North Island “not contemplated by the contract plans and specifications.” The subcontractor informed Tyger that those conditions were “reducing the operating time and capability of the equipment below that normally expected for the soil materials anticipated in this project.” As a result of these conditions, the subcontractor was required to perform additional dredging work at North Island.

Tyger filed a claim with VDOT asserting the changed conditions and added expenses. VDOT denied the claim. Following the denial of the claim, Tyger timely filed a petition in the circuit court pursuant' to Code § 33.1-386 seeking payment for the expenses of the additional dredging. Tyger contended that the additional work constituted “extra work” within the meaning of Section 104.03 of the VDOT Road and Bridge Specifications and that the specifications constituted a part of the contract between the subcontractor, Tyger, and VDOT. The trial judge ruled that APAC-Virginia, Inc. v. Virginia Department of Highways & Transportation, 9 Va. App. 450, 388 S.E.2d 841 (1990), was dispositive of the case and granted the Commonwealth’s motion for partial summary judgment. The remaining claims in Tyger’s petition were settled and dismissed in a final order.

Tyger asserts on this appeal, as it did in the circuit court, that this case is distinguishable from APAC-Virginia because Tyger alleged in its pleadings that it was injured by VDOT conduct and because Tyger seeks to recover on its own behalf damages it incurred as a result of VDOT’s conduct. VDOT argues that “[t]he trial court [granted summary judgment] because Tyger was asserting [the subcontractor’s] claim for damages ... and because it believed the APAC case was dis-positive of such a claim.” The parties agree that this Court has jurisdiction over the appeal. Commonwealth, Dep’t of Highways & Transp. v. E.W. Yeatts, Inc., 233 Va. 17, 24, 353 S.E.2d 717, 721 (1987).

II.

In APAC-Virginia, this Court addressed principles concerning privity of contract.

[169]*169The common law requirement of privity of contract is well established. In Virginia, it is settled that no cause of action exists for a claim solely for economic loss, absent privity of contract. Only the common law privity rules involving personal injury or property damage have been modified by statute. Legislative abrogation of the privity of contract cannot be by implication and must be expressed.
An action on a contract must be brought in the name of the party in whom the legal interest is vested. Ordinarily, such an interest is vested only in the promisee or promisor, and only this person or his privy may sue on the contract.

9 Va. App. at 452, 388 S.E.2d at 842 (citations omitted). The facts in APAC-Virginia indicate that “[t]he general contractor petitioned the trial court for a judgment against the Department, asserting a claim, not on its own behalf, but on behalf of . . . one of its subcontractors.” 9 Va. App. at 451, 388 S.E.2d at 842 (emphasis added). Indeed, that suit was styled “APAC-Virginia, Inc., ex rel., etc.” Id. at 450, 388 S.E.2d at 841.

In this case, however, Tyger’s petition in the circuit court was brought in Tyger’s name as the aggrieved party, and the petition alleged injury and consequent damages suffered by Tyger. In pertinent part, Tyger’s petition alleged as follows:

10. With the approval of VDOT, [Tyger] entered into a subcontract with [sub-contractor] to perform the dredging of areas designated as the sites for the North Island and South Island.
11. In the bid proposal, VDOT represented that the material to be removed by a hydraulic cutterhead dredge at the sites for the North and South Island consisted of muck and soft cohesive soil. . . . VDOT also provided [Tyger] and its subcontractor with boring logs which represented that the material to be removed by a hydraulic cutterhead dredge consisted of sand, silt, clay, and muck.
12. In removing the material to be dredged from the site for the South Island, the subcontractor . . . encountered the type of materials described in the contract documents; however, upon commencing dredging the site for the North Island, the subcontractor encountered differing subsurface conditions, including foreign materials, consisting of large timber piling, cables, rubber tires, other debris, and materials that differed substantially from that represented by the contract documents to be encountered in the [170]*170area and the type of materials that are not generally excavated by hydraulic cutterhead dredge.
13. At the time [VDOT] made its representations in the bid and contract documents as to the nature of the site conditions at the North and South Islands, it was aware that a ferry terminal had been operated by the Commonwealth of Virginia at the site of the North Island dredging project and that the remains of the ferry terminal included large timber pilings bound with cables and other such remnants located on the exact area required to be dredged under the contract.
14. Despite its obligation to do so, VDOT made no mention in its bid proposal or in the contract documents of the existence of the ferry terminal at the site of the North Island and failed to notify or warn [Tyger] or its subcontractor that remnants of the terminal remained beneath the surface on the site.
* * * *
16.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Interstate Contracting Corp. v. City of Dallas
135 S.W.3d 605 (Texas Supreme Court, 2004)
Lane Construction Corp. v. Trading Merchandising Co.
34 Va. Cir. 383 (Stafford County Circuit Court, 1994)

Cite This Page — Counsel Stack

Bluebook (online)
435 S.E.2d 659, 17 Va. App. 166, 10 Va. Law Rep. 347, 1993 Va. App. LEXIS 454, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tyger-construction-co-v-commonwealth-vactapp-1993.