Water Works and Sewer Board of the City of Guntersville, The v. Glass Steel Inc

CourtDistrict Court, N.D. Alabama
DecidedJune 5, 2023
Docket4:21-cv-01472
StatusUnknown

This text of Water Works and Sewer Board of the City of Guntersville, The v. Glass Steel Inc (Water Works and Sewer Board of the City of Guntersville, The v. Glass Steel Inc) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Water Works and Sewer Board of the City of Guntersville, The v. Glass Steel Inc, (N.D. Ala. 2023).

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ALABAMA MIDDLE DIVISION WATER WORKS AND SEWER } BOARD OF THE CITY OF } GUNTERSVILLE, } } Plaintiff, } Case No.: 4:21-cv-1472-ACA } v. } } GLASS STEEL, INC., et al., } } Defendants. }

MEMORANDUM OPINION Plaintiff Water Works and Sewer Board of the City of Guntersville contracted with Defendant PF Moon and Company, Inc., to make certain improvements to one of Guntersville’s wastewater treatment plants. One of the improvements was the construction of clarifiers that would assist in cleaning wastewater. Clarifiers must have “baffles,” panels made of fiberglass that attach to the wall of clarifiers, and so PF Moon purchased baffles to complete the construction of Guntersville’s clarifiers from Defendant Glass Steel, Inc. Several years after PF Moon completed construction of the improvements, the baffles started failing, ultimately requiring replacement. The Board sued PF Moon and Glass Steel, asserting (1) Glass Steel negligently designed or constructed the baffles and PF Moon negligently installed the baffles (“Count One”); (2) Glass Steel breached a contract by failing to properly design, construct, inspect, or test the baffles and PF Moon breached a contract to properly install the baffles (“Count

Two”); (3) Glass Steel breached express or implied warranties that the baffles had superior strength and would not corrode (“Count Three”); and (4) Glass Steel sold defective baffles, under the Alabama Extended Manufacturer’s Liability Doctrine

(“AEMLD”). (Doc. 1-1 at 7–10). Glass Steel and PF Moon separately moved for summary judgment on all claims brought against them. (Docs. 32, 33). The court WILL GRANT IN PART and WILL DENY IN PART Glass Steel’s motion for summary judgment. The court WILL DENY the motion for

summary judgment on the negligence claim asserted against Glass Steel in Count One because the economic loss rule does not bar this claim and there is sufficient evidence for a factfinder to conclude that Glass Steel negligently fabricated the

baffles. However, the court WILL ENTER SUMMARY JUDGMENT in favor of Glass Steel and against the Board on the remaining claims because (1) the Board’s breach of contract and breach of warranties claims against Glass Steel are barred by the statute of limitations and (2) the Board has not presented any evidence of a safer,

practical alternative design in support of its AEMLD claim. The court WILL GRANT PF Moon’s motion for summary judgment and WILL ENTER SUMMARY JUDGMENT in favor of PF Moon and against the

Board because (1) there is no evidence that PF Moon negligently installed the baffles and (2) the Board has not presented any evidence that PF Moon failed to use due care in performing its obligations under the contract between PF Moon and the

Board. I. BACKGROUND In deciding a motion for summary judgment, the court “view[s] all evidence

in the light most favorable to the nonmoving party and draw[s] all justifiable inferences in that party's favor.” Thompson v. Alabama, 65 F.4th 1288, 1297 (11th Cir. 2023) (quotation marks omitted). Where the parties have presented evidence creating a dispute of fact, the court’s description of the facts adopts the version most

favorable to the Board. See id.; see also Cantu v. City of Dothan, 974 F.3d 1217, 1222 (11th Cir. 2020) (“The ‘facts’ at the summary judgment stage are not necessarily the true, historical facts; they may not be what a jury at trial would, or

will, determine to be the facts.”). The Board operates a wastewater treatment plant in Guntersville, Alabama. (Doc. 1-1 at 6 ¶ 4; doc. 4 at 2 ¶ 4; doc. 5 at 2 ¶ 4). In 2014, the Board decided to make certain improvements to the wastewater treatment plant, including building

two new wastewater clarifiers. (Doc. 34-2 at 31; doc. 34-5 at 10). Clarifiers are large tanks with a “rake arm” on the bottom. (Doc. 34-2 at 31, 33–34). Wastewater is pumped into the clarifier and any solids in the water settle at the bottom, where the

rake arm pushes the sludge into a drain. (Id. at 33–34). Baffles, attached to the wall of the clarifier midway down the tank, help direct floating solids to the bottom of the tank. (Doc. 35-3 at 12; doc. 34-2 at 34). Clean water drains out of an area near the

top of the tank and, in the case of Guntersville’s wastewater treatment plant, is eventually discharged into the Tennessee River. (Doc. 34-2 at 25, 34). Krebs Engineering, Inc. designed and oversaw the improvements project.

(Doc. 34-5 at 11, 13). In September 2014, the Board entered a contract with PF Moon to serve as the general contractor for the planned improvements. (Doc. 40-10 at 36– 48; doc. 40-11 at 1–17; doc. 34-2 at 31; see doc. 37 at 2 ¶ 1; doc. 41 at 3). The contract incorporates Krebs’ project manual. (Doc. 40-10 at 36; see doc. 34-5 at 29).

The project manual provided that PF Moon shall bear all expenses related to the correction of faulty or defective work . . . . [T]he discovery or appearance of faulty or defective work after the making of said final payment, shall not relieve [PF Moon] of responsibility for defective materials or faulty workmanship. [PF Moon] shall, at [its] own expense, promptly replace all defective materials or equipment and correct all faulty workmanship discovered and/or appearing within one year from date of written acceptance of the work.

(Doc. 35-13 at 244, 290–91). A separate section of the project manual sets out the guaranty: “[PF Moon] shall remedy any defects in the work which shall appear within a period of one year from the date of final acceptance of the work, and shall pay for damages to other work, facilities, persons, or property resulting from such defects.” (Id. at 293). As part of the project, PF Moon needed to buy baffles for the new clarifiers. Glass Steel sent a submittal to PF Moon with information about its baffles. (Id. at

206–27; see doc. 34-5 at 13). Part of the submittal was a brochure describing its baffles as having a “superior corrosion resistance and are stronger than most other fiberglass Stamford baffle systems.” (Doc. 35-13 at 207, 221).

With Krebs’ approval, PF Moon bought the baffles for the new clarifiers from Glass Steel. (Doc. 35-2 at 4–5; doc. 34-5 at 13). Under the purchase order, Glass Steel agreed to fabricate, assemble, and ship the baffles to PF Moon. (See doc. 35-2 at 4; doc. 34-4 at 7). The purchase order included a one-year warranty “from date of

final acceptance by the owner.” (Doc. 35-2 at 5). The purchase order does not define who the “owner” is, but there is a reasonable inference that it’s the Board. (See generally id. at 4–5; see, e.g., id. at 5 ¶ 24 (referring to PF Moon as a separate entity

from “the Owner”); doc. 40-10 at 44 (PF Moon’s labor and material payment bond referring to the Board as “the Owner”)). Glass Steel fabricated the baffles in accordance with the purchase order, cutting holes in the baffles that would be used to mount the baffles to the clarifier

walls. (Doc. 35-1 at 25, 106). On May 8, 2015, Glass Steel loaded a truck with the baffles and sent them to Guntersville. (Doc. 34-4 at 14). PF Moon installed the baffles in the clarifiers. (Doc. 34-5 at 14). In May 2017, Krebs sent PF Moon a letter stating that June 1, 2016 was the date of “substantial completion” of the project. (Doc. 35-13 at 243; see also doc. 34-

5 at 28). As a result, the one-year warranty provided in the PF Moon-Board contract “for all equipment and work except for those items specifically identified as having an extended warranty period” expired on June 1, 2017. (Doc. 35-13 at 243). The

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