William T. Kelly v. Corinth Public Utilities Commission

200 So. 3d 1107, 2016 Miss. App. LEXIS 36, 2016 WL 225356
CourtCourt of Appeals of Mississippi
DecidedJanuary 19, 2016
Docket2013-CA-00923-COA
StatusPublished
Cited by14 cases

This text of 200 So. 3d 1107 (William T. Kelly v. Corinth Public Utilities Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
William T. Kelly v. Corinth Public Utilities Commission, 200 So. 3d 1107, 2016 Miss. App. LEXIS 36, 2016 WL 225356 (Mich. Ct. App. 2016).

Opinions

WILSON, J.,

for the Court:

¶ 1. William Kelley accepted a bid from the Corinth Gas and Water Department (Department) to install water lines at the site of a proposed subdivision he was developing. The Department installed the lines but allegedly caused significant damage to the property. Kelley alleges that the Department failed to repair the damage and restore his property to its original condition despite having repeatedly assured him that it would do so at the conclusion of the project. Kelley alleges that he was forced to pay another contractor [1110]*1110$310,000 to repair the damage done by the Department and that ultimately he lost the property in foreclosure as a result of the Department’s actions.

¶ 2. Kelley served a notice of claim under the Mississippi Tort Claims Act (MTCA) on the Department, the City of Corinth (City), and the Corinth Public Utilities Commission (Commission). He then filed a complaint in the Alcorn County Circuit Court in which he named the same parties as defendants and asserted claims .for negligence and various other torts. The court later granted Kelley leave to amend his complaint to add claims for breach of contract and inverse condemnation under the Mississippi Constitution. The defendants moved for summary judgment, raising various defenses under the MTCA, and also moved to stay discovery pending a ruling on their summary judgment motion. The circuit court stayed discovery and later granted summary judgment in favor of all defendants on all claims. In its order granting summary judgment, the circuit court concluded, inter alia, that the MTCA’s statute of limitations expired before Kelley filed his notice of claim and that Kelley’s contract and inverse condemnation claims failed as a matter of law.

¶3. On appeal, Kelley argues that the circuit court (1) erred by ruling that the Department is a political subdivision entitled to the protections and immunities of the MTCA; (2) erred by ruling that his tort claims against all defendants are barred by the MTCA’s statute of limitations; (3 & 4) erred by ruling that his contract and inverse condemnation claims fail as a matter of law; and (5) abused its discretion by staying discovery. We affirm with one exception: we conclude that there is a genuine issue of material fact as to whether the MTCA’s statute of limitations expired before Kelley filed' his notice of claim. Accordingly, we affirm in part and reverse and remand in part for further proceedings consistent with this opinion.

FACTS AND PROCEDURAL HISTORY

¶4. The City of Corinth is a municipal corporation. In 1954, pursuant to state law, Mississippi Code Annotated section 21-27-13 (Rev.2015), the City established the Commission to control, manage, and operate the city-owned natural gas and water systems. The Commission then established the Department to manage the day-to-day operations of the systems, subject to the oversight and control of the Commission. As will be discussed below, the Department is essentially the operating arm of the Commission.

¶ 5. In 2006, Kelley was in the process of developing a new subdivision in Corinth, Magnolia Lake Estates, and he solicited bids for the installation of water lines at the site. The Department submitted the low bid, which Kelley accepted.1 In July 2007, Kelley signed a.document prepared by the Department showing a total estimated construction cost of $133,684.48. The document specified that Kelley would be required to pay 60% of that amount prior to construction and an additional 20% once construction was 75% complete. Once installation of the lines was completed, Kelley would be required to pay the remaining balance of the actual cost of construction. Prior to the Department beginning work, Kelley was required to have built all proposed city rights of way and [1111]*1111utility easements to “finished grade” and “a good gravel base” for proposed city streets.

¶ 6. Installation of the water and gas lines began in September 2007.- In January 2008, the Department finished work and submitted a final invoice to Kelley requesting payment of $70,032.81.

¶7. In response to the Department’s request for final payment, William Lambert, an architect, inspected the site on behalf of Kelley’s lender, Regions Bank. In an email, Lambert reported to Regions that the Department had installed all necessary water and gas lines “per the contract documents.” However, Lambert was “thoroughly appalled” by extensive damage that the Department had done to the property — a “minimum of $250,000.00 ... of damage” in his opinion — which he had discussed with both Kelley and Kelley’s engineer. Lambert’s email suggests that the Department had indicated that it was unable or unwilling to repair the damage. Lambert recommended that Regions not make final payment, stating that he “would hope that this matter would be resolved by minimum construction standards by [the Department] prior to payment.” Regions deemed the project incomplete and denied final payment to the Department. Kelley does not deny discussing the damage to the site with Lambert, but he does deny that he saw Lambert’s email for several weeks after it was sent.

¶ 8. According to Kelley, while the utility lines were being installed, he “was concerned about the amount of damage [the Department] was causing, but [he was] repeatedly assured that [the Department] would restore the land to its original condition after [its] work was completed.” Thus, in February 2008, he “met with representatives of [the Department] to discuss the additional work that remained to be done at the site.” He spoke with the Department’s construction superintendent, Chris Latch, on February 19 and either February 25 or 26, and Latch said “that he would have to check with [Department] officials in regard to [Kelley’s] request that [the Department] repair the damage ... and restore the work site .to the condition it was in before [the Department] began its work.” Thereafter, Kelley continued to meet with representatives of the Department. In his affidavit, Kelley states that in a March 2008 meeting, the Department’s manager stated “that he was new in his position,” so “he would have to review [the] situation, and get back to [Kelley] on when [the Department] would” repair the damage and restore the property. Kelley states that “the first time any representative of [the Department] advised [him] that they were not going to do any additional work on the project” was at a meeting “in late March or early April of 2008.”2

■¶ 9. Kelley claims that the Department then told him that he should pay the final invoice and sue them for damages for any defective work. When Kelley did not pay, the Department filed a construction lien against the property. The Department also advised Kelley that he could present his claim to the Commission, which he did at the Commission’s July 14, 2008 meeting. On July 21, 2008, the Commission informed Kelley that it saw “no reason to change its position in the matter.” The Commission stated that it would “ask [its] outside engineering firm to investigate the situation to see if any information ha[d] been overlooked.” But the Commission also advised Kelley that he needed to pay the final invoice “before the utilities [could] be reinstated in the development.”

[1112]*1112¶ 10. Kelley alleges that he was forced to pay another contractor $310,000 to repair the damage and restore the property. Kelley claims that he exhausted his financing and could not complete the subdivision as a result of this unforeseen cost.

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Cite This Page — Counsel Stack

Bluebook (online)
200 So. 3d 1107, 2016 Miss. App. LEXIS 36, 2016 WL 225356, Counsel Stack Legal Research, https://law.counselstack.com/opinion/william-t-kelly-v-corinth-public-utilities-commission-missctapp-2016.