History
  • No items yet
midpage
210 N.C. App. 522
N.C. Ct. App.
2011
Read the full case

Background

  • Construction of UNC Children's and Women's Hospitals in Chapel Hill under a multi-prime delivery with EDCI as general contractor; UNCH owned project and HKS designed it with SSR and CRZ as consultants.
  • CCI subcontracted to furnish and install metal studs, drywall, firewalls, vapor barrier, insulation and acoustical ceilings; numerous CCIPIs and EWOs were submitted with Exhibit A listing pending claims.
  • Settlement with UNCH in 2005 reduced EDCI's recovery; EDCI later settled with designers HKS/SSR/CRZ/CRZ for additional sums; CCI's remaining claim for delay/disruption/inefficiency remained.
  • Judge Gessner granted partial summary judgment, finding CCI waived/unreserved pre- and post- dates; referee awarded CCI about $1.62M for remaining claims; Judge Hobgood adopted/referee report with modifications.
  • EDCI moved in limine to bar evidence on certain delay/disruption claims; Judge Hobgood allowed some delay/disruption proof if EDCI passed through to third parties and received payment.
  • On appeal, issues include equitable estoppel to toll the statute of limitations, scope of prior summary judgment orders, prejudgment interest, concurrent delay damages, and sharing of recovery costs; final judgment affirmed in part and reversed in part.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Equitable estoppel to statute of limitations CCI argues estoppel bars statute defenses due to EDCI's pass-through settlements. EDCI asserts no estoppel and general limitations should apply. Equitable estoppel applied; limitations defense barred.
Scope of Judge Gessner's summary judgment CCI contends some pre- and post- dates claims were within scope. EDCI argues all non-reserved claims precluded by order. Order barred all claims not reserved prior to 21 June 2001; referee improperly considered extrinsic evidence.
Prejudgment interest on disputed claims CCI seeks prejudgment interest on undisputed/partially disputed sums. EDCI contends no interest on disputed amounts. Prejudgment interest awarded from breach date; no good-faith exception to §24-5(a).
Delay damages and concurrent delay CCI seeks damages for owner/designer delays; EDCI argues concurrent delays bar recovery. ED/CCI views concurrency as limiting only cross-party recovery, not EDCI's damages from CCI. Concurrent delay bars EDCI's recovery against CCI; no double recovery; EDCI’s broad claim unsupported.
Sharing of recovery costs CCI should not bear EDCI's claim-costs; no express sharing clause. Implied terms/industry custom require sharing costs of third-party claims. No evidence of a shared-cost obligation; trial court erred in imposing cost-sharing; remanded to consider evidence.

Key Cases Cited

  • Friedland v. Gales, 131 N.C.App. 802, 509 S.E.2d 793 (1998) (equitable estoppel to statute of limitations)
  • Nowell v. Tea Co., 250 N.C.575, 108 S.E.2d 889 (1959) (equitable estoppel; delay in filing)
  • Gore v. Myrtle/Mueller, 362 N.C. 27, 653 S.E.2d 400 (2007) (equitable estoppel and good faith)
  • Turning Point Indus. v. Global Furn., Inc., 183 N.C.App. 119, 643 S.E.2d 664 (2007) (estoppel/false security in timing for suit)
  • Duke Univ. v. Stainback, 320 N.C. 337, 357 S.E.2d 690 (1987) (settlement/through claims; estoppel considerations)
  • Shore v. Brown, 324 N.C. 427, 378 S.E.2d 778 (1989) (judicial standard for affirming on any ground)
  • Metromont Materials Corp. v. R.B.R. & S.T., 120 N.C.App. 616, 463 S.E.2d 305 (1995) (interest from breach per amended §24-5(a))
  • Lane v. Scarborough, 284 N.C.407, 200 S.E.2d 622 (1973) (implied contract terms; custom/usage evidence limits)
  • Crown Co. v. Jones, 196 N.C. 208, 145 S.E. 5 (1928) (contract interpretation and evidence review)
Read the full case

Case Details

Case Name: Cleveland Construction, Inc. v. Ellis-Don Construction, Inc.
Court Name: Court of Appeals of North Carolina
Date Published: Apr 5, 2011
Citations: 210 N.C. App. 522; 709 S.E.2d 512; 2011 N.C. App. LEXIS 641; COA10-525
Docket Number: COA10-525
Court Abbreviation: N.C. Ct. App.
Log In
    Cleveland Construction, Inc. v. Ellis-Don Construction, Inc., 210 N.C. App. 522