210 N.C. App. 522
N.C. Ct. App.2011Background
- 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)
