Harbor Construction Co. v. Board of Supervisors
69 So. 3d 498
La. Ct. App.2011Background
- LSU contracted Harbor to replace acid basin tanks at the LSU Clinical Sciences Research Building in New Orleans.
- LSU instructed Harbor to stop work on July 22, 2004 after Harbor severed a sewer pipe six feet below the surface; work resumed November 11, 2004.
- The severed sewer pipe was not shown on LSU’s site plan or in plans/specifications; trial court found Harbor had no duty to locate underground utilities beyond the provided plans.
- Trial court found Harbor proved its damages by a preponderance of the evidence and that the soil condition—not the severed pipe—drove LSU’s cessation of work.
- Harbor’s claimed damages totaled direct expenses of $17,225.07 and overhead expenses of $33,828.90; the appellate court amended direct expenses to $17,206.37 and affirmed overhead.
- The court considered statutory immunity for contractors under La. Rev. Stat. § 9:2771 and evaluated contractual language, change orders, and case law in determining liability and damages.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the immunity statute bars Harbor’s damages claim | Harbor | LSU | Immunity applies; damages awarded |
| Whether Harbor’s duties to discover hidden conditions were overridden by contract | Harbor | LSU | Contractual duty to verify does not override owner’s liability for defective plans |
| Whether Harbor proved its expenses and overhead by a preponderance of the evidence | Harbor | LSU | Overhead awarded; direct expenses amended to $17,206.37 |
| Whether Change Order #1 affected Harbor’s liability or damages | Harbor | LSU | Change Order #1 did not require reversal; evidence limited to specified scopes |
Key Cases Cited
- Rosell v. ESCO, 549 So.2d 840 (La.1989) (standard for reviewing trial court credibility findings; de novo review when legal errors taint the record)
- Stobart v. State through Dept. of Transp. and Development, 617 So.2d 880 (La.1993) (manifest error standard on factual findings)
- Gonzales v. Xerox Corp., 320 So.2d 163 (La.1975) (de novo review when legal errors exist; factual error review limits)
- United States v. Spearin, 248 U.S. 132 (1918) (contractor not liable for plan defects; owner bears risk)
- Louisiana Shipbuilding Co. v. Bing Dampskibssal..., 104 So. 364 (La.1925) (Spearin principle applied in Louisiana context)
- McCarty Corp. v. Industrial Scaffolding, Inc., 413 So.2d 1322 (La.App. 1st Cir.1981) (overhead/indirect expenses recoverable in contractor damages)
- Al Smith’s Plumbing & Heating, Inc. v. River Crest, Inc., 365 So.2d 1122 (La.App. 4th Cir.1978) (customary overhead; contract breach damages)
- Magnolia Construction Co., L.L.C. v. Parish of St. Charles, 947 So.2d 747 (La.App. 5 Cir.2006) (overhead as recoverable element in delay damages)