Wellons, Inc. v. LANGBOARD, INC.
726 S.E.2d 673
Ga. Ct. App.2012Background
- Wellons, Inc. designed and installed a custom energy system for Langboard, Inc. at Langboard's Quitman plant under two contracts.
- The design contract (Oct. 2002) priced at $13.7 million; the later installation contract (Oct. 2003) covered installation of the system.
- By June 2005, portions of the system operated, but emissions and steam production failed to meet contract specifications, and problems persisted thereafter.
- Langboard alleged breaches related to both design and installation contracts; Wellons disputed liability and damages, and Langboard sued in Oct. 2007.
- A Brooks County jury awarded Langboard over $8.4 million total, including about $5 million for installation breach, which Wellons challenged on appeal.
- The trial court denied Wellons’ motions for summary judgment on the design contract and for relief on the installation contract, and admitted contested evidence challenged on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Accrual of design contract claim | Langboard argued design claim accrued when defects were discoverable; timely under contract terms. | Wellons asserted accrual in March 2006; claim barred by one-year limitation. | Issue waived; summary judgment denied; fact questions for jury on accrual and substantial completion. |
| Sufficiency of installation damages | Damages from installation defects supported by evidence of component failures and repair costs. | Damages overstated or caused by design, not installation; not sufficient to support verdict. | Evidence supported the verdict; damages within range of proof; denial of JNOV/new trial affirmed. |
| Admission of speculative or irrelevant evidence | Costs to repair and proposed boiler were probative to damages. | Some testimony was speculative or irrelevant and should have been excluded. | Court did not abuse discretion; admitted evidence within proper scope and probative value. |
Key Cases Cited
- Kicklighter v. Woodward, 267 Ga. 157 (1996) (review of denial of summary judgment after verdict is limited)
- Smith v. Saulsbury, 286 Ga.App. 322 (2007) (exception to mootness for denial of summary judgment when issues not considered at trial)
- Pfeiffer v. Georgia Dept. of Transp., 275 Ga. 827 (2002) (strengthening principle of party reliance on trial court arguments)
- Assn. Svcs., Inc. v. Smith, 249 Ga.App. 629 (2001) (waiver when argument not raised in motion for summary judgment)
- John Thurmond & Assocs. v. Kennedy, 284 Ga. 469 (2008) (damages for defective construction; reasonable certainty standard)
- Turner Broadcasting System v. McDavid, 303 Ga.App. 593 (2010) (jury verdict within range of evidence; deference to jury on damages)
- Hawkins v. OB-GYN Assocs., 290 Ga.App. 892 (2008) (speculative expert testimony has no probative value)
- Song v. Brown, 255 Ga.App. 562 (2002) (damages must be certain to a reasonable degree; speculation not allowed)