Kаren CARRIS d/b/a Sunbelt Construction, Appellant, v. JOHN R. THOMAS AND ASSOCIATES, P.C., a/k/a Thomas, Davis Architects and Partners, P.C., an Oklahoma corporation, and J. Brad Thomas, an individual, Appellees.
No. 82952
Supreme Court of Oklahoma
April 4, 1995
Rehearing Denied June 15, 1995
896 P.2d 522
We held that under the circumstances presented in Harjo, the land was located within a dependant Indian community. The land remained subject to the control of the federal government; there were comprehensive governmental regulations regarding the MHO agreement. The tribe maintained the sewage and health services to the area. The schools received federal funding, through programs designed to help Indian children. An anthropologist testified that the living arrangement was consistent with a distinct traditional pattern of dwelling within Indian families. The house was located near Indian churches where traditional Indian languages were spoken.
The evidence is not nearly so strong in the present case. The land in question was not owned by Indians nor held in trust for their benefit prior to the purchase by the housing authority. The home is located on unrestricted fee land. There is not intensive control by the federal government through HUD, because the MHO agreement has been completed and the house and land has been deeded to the Lewises. There do not seem to be close tribal ties to the housing addition. There is no evidence that the residents of the house are dependent on the Sac and Fox Tribe for police or fire protection.11 Importantly, the Lewis‘s assert that they are not part of an Indian community. Unlike Harjo, where four tracts of lands were deeded to build houses for members оf the same family, the only connection between the Lewises and the other homeowners is location. The land was not “set apart for the use of Indians, as such under the superintendence of the government.” Pelican, 232 U.S. at 449, 34 S.Ct. at 399.
I would determine that the facts are not sufficient to show a “dependent Indian community” under Harjo. Thus, the land is not Indian country as defined by
I am authorized to state that KAUGER, J., joins in these views.
Hugh Baysinger, Steven Daniels, Oklahoma City, for appellees.
KAUGER, Vice Chief Justice:
The only question addressed1 is whether the trial court properly granted summary judgment when it found that the contractor, who arbitrated and recovered partial damages from the power authority, was precluded from bringing negligence and fraud claims against third-persons who were not parties to the arbitration proceedings. We find that under the facts presented, the cause is not precluded by the doctrines of claim or issue preclusion.
FACTS
Oklаhoma Municipal Power Authority (the power authority) hired the architectural firm of John R. Thomas and Associates, P.C. (the firm) to design plans for a construction project. On May 14, 1992, through a separate agreement, the power authority hired Karen Carris (the contractor) to perform construction work on the project. The contractor‘s contract required that the construction work be done according to the designs and specifications which were prepared by the firm.
After the contractor began working on the project, a dispute arose over the construction of a wheel chair ramp. At this juncture, the firm and the contractor differ on the facts. The contractor‘s version is that Brad Thomas (Thomas), an employee of the firm who is not a licensed architect, designed the plans for the project and represented himself to be an architect. She insists that she discussed the problem with the plans for the ramp with Thomas, and that he instructed her to continue the construction of the ramp. The firm and Thomas contend that Thomas neither represented himself to be an architect nor designed the plans. Rathеr, that the plans were designed by John R. Thomas who was an architect. It is undisputed that the contractor built the ramp, and that it did not comply with the plans and specifications prepared by the firm. As a result, the power authority insisted that the contractor reconstruct the ramp at her expense. She did not. Subsequently, the power authority hired someone else to reconstruct the ramp, and it refused to pay the contractor for any of her work on the project.
The contractor, invoking an arbitration clause in her contract with the power authority, requested arbitration. She alleged that the power authority breached the contract and she sought to recover the entire amount of the contract. The power authority counterclaimed for damages which arose as a result of the construction delays. In the arbitration proceeding, the contractor maintained that she could not have built the ramp according to the plans which were prepared by the firm and Thomas. On March 31, 1993, the arbitrator awarded the contractor a portion of the money due her under the contract. The arbitrаtor also awarded the power authority partial damages on its counterclaim. Although the firm and Thomas participated as witnesses in the arbitration proceeding, they were neither parties to the contractor/power authority contract nor to the arbitration proceedings.
On July 27, 1993, the contractor filed a lawsuit against the firm and Thomas, alleging that the plans for the project were negligently prepared, and that Thomas fraudulently represented himself to be a licensed architect. The firm and Thomas denied the allegations and moved for summаry judgment. The trial court granted summary judgment to the firm and Thomas on December 29, 1993. It found that: 1) the contractor could not split her previously arbitrated breach of contract claim against the power authority from her negligence and fraud claims against the firm and Thomas; 2) the arbitrator determined what damages the contractor was entitled to receive; and 3) the arbitration award which had been paid and satisfied determined all of the issues in the negligence and fraud suits. The contractor appealed. On June 28, 1994, the Court of Appeals affirmed, finding that the contractor was estopped from litigating damages against the firm and Thomas because she had a full opportunity to litigate the issue of damages in the arbitration proceeding. We granted certiorari on October 3, 1994.
UNDER THE FACTS PRESENTED, THE CAUSE IS NOT PRECLUDED BY THE DOCTRINES OF CLAIM OR ISSUE PRECLUSION.
The contractor argues that the trial court erred in granting summary judgment because: 1) she had multiple claims against two different defendants; 2) she could not resolve her tort claims against the firm and Thomas through arbitration because they were not parties to the contract and they did not agree to arbitration; and 3) neither claim nor issue preclusion should apply to the present case. The firm and Thomas counter that: 1) only one controversy exists which would allow the contractor to recover damages; and 2) the contractor‘s previous attempt to recover damages through arbitration precludes her
Thomas and the firm cite Brigance v. Velvet Dove Restaurant, 756 P.2d 1232, 1234 (Okla.1988); Powell v. Powell, 370 P.2d 909, 913 (Okla.1962); City of Wetumka v. Cromwell-Franklin Oil Co., 171 Okla. 565, 43 P.2d 434, 436 (1935); and Cain v. Quannah Light & Ice Co., 131 Okla. 25, 267 P. 641, 644 (1928), for the propositions that satisfaction of a judgment rendered in a prior action bars subsequent suits for damagеs, and that satisfaction of the arbitration award released the contractor‘s claims against them. However, we find these cases distinguishable on their facts from the instant case and not controlling here.
Cain, City of Wetumka, Powell, and Brigance all involved plaintiffs who were attempting to recover damages which resulted from injuries caused by joint tort-feasors. In these cases, we recognized that because an injury caused by a joint tort gives rise to one cause of action, a plaintiff who brings a suit sounding in tort to recover damages which results in a final judgment is barred from bringing a second action against another tort-feasor who was jointly and severally liable for the same damages. In the instant case, the contractor alleged injury by two separate defendants asserting that each is independently liable to her because she was not paid for the completed construction project. The contractor‘s claims against the power authority for refusing to pay her pursuant to the construction contract are contractual.2 The contractor‘s claim of fraud against the firm and Thomas for depriving her from full cоmpensation for the completed construction project sound in tort.3 Although the contractor‘s injuries may have arisen from the same set of facts, the power authority and the firm and Thomas were not joint tort-feasors.4
a. claim preclusion
An arbitration award has the same force and effect as a judgment of a court of competent jurisdiction for claim preclusion purposes.7 However, the elements of claim preclusion/res judicata must be met in order for the doctrine to bar a lawsuit brought subsequent to arbitration. The elements are: 1) an identity of subject matter, of the parties or their privies, of the capacity of the parties and of the cause of action;8 2) the court which heard the original action must have been one of competent jurisdiction;9 and 3) the judgment rendered must have been a judgment on the merits of the case and not upon purely technical grounds.10
Here, the elements of claim preclusion are not met. In Erwin v. Frazier, 786 P.2d 61, 64 (Okla.1989), we recently held that where the causes of action differ and the parties are not identical, claim preclusion is inapplicable. Here, it is undisputed that the firm and Thomas were not parties to the cоntractor/power authority contract or to the arbitration proceedings.
b. issue preclusion
The firm and Thomas cite Anco Mfg. & Supply Co., Inc. v. Swank, 524 P.2d 7, 13 (Okla.1974), for the proposition that a stranger to the prior adjudication may assert issue preclusion defensively, as long as the party against whom it is being asserted was a party to the prior action.11 Generally, the
In French v. Jinright & Ryan, P.C., Architects, 735 F.2d 433, 436 (11th Cir.1984), a contractor sued an architect for damages due to constructiоn delays allegedly caused by the architect. Prior to the lawsuit, the contractor arbitrated disputes over the construction contract with the owner alleging that the architect was the cause of delays of the construction project. The contract excluded the architect as a party to the arbitration without written consent. The contractor was awarded partial damages in the arbitration. The court found that without a delineation of the disposition of the issues in the arbitration proceeding, there was no basis for determining whether the claims against the architect were precluded. The record was insufficient to determine whether: 1) all the allegations relating to architect were asserted against the owner in arbitration; 2) the claims relating to the architect were decided on the merits or on the ground that the owner was not responsible, even if the architect might be; or 3) whether the arbitrator awarded partial damages because it was determined that the owner was not liable because it was not the party responsible for causing the harm.
Here, like the facts in French, the arbitration award does not clearly rеflect exactly what issues were actually determined or whether all the issues raised were disposed of by the arbitrator. The award does not set forth any fact findings with respect to any claims made by either party in the arbitration proceeding. Nor does it set forth any reasons for rejection of any claim which either party may have made.16 The only issue clearly decided in the arbitration proceeding was whether the contractor was entitled to damages from the power authority pursuant to the contractor/power authority construction cоntract.
The recovery of damages is a jury question.18 The contractor may have had an opportunity to litigate the issue of damages relating to the power authority. However, even if she raised the issue of whether she was partially damaged by the firm and Thomas, the arbitrator lacked the authority to award the contractor аny damages which may have been caused by them because they were not parties to the arbitration agreement or proceedings. Had the contractor been able to bring her claims for damages against the power authority and the firm and Thomas in one proceeding, she would have had the opportunity to fully litigate the issue of her damages.19 Under those circumstances, the trier of fact may have determined that she was entitled to damages from the power authority for the work she completed on the contract as well as any damages that the contractor was able to prove she was entitled to from the firm
CONCLUSION
Summary judgment is proper only when the pleadings, affidavits, depositions, admissions or other evidentiary materials establish that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.22 Damages are a remedy for compensation for a legal wrong or injury.23 The recovery of damages is a jury question.24
Where formal barriers prevent full presentation of remedies or theories of relief in one action, a party is not precluded from bringing another claim in a subsequent action which arose out of the same set of facts as the first action.25 Here, pursuant to an arbitration agreement, the contractor was required to arbitrate all her claims against the power authority. However, she was prevented from asserting claims against the firm and Thomas in the arbitration proceeding.26 Consequently, the contractor‘s claims against the firm and Thomas may proceed sеparate and distinct from the claims she previously arbitrated against the power authority and the trier of fact can determine the extent of her damages. Because the elements of claim or issue preclusion are not met, the contractor is not precluded from proceeding with her claims against the firm and Thomas. Summary judgment was improper.
CERTIORARI PREVIOUSLY GRANTED; COURT OF APPEALS OPINION VACATED; TRIAL COURT REVERSED.
LAVENDER, HARGRAVE, SUMMERS and WATT, JJ., concur.
ALMA WILSON, C.J., and OPALA, J., concur in result.
HODGES and SIMMS, JJ., dissent.
SIMMS, Justice, dissenting:
I must respectfully dissent from the majority opinion because I do not agree with its threshold position that contractor has an action in tort against the architectural firm and Thomas.
Addressing similar issues in MBA Commercial Const. v. Roy J. Hannafоrd, 818 P.2d 469 (Okl.1991), my dissenting opinion, Id. at 475, expressed my view that those “plaintiff subcontractors did not have a remedy against defendant architectural firm
Although it is admittedly a minority view on this Court, it is nevertheless my opinion that while an architect‘s defective plans may support a cause of action in tort where they result in personal injuries or property damage, whеre those plans cause construction delays or increased costs to fellow contracting parties participating in building the project, they will give rise only to an action based on contract principles.
I am authorized to state that Justice OPALA joins in part in the views expressed herein.
Notes
The arbitration clause excludes from arbitration any claims against the architect and specifically precludes the architect or any of the architect‘s employees from joining the arbitration proceeding. The contractor could not assert her tort claims against the firm and Thomas through arbitration. See also, discussion note 17, supra. Were the contractor not bound by the contract and the arbitration agreement, she could have litigated all possible damage issues by joining both the firm and Thomas and the power authority in one action, asserting the contract and tort claims as alternative theories of recovery. See,“... All claims or disputes between the Contractor and the Owner arising out or relating to the Contract, or the breach thereof, shall be decided by arbitration ... Except by written consent of the person or entity sought to be joined, no arbitration arising out of or relating to the Contract Documents shall include, by consolidation, joinder or in any other manner, any person or entity not a party to the Agreement under which such arbitration arises, unless it is shown at the time the demand for arbitration is filed that ... such person or entity is not the Architect or any of the Architect‘s employees or consultants ...” (Emphasis supplied.)
“The courts of justice of the State shall be open to every person, and speedy and certain remedy afforded for every wrong and for every injury to person, property, or reputation; and right and justice shall be administered without sale, denial, delay, or prejudice.”
