FILED U.S. COURT OF AP P EALS E LEVEN T HC IRC U IT JUNE 27, 2008 THOMAS K. KAH

N CLERK

The Honorable Jerome F arris, United States Circuit Judg e for the Ninth Circuit Court of * Appeals, sitt ing by

designation. [ DO NO T P UB L I S H] I N THE UN I TE D STATE S C OU RT OF APPE ALS F O R T H E E L E V E N T H C IR C U IT

________________________ N o. 07- 13345

________________________ D . C . D ocketN o. 03 -002 47 -C V -W D O -5 F E D E R A T E D R U R A L E L E C T R I C I N S U R A N C E E X C H A N G E , P la in tif f - A p p e lla n t, v ersu s R .D . M O O D Y & A S S O C I A T E S , I N C ., M A S T E C N O R T H A M E R I C A , I N C ., D e f e n d a n ts - A p p e lle e s .

________________________ A pp ea l fr om the U ni t ed S t at es D i stri ctC ou rt f o rth e M id d le D is tr ic t o f G e o r g ia

_________________________ ( Ju n e 27, 2008) B efo re E D M O N D S O N , B L A C K an d F A R R IS , C i rcu i tJu d g es. * P E R C U R I A M:2

T hom a s S t a nl e y S m i th w a s f a t a l l y i nj ur e d by apow e rl i ne ow ne d by Wa s h i n g t o n E l e c tr i c Me m b e r s h i p C o rp o r a t i o n a n d c o n s tru c t e d i n 1 9 9 7 b y R . D. M o o d y & A s s o c ia te s , I n c . W a s h in g to n E M C ’s in s u r e r , F e d e r a te d R u r a l E le c tr ic I ns ur a nc e E xc hange , s e tt l e d w i th S m i th’ s e s t a t e a nd br oughtthi s a c t i on s e e ki ng c ontr i but i on f

r om M oody . T he di s tr i c tc ourtgr a nt e d s um m a ry j udgm e ntf or M o o d y , h o ld in g th a t, u n d e rth e te rm s o f th e p a r tie s ’ 1 9 9 4 c o n s tru c tio n c o n tr a c t, M oo dy’ s l i abi l i ty t erm i nat ed w hen p osse ss i on and con trol of the l i ne w er e turned ove rt o W a s hi ngt on E M C . O n appe a l , F e de r a t e d a r gue s tha t( 1) the c ons truc t i on of th e p o w e rlin e w a s n o t g o v e rn e d b y th e 1 9 9 4 c o n tr a c t b u t, in s te a d , a1 9 9 5 “C o s tP l us P ropo sa l ” a nd (2) e ven i f the 19 94 contra ctgo verns, M oo dy i s l i abl e und eran u n s i g n e d i n d e mn i ty a g r e e me n tth a tw a s ap p e n d e d t o th e c o n tr a c t . W e a f f i rm. I O n D e c e m be r16, 1993, M oody a nd W a s hi ngt on E M C e nt e r e d i nt o a D is tr ib u tio n L in e E x te n s io n C o n s tru c tio n C o n tr a c t, w h e r e b y M o o d y a g r e e d to c ons truc tpow e rl i ne s f

orW a s hi ngt on E M C . T he pa r t i e s c a l l thi s the 1994 contra ct . T he 19 94 contra ctcont ai ned a prov i si on , A rt i cl e I , S ec t i on 2, t i t l ed

“ A ddi t i ona l P r oj e c t s , ” tha tr e a d: F r o m tim e to tim e th e O w n e ra n d th e C o n tr a c to rm a y e n te rin to nego t i at i on s f

or the performance of w ork atl abor pri ce s w hi ch m ay di ff erfr om tho se i n the P ropo sa l (s uch w ork b ei ng here i naft erca l l ed “A d d itio n a l P r o

je c ts ” ) . E x c e p t a s m a y o th e rw is e b e a g r e e d u p o n in3

w ri t i ng by the O w ner a nd the C on tra ct or atthe t i m e the supp l em ent al c ontr a c tf

orthe A ddi t i ona l P r oj e c ti s ne got i a t e d, the pr ovi s i ons of the C o n tractfo r th e P ro

j ectsh al l ap p l y. A p p r o x i m a t e l y n i n e m o n th s i n t o th e 1 9 9 4 c o n tr a c t , Wa s h i n g t o n E MC s o lic ite d b id s f

o ran e w c o n tr a c t to c o m p le te th e b a la n c e o f w o rkr e m a in in g o n its

“ 1993- 1995 W ork P l a n. ” W a s hi ngt on E M C e xe c ut e d ac ontr a c tw i th F l oy d S . P i ke E le c tr ic a l C o n tr a c to r , I n c ., th e lo w b id d e r . O n S ept em ber 26, 19 95 , W as hi ng t on E M C cont ac t ed M oo dy t o con struct a ddi t i ona l pow e rl i ne s pur s ua ntt o aC os t - P l us P r opos a l . T he pr opos a l c ons i s t e d of as i ngl e pa ge l i s t i ng l abora nd e qui pm e ntr a t e s . M oody c ons truc t e d the pow e rl i ne tha tf a t a l l y i nj ur e d M r . S m i th i n J a nua ry 1997. A f t e rM r . S m i th’ s de a th, hi s s urvi vi ng s pous e br oughtape r s ona l i nj ury a nd w r o n g f u l d e a th s u it a g a in s t W a s h in g to n E M C a n d its c o n s u ltin g e n g in e e r . P ur s ua ntt o as e tt l e m e nta gr e e m e nt , M r s . S m i th r e c e i ve d $6, 500, 000 f r om W a s h in g to n E M C ’s in s u r e r , F e d e r a te d , a n d $ 5 0 0 ,0 0 0 f r o m th e e n g in e e r . W a s hi ngt on E M C br oughts ui ti n f e de r a l c our ts e e ki ng i nde m ni ty or c ontr i but i on f

r om M oody , a s s e r t i ng tha tM oody w a s ne gl i ge nti n c ons truc t i ng the p o w e rlin e th a t in

ju r e d M r . S m ith . F e d e r a te d w a s la te rs u b s titu te d a s th e p a r ty pl a i nt i f f . T he di s tr i c tc our ti ni t i a l l y gr a nt e d s um m ary j udgm e ntt o M oody on the g r o u n d th a t th e a c tio n w a s b a rr e d b y th e F lo r id aI n s u r a n c e G u a r a n ty A c t.4

Feder at ed R uralE lec . Ins. E xc h. v. R . D . Moo dy & A ss oci at es , Inc. , 468 F . 3d 1322, 1323 ( 11th C i r . 2006) . W e r e ve r s e d, f i ndi ng tha tG e or gi al a w c ontr ol l e d the d is p u te . I

d. O n rem an d , th e d i stri ctco u rtg ran t ed su m m ary j u d g m en ti n fav o r o f M o o d y, f in d in g th a t u n d e rA r tic le I V , S e c tio n 4 o f th e 1 9 9 4 c o n tr a c t, M o o d y ’s liab ility te rm in a te d w h e n p o s s e s s io n a n d c o n tr o l o f th e lin e w e r e tu rn e d o v e rto W a s hi ngt on E M C . T hi s appe a l f ol l ow e d. II W e r e v ie w d e n o v o ad is tr ic t c o u rt’s o r d e rg r a n tin g s u m m a ry ju d g m e n t. W i l son v. B / EA er ospa ce, Inc. , 37 6 F . 3d 10 79 , 10 85 (11th C i r. 20 04 ). S um m ary j udgm e nti s appr opr i a t e w he n “ the r e i s no ge nui ne i s s ue a s t o a ny m a t e r i a l f a c ta nd

. . . the m ov anti s e nt i t l ed t o j ud gm entas a m att erof l aw . ” F ed. R . C i v. P . 56 (c ); se e D am on v. Flem i ngSu perm arke t

s of Fla. , Inc. , 19 6 F . 3d 13 54 , 13 58 (11th C i r. 1 9 9 9 ) . W e v ie w th e e v id e n c e in th e lig h t m o s t f a v o r ab le to th e n o n - m o v in g p a r ty . Se e D am on , 1 9 6 F .3 d a t 1 3 5 8 . III F eder at ed ar gu es thatl i abi l i ty i s gov erned b y the C ost -P l us P ropo sa l ra ther than the 19 94 contra ct . Itar gu es thatthe 19 94 contra ctw as t erm i nat ed w hen M o o d y e n te r e d in to th e c o n s tru c tio n c o n tr a c t w ith P ik e . T h u s , th e o n ly c o n tr a c t in5

ef fe ctatthe t i m e of the 19 97 construct i on w as the C ost -P l us P ropo sa l . T o sup po rt thi s argum ent , F eder at ed po i nt s t o d ec l ar at i on s f rom R ob ertS . M oo re and T ho m as E . G l ove rs t a t i ng tha tW a s hi ngt on E M C ’ s pol i c y w a s t o ha ve onl y one pow e rl i ne contra ct or un der c on tra ctatany t i m e. U n d e rG e o r g iala w , there ar e three st eps i n the proces s of c on tra ctconstruct i on . T he tri al c o u r t m u s t f

ir s t d e c id e w h e th e rth e c o n tr a c t la n g u a g e is a m b ig u o u s ; if i ti s a m bi guous , the tr i a l c our tm us tthe n appl y the appl i c abl e rul e s of construct i on (O . C . G . A . § 1 3-2-2); i f a ft erdo i ng so the tri al court de t e rm i ne s tha ta n a m bi gui ty s t i l l r e m a i ns , the j ury m us tthe n r e s ol ve th e am b i g u i ty. G e or gi a- P ac i f i c C or p. v . L i e be r am , 959 F . 2d 901, 904 ( 11th C i r . 1992) ( quot i ng C opy Sys . of

Sav annah, I

nc . v . P age , 3 9 8 S .E .2 d 7 8 4 , 7 8 5 ( G a . C t. A p p . 1 9 9 0 ) ) .

“ A c ontr a c tt e rm i s a m bi guous i f i ti s r e a s onabl y s us c e pt i bl e of m or e tha n one i nt erpret at i on . ” I

nt ’ l B hd. of B oi le rm ake rs v . L oc al

L odge D 111 , 858 F . 2d 1559, 15 61 (11th C i r. 19 88 ). T he 19 94 contra ctun am bi gu ou sl y gov erns the 19 97 construct i on . A rt i cl e I , S ect i o n 2 o f th e co n tractst at es th at , i n th e ab sen ce o f an ag reem en tt o th e co n trary, the pr ovi s i ons of

the 1994 c ontr a c tw i l l appl y t o f utur e c ons truc t i on pr oj e c t s . T he C os t - P l us P r opos a l s i gne d by the pa r t i e s c ons i s t e d onl y of M oody ’ s l abora nd equi pm entra t es and i t s bi l l i ng procedure. B ec ause the C ost -P l us P ropo sa l cont ai ned n o st at em entthati nd i ca t ed otherw i se , the t erm s of the 19 94 contra ct6

c ontr ol the c ons truc t i on. F e d e r a te d a r g u e s th a t A r tic le I , S e c tio n 2 is a m b ig u o u s b e c au s e it is s us c e pt i bl e t o a nothe ri nt e rpr e t a t i on: i tappl i e s t o s uppl e m e nt a l ne got i a t i ons dur i ng th e o n e - y e a rd u r a tio n o f th e c o n tr a c t. T h is r e a d in g is n o t s u p p o r te d b y th e p la in la n g u a g e o f

th e c o n tr a c t. T h e c o n tr a c t c o n ta in s n o te rm s in d ic a tin g th a t it w o u ld e x p ir e a f te ro n e y e a ro rw h e n W a s h in g to n E M C e n te r e d in to a n o th e rc o n tr a c t w ith ac o m p e tito r . F e d e r a te d ’s in te rp r e ta tio n w o u ld r e q u ir e th e c o n tr a c t to b e r e a d in c onj unc t i on w i th the G l ove ra nd M oor e de c l a r a t i ons . W e m a y not , how e ve r , l ook o u ts id e th e p la in la n g u a g e o f th e c o n tr a c t to c r e a te a m b ig u ity . Se e G e o r g ia - P a c ific C o r p . 959 F . 2d a t904. IV F e de r a t e d a r gue s tha tthe di s tr i c tc our te rr e d i n f i ndi ng tha tM oody w a s not l i abl e unde rthe 1994 c ontr a c t . W e r e j e c tthe a r gum e nt . U nde rA r t i c l e I V , S e c t i on 1 ( f ) o f th e 1 9 9 4 c o n tr a c t, M o o d y w a s liab le f o rd a m a g e to p e r s o n s o rp r o p e r ty

“ f r om the c om m e nc e m e ntof w ork t o c om pl e t i on” orunt i l W a s hi ngt on E M C t ook pos s e s s i on a nd c ontr ol of the pow e rl i ne . H ow e ve r , pur s ua ntt o A r t i c l e I V , S e c t i on 4, “ [u] po n . . . del i veryof po ss es si on and con trol t o the O w ner, ” these ri sks w er e

“ t erm i nat ed. ” U nd erthe t erm s of the contra ct , M oo dy’ s l i abi l i ty f or pers on al i nj ur i e s a r i s i ng f

r om ne gl i ge ntc ons truc t i on e nde d w he n W a s hi ngt on E M C t ook7

c o n tr o l o f

th e lin e in 1 9 9 7 , th r e e y e a r s p r io rto M r . S m ith ’s a c c id e n t. F e d e r a te d a r g u e s th a t th e liab ility p r o v is io n s o f th e c o n tr a c t a r e a m b ig u o u s . I tpoi nt s t o A r t i c l e I I I , S e c t i on 2 of the c ontr a c t , w hi c h pr ovi de s tha t“ [ u] pon the C o m p le tio n o f

C o n s tru c tio n o f

a n y S e c tio n o f

th e P r o je c t . . . th e C o n tr a c to rs h a ll de l i ve rt o the O w ne ri n the f orm a tt a c he d he r e t o, . . . ( 2) a n a gr e e m e ntt o hol d the O w n e rh a rm le s s a g a in s t a n y lie n s a r is in g o u t o f th e C o n tr a c to r ’s p e r f

o rm a n c e . . .

. ” F eder at ed ar gu es thatthi s provi si on i ncorpo ra t es i nt o the contra ctan un si gn ed f o rm th a t w a s a tta c h e d to th e c o n tr a c t s ta tin g th a t “th e C o n tr a c to rw ill . . . a g r e e to i n d em n i fy an d h o l d h arm l ess th e O w n er fro m an y c la i m o rlie n a r is in g o u t o f . . . th e p e r f o rm a n c e o f

th e c o n tr a c t.” ( e m p h a s is a d d e d ) . T hi s a r gum e nta l s o f

a i l s . M oody di d not“ s pe c i f i c a l l y a s s e nt ” t o be bound b y a ll th e te rm s o f

th e a tta c h e d f

o rm . H e m br e e v . J

ohns on , 482 S . E . 2d 407, 408 (G a. C t . A pp . 19 97 ). Inst ea d, i tm er el y a gree d t o p rovi de t o W as hi ng t on E M C an a gr e e m e nttha ti tw oul d be l i abl e f ora l l l i e ns a r i s i ng f

r om i t s pe r f

orm a nc e of

the c o n tr a c t. I f

th e p a r tie s in te n d e d f

o rM o o d y to b e liab le f

o ra ll cla i m s a r i s i ng f

r om its p e r f o rm a n c e , th e y w o u ld h a v e a d d e d th is la n g u a g e to th e b o d y o f th e c o n tr a c t. F ed er ated ’s re ad in g o f th e c o n trac t w o u ldalso co n trav en e th e ru le th at “a c o u r t s h o u ld , if

p o s s ib le , c o n s tru e ac o n tr a c t s o a s n o t to r e n d e ra n y o f its prov i si on s m ea ni ng l es s. ” W hi te v . Kam i nsky , 610 S . E . 2d 542, 545 ( G a . C t . A pp.8

2 0 0 4 ) ( c ita tio n o m itte d ) ; s e e al s o O . C . G . A . § 13- 2- 2( 4) . T o c ons true the 1994 c o n tr a c t to r e q u ir e M o o d y to in d e m n if y W a s h in g to n E M C a g a in s t a ll c la im s w o u ld r e n d e rm e a n in g le s s th e p r o v is io n in A r tic le I V te rm in a tin g M o o d y ’s liab ility . AF F I RME D.