Opinion ID: 401016
Heading Depth: 1
Heading Rank: 3

Heading: Tort Claims Against Boyle

Text: 18 Ramey claims that Boyle is liable for (1) failing to manage or coordinate the project, (2) misrepresenting and delaying the date of completion of site grading, (3) negligently investigating and misrepresenting the subsoil conditions, (4) delaying the painting and final finishing work, and (5) making errors and omissions in drafting the plans and specifications for the project. Because of Boyle's alleged negligence, Ramey claims that it encountered an eight-month delay in completing the project, which reduced productivity and resulted in unexpectedly high job costs. 19 The trial judge ruled against Ramey on all claims after finding no negligence or misrepresentations by Boyle, and in any event, that Ramey had suffered no damages proximately caused by Boyle. Rule 52 of the Federal Rules of Civil Procedure provides that (i)n all actions tried upon the facts without a jury ... (f)indings of fact shall not be set aside unless clearly erroneous. The trial court's findings are presumptively correct and this court cannot disturb them unless they are clearly erroneous. Quarles v. Fuqua Industries, Inc., 504 F.2d 1358, 1361 (10th Cir. 1974).
20 Ramey alleges that Boyle was responsible for the overall management and coordination of the project, and is therefore liable for all damages caused by its failure to perform these duties. As examples of Boyle's failure to manage and coordinate the work, Ramey specifically cites delays by two subcontractors in grading the hotel site and completing the utility work, and delay resulting from a stop paint order issued by the Tribe while it reconsidered the color scheme. 21 The trial judge, however, found that Boyle's duties of coordination and management under the contract were limited, and related primarily to 'surveillance of project construction to assure compliance with plans, specifications and other contract documents.'  Record, supp. vol. 1, at 300. Furthermore, the court found that although Boyle had authority to give orders and directions at the worksite, it had no power to ensure the performance of the various contractors working at the hotel site. The court also determined that Boyle had fulfilled the limited duties of coordination specified in the contract. 22 After reviewing the documents and the record, we cannot say that the trial judge's findings in this regard are clearly erroneous. Ideally, on a project of this magnitude, some entity should be responsible for overall management and coordination, and indeed such a provision might have alleviated many of the serious problems that plagued this project. However, the contract between the Tribe and Boyle simply did not provide that Boyle would undertake the responsibility of project management. This duty remained with the owner, the Mescalero Apache Tribe. Under well-settled principles of tort law, since Boyle had no duty to coordinate and manage the progress of the work, it cannot be liable for any damages caused by inadequate coordination or management. W. Prosser, Handbook of the Law of Torts § 30, at 143 (4th ed. 1971); Barham v. Baca, 80 N.M. 502, 503, 458 P.2d 228, 229 (1969); White v. City of Lovington, 78 N.M. 628, 629-30, 435 P.2d 1010, 1011-12 (Ct.App.1967). Therefore, the trial judge correctly found that Boyle was not liable for failure to manage or coordinate the project. Similarly, without a duty to manage the project, Boyle cannot be liable for the delays caused by other subcontractors' failure to timely complete their work, or for the delay caused by the stop paint order issued by the Tribe. 6
23 Ramey claims that it was damaged by Boyle's misrepresentations about the time the site grading would be completed. The trial court found that Ramey had not relied on any representations made by Boyle, because Ramey subsequently adopted its own work schedule that did not incorporate the alleged misrepresentation. Furthermore, the court found that Ramey had not been damaged by any delay in completion of grading of the entire site because completed sites were always available for work. After a careful review of the record, we agree that Ramey's schedule did not require, nor could Ramey have used the entire site at the beginning of its work. Therefore, we find no adequate justification for overturning the trial court's findings.
24 Ramey also alleges that Boyle negligently investigated and misrepresented the subsoil conditions at the construction site. The court found that Boyle made no representations that the subsoil conditions at the hotel site were suitable. The subsoil reports that allegedly were negligently prepared were not prepared by Boyle and were not part of the contract documents. The court also determined that Ramey was not justified in relying on the subsoil reports. Further, the court found that Ramey was obligated under the terms of the contract to correct unforeseen soil conditions, and that the contract contained provisions for adjusting payments accordingly. Under these circumstances, the court did not err in finding no liability on Boyle's part for any damages Ramey incurred because of unforeseen subsoil conditions. 25
26 Finally, Ramey alleges that Boyle was negligent in preparing the plans and specifications. Ramey introduced into evidence an exhibit detailing more than 100 design errors and omissions that it discovered in the course of work. The court found that (t)he number of claimed errors and omissions is insignificant in view of the fact that there were 330 drawings, more than 500 pages of calculations, and 1800 specific details for the project. Record, supp. vol. 1, at 304. The court also determined that the plans and specifications prepared by Boyle were adequate for the purposes of bidding and construction. Further, the court found that Ramey did not sufficiently prove that it suffered any damages as a result of the alleged errors and omissions. Although conflicting evidence on this issue was presented at trial, our review of the record does not persuade us that the trial judge's findings in this regard are clearly erroneous.