Opinion ID: 732829
Heading Depth: 2
Heading Rank: 2

Heading: The Applicable Limitation of Liability Provision

Text: 18 In a nutshell, Potter-Shackelford argues that the limitation of liability provision is limited to the performance of plateload tests, not to Law's recommendations with respect to plateload tests, i.e., performance vs. advice to perform. Potter-Shackelford expresses no dissatisfaction with the actual plateload testing performed by Law. Rather, Potter-Shackelford argues that Law's recommendation of plateload testing at the January 7 meeting was faulty, especially in light of Law's prior experience with the concrete slab. Law was paid for that recommendation and no limitation of liability form was executed for that work, Potter-Shackelford contends. 19 Furthermore, Potter-Shackelford argues that the most important evidence on the issue is the authorization form itself. Potter-Shackelford claims that the authorization form speaks only to Law's performing and reporting of plateload tests. The form, Potter-Shackelford contends, makes no mention of providing any consultation services. 6 On the other hand, Law argues what Potter-Shackelford wanted from Law was its engineering judgment necessary to determine what needed to be done to the subgrade. Law argues that Law's recommendation of plateload testing, and the subsequent implementation of that recommendation, are complementary parts of a single transaction. 7 Law maintains that the gravamen of Potter-Shackelford's complaint is that Law's recommendation of plateload testing instead of other kinds of testing which would have revealed the existence of plastic soils in the subgrade, amounted to the result of the plateload testing which Law represented would make the subgrade soils suitable to support the concrete floor slab. Law responds there was one continuous activity by it or two closely linked activities acting together. Parker prepared a written proposal embodying Law's recommended course of action and sent that proposal to Potter-Shackelford. The proposal was signed and accepted by Potter-Shackelford and became the contract between the parties. Included within that contract, Law argues, is the limitation of liability clause. 20 In an oral ruling, the district court denied Law's motion for judgment as a matter of law at the close of all the evidence on the grounds that the limitation of liability provision pertains purely to a separate specific contract concerning plateload testing, which is not even claimed in this case as far as the contract action by the plaintiff against the defendant. 8 21 In our view the ruling of the district court should be amended to take account of the limitation of liability. Law correctly states that contract language is to be evaluated in light of surrounding circumstances to ascertain the intention of the parties. Paul v. Paul, 219 S.E.2d 736 (Ga.1975). Prior to constructing the concrete floor slab, Potter-Shackelford turned to Law for its advice on the suitability of the subgrade to support a concrete floor slab. After the January 7 meeting between Baiden from Potter-Shackelford and Parker from Law, Parker prepared a written proposal in which Law was to provide an engineer technician to conduct field density testing; conduct three plateload tests; and report the results of those tests. On the back of the proposal, the limitation of liability clause appears, as well as the choice of law provisions. 22 It is a situation designed to lead to performance if feasible and continuing to be performed when determined to be feasible. Potter-Shackelford's argument seems merely an attempt to salvage its jury verdict through resort to an unrealistic approach to the parties' agreement. After Law completed its work, Law sent Potter-Shackelford a single invoice in the amount of $3,582.28, which included a charge of $225 for Parker's time on January 7. That indicated a belief by Law that a single contract covering both the recommendation of plateload testing and the implementation of the recommendation was in existence. Agreement as to such an interpretation by Potter-Shackelford is demonstrated by its payment without objection of the entire bill without asking for a separation into distinct activities. 23 Potter-Shackelford stresses that no work authorization form was completed with respect to the January 7 meeting, however, the lack of a work authorization form weighs against Potter-Shackelford. The fact that no separate work authorization form exists, or was created, for the January 7 meeting suggests that Parker's January 7 meeting, and his recommendations are a part and parcel of the proposal Parker sent to Potter-Shackelford. Parker's recommendations were followed on without interruption by the plateload testing itself. Potter-Shackelford's argument that only the actual plateload testing--and not the plateload recommendation itself--is covered by the limitation of liability clause ignores the circumstances under which the plateload testing was done in the first place. 24 Moreover, Baiden testified that he met with Parker at the job site to get his opinion as a geotechnical engineer as to what we needed to do with the [soil] subgrade to make it suitable to accept the [concrete] floor slab. Potter-Shackelford does not dispute that Parker recommended plateload testing and Potter-Shackelford promptly accepted the recommendation. Law argues persuasively that a single operation needed to be done which included both the recommendation of plateload testing, as well as the performance of that testing and the reporting of the results. 25 The surrounding circumstances related to the formation and interpretation of the contract include the fact that the parties acted to send and pay only one invoice for the plateload testing work, including the recommendation that the testing be done and the fact that Potter-Shackelford engaged Law's expertise to determine how to make the subgrade suitable for the concrete floor slab. They amply demonstrate that the recommendation of plateload testing was part of a single contract entered into between the parties, and hence, the limitation of liability provision should apply.