Opinion ID: 2185435
Heading Depth: 1
Heading Rank: 3

Heading: implied warranty as to accuracy

Text: The standard of review of a motion for summary judgment is whether the moving party demonstrated the absence of any genuine issue of material fact and showed entitlement to judgment on the merits as a matter of law. Gasper v. Freidel, 450 N.W.2d 226, 228 (S.D.1990) ( quoting Pickering v. Pickering, 434 N.W.2d 758, 760-61 (S.D.1989)). Based on the evidence presented to the trial court, we must decide whether an implied warranty of accuracy was created by inclusion of the pit test data in the bid information, and if so, whether such an implied warranty was negated by the printed disclaimers. At the outset, it is important to note that G.H. Lindekugel & Sons, Inc. v. South Dakota State Highway Commission, 87 S.D. 32, 202 N.W.2d 125 (1972), which forbid recovery of damages in excess of the contract price where there had been no specific appropriation, was overruled by Candee Const. v. Dept. of Transportation, 447 N.W.2d 339, 345 (S.D.1989), cert. denied, 494 U.S. 1067, 110 S.Ct. 1785, 108 L.Ed.2d 786 (1990). Therefore, there is no precedent barring a claim for compensation in excess of the contract. However, whether an implied warranty of accuracy exists depends on the facts of the case. The validity of an implied warranty of accuracy was recognized by the United States Supreme Court in United States v. Spearin, 248 U.S. 132, 136, 39 S.Ct. 59, 61, 63 L.Ed. 166 (1918). In Spearin, the contractor was required to build, in accordance with plans and specifications furnished by the Government, a by-pass sewer system as part of the construction of a dry-dock. The sewer proved to be inadequate, flooded the worksite and caused the contested damages. The Court stated: Where one agrees to do, for a fixed sum, a thing possible to be performed, he will not be excused or become entitled to additional compensation, because unforeseen difficulties are encountered. Thus one who undertakes to erect a structure upon a particular site, assumes ordinarily the risk of subsidence of the soil. But if the contractor is bound to build according to plans and specifications prepared by the owner, the contractor will not be responsible for the consequences of defects in the plans and specifications. This responsibility of the owner is not overcome by the usual clauses requiring builders to visit the site, to check the plans, and to inform themselves of the requirements of the work. Id. (Citations omitted). The Court then stated that: [T]he insertion of the articles prescribing the character, dimensions and location of the sewer imported a warranty that, if the specifications were complied with, the sewer would be adequate. This implied warranty is not overcome by the general clauses requiring the contractor, to examine the site, to check up the plans, and to assume responsibility for the work until completion and acceptance. Id. at 137, 39 S.Ct. at 61. In Metropolitan Sewerage Com'n. v. R.W. Const., 72 Wis.2d 365, 241 N.W.2d 371, 379 (1976), the Wisconsin Supreme Court stated: A contractor ... is also held to the standard of what a reasonable contractor should have anticipated on the project.... it would be unfair for a contractor to receive an upward adjustment in price for a condition which any reasonable contractor would have anticipated in approaching the project. That which any reasonable contractor should have anticipated is derived from a blend of his past experience, the customs and insights shared generally by contractors in the area, and the information conveyed by the contract. (emphasis added). The construction of a written contract is a question of law for this court to consider. Western States Land v. Lexington Ins., 459 N.W.2d 429, 432 (S.D.1990); see also Baker v. Wilburn, 456 N.W.2d 304, 306 (S.D.1990); Dirks v. Sioux Valley Empire Elec. Ass'n., 450 N.W.2d 426, 427-28 (S.D.1990); North River Ins. Co. v. Golden Rule Const., 296 N.W.2d 910, 912 (S.D. 1980); Delzer Const. Co. v. South Dakota State Bd. of Transp., 275 N.W.2d 352, 355 (S.D.1979). Whether the language of a contract is ambiguous is also a question of law. Enchanted World Doll Museum v. Buskohl, 398 N.W.2d 149, 151 (S.D.1986). Mooney's contends that DOT created an implied warranty of accuracy by providing pit test data from the Lyman and Sully County pits in the bid information. The gravel pit sampling data provided by DOT to Mooney's was not a part of the plans and specifications and provided on its face, all in capital letters, and all underlined, as follows: