Opinion ID: 2184956
Heading Depth: 1
Heading Rank: 1

Heading: Acquired Immunity

Text: For their first point for reversal, Appellants argue that the acquired-immunity doctrine is no longer a viable defense in Arkansas following this court's decision in Suneson, 337 Ark. 571, 992 S.W.2d 79. Rogers argues that Suneson only abolished the accepted-work doctrine and did not affect the viability of the acquired-immunity doctrine. To support its argument, Rogers relies on two recent appellate decisions stemming from the same factual allegations involved in this case: Barker v. Rogers Group, Inc., 74 Ark.App. 18, 45 S.W.3d 389 (2001), and Engelhardt v. Rogers Group, Inc., 132 F.Supp.2d 757 (E.D.Ark.2001). In Barker , the court of appeals specifically rejected the argument that Suneson had effectively abolished the acquired-immunity doctrine. Instead, it concluded that there were different rationales and public-policy considerations behind the two doctrines. The Engelhardt decision did not actually consider the holding in Suneson , but it nonetheless concluded that Arkansas law supported application of the acquired-immunity doctrine in that case. We agree with both of these cases on this point. The doctrine of acquired immunity provides that a contractor who performs in accordance with the terms of its contract with a governmental agency and under the direct supervision of the governmental agency is not liable for damages resulting from that performance. See Muskogee Bridge Co. v. Stansell, 311 Ark. 113, 842 S.W.2d 15 (1992); Southeast Constr. Co., Inc. v. Ellis, 233 Ark. 72, 342 S.W.2d 485 (1961); Barker, 74 Ark.App. 18, 45 S.W.3d 389; Jordan v. Jerry D. Sweetser, Inc., 64 Ark.App. 58, 977 S.W.2d 244 (1998); Guerin Contractors, Inc. v. Reaves Food Center, 270 Ark. 710, 606 S.W.2d 143 (App.1980). Under this theory, a contractor for a public agency shares the sovereign immunity of the public body from liability for incidental damages necessarily involved in the performance of the contract. Id. at 713, 606 S.W.2d at 144-45 (citing 64 AM.JUR.2D Public Works and Contracts § 135). However, this doctrine does not protect a contractor who performs the contract in a negligent manner resulting in damages to others. Id. In Ellis, this court held that where a contractor performs his work in accordance with the plans and specifications and is guilty of neither a negligent nor a willful tort, he is not liable for any damages that might result. 233 Ark. at 77, 342 S.W.2d at 488 (citing 40 C.J.S. Highways § 212) (quoting Ference v. Booth & Flinn Co., 370 Pa. 400, 403, 88 A.2d 413, 414 (1952)). The clear purpose of this immunity is to protect the contractor who performs the work as specified from bearing the brunt of liability based on the actions or decisions made solely by the governmental agency, which is immune from suit in tort. There are also practical reasons underlying the doctrine: If the contractor was required, at its peril, to check and double check all plans given it and required to keep an engineering force for the purpose of interpreting these plans, and was not permitted to follow the orders of the engineering force of its superior, then the cost of public improvement would be so increased as to make them almost prohibitive. Id. (quoting Wood v. Foster & Creighton Co., 191 Tenn. 478, 482-83, 235 S.W.2d 1, 3 (1950)). In contrast, the accepted-work doctrine, which this court abolished in Suneson, 337 Ark. 571, 992 S.W.2d 79, provided that after the contractor completed the work and turned it over to, and it was accepted by, the contracting party, the contractor incurred no further liability to third parties by reason of the condition of the work. Id. Upon acceptance, the responsibility for any defects in the work shifted to the contracting party. Id. Thus, unlike the acquired-immunity doctrine, which is designed to protect innocent contractors from liability based on decisions made and instructions given by the sovereign, the accepted-work doctrine had the effect of shielding negligent contractors from liability once they had finished construction and their work had been accepted by the contracting party. This court abolished the doctrine of accepted work for a number of reasons, namely that it was antiquated, it provided harsh results, and the exceptions to the doctrine had virtually swallowed up the rule. Id. This court's decision to abolish the accepted-work doctrine hardly supports the conclusion that it has likewise abandoned the defense of acquired immunity. To the contrary, the reasons and considerations behind acquired immunity are just as valid today as they have ever been. A contractor who performs in accordance with the terms of its contract with a governmental agency and under the direct supervision of the governmental agency should not be held liable for damages resulting from that performance. The only exception is where the contractor is negligent in the performance of the contract. Unlike the accepted-work doctrine, acquired immunity serves the legitimate purpose of extending the government's immunity to shield an innocent contractor who has completely performed the work to the government's plans and specifications. Moreover, were acquired immunity not available, the costs of public improvements would be greatly increased to the public's detriment. Accordingly, we conclude that the acquired-immunity doctrine is still a viable defense in this state. That being said, we now consider the doctrine's applicability in this case. The undisputed evidence submitted below demonstrates that Rogers performed its contract with AHTD exactly as specified. According to the affidavits filed by Rogers's employee, Eddie Reidmueller, and AHTD's resident engineer, McMillian, Rogers completed the project in full compliance with the specifications set out by AHTD. There was an AHTD engineer on site at the project every day, directing and inspecting the contractor's work. There was also an engineer on site at the asphalt plant every day, checking the asphalt mixture to make sure that it met with AHTD's specifications. Reidmueller stated in his affidavit that Rogers fully complied with the specifications provided by AHTD, and that neither Rogers nor any subcontractors deviated in any way from the instructions and specifications provided by AHTD. In his affidavit, McMillian stated that it was his responsibility, and that of other on-site AHTD employees, to oversee the project and inspect the type, placement, composition, and application of the surfacing materials to assure compliance with the job's specifications. McMillian stated that if it had been determined that Rogers's work was not in compliance with AHTD's specifications, he would have promptly brought it to the attention of Rogers and would have required the matter to be corrected promptly. McMillian stated that the final inspection of the project was done on September 29, 1996, and that AHTD determined that the work and the asphalt were in compliance with the contract specifications. This proof demonstrates that Rogers performed the contract in full compliance with the specifications mandated by AHTD and under the direct and constant supervision of AHTD. Accordingly, we affirm the trial court's ruling that Rogers was entitled to rely on the defense of acquired immunity.