LAN/STV V. MARTIN K. EBY CONSTRUCTION CO. INC. 435 S.W.3d 234 (2014) CASE BRIEF

LAN/STV V. MARTIN K. EBY CONSTRUCTION CO. INC.

435 S.W.3d 234 (2014)

NATURE OF THE CASE: LAN (D) appealed an affirmation of an order wherein Eby (P) recovered the increased costs of performing its construction contract because of negligent misrepresentations due to errors in the plans and specifications.

FACTS: The Dallas Area Rapid Transportation Authority (DART) contracted with LAN/STV (D) to prepare plans, drawings, and specifications for the construction of a light rail transit line. from Dallas's downtown West End to the American Airlines Center about a mile away. D agreed to 'be responsible for the professional quality, technical accuracy, and . . . coordination of all designs, drawings, specifications, and other services furnished', and to be 'liable to the Authority . . . for all damages to the Authority caused by D's negligent performance of any of the services furnished'. Martin (P) submitted the low bid on this project. D was contractually responsible to DART for the accuracy of the plans. D owed P no contractual obligation. Almost immediately after beginning construction P discovered that D's plans were full of errors. Normally, P plans for a 10% change in plans but 80% of D's drawings had to be changed. The made a shambles of the construction schedule and required additional labor and materials. P now calculates it lost nearly $14 million on the $25 million project. P sued DART for breach of contract but the court dismissed as P had not exhausted administrative remedies. Eventually DART settled with P for $4.7 million. P also sued D for negligence and negligent misrepresentation. The jury assessed P damages for its losses on the project at $5 million, but they also found that the damages were caused by P and DART's negligence as well, and apportioned responsibility 45% to D, 40% to DART, and 15% to P. The trial court rendered judgment for P for $2.25 million plus interest. Everyone appealed and the court of appeals affirmed. Everyone appealed again.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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