Craig Johnson v. Floyd Town Architects

• Citation: 134 P.3d 648,142 Idaho 797
• Decision Date: 24 April 2006
• Docket Number: No. 31448.,31448.
• Parties: CRAIG JOHNSON CONSTRUCTION, L.L.C., an Idaho limited liability company; and West American Insurance Company, an Ohio corporation, Plaintiffs-Appellants, v. FLOYD TOWN ARCHITECTS, P.A., an Idaho professional corporation; Floyd Town, an individual; and Does I through X, Defendants-Respondents. Floyd Town Architects, P.A., and Floyd Town, an individual, Third-Party Plaintiffs-Respondents, v. The Dean Family Partnership, LP, Third-Party Defendant-Appellant.
• Court: Idaho Supreme Court

134 P.3d 648

142 Idaho 797

CRAIG JOHNSON CONSTRUCTION, L.L.C., an Idaho limited liability company; and West American Insurance Company, an Ohio corporation, Plaintiffs-Appellants, v. FLOYD TOWN ARCHITECTS, P.A., an Idaho professional corporation; Floyd Town, an individual; and Does I through X, Defendants-Respondents.

Floyd Town Architects, P.A., and Floyd Town, an individual, Third-Party Plaintiffs-Respondents, v. The Dean Family Partnership, LP, Third-Party Defendant-Appellant.

No. 31448.

Supreme Court of Idaho, Boise, February 2006 Term.

April 24, 2006.

COPYRIGHT MATERIAL OMITTED

Brady Law, Chtd., Boise, for appellants. Michael G. Brady argued.

Howard, Lopez & Kelly, P.L.L.C., Boise, for respondents. Michael E. Kelly argued.

TROUT, Justice.

This appeal is brought by appellants Craig Johnson Construction, L.L.C. (Johnson) and West American Insurance Company against respondents Floyd Town Architects, P.A. and Floyd Town (collectively, Town). The appeal arises out of an action brought by Johnson, the contractor, to recover for damages caused by ice dams and ice build-up on the roofs of certain condominiums located in Ketchum, Idaho, and a third party action brought by Town, the architect, against Dean Family Partnership, L.P. (Dean), the developer, for indemnification and breach of their contract for architectural services.

I. FACTUAL AND PROCEDURAL BACKGROUND

Town entered into a contract with Dean to prepare a "builder's set" of architectural drawings for condominiums in Ketchum. Such a set of plans is described in the contract as "sufficient to obtain a building permit; however, all materials and methods of construction necessary to complete the project are not necessarily described in this `builder's set.'" The contract also noted, "[t]he implementation of the plans requires a Client/Contractor thoroughly knowledgeable with the applicable building codes and methods of construction."

Subsequently, Johnson entered into a contract with Dean to build the condominiums. Dean was to provide Johnson with Town's plans. Construction for the condominiums was done in two phases: Phase I was completed in April 1998, and Phase II, which was started in April 1998, was completed in March 1999. Apparently, Johnson deviated from Town's plans in Phase I, but did not do so in Phase II. Beginning in the winter of 1997/1998 and continuing through the next two winters, ice dams formed on the roofs of the Phase I and the Phase II condominiums, causing leaks and property damage to individual units.

Johnson's insurer paid the condominium owners almost $460,000 for the cost to repair the damage and fix the roof problems, and Town's insurer subsequently reimbursed Johnson for $205,000. Johnson filed a complaint against Town, seeking compensation for the remaining $255,000 that Johnson had to pay. Town then filed a third-party complaint against Dean pursuant to a hold harmless provision in their contract, arguing that if Town were forced to pay Johnson, Town should be fully indemnified by Dean for the $205,000 Town had paid. Finally, Dean filed a counter-claim against Town, claiming breach of contract due to Town's alleged negligence in preparing the architectural plans.

Before trial, Town and Dean stipulated they would be bound by the jury's determination in the action between Johnson and Town and that would settle the controversy between Town and Dean. Thus, the jury only considered whether and to what extent Johnson and/or Town acted negligently. At trial, Johnson requested a jury instruction stating a contractor is only liable for improper workmanship and the sole responsibility for any design defects lies with the designer, if the contractor performs according to the plans. The district court refused to give that instruction and instead gave an ordinary negligence instruction. The jury found Johnson 90% at fault and Town 10%.

Johnson moved for a new trial pursuant to Idaho Rule of Civil Procedure 59(a)(7), arguing the district court erred in failing to give his requested jury instruction regarding the standard of care of a contractor, and also under I.R.C.P. 59(a)(6), claiming the evidence at trial was insufficient to justify the jury's verdict. Town made a request for payment of his attorney fees pursuant to his contract with Dean. The district court determined the evidence did not support the requested jury instruction because the evidence showed Johnson did not follow Town's designs exactly. Also, the district court determined the jury verdict was not against the weight of the evidence, as there was sufficient evidence to show Johnson was negligent in the construction of the condominiums and Johnson did not follow Town's plans. The district court awarded attorney fees in favor of Town based on the court's interpretation of a provision in the contract between Town and Dean. Johnson timely appealed.

II. STANDARD OF REVIEW

"The correctness of jury instructions `is a question of law over which this Court exercises free review, and the standard of review of whether a jury instruction should or should not have been given, is whether there is evidence at trial to support the instruction.'" Bailey v. Sanford, 139 Idaho 744, 750, 86 P.3d 458, 464 (2004)(quoting Clark v. Klein, 137 Idaho 154, 156, 45 P.3d 810, 812 (2002)). A requested jury instruction must be given if it is supported by any reasonable view of the evidence, Bailey, 139 Idaho at 750, 86 P.3d at 464, but the determination of whether the instruction is so supported is committed to the discretion of the district court. State v. Elison, 135 Idaho 546, 552, 21 P.3d 483, 489 (2001). Clearly, a requested jury instruction need not be given if it is either an erroneous statement of the law, adequately covered by other instructions, or not supported by the facts of the case. State v. Eastman, 122 Idaho 87, 89, 831 P.2d 555, 557 (1992). Even so, when the instructions taken as a whole do not mislead or prejudice a party, an erroneous instruction does not constitute reversible error. Bailey, 139 Idaho at 750, 86 P.3d at 464.

The district court is given broad discretion to grant or deny a motion for a new trial based on sufficiency of the evidence made pursuant to I.R.C.P. 59(a)(6). Sheridan v. St. Luke's Regional Medical Center, 135 Idaho 775, 780, 25 P.3d 88, 93 (2001). In determining whether that discretion has been abused, this Court must consider (1) whether the trial court correctly perceived the issue as one of discretion; (2) whether the trial court acted within the outer boundaries of its discretion and consistently with the legal standards applicable to the specific choices available to it; and (3) whether the trial court reached its decision by an exercise of reason. Id. While this Court must necessarily review the evidence, we have recognized limitations on our review:

The trial court is in a far better position to weigh the demeanor, credibility and testimony of witnesses, and the persuasiveness of all the evidence. Appellate review is necessarily more limited. While we must review the evidence, we are not in a position to "weigh" it as the trial court can.

Id. (quoting Quick v. Crane, 111 Idaho 759, 727 P.2d 1187 (1986)).

Idaho Rule of Civil Procedure 59(a)(7) states a district court may grant a new trial for an "error in law, occurring at the trial." The district judge is vested with wide discretion to grant or deny a new trial where substantial rights of the aggrieved party are not affected and that party is not entitled to a new trial as a matter of right. Rockefeller v. Grabow, 136 Idaho 637, 645, 39 P.3d 577, 585 (2001). Where prejudicial errors of law have occurred, however, the district court has a duty to grant a new trial under Rule 59(a)(7), even though the verdict is supported by substantial and competent evidence. Id.

III. DISCUSSION

There are three issues raised in this appeal: (1) whether the district court's refusal to give the requested jury instruction was an error of law; (2) whether the jury verdict was supported by sufficient evidence; and (3) whether the contract between Town and Dean may be the basis of an attorney fee award in the Johnson/Town litigation.

A. Error of Law

We note at the outset that there was obviously a dispute in the evidence about whether Johnson correctly followed Town's plans and whether Johnson was entitled to rely on the "builder's set" of plans. Nevertheless, the jury apparently concluded Johnson did not follow the plans and, as a result, was negligent. On appeal, Johnson argues about the jury's consideration of this evidence and how the jury might have decided the case had it been properly instructed. Rather than addressing the factual disputes, we will focus on the error of law in instructing the jury claimed by Johnson.

The district court refused to give to the jury the following jury instruction requested by Johnson:

A contractor such as Craig Johnson Construction, LLC is required to follow the plans and specifications, and when he does so, he cannot be held to guarantee that the work performed as required by his contract will be free from defects or that the completed job will accomplish the purpose intended. The contractor is only responsible for improper workmanship or other faults or defects resulting from his own failure to perform. If the contractor performs according to the plans and specifications, the sole responsibility for any design defects lies with the designer, in this case, Floyd Town and/or Floyd Town Architects, P.A.

Gates v. Pickett & Nelson Construction Co., 91 Idaho 836, 844, 432 P.2d 780, 788 (1967); Garrett Freightlines v. Bannock Paving Co., 112 Idaho 722, 731, 735 P.2d 1033, 1042 (1987) Johnson contends this jury instruction is a proper statement of Idaho law and the district court committed reversible error by giving a general negligence instruction, instead.

While this Court has previously recognized a limitation on a contractor's liability in the public works context,...