GRACE & NAEEM UDDIN, INC. v. SINGER ARCHITECTS, INC. ( 2019 )


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  •           DISTRICT COURT OF APPEAL OF THE STATE OF FLORIDA
    FOURTH DISTRICT
    GRACE AND NAEEM UDDIN, INC., a Florida corporation,
    Appellant,
    v.
    SINGER ARCHITECTS, INC., BROWARD COUNTY, and ARCH
    INSURANCE COMPANY,
    Appellees.
    No. 4D18-2972
    [August 28, 2019]
    Appeal from the Circuit Court for the Seventeenth Judicial Circuit,
    Broward County; John B. Bowman, Judge; L.T. Case No. 14-004946 (05)
    and 13-013834 CACE (02).
    David R. Elder and Kerry H. Lewis of Elder & Lewis, P.A., Miami, for
    appellant.
    Neil P. Robertson of Daniels Rodriguez Berkeley Daniels & Cruz, P.A.,
    Coral Gables, for appellees.
    MAY, J.
    Whether a supervising architect owes a duty of care to a contractor
    hired by the county for an airport improvement project is the question
    asked in this appeal. The contractor argues the trial court erred in failing
    to apply Moyer 1 and granting final summary judgment for the architect.
    We agree and reverse.
    The county entered into separate contracts with the architect and the
    contractor for the development of an improvement project at the Fort
    Lauderdale Airport. The county’s contract with the architect assigned the
    latter with consultant and administrative duties. The county’s contract
    with the contractor concerned the scope of work and the architect’s role
    as a consultant and administrator.
    1   A.R. Moyer v. Graham, 
    285 So. 2d 397
    (Fla. 1973).
    As the project neared completion, the county terminated its contract
    with the contractor. The contractor filed suit against the county and the
    architect claiming breach of contract and professional negligence,
    respectively. The trial court consolidated the actions for discovery and
    trial.
    The architect moved for partial summary judgment, arguing it did not
    owe the contractor a duty of care and the contractor could not recover
    contract damages in tort. The trial court granted the architect’s motion,
    concluding the architect did not owe the contractor a duty of care in its
    role as the county’s consultant. From that partial summary judgment, the
    contractor now appeals.
    •   The Architect/County Contract
    The contract between the architect and the county outlined the
    architect’s role as “CONSULTANT SERVICES FOR MISCELLANEOUS
    PROFESSIONAL ARCHITECT, ENGINEER, AND INTERIOR DESIGN
    SERVICES.” The contract designated the architect as a “Consultant.”
    Article 10.20 declared the parties’ intent not to “create any rights or
    obligations in any third person or entity under this agreement.”
    Under Article 3, the “SCOPE OF SERVICES/TASKS/PHASES,” the
    architect was responsible for:     (1) visiting the site and attending
    construction events and meetings regularly; (2) conducting joint
    observations of the work with the county; (3) informing the county of the
    progress and quality of the work; (4) managing administrative records
    outlined in the contract; (5) assisting the county in determining the
    amounts owed to the contractor; and (6) certifying the contractor’s
    evaluation for payment.
    The architect was to:
    (1) interpret and give recommendations on disputes arising
    between the county and contractor;
    (2) recommend rejection of work not in conformity with the
    contract;
    (3) review and act on the contractor’s “shop drawings, product
    data and samples”;
    (4) coordinate with the county to review “Change Orders for
    Code Compliance”;
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    (5) conduct site observations, make recommendations, and
    assist the county in determining the project’s completion;
    and
    (6) manage the finalization of the project by preparing a punch
    list of incomplete or work needing correction and confirm
    the contractor’s “successful demonstration” of the project.
    The architect’s principal described his role as the county’s “eyes and
    ears” for the project. He subcontracted a consulting firm to help him “run
    the job” because he could not dedicate more than fifteen or twenty percent
    of his time on the project. The scope of the consulting firm’s work related
    to reviewing construction schedules and other administrative work.
    The principal admitted he recommended the contractor’s termination
    to the county and knew termination could happen upon his
    recommendation. Conversely, the county’s project manager testified that
    although the county and architect had discussions regarding the
    contractor’s termination, the architect never expressly recommended
    termination. The county’s director of capital improvement and projects
    and contract administrator for the project described the architect as the
    “architect on the job,” and relied on the principal’s input in reviewing pay
    applications, change orders, time extensions, and inspection of the punch
    list. He added that the county paid the contractor based on the principal’s
    recommendation.
    •   The Appeal
    The contractor argues that Moyer recognized a professional negligence
    claim against an architect, who supervises a project resulting in economic
    damages to the contractor. Therefore, the contractor argues the trial court
    erred in granting partial summary judgment. The architect responds that
    the trial court correctly found the architect hired by the county owed no
    duty of care to the contractor because Florida case law does not extend
    the architect’s duty of care to the contractor. The architect also argues
    the contractor cannot recover contract damages against the architect
    because those damages would be duplicative.
    We review summary judgments de novo. Chirillo v. Granicz, 
    199 So. 3d 246
    , 249 (Fla. 2016). “The duty of care in a negligence action is a question
    of law . . . .” Cheeks v. Dorsey, 
    846 So. 2d 1169
    , 1171 (Fla. 2003).
    “Under Florida’s common law a person who is injured by another’s
    3
    negligence may maintain an action against the other person based on that
    other person’s violation of a duty of due care to the injured person.”
    Moransais v. Heathman, 
    744 So. 2d 973
    , 975 (Fla. 1999). “A professional
    duty may arise in favor of a third party as a result of a matter of law . . . .”
    Trikon Sunrise Assocs. v. Brice Bldg. Co., 
    41 So. 3d 315
    , 318 (Fla. 4th DCA
    2010).
    “[A] third party general contractor, who may foreseeably be injured or
    sustained an economic loss proximately caused by the negligent
    performance of a contractual duty of an architect, has a cause of action
    against the alleged negligent architect, notwithstanding absence of
    privity.” 
    Moyer, 285 So. 2d at 402
    . Moyer relied upon California case law
    that recognized the professional liability of a supervising architect to a
    third-party contractor.
    Altogether too much control over the contractor necessarily
    rests in the hands of the supervising architect for him not to
    be placed under a duty imposed by law to perform without
    negligence his functions as they affect the contractor. The
    power of the architect to stop the work alone is tantamount to
    a power of economic life or death over the contractor.
    
    Id. at 401
    (quoting United States v. Rogers & Rogers, 
    161 F. Supp. 132
    ,
    136 (S.D. Cal. 1958)).
    Florida courts have required the existence of “supervisory duties” or
    responsibilities and a “close nexus” between the architect and contractor
    for Moyer to apply. McElvy, Jennewein, Stefany, Howard, Inc. v. Arlington
    Elec., Inc., 
    582 So. 2d 47
    , 49-50 (Fla. 2d DCA 1991); E.C. Goldman, Inc. v.
    A/R/C Assocs., 
    543 So. 2d 1268
    , 1270-72 (Fla. 5th DCA 1989); see also
    Recreational Design & Constr., Inc. v. Wiss, Janney, Elstner & Assocs., 
    867 F. Supp. 2d 1234
    , 1239 (S.D. Fla. 2011). When the contract does not
    require an architect to supervise, the architect does not perform
    supervisory duties, and the contractor is more removed from the architect,
    liability will not be imposed. 
    McElvy, 582 So. 2d at 49
    .
    The Southern District of Florida found a duty of care existed in a case
    involving the same plaintiff and virtually identical facts. Grace & Naeem
    Uddin, Inc. v. Jacobs Facilities, Inc., 
    2012 WL 12950012
    , at *1-6 (S.D. Fla.
    June 7, 2012).          There, the court determined the supervising
    architect/engineer may be found to have the requisite control to establish
    professional liability even without ultimate decision-making power. 
    Id. at *5.
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    Upon reviewing the record in a light most favorable to the contractor,
    the court denied the architect/engineer’s motion for summary judgment.
    
    Id. Applying Moyer,
    the court found that despite the architect/engineer
    having no decision-making authority, the nexus between it and the
    contractor was sufficiently strong. 
    Id. The architect/engineer
    worked on
    the project together with the contractor; and, the contractor was not a
    subcontractor. 
    Id. Here, the
    contractor argues a duty of care existed because he and the
    architect had contracts with the county, and testimony revealed that the
    architect effectively controlled the project and the contractor’s fate. The
    architect was broadly responsible for administration of the
    county/contractor contract and sometimes acted as the county’s
    representative.      The architect was also responsible for on-site
    observational duties, which were later used to certify payment.
    The architect responds that it did not have final decision-making
    authority. The architect also argues the facts in this case are more akin
    to McElvy, E.C. Goldman, and Recreational Design & Construction, where
    the court found the consultants lacked the requisite authority and nexus
    to impose liability. We disagree.
    Although the architect was not given absolute authority to stop work,
    it had the authority to recommend work stoppage. Article 5.1 provided the
    architect, in conjunction with the county’s contract administrator, was
    responsible for reviewing final documentation and the architect would
    issue “Final Certificate of Payment.” Article 5.3 provided final payment
    was contingent on the architect’s certification.
    The architect’s supervisory control over the contractor was further
    supported by deposition testimony in which the architect’s principal
    described himself as the “eyes and ears” of the project. Both the county’s
    project manager and contract administrator confirmed the county’s
    reliance on the architect in overseeing the contractor’s performance.
    Although the county had final authority to terminate the contractor or
    otherwise stop work, it relied on the architect’s duty as consultant to make
    its ultimate determination to terminate the contractor. The architect was
    given near absolute authority regarding payments to the contractor,
    demonstrating the architect’s influence over the contractor’s economic
    vitality.
    The architect’s reliance on McElvy, E.C. Goldman, and Recreational
    Design & Construction is misplaced. Unlike the architect in McElvy, who
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    did not have definitive supervisory control over the contractor, here the
    architect had supervisory control, both de facto and de jure. And, unlike
    the subcontractor in McElvy, the contractor’s status as a general
    contractor on the project established the requisite nexus to fall within
    Moyer.
    Both E.C. Goldman and Recreational Design & Construction concerned
    persons other than a supervising architect. E.C. Goldman involved a
    design expert. Recreational involved an engineer. Neither of them
    supervised the project, and neither had the requisite nexus with the
    contractor. See Recreational Design & Constr., 
    Inc., 867 F. Supp. 2d at 1237
    ; E.C. 
    Goldman, 543 So. 2d at 1270-71
    . 2
    Lastly, the architect argues Article 10.20 in the county/architect
    contract, which declared no duty to third-party beneficiaries, eliminates
    any duty of care between the architect and contractor. Once again, we
    disagree.
    In Moyer, our supreme court established a supervising architect’s duty
    of care to a general contractor based on foreseeability of harm. “[A]
    contractor is an incidental beneficiary absent clear intent manifested in
    the owner-architect contract to the 
    contrary.” 285 So. 2d at 403
    . Because
    Moyer specifically established tort liability in the absence of any
    contractual privity based on foreseeability of harm, the contractor’s status
    as a contractual beneficiary is inconsequential.
    Lastly, the architect argues because the contractor seeks to recover
    contractual economic damages from the county, tort damages from the
    architect are barred. “[U]nder Florida law, a party is not permitted to
    recover for the same damages more than once.” Addison Constr. Corp. v.
    Vecellio, 
    240 So. 3d 757
    , 762 (Fla. 4th DCA 2018). “A judgment against
    one person liable for a loss does not terminate a claim that the injured
    party may have against another person who may be liable therefor.” 
    Id. (citation omitted).
    A party is not barred from claiming against multiple
    parties where there are overlapping claims. 
    Id. 2The architect
    also relies on a per curiam decision of ours in which the dissent
    suggested the economic loss rule barred a contractor from pursuing economic
    damages in tort. D.I.C. Commercial Constr. v. Broward County, 
    668 So. 2d 697
    ,
    698 (Fla. 4th DCA 1996). Since D.I.C. Commercial Constr., our supreme court
    has limited the application of the economic loss rule to products liability actions.
    Tiara Condo. Ass’n v. Marsh & McLennan Cos., 
    110 So. 3d 399
    , 407 (Fla. 2013).
    6
    Here, liability has not yet been determined against either defendant.
    While a party may not collect the same damages twice, when the judgment
    is undetermined, overlapping damages claims are a “post-judgment issue.”
    
    Id. For this
    reason, the architect’s argument is premature.
    For the foregoing reasons, we reverse and remand the case to the trial
    court to vacate the summary judgment in favor of the architect.
    Reversed and Remanded.
    GROSS, J., and NUTT, JAMES, Associate Judge, concur.
    *         *        *
    Not final until disposition of timely filed motion for rehearing.
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