Lan/Stv v. Martin K. Eby Construction Co. Inc.

435 S.W.3d 234 (2014)

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Nature of the Case

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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. They made a shamble 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.