CONCORD ENGINEERING &
SURVEYING, INC.,
Plaintiff,
v
.
Cabarrus County
No. 04 CVD 976
WILLIAM D. FREEMAN,
Defendant.
Black, Rogers, Ruth, Grossman & Hastings, P.L.L.C., by William
F. Rogers, Jr., for plaintiff-appellee.
Ferguson, Scarbrough & Hayes, P.A., by James E. Scarbrough,
for defendant-appellant.
LEVINSON, Judge.
William Freeman (defendant) appeals from a judgment finding
him liable for payment to plaintiff for certain work performed by
plaintiff and for associated interest and attorneys' fees. We
affirm.
The relevant evidence is largely undisputed, and is summarized
as follows: Concord Engineering & Surveying, Inc. (plaintiff) is an
engineering and surveying company. Defendant is a commercial
developer who does business in Cabarrus County. In 2000 defendant
was developing a fourteen acre tract comprised of nine lots, whichwas known as the Kings Grant property. Defendant hired KC &
Associates, which employed defendant's brother-in-law, Bill
Herndon, to serve as a contractor for the property. On 22 June
2000 plaintiff and defendant executed a contract for plaintiff to
perform certain work on the property, including surveying, and
staking out the location of roads, sewers, and other features of
Kings Grant. The contract also provided for plaintiff to be paid
for additional work not specified in the original contract.
Defendant instructed plaintiff's employees that they would receive
directions from Herndon, and to do as Herndon instructed them. All
of plaintiff's work at King's Grant was assigned by Herndon;
plaintiff submitted invoices for over $60,000 for work completed as
ordered by Herndon, which defendant paid without protest.
In December 2001 defendant sold one of the Kings Grant lots to
the Goodyear Tire Company (the Goodyear property). As a result,
defendant had no remaining financial interest in the Goodyear
property. Goodyear's general contractor subcontracted some of the
work to KC & Associates, Herndon's employer. Thus, during part of
the time Herndon worked for defendant, he was also working for the
Goodyear contractor. Herndon directed plaintiff to perform certain
work on the Goodyear property, for which plaintiff later billed
defendant approximately $6700. Defendant refused to pay, on the
grounds that plaintiff had been hired by Goodyear's contractor to
do the work, rather than by defendant. The parties were unable to
reach an agreement about plaintiff's work on the Goodyear property,and on 31 March 2004 plaintiff filed suit against defendant,
seeking payment for the work performed on the Goodyear property.
The case was heard as a bench trial on 15 December 2004.
Plaintiff's vice president, Marion Sandlin, testified for plaintiff
regarding the June 2000 contract between plaintiff and defendant.
Defendant told Sandlin that Herndon would provide specific
instructions, and throughout the time that plaintiff worked on the
Kings Grant property, all directions came from Herndon. Sandlin
assumed that Herndon's directions regarding the Goodyear site were
given on behalf of defendant, especially as his instructions for
work on the Goodyear property were issued during the same time
period that plaintiff was performing other work at Kings Grant
pursuant to the contract with defendant. Defendant never modified
his original directive that Herndon would give plaintiff
directions, or told Sandlin that Herndon's authority to give orders
did not include work on the part of Kings Grant that had been sold
to Goodyear.
Defendant testified that he hired plaintiff to do engineering
work at Kings Grant, and contracted with KC & Associates for work
on the property's roads and sewers. He acknowledged that the
contract executed with plaintiff referenced the entire fourteen
acre site, consisting of nine lots; that one of these lots was the
one sold to Goodyear; and that he told plaintiff to take directions
from Herndon. Defendant knew that after construction began at the
Goodyear site, KC & Associates were working both for him and for
the Goodyear contractor at the same time. Following the presentation of evidence, the trial court
entered judgment in favor of plaintiff. The trial court's order
found, in pertinent part, that:
1. The Plaintiff is [a] professional land
surveying company[.] . . . Marion Sandlin is
the vice president of the company[,] . . . and
enters into contracts on its behalf. . . .
2. William Freeman . . . develop[ed] . . .
fourteen (14) acres into nine (9) commercial
lots . . . at King's Grant[.] . . . One . . .
lot[] became known as the Goodyear site.
3. [The parties] entered into a written contract
on June 22, 2000 whereby the Plaintiff would
perform [surveying and engineering] services
for the Defendant at Kings Grant . . . [and
also] additional services . . . not specified
by the contract[,] . . . to be performed at
hourly rates set out in the contract.
. . . .
5. . . . Defendant gave permission for the
Plaintiff to perform services at the direction
of Mr. Herndon[,and] . . . told Mr. Sandlin
that Mr. Herndon was his subcontractor. . . .
Herndon was the sole contact person for the
Defendant at the King's Grant site.
6. As per the contract, invoices were submitted
for work performed by the Plaintiff at the
King's Grant including the Goodyear site at
the direction of Mr. Herndon through 2001.
The invoices totaled approximately $60,000 and
the Defendant paid that amount.
7. However, services totaling [$6737.50] were
performed by the Plaintiff at King's Grant,
[at] the Goodyear site at the direction of Mr.
Herndon and the Defendant failed to pay. . . .
8. At no time prior to April 2002, while the
services were being performed . . . did the
Defendant tell Mr. Sandlin that Mr. Herndon
was no longer his subcontractor.
9. At no time while the services were being performed
did the Defendant or Mr. Herndon tell the Plaintiffthat the Defendant had sold the Goodyear site . . .
on December 18, 2001.
10. The Defendant was aware that . . . Mr. Herndon
was performing work for [Goodyear's general
contractor[.] . . . [Defendant] had a
construction trailer [on site] . . . and saw
work being done at the Goodyear site.
Based on these and other findings of fact, the trial court
concluded in pertinent part that [t]he Plaintiff performed certain
services under said contract for which the Defendant failed to
pay. The trial court ordered defendant to pay Plaintiff for the
disputed work, as well as interest and attorneys' fees. Defendant
now appeals.
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