CONSTRUCTION NEWS

June 2003

 
 

 

GOVERNMENT CONTRACTOR DEFENSE NOT UNIFORMLY AVAILABLE
Jack W. Plowman*

Contractors like to think that they are immune from liability to a person injured due to a condition rising from the performance of the contract, i.e., the “government contractor” immunity defense.  Unfortunately, this is not always true.

 Thus, when a wife was injured allegedly due to improper drainage on a road surface, and the condition causing the accident came about as a result of the performance of the contract, such was not necessarily a defense to the contractor.  In Coolbaugh v. PennDOT, 816 A.2d 307 (Pa. Super. 2003), the wife was seriously injured when she lost control of her automobile in a heavy rain.  She and her husband sued PennDOT, claiming that her car hydroplaned due to improper water drainage which would not have happened had the road been “properly sloped, graded, grooved and otherwise prepared…” for wet weather.  PennDOT, in turn, joined the contractor as an additional defendant, claiming that the contractor “had failed to follow contract specifications…and failed to complete the project in a workmanlike manner.”  The contractor asserted as a defense that, as a government contractor, it had complied with the specifications and could not be liable, and accordingly, moved for summary judgment.  The trial judge agreed and the plaintiff’s appealed.

 The Superior Court reversed, holding that only if the contractor performed its work in conformity with the specifications would it be immune from liability, stating:

 “It is not saved by the state’s immunity from suit, but by its own innocence of wrongful acts resulting in liability as for tort.”  816 A.2d at 311 (Emphasis by the Court)

But the Court went on to hold that the contractor was not immune if it failed to complete the project in a workmanlike manner, even if it did complete the work in technical compliance with the specifications.

The evidence, offered in the form of expert testimony, criticized the manner in which the work was performed, opining “that the contractor’s dereliction created conditions that caused the…crash.”

In rendering its decision, the Superior Court relied on Lobozzo v. Adam Eidemiller, Inc., 437 Pa. 360, 263 A.2d 432 (1970):

 “Thus under [the Supreme Court’s] holding the insulation rule…applies in the absence of negligence, willfully tortious conduct, or activities, such as blasting, for which liability without fault as imposed.”  263 A.2d at 434-35

The governmental immunity rule is actually a part of the so-called Spearin rule, namely, that a contractor that builds in accordance with the specifications is not liable if the result is deficient, i.e., not the result desired by the owner.  United States v. Spearin,  248 U.S. 132 (1918); Manella v. Pittsburgh, 334 Pa 396, 6 A.2d 70 (1939).  A further qualification to the government contractor immunity, in Pennsylvania, is one not discussed in the Coolbaugh case, but alluded to in a rather off-hand fashion in Conner v. Quality Coach, 561 Pa. 397, 750 A.2d 823 (2000):

“…when the government provides plans and specifications that are to be explicitly followed, it warrants that the design specifications would produce satisfactory results, thus absolving a contractor from liability for defective specifications at least where such specifications are not so obviously defective that a competent contractor would not have followed them.”  750 A.2d at 830 (Emphasis added).

What to make of all this?  While a government contractor may have immunity under certain, limited circumstances, it is not easy to establish and may well necessitate a jury verdict.  Adequate liability coverage is imperative, and to escape liability the contractor must be prepared to rebut a plaintiff’s evidence of tortious conduct.

*Of counsel, Bentz Law Firm, P.C.; fellow, American College of Trial Lawyers; member, American Bar Association Forum on the Construction Industry; member, American Bar Association Fidelity and Surety Committee; Member, National Bond Claims Association; Adjunct Professor, Emeritus, Duquesne University School of Law, Author, Pennsylvania Mechanics’ Liens (Professional Education Systems, 1989); Author, with K.W. Lee, Construction Contracting for Public Entities in Pennsylvania (Lorman Education Services, 2002).
 

 
     

 © 2003, Bentz Law Firm, P.C.

 

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