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LAN/STV v. Martin K. Eby Construction Co.

435 S.W.3d 234 (2014)

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LAN/STV v. Martin K. Eby Construction Co.

Texas Supreme Court

435 S.W.3d 234 (2014)

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Facts

The Dallas Area Rapid Transportation Authority (DART) contracted with an architecture firm, LAN/STV (defendant), to prepare plans and specifications for the construction of a light-rail transit line. DART then entered into an agreement with Martin K. Eby Construction Company, Inc. (Eby) (plaintiff) to construct the rail line according to LAN/STV’s plans. Eby and LAN/STV had no contract with each other. Early into the project, Eby discovered that approximately 80 percent of LAN/STV’s drawings and specifications were incorrect, resulting in considerable construction delays and increased expenses incurred by Eby. Eby filed suit against DART for breach of contract and later settled the matter for $4.7 million. Eby then filed suit against LAN/STV, asserting claims of negligence and negligent misrepresentation. After a trial, the jury awarded Eby $5 million. LAN/STV and Eby appealed. The court of appeals affirmed the judgment of the trial court. The Supreme Court of Texas granted certiorari to review.

Rule of Law

Issue

Holding and Reasoning (Hecht, C.J.)

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