Nunez et Al v Cloud et Al

• Jurisdiction: Belize
• Judge: Shanks, J.
• Judgment Date: 13 April 2000
• Court: High Court (Belize)
• Docket Number: 120 of 1999
• Date: 13 April 2000

High Court

Shanks, J.

120 of 1999

Nunez et al

and

Cloud et al

Appearances:

Mr. Elrington for the plaintiffs.

Mr. Welch for the first defendant.

Mr. Sooknandan for the second defendant.

Contract - Breach of contract — Engineering and construction agreement for an apartment building — Plaintiff hired first defendant as project manager — Building collapsed before completion — Whether the first defendant was solely liable for the damage to the building — Finding that irregardless of whether the building was built in accordance with the first defendant's plans, the inadequately designed beam which lead to the ultimate collapse of the building was the responsibility of the first defendant and he was liable for the damage which resulted from it — Damages for the plaintiff against the first defendant — Claim against second defendant dismissed.

Shanks, J.

1 This is a claim against the designer and builder of a two storey concrete apartment building in San Pedro. The building was started in late 1998. In March 1999 when it was nearly complete and paid for it suffered a major structural collapse while construction was still going on. Neither the builder or the designer has taken any steps to rectify the damage to the building. The relationship between the plaintiffs and the two defendants is governed by two agreements. The first is between the plaintiffs and the first defendant, Darrell Cloud. It is an agreement dated 30th July, 1998. Under this agreement Mr. Cloud is described as the “project engineer” and is to do among other things the following:

• •Design an apartment building with three rental units on the ground floor and a residential apartment for the Nunez family on the second floor.

• •Be the project engineer to supervise the entire project from start to finish.

• •Make a construction contract with the contractor to sign.

• •The project engineer shall have full responsibility and control of the project and shall work closely with owners and the contractor. He shall be fully accountable to the owners and make regular and frequent reports to them on the progress of the project. For this work the project engineer is to be paid a design fee if 2% of the total cost of the project and a fee for supervision of 8% of the total cost of the project.

2 The relationship with the second defendant, Cosme Lopez, who was the builder, is governed by a construction agreement dated the 21st October, 1998, which was produced for the plaintiffs by the first defendant. That provides that the plaintiffs hired the second defendant to “build the building which is being designed for them by Architectural Designer and Engineering Service of San Pedro who is also being retained as project engineer for this project.” The agreement continues:

• •“The building is two storeys with three apartments on the ground floor and one owner's apartment on the second level as shown on the set of plans which have been approved by the San Pedro Planning Board and a part of this agreement.

• •The building will be constructed according to the set of blue prints which have been furnished to the contractor. No changes will be made on the designer's materials without first securing permission from the project engineer and of the owner.

• •An agenda sheet will then be made and deductions or additions will be made to the labor cost differential which is reflected by the change. The total labor cost for the construction of this project is $56,090.00 Belizean dollars and the construction time to complete this project is approximately six months. An attempt will be made to complete it in four months ….” The agreement is signed by the plaintiffs and the second defendant. It will be apparent from my description of those two agreements that the first defendant's role was central throughout the entire process of design and building.

3 The first defendant prepared for the plaintiffs a bill of quantities in respect to the whole project which shows a total cost of $211,882.00 which includes $23,434.00 for furniture and fixtures for the three apartments. The plaintiff took out a loan to raise this money at a rate of interest of 17%. He had spent a total of $171,371.00 when the collapse happened. There was...