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State of Georgia Dep't of Corr. v. Developers Sur. & Indem. Co.

A subrogee stepping into the shoes of a government contractor was entitled to rely upon the waiver of sovereign immunity that applied to the contractor.

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This case stems from a construction contract entered between the Georgia Department of Corrections “GDOC” and Lewis Walker Roofing “Walker Roofing” for the purpose of re-roofing certain buildings at the Valdosta State Prison. After a nearly two-year long delay in completing the project, GDOC declared the contract in default, and the payment and performance bonds issued by Developers Surety and Indemnity Company “Developers Surety” for the benefit of GDOC as obligee were invoked. Developers Surety then filed the present suit against GDOC, alleging that GDOC breached the construction contract it entered into with Walker Roofing. Developers Surety also sought a declaratory judgment that, as a result of GDOC’s breach of the construction contract, it had no obligation to perform its obligations under the payment and performance bond it issued to Walker Roofing on behalf of GDOC. GDOC filed a counterclaim for breach of contract. Both parties filed cross-motions for summary judgment. In its motion for summary judgment, GDOC argued that the doctrine of sovereign immunity barred Developers Surety’s claims against it. GDOC appeals from the trial court’s order granting Developers Surety’s summary judgment motion and denying GDOC’s summary judgment motion. Finding no error, we affirm.

On appeal from the grant or denial of a motion for summary judgment, “this Court conducts a de novo review of the evidence to determine whether there is a genuine issue of material fact and whether the undisputed facts, viewed in the light most favorable to the nonmoving party, warrant judgment as a matter of law.” Citation omitted. Shekhawat v. Jones, __Ga.__ 746 SE2d 89 2013.

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