Source: http://www.ecases.us/case/wyo/c1157183/abc-builders-inc-v-phillips
Timestamp: 2020-04-05 12:04:49
Document Index: 345563248

Matched Legal Cases: ['§ 1', '§ 1', '§ 11', '§ 2', '§ 353', '§ 1', '§ 1']

ABC Builders, Inc. v. Phillips, Wyoming Supreme Court, State Courts, COURT CASE
632 P.2d 925 (1981)
ABC BUILDERS, INC., a Corporation, Appellant (Defendant),
The City of Sheridan, Wyoming, a Municipal Corporation (Defendant),
William H. PHILLIPS and Cynthia Phillips, Appellees (Plaintiffs).
William H. PHILLIPS and Cynthia Phillips, Appellants (Plaintiffs),
ABC BUILDERS, INC., a Corporation, and The City of Sheridan, Wyoming, a Municipal Corporation, Appellees (Defendants).
The CITY OF SHERIDAN, Wyoming, a Municipal Corporation, Appellant (Defendant),
Abc Builders, Inc., a Corporation (Defendant),
ABC BUILDERS, INC., a Corporation, Appellant (Defendant and Third-Party Plaintiff),
Kenneth R. KASTER and Virginia R. Kaster, husband and wife, Appellees (Third-Party Defendants).
The CITY OF SHERIDAN, Wyoming, a Municipal Corporation, Gary N. Benson and Betty Ann Benson, husband and wife (Third-Party Defendants),
William H. PHILLIPS and Cynthia Phillips (Plaintiffs).
*926 Stuart S. Healy, Kennedy, Connor & Healy, Sheridan, signed the briefs and appeared in oral argument on behalf of ABC Builders, Inc.
George S. Andrews, Andrews, Andrews & Riske, P.C., Cheyenne, signed the brief on behalf of amici curiae, the Sheridan County *927 Board of Realtors and the Wyoming Board of Realtors, in support of the position of ABC Builders, Inc.
Micheal K. Shoumaker, Badley, Rasmussen & Shoumaker, Sheridan, signed the briefs and appeared in oral argument on behalf of the Phillipses.
In August of 1971 the Kasters conveyed the property to Gary and Betty Benson (Bensons).[1] The Bensons made no alterations to the structure. They sold and transferred the home to William and Cynthia Phillips (appellees), in June, 1977. Up until May, 1978, the only complaint voiced about the house was that during the last year that the Bensons owned it, there was some minor seepage of water from the back wall of the first floor identified as being caused by a defective sump pump. At the time of sale by the Bensons to appellees, the Bensons replaced water-stained carpet which had resulted; but then in May of 1978 heavy rains began falling.
The National Weather Service office at the Sheridan County airport officially recorded 6.80 inches of rain for the month of *928 May, 1978. This was 4.35 inches above the average amount of rain for the month. The daily breakdown shows that most of the rain fell during two wet spells. The first one began May 3 and lasted through May 11. With almost daily rainfall, 2.23 inches of precipitation was recorded during that period. The rain then abated until May 16, when during the ensuing four-day period, another 3.78 inches of rain was recorded.
"ABC Builders, Inc.,                      80
"City of Sheridan                         15
"William H. Phillips
and Cynthia Phillips                       5
"Kenneth Kaster and
Virginia R. Kaster                         0
100            %"
Mr. Kaster's deposition was to the effect that while there was an escarpment[2] upon the hill, it gave him no concern. He was content with the soundness of the house itself and never noticed it had any structural problems, never had any water leakage into the lower section nor any cracking or displacement of the foundation. Before putting in the patio and drainage tile, there was a low spot at the rear of his lot in which water would accumulate. He was very much satisfied with the house and never had any water or other problems. The Kasters sold the house to the Bensons, unaware of any difficulties about which a warning should issue to the Bensons.
"Now, in regard to the summary judgment filed on behalf of the Kasters. I think there are a lot of interesting points and questions; and certainly Mr. Healy has done a good job in presenting his viewpoint of why they should remain in this suit, but the Court is unable to come up with any theory of liability on their part to any of the parties here under the existing law. Further, the Court doesn't see where the defenses of ABC Builders will be changed or harmed in any way by removing the Kasters. If this is to be submitted  the negligence question part of the case  submitted on comparative negligence, why, there is no necessity of *930 the parties being there to have the jury assign them any percentage of negligence for building this portion; so the Court doesn't see how ABC Builders can be hurt in this matter. The Court doesn't see where there was any duty on the Kasters in the suit as it now stands as a matter of law, so the Court is going to grant that motion for summary judgment also. I will ask both of the successful counsel in these motions to prepare the proper order and to submit it to Mr. Healy for his perusal and okay as to form."[3]
*931 "4. Actual loss or damage resulting to the interests of another. Since the action for negligence developed chiefly out of the old form of action on the case, it retained the rule of that action, that proof of damage was an essential part of the plaintiff's case. Nominal damages, to vindicate a technical right, cannot be recovered in a negligence action, where no actual loss has occurred. The threat of future harm, not yet realized, is not enough. Negligent conduct in itself is not such an interference with the interests of the world at large that there is any right to complain of it, or to be free from it, except in the case of some individual whose interests have suffered." (Footnotes omitted and emphasis added.)
We are concerned with number one of Prosser's summary. Did the Kasters, as intermediate owners, have any duty to conform to any standard of conduct toward future purchasers of the residence; and, if so, what was that standard? We have, in Tavares v. Horstman, Wyo., 542 P.2d 1275 (1975), and Moxley v. Laramie Builders, Inc., Wyo., 600 P.2d 733 (1979), held developers-builders-vendors responsible to purchasers of a residence on the basis of an implied warranty and concluded that the buyer could rely on negligence of the builder for recourse as well. The reasons for such a rule rest in the fact that such a builder is in a position of superior knowledge; building is his business. Much of what he does is concealed from sight, not discoverable by inspection. And, as a matter of public policy the builder should not be relieved of liability under the concept that it is more equitable to assess the builder[4] for losses attributable to latent defects which he has created. In Tavares this court also held that the buyer should not be charged with negligence as contributory negligence for building a barn over part of a septic tank drain field when not alerted by proper warning, citing Brubaker v. Glenrock Lodge International Order of Odd Fellows, Wyo., 526 P.2d 52 (1974).
It can hardly be expected that the Kasters were any more than the usual home buyers in the same position as the appellees. It was reasonable for them to do as many buyers of new homes do, add on and improve. Here all they did was improve with construction of a patio with storage shed which to all appearances is an innocent act in the absence of some knowledge which removes it from that category. Professional developers and builders as vendors are in a different posture and, upon sale, subject to different duties. The record of the summary *932 judgment proceedings, including materials considered and even the trial transcript, fails to disclose that the Kasters knew or should have known, as prudent homeowners, that lurking above their home was an unstable slope, liable to move down and buckle the land under them if they should drain water into the ground from a patio they had built, and endanger the stability of their home and cause damage to any future buyer of the premises. In private sales between vendor, not a builder-vendor, and a vendee, ordinarily the vendor has no greater skill in determining quality than has the vendee and they are in an equal bargaining position. Waggoner v. Midwestern Development, Inc., infra.
"(2) If the vendor actively conceals the condition, the liability stated in Subsection (1) continues until the vendee discovers it and has reasonable opportunity to take effective precautions against it. *933 Otherwise the liability continues only until the vendee has had reasonable opportunity to discover the condition and to take such precautions." (Emphasis added.)[5]
It can be seen from the comments of the trial judge at the time he ruled for the Kasters on the motion for summary judgment, that he sensed but would not or could not express this as the rule; and upon the basis of the information before him on the motion for summary judgment, he properly held there was no duty resting with them toward the appellees, their buyers, nor to ABC Builders. There is no showing in the summary judgment materials or even in the trial proceedings that the Kasters concealed or failed to disclose to the Bensons a condition of which they knew or had reason to know which constituted an unreasonable risk underlying the land or from the patio drain to the Bensons and the appellees as the subvendees.[6] Nor was there any reason shown that the vendees, the Bensons, knew or had reason to know of any condition or unreasonable risk. As noted, ABC did not and does not now contest granting of summary judgment to the Bensons.
"(a) Except as otherwise provided in W.S. 1-1-110 through 1-1-113, where two (2) or more persons become jointly or severally liable in tort for the same injury to person or property or for the same wrongful death, there is a right of contribution among them even though judgment has not been recovered against all or any of them."[7]
*934 The Kasters are not tortfeasors. A tortfeasor is a wrongdoer; one who commits or is guilty of a tort. Black's Law Dictionary, Fifth Edition, 1979. Generally speaking, and without attempting an all-inclusive definition, a tort has a meaning similar to wrong and is an unlawful act injurious to another, independent of contract. Price v. State Highway Commission, 62 Wyo. 385, 396, 167 P.2d 309, 312 (1946). Not being tortfeasors, the Kasters had no liability either jointly or severally to the appellees for injury to appellees' property and therefore had no liability to ABC for contribution, even though they may have unconsciously created a condition which may have contributed to appellees' loss.
Since the Kasters were not negligent as properly determined by the summary judgment, their names should never have been on the verdict form as actors[8] in appellees' loss. No liability can be grounded on negligence if no duty exists on the part of an individual. Maxted v. Pacific Car & Foundry Co., Wyo., 527 P.2d 832 (1974); Guinand v. Atlantic Richfield Company, 485 F.2d 414 (10th Cir.1973). Once it has been determined that a person has no liability in connection with the occurrence, no reason remains for that person's name to appear on the verdict form for a determination of a percentage of negligence.[9]
An error to warrant reversal must be prejudicial and affect the substantial rights of an appellant. Tompkins v. Byrtus, *935 72 Wyo. 537, 267 P.2d 753 (1954); Day v. Smith, 46 Wyo. 515, 30 P.2d 786 (1934); Stockgrowers' Bank of Wheatland v. Gray, 24 Wyo. 18, 154 P. 593 (1916). Where no injury resulted to an appellant, errors will be overlooked by this court, Jenkins v. City of Cheyenne, 1 Wyo. 289 (1876). While the prevailing rule in criminal cases, the test can be reasonably applied in civil cases as well, that for an error to be harmful, there must be a reasonable possibility that in the absence of error the verdict might have been more favorable to a defendant. Hoskins v. State, Wyo., 552 P.2d 342 (1976), reh. denied 553 P.2d 1390, cert. denied 430 U.S. 956, 97 S. Ct. 1602, 51 L. Ed. 2d 806. If the determination of a trial court is correct on any theory, it will not be disturbed. White v. Wheatland Irrigation District, Wyo., 413 P.2d 252 (1966).
The next issue for consideration is whether there is a duty upon ABC as a builder-vendor of homes to select a safe site for such construction. There is no question involved in this appeal that appellees are not the original buyers. If a builder's liability exists, it may exist for subsequent purchasers. Moxley v. Laramie Builders, Inc., supra, settled that issue. The claim of the appellees was presented to the jury as a negligence case. In Tavares v. Horstman, supra, this court did not reach the question of unsafe building sites but discussed only the duty of builders-vendors to provide a habitation free from negligent design and construction. Though we also held that the sale of a new house by a builder of homes carries with it an implied warranty that it is constructed in a reasonably workmanlike manner and fit for habitation, this court approved seeking damages upon the basis of either breach of implied warranty or negligence. Providing a safe site goes like hand and glove with construction. There is nothing unusual about liability in the builder-vendor for selling a home built on a site negligently selected and it develops that danger surfaces and causes damage to an unwary buyer. It is a question which has caught the attention of courts and text writers.[10] Courts have gone off in different directions in reaching liability for damages arising out of unsafe building sites, including implied warranty, fraud and deceit, and negligence.
In Rutledge v. Dodenhoff, 254 S.C. 407, 175 S.E.2d 792 (1970), placement of a septic tank system in the presence of a high water table was a factor which caused it to overflow and back up into homes, particularly during wet weather. The case was decided on the basis of implied warranty, and it was held that the builder was liable. It was held that purchaser and builder are not on equal footing and the purchaser is at the *936 mercy of the builder-vendor. In Bethlahmy v. Bechtel, 91 Idaho 55, 415 P.2d 698 (1966), the builder placed tile pipe in and covered up an irrigation ditch and built a garage over the top. During irrigation season, water came through the concrete floor and seeped into the basement. After complaint, the builder rerouted the ditch around the lot through a sealed tile pipe but the water problem continued due to a high water table in the vicinity created by the irrigation ditch. The court there went so far as to hold there was liability for fraudulent concealment. The defendant was held to have dealt from a position of superior knowledge and not at arms length.
In Sabella v. Wisler, 59 Cal. 2d 21, 27 Cal. Rptr. 689, 377 P.2d 889 (1963), an old quarry pit was used over the years for dumping of trimmings and cuttings and similar waste matter. The owner contracted to have it filled, covering over the waste with earth. The fill material and dirt were dumped onto the land without being specifically compacted. It did not look like filled land. The defendant, an experienced home builder, purchased the property but never attempted to inform himself of the nature, composition or quality of the earth underneath the leaves he saw there. It was found that inquiry and soil tests would have disclosed that the ground was unfit for a building site. The house built was not specially built for anyone in particular but for sale. There were heavy rains during the early winter sufficient to cause a large quantity of earth and rock to break away from the cliff behind the house and slide into the plaintiff's back yard and patio. Later, subsidence of the filled land occurred causing the house to sink at many places, one part to drop over seven inches and the house to break away from the sewer pipe permitting the sewage to accumulate in the ground around the home. The defendant was held negligent in constructing the dwelling upon an improperly compacted lot.
Another pertinent California case is of interest. In Conolley v. Bull, 258 Cal. App. 2d 183, 65 Cal. Rptr. 689 (1968), the defendant, a real estate speculator, built a sale house on sloping ground. The owner of adjoining property advised him that it was a slide area because one had occurred on his property some time earlier and furnished him with an engineer's report indicating that underground movement of subsurface water caused slides to occur in that area. The house was sold to plaintiff. Later during a night while it was raining, a landslide occurred behind the property and the house was almost lost. The court affirmed the trial court and held the developer accountable in a negligence action for failure to carefully investigate the condition of soil before building on hillside lots.
As was appropriately said by the court in House v. Thornton, 76 Wash.2d 428, 457 P.2d 199 (1969), in connection with the slippage of sloping ground upon which a house *937 had been built by the defendant speculator, following heavy rains:
*938 We hold this to be the duty of ABC as builders to appellees: To furnish a safe location for a residential structure and it may be negligence to not do so.
The third issue we consider concerns the statute of limitations. ABC, after acknowledging that this court struck down the special ten-year statute of limitation for improvements to real property in Phillips v. ABC Builders, Inc., supra, argues that the four-year statute of limitation for tort actions *939 found in § 1-3-105, W.S. 1977,[11] operates to bar the appellees' claim. This argument is premised upon the correctness of ABC's notion that the cause of action accrues "with the selection of the building site."
Accordingly, in the present case since no damage was shown to have occurred at least until the water seepage reported by the Bensons in the summer of 1977, if that was a result of ground instability and not a defective sump pump, the cause of action did not accrue until then. Therefore, the statute of limitations could not, under any circumstances shown in this case, have started running until that summer.[12] The action was commenced September 19, 1979, *940 well within the statute. The district court was correct in refusing to dismiss the action under § 1-3-105, W.S. 1977, supra.
"Negligence is the lack of ordinary care. It is the failure of a person to do something that an ordinary person would do, or the act of a person in doing something *941 that an ordinary person would not do, measured by all the circumstances then existing."
The court, after discussion and urging by ABC and City, ended up with negligence consideration for three parties and the nonparty in the finding-of-percentages-of-negligence portion of the verdict: Plaintiffs (appellees), ABC, City and the Kasters.[13]
"THE COURT: I will just strike the free from obstruction and put a period after repair.[[14]]
We, therefore, determine the case as to the City on the basis of negligence as applied to private persons. No question of governmental immunity was raised in the trial court.[15] The City raises questions on appeal not raised in the trial court at the instructions conference or at the time the jury was instructed, namely that there is no liability for damages resulting from a dangerous condition which arises in connection with the operation of a storm sewer system *942 until and unless it has actual or constructive notice of the defect or obstruction and an opportunity to correct it, citing Elledge v. City of Des Moines, 259 Iowa 284, 144 N.W.2d 283 (1966); Freitag v. Montello, 36 Wis. 2d 409, 153 N.W.2d 505 (1967); Bieber v. City of Newcastle, U.S.D.C. Wyo., 242 F. Supp. 457 (1965) and 1A Antieau, Municipal Corporation Law, § 11.119. That may be the rule, but this court has not so held. We do not so decide because the jury was not called upon to consider the point by way of some appropriate instruction, given by the trial judge or demanded by the City. We will not consider on appeal questions not properly raised in the district court. City of Rock Springs v. Police Protective Association, Wyo., 610 P.2d 975 (1980). This is in effect raising an objection to instructions for the first time in this court, and we will not consider the same and will assume instructions as given were satisfactory at the time given. Rule 51, W.R.C.P. Butcher v. McMichael, Wyo., 370 P.2d 937 (1962). The spirit and purpose of this rule is to inform the trial judge of possible errors so he may have an opportunity to correct them. Haley v. Dreesen, Wyo., 532 P.2d 399 (1975).
The duty to maintain is a continuing one. Taylor Ditch Company, Inc. v. Carey, supra. The City was aware of the instability of the hillside upon which the ditch was located. Negligence involves, as we have also said with respect to ABC, a recognizable danger which is apparent or should be apparent to one in the position of actor. Endresen v. Allen, supra. This knowledge is exemplified by the testimony of an engineer on contract with the City in 1963. Mr. Johnston of ABC had been urging an extension of Main Street to get another access into Sheltered Acres. That study disclosed there were subsidence problems within the proposed Main Street extension upon which the ditch was located. There were water, seepage and drainage problems west and above the ditch. Another study in 1968 disclosed the same problem. The City declined *943 to construct the new street following those studies because of the risk of landslides. Again in 1977, before the fall of the appellees' home, a study was done by the Wyoming State Highway Department for the purpose of determining geological factors, which would affect an extension of Main Street as a construction belt in the same area. The reasonable inference was that it was done either at the instance and knowledge of the City or it should have been known. The study discloses that, "A drainage runs from the higher ground contributing to the groundwater problem to the extent of standing surface water in some places," and "There are active springs or evidence of springs within each slide area. These springs are thought to be the major source of water." Water was found by the study to be ponding in some areas.
I concur with the majority opinion, but must take some exception to footnote 7 thereof. I think it to be within the prerogative of the legislature to enact such measures as it sees fit, to refuse to enact such measures as it sees fit, and to "tinker" with any legislation as it sees fit  be it a uniform act or otherwise. A Wyoming legislator must have complete freedom to represent his constituency in the enactment of laws without deference to that which foreigners might think is a proper law for Wyoming  again be it a uniform act, a model act or otherwise. Our legislature has seen fit to amend and modify many uniform laws passed by it as such was dictated by Wyoming's special needs. The only concern of the courts with legislation should be that provided by the check and balance system under which our government was established.
[1] The Bensons are not parties to this appeal. Summary judgment was granted in their favor and counsel for ABC indicated at the time of its granting that summary judgment for the Bensons was not a concern, apparently because they had been joined in the first place under the mistaken belief that they had added the patio and downspout which ABC asserted contributed to ground instability resulting in a landslide which will be thoroughly discussed in this opinion.
[2] A long cliff or steep slope separating two comparatively level or more gently sloping surfaces and resulting from erosion or faulting. Webster. This definition fits photos of the area above the residence.
[3] The court made further pertinent rulings in this regard:
"THE COURT: I may have said that, Mr. Healy. I really didn't mean all that. I don't feel that there's any liability in the Kasters in this suit at this time. I don't feel that it's been shown to the Court that they had any duty not to have built a patio or to have built it differently, etc. Now, you may prove at the trial that the reason the house collapsed  for lack of a better word  was because this patio was built and all that sort of thing; but I don't think that makes them liable to anyone as this case now stands, but it certainly would have a bearing on your client as to whether or not there was a violation of the implied warranty or whether or not they were negligent in causation, etc. I'm sure that can be litigated in this case as far as your client is concerned.
[4] This justifying reason in support of a rule binding land developers and builders is excellently summarized in 25 A.L.R.3d § 2, 383, 391, where it is said:
[5] The Restatement, Torts 2d contains and we adopt the following definitions pertinent not only to this rule but as otherwise used in this opinion:
[6] A subvendee is one to whom a vendee sells. Restatement, Torts 2d, § 353, Comment (a), page 236.
[7] This section is derived from § 1 [1-7.3(d)], Chapter 67, Session Laws of Wyoming, 1973, before the legislature tinkered with the Uniform Contribution Act in its revision, § 1 [1-1-110], Chapter 188, Session Laws of Wyoming, 1977. It originally read:
[8] See definition of actor, footnote 5, this opinion.
[9] This statement is not intended to include the person who has settled with a plaintiff, as in Board of County Commissioners of County of Campbell v. Ridenour, Wyo., 623 P.2d 1174, 1192, fn. 14, where it was stated as a matter of public policy that:
[10] An excellent discussion of the dangers of property location appears in 12 Am.Jur., Proof of Facts, Second (12 POF2d) p. 103, et seq.
[11] Section 1-3-105, W.S. 1977:
[12] We need not decide whether that particular water seepage was proximately caused by the same, if any, negligence in selecting a building site which resulted in the damages to the home while the Phillipses lived there since in any event the statute of limitations could not have run. In a case in which it matters, that would have to be resolved.
[13] The court did not instruct the jury as to any particular duty of the appellees or Kasters as it did with ABC and the City other than through its general definition of negligence.
[14] Instruction No. 7, then, as presented to the jury:
[15] The court notes in passing Oroz v. Board of County Commissioners of County of Carbon, Wyo., 575 P.2d 1155 (1978), which abolished governmental immunity for governmental subdivisions "as to any and all claims arising on and after July 1, 1979" and held negligence was to be determined as in the case of private persons. Also, we do not find in the record at any point any reference to liability insurance. Collins v. Memorial Hospital of Sheridan County, Wyo., 521 P.2d 1339 (1974), declares acquisition of liability insurance to be a waiver of immunity. We note two cases which suggest that liability of a city for damage arising from sewer blockage and faulty maintenance may depend upon whether the operation and maintenance is governmental or proprietary: Lore v. Town of Douglas, Wyo., 355 P.2d 367 (1960) and Savage v. Town of Lander, 77 Wyo. 157, 309 P.2d 152 (1957).
DocketNumber： 5468-5470 and 5484
Citation Numbers： 632 P.2d 925
Filed Date： 8/13/1981
Jerome B. Guinand v. Atlantic Richfield Company , 485 F.2d 414 ( 1973 )
Medlock v. Van Wagner , 625 P.2d 207 ( 1981 )
Gary v. Foster Lumber Company, Inc. , 531 P.2d 497 ( 1975 )
Taylor Ditch Company, Inc. v. Carey , 520 P.2d 218 ( 1974 )
Keith v. Ames ( 2008 )
State v. Faltynowicz , 660 P.2d 368 ( 1983 )
J BAR H, INC. v. Johnson , 822 P.2d 849 ( 1991 )
McClellan v. Tottenhoff , 666 P.2d 408 ( 1983 )
White v. Ha, Inc. , 782 P.2d 1125 ( 1989 )
Matter of Jones , 702 P.2d 1299 ( 1985 )
Barlage v. Key Bank of Wyoming , 892 P.2d 124 ( 1995 )
City of Evanston v. Whirl Inn, Inc. , 647 P.2d 1378 ( 1982 )