Apple Am. Grp., LLC v. GBC Design, Inc.

294 F. Supp. 3d 414
CourtDistrict Court, W.D. Pennsylvania
DecidedFebruary 15, 2018
DocketCIVIL ACTION NO. 3:15–325
StatusPublished
Cited by6 cases

This text of 294 F. Supp. 3d 414 (Apple Am. Grp., LLC v. GBC Design, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Apple Am. Grp., LLC v. GBC Design, Inc., 294 F. Supp. 3d 414 (W.D. Pa. 2018).

Opinion

KIM R. GIBSON, UNITED STATES DISTRICT JUDGE

I. Introduction

Pending before the Court are: (1) a Motion to Dismiss GBC's Third-Party Complaint, filed by Third-Party Defendant Jackson Taylor Contractors, LLC. ("Jackson Taylor") (ECF No. 39); (2) a Motion to Dismiss L.R. Kimball & Associates, Inc.'s1 Cross-claim, also filed by Jackson Taylor (ECF No. 45); and (3) a Motion to Dismiss GBC's Third-Party Complaint, filed by Third-Party Defendant ACA Engineering, Inc. ("ACA") (ECF No. 49). The motions have been fully briefed and are ripe for disposition.

For the reasons explained below, the Court will grant in part and deny in part Jackson Taylor's Motion to Dismiss GBC's Third-Party Complaint (ECF No. 39) and will grant GBC leave to amend. The Court will deny Jackson Taylor's Motion to Dismiss Kimball's Crossclaim (ECF No. 45). Finally, the Court will deny ACA's Motion to Dismiss GBC's Third-Party Complaint (ECF No. 49).

II. Jurisdiction and Venue

The Court has subject matter jurisdiction over the original Complaint filed by Apple American Group, LLC. ("Apple") because Apple and GBC are completely diverse and the amount in controversy exceeds $75,000. 28 U.S.C. § 1332. Venue is proper because a substantial part of the events or omissions giving rise to Apple's claims occurred in the Western District of Pennsylvania. 28. U.S.C. § 1391.

The Court has supplemental jurisdiction over GBC's third-party claims against Kimball, Jackson Taylor, and ACA because GBC's third-party claims form part of the same case or controversy. 28. U.S.C. § 1367(a). Similarly, the Court has supplemental jurisdiction over Kimball's cross-claims against Jackson Taylor and ACA because Kimball's crossclaims form part of the same case or controversy. Id.

*418III. Background

A. Apple's Complaint Against GBC2

Apple owns and operates Applebee's Neighborhood Restaurant franchises. (ECF No. 1 at ¶ 7.)

In 2013, Apple purchased a property in Ebensburg, Pennsylvania, on which it planned to construct an Applebee's restaurant. (Id. at ¶ 10.) Apple contracted with ACA to conduct a "Geotechnical Investigation Report" of the premises "to guide site planning." (Id. at ¶ 11.) Apple also contracted with GBC to provide Site Plans which included, among other things, a "grading, drainage, and erosion control plan ...." (Id. at ¶ 12.) Apple's contract with GBC provided that GBC would rely on other contractors' work, including ACA's Geotechnical Investigation Report, to prepare the Site Plans. (Id. at ¶ 14.) GBC completed the Site Plans in September 2013 after receiving ACA's Geotechnical Report and reports from other contractors. (Id. at ¶ 15.)

Construction on the Applebee's began in 2013 and was completed by spring of 2014. (Id. at ¶ 18.) The appropriate agencies inspected the Applebee's and approved the construction as conforming to GBC's Site Plans. (Id. at ¶ 19.) The Applebee's opened for business in November 2014. (Id. at ¶ 20.)

The Applebee's immediately began to experience drainage and moisture issues. (Id. at ¶ 21.) The rain garden installed on the north side of the building failed and caused water to pool and freeze in the downspouts and under the sidewalks. (Id. ) The drainage and water management systems malfunctioned and allowed water infiltration that cracked and buckled the sidewalks. (Id. ) And the drainage and grading systems proved deficient and caused the roof, doors, and windows to suffer severe damage. (Id. )

These defective systems conformed with GBC's Site Plans. (Id. )

Apple hired ACA-the engineering firm that had prepared the Geotechnical Investigation Report-to inspect the premises. (Id. at ¶ 23.) ACA determined that the damage to the premises was due to the fact that GBC's Site Plans failed to properly follow ACA's Geotechnical Investigation Report. (Id. at ¶ 24.) ACA also hired Wallace & Pancher, Inc.-another engineering firm-to inspect the premises. (Id. at ¶ 26.) Like ACA, Wallace & Pancher determined that GBC's Site Plans failed to conform to ACA's Geotechnical Investigation Report and that this failure caused the water damage. (Id. at ¶ 27.)

Apple spent approximately $300,000.00 to fix the defects. (Id. at 29.) Apple also sustained lost profits and damage to its reputation because it closed its business "for several days" to make the necessary repairs. (Id. at ¶ 28.)

Apple brings four counts against GBC: (1) breach of contract; (2) professional negligence; (3) negligence; and (4) unjust enrichment. (ECF No. 1 at ¶¶ 32-52.)

B. GBC's Third-Party Complaint Against Third-Party Defendants ACA, Jackson Taylor, and Kimball3

On March 31, 2017, GBC filed its Third-Party Complaint. (ECF No. 24.) GBC asserts one count of indemnification/contribution *419against each third-party defendant (id. ) and alleges the facts described below.

ACA served as the engineering firm for the Applebee's construction project and was responsible for producing a Geotechnical Investigation Report and ensuring that the report's recommendations were followed during construction. (Id. at ¶¶ 17, 18.) Apple's harm resulted from ACA's negligent failure to ensure that the construction complied with the recommendations set forth in its Geotechnical Investigation Report. (Id. at ¶ 19.)

Jackson Taylor served as the general contractor for the Applebee's construction project and performed the defective work described in Apple's Complaint. (Id. at ¶ 12.) Jackson Taylor knew about the recommendations set forth in ACA's Geotechnical Investigation Report but failed to abide by these recommendations when it constructed the Applebee's. (Id. at ¶ 13.) Apple's harm resulted from Jackson Taylor's negligent failure to conform its construction to the specifications of ACA's Geotechnical Investigation Report. (Id. at ¶ 16.)

Kimball provided construction services to Apple. (Id. at ¶ 20.) Kimball supervised the construction of the Applebee's and was responsible for ensuring that the design documents-including ACA's Geotechnical Investigation Report-were followed. (Id. at ¶ 21.) Apple's harm resulted from Kimball's negligent failure to properly supervise the construction and ensure that the construction complied with the design recommendations. (Id. at ¶¶ 22, 23.)

C. Kimball's Cross-claims Against ACA and Jackson Taylor

Finally, Third-Party Defendant Kimball asserts cross-claims for indemnification/contribution against ACA and Jackson Taylor.

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Bluebook (online)
294 F. Supp. 3d 414, Counsel Stack Legal Research, https://law.counselstack.com/opinion/apple-am-grp-llc-v-gbc-design-inc-pawd-2018.