Baja Foods, LLC v. Spartan Surfaces, Inc.

2021 IL App (1st) 201156-U
CourtAppellate Court of Illinois
DecidedJuly 23, 2021
Docket1-20-1156
StatusUnpublished
Cited by1 cases

This text of 2021 IL App (1st) 201156-U (Baja Foods, LLC v. Spartan Surfaces, Inc.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baja Foods, LLC v. Spartan Surfaces, Inc., 2021 IL App (1st) 201156-U (Ill. Ct. App. 2021).

Opinion

2021 IL App (1st) 201156-U Order filed: July 23, 2021

FIRST DISTRICT FIFTH DIVISION

No. 1-20-1156

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1). ______________________________________________________________________________

IN THE APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT ______________________________________________________________________________

BAJA FOODS, LLC, ) Appeal from the ) Circuit Court of Plaintiff-Appellant, ) Cook County ) v. ) 17 L 001228 ) SPARTAN SURFACES, INC., ) NEWGRANGE, LLC, HPS ) NORTH AMERICA, INC., ) and FLOWCRETE NORTH ) AMERICA, INC., ) Honorable ) Diane M. Shelley, Defendants-Appellees. ) Judge, presiding. ______________________________________________________________________________

JUSTICE ROCHFORD delivered the judgment of the court. Presiding Justice Delort and Justice Cunningham concurred in the judgment.

ORDER

¶1 Held: We affirmed the grant of summary judgment for defendant Spartan Surfaces on plaintiff’s negligent misrepresentation and breach of implied warranty counts, finding that the negligent misrepresentation count was precluded under the Moorman doctrine and that the warranty count was precluded under section 2- 607(3)(a) of the UCC. We also affirmed the court’s award of damages for plaintiff on its breach of contract and breach of express warranty counts against the other defendant, Newgrange LLC. No. 1-20-1156

¶2 Plaintiff, Baja Foods, LLC (Baja), brought a seven-count complaint against defendants

Spartan Surfaces, Inc. (Spartan), Newgrange, LLC (Newgrange), HPS North America, Inc. (HPS),

and Flowcrete North America, Inc. (Flowcrete), arising out of a failed floor renovation project at

Baja’s food production facility. Baja alleged: negligent misrepresentation, breach of the implied

warranty of fitness, and breach of the warranty of merchantability in counts I-III against Spartan;

breach of contract and breach of express warranty in counts IV-V against Newgrange; and breach

of the warranty of merchantability in counts VI-VII against HPS and Flowcrete. The trial court

granted summary judgment in favor of Spartan on counts I-III of Baja’s complaint. Baja obtained

a default judgment against Newgrange on counts IV and V and was awarded $857,608.33 after a

prove-up of damages. Baja settled with HPS and Flowcrete and voluntarily dismissed counts VI

and VII against them.

¶3 Baja appeals the trial court’s grant of summary judgment in favor of Spartan on counts I-

II, contending that questions of material fact exist precluding the grant of summary judgment. Baja

also appeals the order awarding it $857,608.33 in damages against Newgrange, arguing that it

should have been awarded additional damages for lost profits. We affirm the damages award

against Newgrange and the grant of summary judgment for Spartan on count I for negligent

misrepresentation and on count II for breach of the implied warranty of fitness.

¶4 In its complaint, Baja alleged that it is in the business of preparing and selling foods. In

December 2015, Baja hired Newgrange to provide general contractor services with respect to the

installation of new floors in several production rooms at Baja’s food production facility.

Newgrange retained Spartan to recommend and provide flooring materials to be used at the facility.

According to its website, Spartan is “a sales and consulting group specializing in commercial

flooring alternatives.” -2- No. 1-20-1156

¶5 On or about May 16, 2015, a Spartan representative traveled to Baja’s production facility

to inspect and test the flooring in order to recommend a product appropriate for Baja’s needs. At

or near this time, Spartan requested information regarding the specific cleaning chemicals that

Baja used on the floors at its facility. Baja sent an email to Spartan with the material safety data

sheets detailing its floor cleaning chemicals.

¶6 Spartan recommended to Newgrange a urethane-based flooring product called “Flowfresh

SR” provided by Flowcrete and a cement-based screed called “ZM Rapid” provided by HPS for

use in the installation of the floors at Baja’s food production facility. Newgrange purchased and

installed the Flowcrete and HPS flooring materials recommended by Spartan. Shortly after

installation, the floors began to delaminate and blister, making them unusable for Baja’s food

production business. As a result, Baja was forced to tear out the Flowcrete and HPS flooring

systems, resurface the sub-layer, and reinstall new, suitable flooring products to replace the failed

flooring. During this time, Baja suspended operations in the affected rooms for several months

while the flooring was assessed and repaired, resulting in “a significant loss of sales and other

business.”

¶7 In count I, Baja alleged that Spartan negligently misrepresented that ZM Rapid and

Flowfresh SR were suitable materials for use in Baja’s production facilities.

¶8 In count II, Baja alleged that Spartan breached the implied warranty of fitness by

recommending Flowcrete and HPS flooring materials that were unfit to be used for the flooring at

Baja’s food production facility.

¶9 In count III, Baja alleged that Spartan breached the implied warranty of merchantability by

selling it flooring materials that were not fit for the ordinary purposes for which such products are

used, namely, to provide a flooring surface free from blistering, delamination, and other defects. -3- No. 1-20-1156

¶ 10 In count IV, Baja alleged that Newgrange breached two written agreements to provide

flooring renovation and general contractor services at its production facility.

¶ 11 In count V, Baja alleged that Newgrange breached its five-year warranty against concrete

cracks and pooling and the two-year limited warranty on services performed.

¶ 12 Counts VI and VII alleged the breach of the warranty of merchantability against HPS and

Flowcrete. Baja subsequently settled with HPS and Flowcrete and voluntarily dismissed these

counts.

¶ 13 Spartan moved for summary judgment on counts I-III, arguing that Baja had released all

claims against it. On February 15, 2018, the trial court granted Spartan’s motion for summary

judgment as to count III, the claim for breach of the implied warranty of merchantability. The court

denied Spartan’s summary judgment motion as to counts I and II.

¶ 14 During discovery, several depositions were taken. Art Velasquez, the CEO and managing

partner of Baja, testified to contracting with Newgrange, a general contractor, to replace the

flooring in three rooms in Baja’s food production facility. Baja did not contract with Spartan.

However, Newgrange worked with Spartan to provide the necessary flooring materials. On April

10, 2015, Spartan sent an employee, Todd Friedewald, to put in a “mock floor” on a small portion

of one of the rooms in the facility “to test to see if it was what they wanted to do and [if] it would

work.” The mock-up floor performed well, there was no blistering or delamination.

¶ 15 Following the mock-up, Newgrange installed the remaining flooring in February 2016. In

April 2016, Velasquez discovered that the floors were peeling and delaminating. Velasquez

contacted Newgrange’s owner, Sean Moran, to fix the floors, but his remediation efforts were

unsuccessful. Velasquez terminated Newgrange on June 9, 2016. Velazquez removed the peeling

-4- No. 1-20-1156

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2021 IL App (1st) 201156-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baja-foods-llc-v-spartan-surfaces-inc-illappct-2021.