Bankers Standard Insurance Company, a Pennsylvania Company v. Jtec, Inc., a Wyoming Corporation

2025 WY 51, 567 P.3d 1183
CourtWyoming Supreme Court
DecidedMay 1, 2025
DocketS-24-0168
StatusPublished
Cited by2 cases

This text of 2025 WY 51 (Bankers Standard Insurance Company, a Pennsylvania Company v. Jtec, Inc., a Wyoming Corporation) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bankers Standard Insurance Company, a Pennsylvania Company v. Jtec, Inc., a Wyoming Corporation, 2025 WY 51, 567 P.3d 1183 (Wyo. 2025).

Opinion

IN THE SUPREME COURT, STATE OF WYOMING

2025 WY 51

APRIL TERM, A.D. 2025

May 1, 2025

BANKERS STANDARD INSURANCE COMPANY, a Pennsylvania company,

Appellant (Plaintiff), S-24-0168 v.

JTEC, INC., a Wyoming corporation,

Appellee (Defendant).

W.R.A.P. 11 Certified Question from the United States Court of Appeals for the Tenth Circuit The Honorable Tymkovich, Ebel, and Moritz, Circuit Judges

Representing Appellant: Richard R. Rardin, Cozen O’Connor, Denver, Colorado. Argument by Mr. Rardin.

Representing Appellee: Serena L. Hendon and Christopher A. Taravella, Montgomery Little & Soran, Greenwood Village, Colorado. Argument by Ms. Hendon.

Before FOX, C.J., and BOOMGAARDEN, GRAY, FENN, and JAROSH, JJ.

NOTICE: This opinion is subject to formal revision before publication in Pacific Reporter Third. Readers are requested to notify the Clerk of the Supreme Court, Supreme Court Building, Cheyenne, Wyoming 82002, of typographical or other formal errors so correction may be made before final publication in the permanent volume. JAROSH, Justice.

[¶1] This matter comes before the Court as a certified question of state law from the United States Court of Appeals for the Tenth Circuit. The question asks when a professional’s act, error, or omission occurred under Wyo. Stat. Ann. § 1-3-107 (2023) where a professional engineer allegedly designed a defective component in a water system and documented the alleged defect in multiple sets of plans. This Court accepted the certified question in accordance with Rule 11 of the Wyoming Rules of Appellate Procedure (W.R.A.P.).

CERTIFIED QUESTION

[¶2] We agreed to answer the following certified question:

When does a professional’s “act, error[,] or omission” occur under Wyo. Stat. Ann. § 1-3-107 in a tort action (1) between parties not in contractual privity; (2) alleging an engineer negligently designed a component part of an engineering plan; where (3) the engineer submitted several sets of plans, each containing the allegedly defective design?

FACTS

[¶3] When answering certified questions of law through W.R.A.P. 11, we rely upon the facts presented by the certifying court. Miech v. Sheridan County, Wyo., 2002 WY 178, ¶ 2, 59 P.3d 143, 145 (Wyo. 2002) (citing Kaycee Land & Livestock v. Flahive, 2002 WY 73, ¶ 3, 46 P.3d 323, 324 (Wyo. 2002)). Our answer to certified questions is not dependent on factfinding. Skoric v. Park County Circuit Court, 2023 WY 59A, ¶ 3, 532 P.3d 667, 668 (Wyo. 2023); B&W Glass, Inc. v. Weather Shield Mfg., Inc., 829 P.2d 809, 812 (Wyo. 1992). As such, we summarize the facts the Tenth Circuit provided in its Certification of Question of State Law (Certification Order) as context for our analysis.

[¶4] JTEC is a licensed professional engineering firm in Wyoming. In August 2017, JTEC contracted with an architectural firm, Studio Plaid, to design a water mechanical system for the Fairway Lodge housing development in Jackson, Wyoming. That same month, JTEC stamped its first design plans and submitted them to local officials with a building permit application.1 JTEC made additional revisions to the design plans and, on March 1, 2018, produced and stamped its third revision, which included a water entry detail2 which placed a pressure reducing valve (PRV) downstream of a water filter and 1 The Certification Order explains JTEC’s initial August 2017 design plan is not in the record. 2 The term “water entry detail” generally refers to the design for where water enters a building or system. Here, the water entry detail consists of the plumbing that connects the Grossmans’ residence to the residential water system. 1 filter housing at each residence. JTEC sent its sixth (and final) set of engineer-stamped design plans to Studio Plaid on May 31, 2018. Although the sixth revision included small changes from previous versions, the water entry detail did not change from the third revision. After May 31, 2018, JTEC did not submit any other changes to the mechanical plans under its contract with Studio Plaid.

[¶5] Lauren and David Grossman purchased a Fairway Lodge home in January 2019 and insured the property through Bankers Standard Insurance Company (Bankers). The Grossmans’ purchase contract for the residence included a copy of JTEC’s mechanical plans and the relevant water entry detail design from the fourth revision dated March 6, 2018.

[¶6] In early June 2019, plumbers followed JTEC’s design plans and installed the PRV downstream from the water filter and housing at the Grossmans’ home. The Certification Order does not indicate which set of engineering plans the plumbers used. The Grossmans moved into their new home in late June 2019.

[¶7] On May 7, 2020, water flooded the Grossmans’ home. The Grossmans’ plumber determined the water-filter housing had failed because the plumbing had been installed incorrectly. Specifically, Bankers allege that JTEC’s placement of the PRV downstream of the water filter exposed the water filter to water pressure it was not designed to withstand. Bankers paid the Grossmans for the damage to their home in accordance with their insurance policy, obtained the right of subrogation, and initiated the underlying action on May 6, 2022. In addition to asserting claims against the general contractor that built the home and the plumber responsible for installing the water entry detail, Bankers sued JTEC, alleging it negligently designed the water entry detail.

[¶8] JTEC moved for summary judgment, arguing Bankers’ action was barred by the limitation period in Wyo. Stat. Ann. § 1-3-107 based on a discovery date of May 7, 2020 (the date of the flood) or May 12, 2020 (the date the Grossmans’ plumber opined the installation was incorrect). Specifically, JTEC asserted May 31, 2018, the last documented day it provided professional services to Studio Plaid, was the date of the alleged “act, error, or omission” for statute of limitations purposes. Under § 1-3-107(a)(iv), the two-year limitation period for commencing suit is extended by six months if the alleged act, error, or omission is discovered during the second year after the date it occurred. In response, Bankers asserted the operative date for statute of limitation purposes was no later than March 1, 2018, the date of the third revision. That date placed the alleged act, error, or omission outside the original two-year period and, according to Bankers, § 1-3-107(a)(i) therefore provided an additional two-year period after discovery to commence its action. In short, the limitation period in Wyo. Stat. Ann. § 1-3-107 would make Bankers’ May 6, 2022, lawsuit timely against JTEC using March 1, 2018, as the trigger date, but would bar the suit as untimely using May 31, 2018.

2 [¶9] The district court agreed with JTEC, granted its summary judgment motion, and dismissed Bankers’ claim against the engineering firm. At Bankers’ request, the district court then stayed the litigation against the other defendants pending appeal to the Tenth Circuit.

[¶10] The Tenth Circuit issued its Certification Order on July 1, 2024, and it was filed with this Court on July 11, 2024. We agreed to answer the certified question on July 18, 2024. Following briefing by the parties, this Court heard oral argument on January 14, 2025.

STANDARD OF REVIEW

[¶11] “Certified questions are governed by W.R.A.P. 11. When there is no controlling precedent to a question of law, Rule 11.01 allows this Court to answer pure questions of law ‘which may be determinative of the cause’ pending in the certifying court.” Sinclair Wyoming Refining Co. v. Infrassure, Ltd., 2021 WY 65, ¶ 10, 486 P.3d 990, 994 (Wyo. 2021) (quoting Preston v. Marathon Oil Co., 2012 WY 66, ¶ 4, 277 P.3d 81, 83 (Wyo.

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