Buscher v. MONTAG DEVELOPMENT, INC.

770 N.W.2d 199, 2009 Minn. App. LEXIS 146, 2009 WL 2366174
CourtCourt of Appeals of Minnesota
DecidedAugust 4, 2009
DocketA08-1803, A08-2036
StatusPublished
Cited by4 cases

This text of 770 N.W.2d 199 (Buscher v. MONTAG DEVELOPMENT, INC.) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Buscher v. MONTAG DEVELOPMENT, INC., 770 N.W.2d 199, 2009 Minn. App. LEXIS 146, 2009 WL 2366174 (Mich. Ct. App. 2009).

Opinion

OPINION

MUEHLBERG, Judge. *

Appellant Bradley J. Buscher challenges the district court’s grant of summary judgment to respondents William Zimmerman and Dan DeMars on his claims of negligent construction, arguing that genuine issues of material fact preclude summary judgment. Appellant also challenges the district court’s orders awarding sanctions and costs to respondents. Appellant Childress, Duffy, Goldblatt, Ltd. (appellant law firm) challenges the district court’s award of sanctions against it. Finally, respondent DeMars asserts by notice of review that the district court abused its discretion by refusing to award as a sanction the cost of *202 his motion to exclude one of appellant’s experts.

Because appellant’s claim is time-barred under Minn.Stat. § 541.051, subd. 1 (2008), because the award of costs is just, reasonable, and supported by the record and because the district court did not abuse its discretion by awarding sanctions against appellant and appellant law firm, we affirm.

FACTS

This matter began as a lawsuit to recover damages for negligent construction during the remodeling of appellant’s 1 Minnetonka home. Only two of the original defendants remain in this appeal: respondent Dan DeMars, d/b/a Dan DeMars Construction, and respondent William Zimmerman, d/b/a Bill Zimmerman’s Stucco Company. Appellant law firm, which was ordered to pay sanctions, is part of this appeal following consolidation of its action with the underlying action by order of this court dated December 8, 2008.

Appellant hired various contractors and subcontractors, including respondents, to remodel his home; construction occurred between 1996 and 1998. In approximately 2002, appellant experienced a series of water-related problems: leaks in a skylight, water in a chimney, deterioration in the stucco of some decorative columns, discoloration of some exterior stucco, and roof ice dams. Each of these problems was repaired. Also in 2002, appellant’s wife and children experienced ongoing physical problems seemingly caused by environmental factors.

Appellant hired McGregor Pearce, an indoor-air-quality expert, to assess the air quality in the home. On June 3, 2002, Pearce provided appellant with a written report; appellant testified that he also discussed the report with Pearce. Pearce conducted a mold sampling of the home, concluding that “results are mostly within the normal range.” Pearce also stated that mold levels were elevated in two bedrooms and in the basement carpet, and several of the levels exceeded what Pearce considered to be safe. Pearce indicated that the type of mold found is associated with “damp building materials and finishes.” He found “no obvious evidence of a serious envelope problem related to the stucco finish,” but he also noted that “stucco wall failure often does not produce elevated mold levels until the wall system is almost completely decayed.” He suggested cleaning the carpets and using the central vacuum. Pearce did not do an invasive investigation, such as removing sheetrock, in the affected areas.

In May 2004, appellant discovered a major water leak in the master bedroom and hired Berg Exteriors to perform an infrared thermal imaging of his home. This showed evidence of water between the exterior and interior walls. Appellant hired seven investigative firms to assess the damage. Extensive water damage and mold was discovered. The various experts concluded that the problem was caused by defective construction during the remodeling, primarily related to the stucco and windows. Appellant and his family left the home and were told not to return until the problems were corrected.

Appellant hired appellant law firm and local counsel and served an amended complaint on the various contractors in February 2006. Pursuant to discovery requests, appellant produced almost 4,000 pages of documents. These documents were provided to one defendant, Pella Windows, and all other defendants agreed to contact *203 Pella to review documents. The Pearce Report was produced in this collection, but it was incorrectly “Bates-stamped” 2 during the document indexing process. Appellant’s answers to interrogatories referred to the Pearce Report, but did not give the date of the report and referred respondents to a series of other Bates-stamped documents that did not include the Pearce Report. These Bates-stamped documents included all the reports that appellant had received from those experts who investigated the house in 2004. Nothing in the answers to interrogatories revealed that the Pearce Report had been issued two years earlier. Respondents reviewed the entire production of documents but failed to discover the Pearce Report until September 2007.

On June 27, 2007, appellant provided an affidavit to supplement his deposition testimony. In that affidavit, appellant stated: “In April 2002, I had my home tested for mold by McGregor Pearce, an indoor air quality investigator. Mr. Pearce told me that the results from his mold sampling were within the normal range and that he saw no evidence of a building envelope water intrusion problem.” Appellant did not mention that Pearce issued a written report.

On July 17, 2007, respondents moved for summary judgment, alleging that appellant’s claim was barred by Minn.Stat. § 541.051, subd. 1 (2006), because the claim was brought more than two years after appellant discovered the injury. During the motion hearing, respondents’ counsel argued that appellant’s consultation with Pearce put appellant on notice of the injury but stated that appellant had never produced the Pearce Report, despite appellant’s counsel’s claim that it had been produced. The district court ordered appellant to provide a copy of the Pearce Report to the court and to respondents under cover of affidavit. Appellant did not comply with this order, and the district court never received a copy of the report. The district court denied respondents’ motion for summary judgment.

Respondents moved to certify the question of whether appellant’s claim was time-barred to this court. During this process, respondent DeMars’ counsel discovered the written Pearce Report and submitted it with her responsive memorandum. After the district court received the Pearce Report, the district court sua sponte vacated its order denying summary judgment and granted summary judgment in favor of respondents, concluding that appellant’s claim was time-barred.

On November 29, 2007, appellant moved to vacate summary judgment under Minn. R. Civ. P. 60.02, claiming to be “surprised” by the Pearce Report. As part of this motion, appellant offered new affidavits from appellant, Pearce, and Daniel Scud-der, who regularly cleaned appellant’s carpets. Appellant offered Scudder’s affidavit to show that after the Pearce Report, in June 2002, Scudder checked for mold at appellant’s request and found none. Before ruling on appellant’s motion, the district court ordered Scudder to appear and testify. The district court further ordered all parties, their attorneys, and agents to have no contact with Scudder. The district court stated that it was concerned about the credibility and accuracy of the affidavits filed by appellant because of the

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770 N.W.2d 199, 2009 Minn. App. LEXIS 146, 2009 WL 2366174, Counsel Stack Legal Research, https://law.counselstack.com/opinion/buscher-v-montag-development-inc-minnctapp-2009.