Columbia Gas of Ohio, Inc. v. Columbus Asphalt Paving, Inc.

871 N.E.2d 636, 142 Ohio Misc. 2d 88
Procedural entryThis page is a short order in Columbia Gas of Ohio, Inc. v. Columbus Asphalt Paving, Inc.. Read the opinion of the Court — 142 Ohio Misc. 2d 101
Franklin County Municipal Court·Decided October 31, 2005·No. No. 2004 CVF 031877·Published

Opinion

Dorman, Judge.

I. Summary of Complaint, Counterclaim and Third Party Complaint

A. Columbia’s Complaint against Columbus Asphalt Paving

{¶ 1} On August 10, 2004, Columbia Gas of Ohio (“Columbia”) filed a complaint against Columbus Asphalt Paving (“CAP”). On October 5, 2004, Columbia filed an amended complaint against CAP. The complaint against CAP alleges:

Negligence: While performing underground excavations under contract with another party, CAP negligently damaged a gas pipeline owned by Columbia at 2041 Doren Avenue causing $940.65 in damages.
Negligence: While performing underground excavations under contract with another party, CAP negligently damaged a gas pipeline owned by Columbia at 3989 Elm Street causing $844.91 in damages.
Negligence: While performing underground excavations under contract with another party, CAP negligently damaged a gas pipeline owned by Columbia at 22 Indian Springs Road causing $5,107.91 in damages.

B. CAP’S Counterclaim against Columbia

{¶ 2} On September 13, 2004, CAP filed an answer to Columbia’s complaint and a counterclaim against Columbia. On December 7, 2004, CAP filed an answer to amended complaint and an amended counterclaim. The amended counterclaim against Columbia alleges:

Negligence: Columbia Gas negligently failed to identify the location of underground gas lines at 22 Indian Springs Road, causing $6,139.74 in economic damages to CAP.
Breach of implied warranty: Columbia Gas impliedly warranted that the paint lines locating the underground gas lines were applied in a workmanlike quality at 22 Indian Springs Road.

C. CAP’S Third Party Complaint against Reliant

{¶ 3} On December 16, 2004, CAP filed a third-party complaint against third-party defendant Reliant Services, L.L.C. (“Reliant”). The third-party complaint alleges:

Negligence: Reliant negligently failed to properly mark the physical location of underground gas lines at 22 Indian Springs Road, causing $6,139.74 in economic damages to CAP. [91]*91Breach of implied warranty: Reliant impliedly warranted that the paint lines locating the underground gas lines were applied in a workmanlike quality at 22 Indian Springs Road.
Indemnification: In the event that CAP is held liable to Columbia Gas, Reliant is liable in full to CAP for indemnification.
Contribution: In the event that CAP is held liable to Columbia Gas, Reliant is liable to CAP for contribution.

On February 22, 2005, Reliant filed an answer to the third-party complaint filed by CAP.

II. Summary of Motions for Summary Judgment

A. Columbia’s Motion for Summary Judgment against CAP on CAP’s Counterclaim

{¶ 4} On June 2, 2005, Columbia filed a motion for partial summary judgment moving the court to grant judgment in favor of Columbia and against CAP on CAP’s counterclaim against Columbia, arguing that:

Regarding the negligence claim: CAP’s claim of negligence fails because it asserts a claim for economic damages only. It does not assert a claim for personal injury or property damage and therefore Ohio’s economic loss rule precludes recovery of economic damages. Further, there existed no privity of contract between CAP and Columbia.
Regarding the breach-of-implied-warranty claim: CAP’s claim of breach of implied warranty fails because there is no sale, no contract, and no product liability claim. Breach of implied warranty is a claim which sounds in tort. Therefore, as breach of implied warranty is a tort claim, Ohio’s economic loss rule precludes CAP from recovery of economic damages as there is no claim for personal injury or property damage.

On July 28, 2005, Columbia filed a reply memorandum in support of its motion for partial summary judgment against CAP. Columbia reiterates its argument that the economic loss rule precludes CAP’s recovery of pure economic damages and further argues that the legislative intent of R.C. 153.64 was not to affect the existing rights between contractors, public authorities, and owners of underground facilities. This legislative intent is specifically noted in divisions (C) and (E) of R.C. 153.64. Columbia also argued that when courts have allowed breach of implied warranty claims for purely economic damages it has been in the case of suppliers and products. Columbia was not a supplier and did not provide a product, and therefore there exists no precedent for an implied-warranty claim in this ease.

[92]*92B. Reliant’s Motion for Summary Judgment against CAP on CAP’s Third Party Complaint

{¶ 5} On June 16, 2005, Reliant filed a motion for summary judgment moving the court to grant judgment in favor of Reliant and against CAP on CAP’s third-party complaint against Reliant, arguing that:

Regarding the negligence, indemnification, and contribution claims: CAP’s claims of negligence, indemnification and contribution fail because they assert a claim for economic damages only and Ohio law precludes recovery in tort for purely economic losses. The alleged loss did not derive from physical harm suffered by CAP or from any privity of contract with Reliant.
Regarding the breach-of-implied-warranty claim: CAP’s claim of breach of implied warranty fails because it is not based in contract, equity, sales or product liability. The economic loss rule precludes recovery for CAP’s breach-of-implied-warranty claim as it also sounds in tort.

On July 21, 2005 Reliant filed a reply brief in support of its motion for summary judgment arguing that CAP can not seek indemnification or contribution for any amount it is required to pay Columbia for the Doren or Elm lines since it addressed only the Indian Springs line in its third-party complaint against Reliant. Reliant reiterates its argument regarding the economic loss rule stated above. Finally, Reliant argues that if the court determines that the economic loss rule does not preclude CAP’s third-party claims against Reliant, CAP’s claims still fails as a matter of law because CAP had actual notice of the location of the gas line before damaging it. Therefore, pursuant to R.C. 153.64(D), CAP may be held liable for damages to the line.

C. CAP’s Memorandum Opposing Columbia’s and Reliant’s Motions for Summary Judgment

{¶ 6} On June 24, 2005, CAP filed a memorandum opposing Columbia’s motion for partial summary judgment and Reliant’s motion for summary judgment, arguing that:

Regarding the negligence, indemnification, and contribution claims: CAP’s claims of negligence, indemnification, and contribution succeed because purely economic losses may be recovered in a tort action where privity or a sufficient nexus to substitute for privity is established. A sufficient nexus is established by R.C. 153.64(C), as CAP is a member of limited class whose reliance upon Columbia and Reliant was specifically foreseen.

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Columbia Gas of Ohio, Inc. v. Columbus Asphalt Paving, Inc., 871 N.E.2d 636, 142 Ohio Misc. 2d 88 (Ohio Super. Ct. 2005).

871 N.E.2d 636 (Columbia Gas of Ohio, Inc. v. Columbus Asphalt Paving, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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