Community Ass'n Underwriters of America, Inc. v. Rhodes Development Group, Inc.

805 F. Supp. 2d 95, 2011 U.S. Dist. LEXIS 83403, 2011 WL 3273051
CourtDistrict Court, M.D. Pennsylvania
DecidedJuly 29, 2011
DocketCivil No. 1:09-CV-0257
StatusPublished
Cited by1 cases

This text of 805 F. Supp. 2d 95 (Community Ass'n Underwriters of America, Inc. v. Rhodes Development Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Community Ass'n Underwriters of America, Inc. v. Rhodes Development Group, Inc., 805 F. Supp. 2d 95, 2011 U.S. Dist. LEXIS 83403, 2011 WL 3273051 (M.D. Pa. 2011).

Opinion

MEMORANDUM

SYLVIA H. RAMBO, District Judge.

This case involves a subrogation claim filed by Community Association Underwriters of America, Inc., (“CAUA”) seeking recovery of payments made to Park View at Waverly Condominiums (“Park View”) as a result of a fire that occurred on March 4, 2008. Before the court are [97]*97five motions for summary judgment filed by various Defendants. Defendants Pedro Quintero, Rhodes Development Group, and Adams Drywall filed three separate but generally identical motions seeking summary judgment on the grounds of spoliation of evidence resulting from alleged tampering with the fire scene during the demolition process. (Docs. 43, 49, & 50.) Defendants also filed a joint motion for summary judgment on the grounds that Plaintiffs expert’s report is deficient because it fails to state the basis for the expert’s opinion as required under Federal Rule of Civil Procedure 26(a)(2)(B). (Doc. 45.) Lastly, Defendants filed a joint motion for summary judgment based upon Plaintiffs alleged waiver of subrogation. (Doc. 95.) The motions have been fully briefed and are ripe for disposition. Also presently pending and ripe is Plaintiffs motion in limine regarding the proper method for calculating damages in this case. (Doc. 99.) For the reasons set forth below, Defendants’ joint motion for summary judgment based upon waiver of subrogation will be granted. Because the court will grant summary judgment in favor of Defendants based on waiver of subrogation, the court need not address Defendants’ other motions for summary judgment or Plaintiffs motion in limine.

1. Background.

A. Facts 1

The following are only those facts relevant to Defendants’ waiver of subrogation argument, and are undisputed unless otherwise noted.2

This case arises out of a fire that occurred on March 4, 2008 at Park View Condominiums, located in Swatara Township, Dauphin County, Pennsylvania. Plaintiff, CAUA, insures the condominium association for Park View. Construction for Park View began when Waverly Woods Associates (“Waverly Woods”), the original owner of the subject real estate, entered into a standard American Institute of Architects contract (“AIA contract”) on December 1, 2005, with R & L Construction Company (“R & L”) whereby R & L was to be the general contractor for the construction of condominium units. The AIA contract incorporated a separate document, entitled “General Conditions of the Contract for Construction,” (“General Conditions”) which included a standard waiver of subrogation clause (‘Waiver”). That clause states, in relevant part:

The Owner and Contractor waive all rights against (1) each other and any of their subcontractors, sub-subcontractors, agents employees, each of the oth[98]*98er, ..., for damages caused by fire or other perils to the extent covered by property insurance ... applicable to the Work.

(General Conditions, Doc. 98, Exh. B, Art. 11, § 11.3.7.)

R & L subsequently entered into a written subcontract with Adams Drywall, Inc. (“Adams”) whereby Adams was to install drywall in the condominium units. Thereafter, Adams entered into oral subcontracts with Alan Barb (“Barb”) and Pedro Quintero (“Quintero”). When installing drywall, typically a heat source is necessary to prevent the drywall from freezing and cracking during periods of cold weather. Here, R & L provided propane-fired portable heaters and tanks of propane gas to be used by the subcontractors for such purposes. Plaintiffs amended complaint alleges that Defendants R & L, Adams and Quintero negligently placed the propane heater, causing the fire and the resultant damage and destruction. (Doc. 90, ¶ 15.)

On May 24, 2007, almost a year prior to the fire, Waverly Woods signed and recorded a Declaration of Condominium (“Declaration”), whereby the subject real estate, “including all easements, rights and appurtenances thereto belonging to the Buildings and Improvements erected or to be erected thereon” became subject to the provisions of the Pennsylvania Uniform Condominium Act, 68 Pa.C.S. § 3101 et seq. (“the Act” or “PUCA”), thereby creating a flexible condominium known as “Park View at Waverly, a Condominium.”3 Following the March 4, 2008 fire, Plaintiff paid Park View for damages to certain condominium units and, as a result, Plaintiff contends that it became subrogated to the rights of Park View to seek recovery for such losses from third-parties, including Defendants.

B. Procedural History

On February 9, 2009, Plaintiff filed a complaint against Defendants R & L, Adams, Quintero, and Barb, alleging negligence and breach of contract. (Doc. 1.) Defendant Barb was later dismissed by stipulation. (Doc. 48.) Plaintiff failed to serve Defendant Quintero, however, and therefore a separate complaint was filed solely against Defendant Quintero on December 10, 2009, also alleging negligence and breach of contract. (Docket No. 1:09-CV-02431, Doc. 1.) This court granted consolidation on February 16, 2010. (Doc. 39.)

On February 14, 2011, Defendants filed a joint motion for summary judgment based on the waiver of subrogation clause incorporated into the AIA contract between the original owner, Waverly Woods, and the developer of the condominium complex, Defendant R & L.4 (Doc. 67.) However, on April 13, 2011, 2011 WL 1397837, this court granted Plaintiffs motion to amend its complaint. (Doc. 89.) In doing so, Plaintiff withdrew the breach of contract claim and also deleted any lan[99]*99guage from the original complaint claiming that Park View is a third-party beneficiary to any agreement between any other parties or non-parties to this action (e.g., the AIA contract). (Doc. 90.) The court also directed Defendants to either file amended motions for summary judgment or stand on the currently filed motions. (Doc. 89.) On April 27, 2011, Defendants filed a joint amended motion for summary judgment based upon waiver of subrogation and brief in support thereof. (Docs. 95 & 96.) Plaintiff submitted its brief in opposition on May 9, 2011, (Doc. 98) and Defendants filed a reply brief on May 28, 2011 (Doc. 103). Accordingly, the motion is ripe for disposition.

II. Standard

Summary judgment is proper when “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed. R. Civ. P. 56(c); accord Saldana v. Kmart Corp., 260 F.3d 228, 231-32 (3d Cir.2001). A factual dispute is “material” if it might affect the outcome of the suit under the applicable law. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
805 F. Supp. 2d 95, 2011 U.S. Dist. LEXIS 83403, 2011 WL 3273051, Counsel Stack Legal Research, https://law.counselstack.com/opinion/community-assn-underwriters-of-america-inc-v-rhodes-development-group-pamd-2011.