Cornell Narberth, LLC v. Borough of Narberth

167 A.3d 228, 2017 WL 2989802, 2017 Pa. Commw. LEXIS 488
CourtCommonwealth Court of Pennsylvania
DecidedJuly 14, 2017
DocketCornell Narberth, LLC v. Borough of Narberth - 1577 C.D. 2016
StatusPublished
Cited by23 cases

This text of 167 A.3d 228 (Cornell Narberth, LLC v. Borough of Narberth) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cornell Narberth, LLC v. Borough of Narberth, 167 A.3d 228, 2017 WL 2989802, 2017 Pa. Commw. LEXIS 488 (Pa. Ct. App. 2017).

Opinion

OPINION BY

PRESIDENT JUDGE LEAVITT

Cornell Narberth, LLC (Cornell) appeals an order of the Court of Common Pleas of Montgomery County (trial court) granting summary judgment to the Borough of Narberth (Borough) and its building inspector, Yerkes Associates, Inc. (Yerkes). Cornell argues that the trial court erred by finding that its breach of contract, promissory estoppel, and negligent misrepresentation claims were barred by the governmental immunity provisions under the act commonly known- as the *232 Political Subdivision Tort Claims Act (Tort Claims Act), 42 Pa. C.S. §§ 8541-8542, and the related official immunity provisions. 1 Cornell also argues that the trial court erred in holding that its evidénce was insufficient to survive summary judgment on its equal protection claim. For the following reasons, we affirm.

Background

Cornell, a real estate developer, applied to the Borough for building permits to construct detached single-family homes on a four-lot subdivision known as Narberth Arbors. Before submitting the permit applications, Cornell’s representatives met with William Martin, the Borough manager, and Robert Loeper, a representative of Yerkes, which does building inspections for the Borough, to discuss the construction of the residences. The Borough informed Cornell that the local ordinances did not require installation of an automatic sprinkler system in a detached single-family residence.

Thereafter, Cornell submitted construction drawings to Yerkes showing that the homes would be built with pre-engineered wood roof trusses and would not have automatic sprinklers. Third Amended Complaint ¶ 13; Reproduced Record at 1286a (R.R._). Yerkes reviewed and approved the drawings. The Borough then issued building permits for each residence. The permits, which did not mention sprinklers, were issued “subject to the provisions of the Borough Ordinances.” Id., Exhibit A; R.R. 1305a. Cornell paid the required fees associated with the permits and began construction.

A representative from Yerkes visited the site regularly and inspected each stage of the construction. Third Amended Complaint ¶ 20; R.R. 1287a. At no time during these inspections did anyone from Yerkes inform Cornell that it was required to install automatic sprinklers. Id., ¶ 21; R.R. 1287a. After Cornell completed the Lot 1 residence, Yerkes did a final inspection and notified the Borough to issue a certificate of occupancy. Id., ¶ 23; R.R. 1287a.

The Borough refused to issue the certificate of occupancy because Cornell had not installed automatic sprinklers, which are required for homes constructed with pre-engineered wood roof trusses. By letter dated September 15, 2010, Martin, the Borough manager, informed Cornell that the sprinkler systems were required under Ordinance No. 843, the Fire Prevention Code (Fire Code), which provides in pertinent part:

(1) All new construction except single family detached and single family semidetached dwellings located within the Borough will be equipped with full sprinkler systems.
a. Exception: if a single family detached or single family semi-detached dwelling is constructed with wooden truss floors or roof supports the structure must be sprinklered.

Third Amended Complaint, Exhibit B, at 1; R.R. 1311a.

Martin’s letter further explained that “[ajlthough the Borough has adopted the *233 Uniform . Construction Code (“UCC”),[ 2 ] the provisions of the UCC do not supersede ordinances in effect on July 1, 1999 with provisions which equal or exceed the specific.requirements of the UCC.” Id,-, R.R. 1311a. The letter acknowledged that Cornell’s building permits were' issued in error and stated that “[i]f the violation [of the Fire Code] is not corrected immediately, the Borough will consider all appropriate remedies available, including revocation of the previously issued building permits.” Id. at 2; R.R. 1312a.

Yerkes refused to inspect the remaining residences in the subdivision until Cornell installed automatic sprinkler systems. As a result, the construction on Lots 2, 3, and 4 was halted, which “jeopardiz[ed] closings on the Lot 3 and 4 [rjesidences.” Third Amended Complaint ¶ 35; R.R. 1289a. One couple “sold their home in reliance on being able to move into their completed [residence and was thereafter fdrced to lease-back their prior residence.” Id., ¶ 39; R.R. 1290a. Similarly, the Lot 1 purchaser had no place to live as- a result of the Borough’s refusal to issue a certificate of occupancy for that residence. Id., ¶ 86; R.R. 1289a. Cornell alleges that as a result of the actions of the Borough and Yerkes, it “had no other option but to install the sprinkler systems in the [rjesidences, or face breach of its agreements with the [purchasers].” Id., ¶45; R.R. 1291a. Cornell alleges its damages include, but aré not limited to, the costs of installing the sprinklers and relocating the purchasers of the residences to other housing units. Id., ¶ 48-50; R.R. 1291a.

Cornell’s third amended complaint 3 contained five counts: (1) breach of contract against the Borough and Yerkes; (2) promissory estoppel against the Borough and Yerkes; (3) negligent misrepresentation against Yerkes; (4) violation of the equal protection clause of the U.S. Constitution under 42 U.S.C. § 1983 against the Borough and Yerkes; and (5) violation of the equal protection clause of the Pennsylvania Constitution. 4 Yerkes then filed a *234 joinder complaint against C, O’Brien Architects, Inc., and its principal, Cheryl 'O’Brien, alleging negligent misrepresentation.

The parties engaged in discovery, which included depositions of Martin, Loeper, and Frederick Hansell, the Borough’s Assistant Manager. At the conclusion of discovery, the Borough and Yerkes filed motions for summary judgment, on which the trial court heard oral argument.

In support of its motion for summary judgment, the Borough argued that “despite being couched as contractual or qua-sircontractual claims,” the allegations in Cornell’s. complaint were “clearly based upon negligence” and, thus, barred by the Tort Claims, Act. Borough Motion for Summary Judgment ¶ 33; R.R. 2483a-84a. The Borough also argued that .the complaint did not state an equal protection claim under 42 U.S.C. §. 1983 because its assertion, “is unproven at the end of discovery.” Id, ¶ 35; R.R. 2484a.

Yerkes argued that it acted as the Borough’s employee in its capacity as the appointed building inspector; therefore, it was immune from liability under the Tort Claims Act. In support, Yerkes cited the deposition testimony of Martin, who testified:

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Bluebook (online)
167 A.3d 228, 2017 WL 2989802, 2017 Pa. Commw. LEXIS 488, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cornell-narberth-llc-v-borough-of-narberth-pacommwct-2017.