Fifth Third Bank v. Cope

835 N.E.2d 779, 162 Ohio App. 3d 838, 2005 Ohio 4626
CourtOhio Court of Appeals
DecidedSeptember 6, 2005
DocketNo. CA2004-05-059.
StatusPublished
Cited by21 cases

This text of 835 N.E.2d 779 (Fifth Third Bank v. Cope) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fifth Third Bank v. Cope, 835 N.E.2d 779, 162 Ohio App. 3d 838, 2005 Ohio 4626 (Ohio Ct. App. 2005).

Opinion

Walsh, Judge.

{¶ 1} Plaintiffs-appellants, Fifth Third Bank and Sharon Shelton, appeal a summary judgment granted in favor of defendants-appellees, the estate of James L. Gross Sr., James L. Gross Jr., the Gross Partnership, William Landis & Landis Engineering, Inc., the city of Carlisle, and Matthew Coppler, with respect to appellants’ claims against appellees, arising from the allegedly faulty construction of the foundation for Shelton’s house.

{¶ 2} In the mid-1970s, James L. Gross Sr., and his son, James L. Gross Jr., formed the Gross Partnership to engage in, among other things, real estate development. In the late 1970s, the Gross Partnership purchased a 28-acre tract in Carlisle, Ohio, to develop approximately 65 residential lots, which became known as Bakersfield First Addition. The Gross Partnership was aware that the tract had been previously used as a dump by a local roofing company; consequently, they hired an engineering firm to evaluate the land’s suitability for residential construction. The engineering firm sublet a geotechnical study of the tract to the H.C. Nutting Company. Nutting’s investigation revealed that there was fill throughout the tract, extending to a depth of 14 feet, which consisted primarily of roofing material that had been dressed over with other fill materials. In light of these conditions, Nutting recommended that certain safeguards be taken to safely support the construction of the proposed residential structures on the land, including the use of drilled piers and the removal of the roofing-material *843 debris. Nutting “judge[d] that the roofing material would actually support [a] floor slab.” However, it “suggested] that an examination be made upon initial excavation to determine just how these materials have been placed; i.e., whether they are rolls of roofing material, shingles or sheets placed on top of each other.” Nutting further found that “[tjhere appears to have been no deterioration of the [roofing] materials based upon visual examination.” Nutting summarized the results of its investigation and its recommendations in a document dated June 21, 1979, which later became known as the Nutting Report.

{¶ 3} After reviewing the Nutting Report, the Gross Partnership concluded that if Nutting’s recommendations were followed, then the lots “would apparently be buildable.” They decided to give a copy of the Nutting Report to anyone who bought one of the lots in Bakersfield First Addition. They also discounted the price of the lots by approximately $2,000 to cover the anticipated extra costs that builders would incur as a result of following the recommendations in the Nutting Report. They disclosed the Nutting Report’s existence by listing it as a restrictive covenant on the development plat of Bakersfield First Addition, which was filed in the Warren County Recorder’s Office in 1979.

{¶ 4} Sometime in the early 1990s, the Gross Partnership sold four lots in Bakersfield First Addition to Darrell Cope, a builder, providing him with a copy of the Nutting Report. In April 1993, Cope contracted with Sharon Shelton to build a house for her on one of the four lots, namely, Lot No. 33. At the time Shelton entered into the contract, she contacted Gross Jr., who had been her seventh-grade teacher, for a reference on Cope. Gross Jr. told her that “he had been working with Mr. Cope for a while and so far he had no complaints and had not heard any.”

{¶ 5} Cope drew up plans for Shelton’s house that included a slab foundation. In May 1993, he poured the foundation for Shelton’s house. Cope’s work on the foundation was inspected by William Landis, an engineer, who was under contract with Carlisle to perform engineering services for the city, and who was acting as Carlisle’s building inspector. Landis ordered Cope to add some reinforcement bars to the concrete; he then approved Cope’s foundation for Shelton’s house.

{¶ 6} In June 1993, while Cope was digging the foundation to the house on Lot No. 32, which was next door to Shelton’s, Landis observed reinforcing rods sticking out of the soil there. As a result, Landis ordered Cope to dig a four-foot test hole to further investigate the lot’s soil conditions. When Cope dug the test hole, he found roofing-material debris. Landis ordered Cope to dig further until he reached undisturbed material. Cope dug down an additional ten feet before he found undisturbed earth. On June 11, 1993, Landis met with Carlisle’s city manager, Matthew Coppler, at Lot No. 32 and showed him the debris; Landis expressed his concern that the house on that lot was being built over a “major *844 landfill.” Landis’s primary concern was that the debris posed a safety problem with respect to the area’s groundwater; consequently he requested that Coppler place a stop-work order on the house being constructed on Lot No. 32 to further investigate the situation. Landis also requested that a stop-work order be placed on Shelton’s house, since it was immediately adjacent to Lot No. 33. Coppler did not respond to Landis’s request for a stop-work order. Nevertheless, before leaving the site, Landis told Cope that if the hole he had dug on Lot No. 32 “was filled with compacted gravel,” then he “would approve a building on that site[,] assuming that * * * the water was not a continuing problem.” Cope agreed to take out the roofing-material debris on Lot No. 32 and to replace it with compacted gravel, to ensure the structural integrity of the house built on the lot. Coppler also agreed to that solution.

{¶ 7} Four days later, Landis received a copy of the Nutting Report from Coppler. After glancing at the report, Landis again asked Coppler to approve a stop-work order on Lots No. 32 and 33 because of his concerns that the roofing-material debris posed a potential safety hazard with respect to both the underground water and the structural integrity of the foundations of the houses that were being built on those lots. Coppler told Landis that he was not going to address the water problem because it was the “county health department’s problem,” not the city’s. He then told Landis “to go ahead with the inspections.”

{¶ 8} Landis did not recommend to Coppler that “it would be advisable to dig out the foundation area around [Lot No.] 33” because he “didn’t have enough information to make any kind of recommendation.” Landis also did not order Cope to perform the same remedial measures on Shelton’s Lot No. 33 that he had suggested for Lot No. 32, i.e., to remove the roofing-material debris and replace it with compacted gravel, because Shelton’s house had already been built on the lot and it would have had to have been torn down to fix the potential problems with the foundation. Nevertheless, Landis made notes of his conversations with Coppler to make a record of his concerns about the groundwater and the foundations in case “problems did arise,” and to make a record showing that he proceeded as he did only because Coppler ordered him to do so. Landis continued to study the Nutting Report, “looking for leverage” to change Cop-pier’s decision not to grant a stop-work order, with Landis’s primary concern still being the safety of the groundwater. Landis even ordered groundwater testing at his own expense. Prior to final inspection of Shelton’s residence, Landis reminded Coppler of the “potential serious nature of the groundwater problem.” He provided Coppler with a copy of his report on the groundwater to which he attached a note, stating he “still had concerns.” Coppler never responded to Landis’s note.

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Bluebook (online)
835 N.E.2d 779, 162 Ohio App. 3d 838, 2005 Ohio 4626, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fifth-third-bank-v-cope-ohioctapp-2005.