Frank J. Rooney v. Leisure Resorts

624 So. 2d 773, 1993 WL 349928
CourtDistrict Court of Appeal of Florida
DecidedSeptember 15, 1993
Docket92-2003
StatusPublished
Cited by2 cases

This text of 624 So. 2d 773 (Frank J. Rooney v. Leisure Resorts) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frank J. Rooney v. Leisure Resorts, 624 So. 2d 773, 1993 WL 349928 (Fla. Ct. App. 1993).

Opinion

624 So.2d 773 (1993)

FRANK J. ROONEY, INC. n/k/a Centex-Rooney Construction Co., Inc., Appellant,
v.
LEISURE RESORTS, INC., et al., Appellees.

No. 92-2003.

District Court of Appeal of Florida, Fourth District.

September 15, 1993.

James E. Glass and Linda Dickhaus Agnant of James E. Glass Associates, Miami, for appellant.

D. Culver Smith, III of Jones, Foster, Johnston & Stubbs, P.A., West Palm Beach, for appellee-Leisure Resorts, Inc.

R. Earl Welbaum of Welbaum Zook & Jones, Coral Gables, for amicus curiae The Associated General Contractors of America.

MAGER, GERALD, Senior Judge.

This is an appeal from a final judgment entered pursuant to a jury verdict on a third-party indemnity claim for breach of statutory *774 warranty as prescribed in section 718.203(2), Florida Statutes (Supp. 1992).[1]

In the late 1970's, Leisure Resorts (hereinafter "developer") developed a 22 story, 132 unit residential condominium project (hereinafter "project") in West Palm Beach, Florida. The developer retained the architectural firm of Buigas and Associates (hereinafter "architect") who in turn hired Emilio Hospital, P.E., (hereinafter "engineer") to prepare plans and specifications for the project. Instead of utilizing a central air conditioning system, the engineer designed the project so that each condominium unit had its own separate air conditioning system consisting of a residential-type air handler and condensing unit. The air handler was located inside the condominium unit and the condenser was placed outside on the balcony alcove. The condensers were located on the east side of the building, one above the other "stacked" in a straight line 22 stories high. This particular mechanical design was less expensive than a central air conditioning system and reduced the total cost of the air conditioning system installed in the project. It was also anticipated that the association's common area maintenance costs would be reduced since each individual condominium unit owner would be responsible for repairing and maintaining their own air conditioning unit.

The architect originally specified "Carrier Super Efficient units with an energy efficiency rating (EER) of 9.0." During contract negotiations, however, the developer down-graded the specified air conditioning unit and instead specified a unit, having a lower EER, manufactured by "G.E., Carrier or equal as approved by Eng."

Frank J. Rooney, Inc., (hereinafter "contractor") was selected as the general contractor for the project. During the course of construction, the developer, architect and engineer recognized that the "stacked condenser" design presented a potential problem with the type of air conditioning unit that might be selected. Specifically, the heated air discharged from the exterior condensing units on each balcony would rise upwards to the next balcony causing the condensers located directly above to overload resulting in an automatic shutdown of the cooling system. One of the manufacturers specified by the architect, Carrier, declined the job because its units discharged hot air straight upwards. Another manufacturer, General Electric, would guarantee the performance of its unit if certain modifications were made. However, it was determined these modifications would increase the cost of the system and detract from the appearance of the building. Ultimately, units manufactured by Frigking Tappan were selected. The units were suggested by the contractor and its air conditioning subcontractor and were represented to be operational under the specific design conditions by their supplier/distributor. A written change order, prepared and signed by the developer and the architect, specifically directed the contractor to install the Tappan units. After the building was completed, occupied and its operation turned over to its residents, a number of unit owners experienced difficulty with their air conditioners. The architect and engineer evaluated several of the units and concluded they were incapable of cooling to their intended capacity due to recirculation (i.e. the condensers discharged heated air which rose to the condenser on the next floor causing it to overheat). They also concluded the problem was attributable to the unsuitability of the unit for the intended application.

Arthur Frogel and a number of other unit owners brought a class action suit against the developer alleging a variety of construction defects, including the failure of the air conditioning units to provide adequate cooling. As a result of this litigation, the developer filed a third-party complaint against the contractor seeking contribution and/or indemnity for its liability related to the inadequate air conditioning units. The developer alleged its liability was attributable to the contractor's breach of contract, breach of warranty or negligence. Over the objection of the contractor, the trial of the third-party complaint was severed from the main action brought by the unit owners against the developer. During the course of the main trial, the developer *775 and the unit owners reached a settlement of the pending claims including the claim involving the air conditioning units. Thereafter, the developer proceeded with the trial against the contractor on the indemnity action to recover monies it paid in settlement of the unit owners' claims.

At the conclusion of the developer's case, the contractor moved for a directed verdict which was partially granted as to the claims of breach of contract and negligence. The case went to the jury on the developer's indemnity claim for breach of statutory warranty. The jury returned a verdict in favor of the developer specifically finding the contractor, by supplying defective air conditioning units, breached its statutory warranty that the air conditioning units were reasonably fit for the specific purpose for which they were supplied. The jury awarded the developer $250,000.00 in damages for the air conditioning claim and $133,000.00 for attorneys fees and costs for defending that claim.

Various issues and claimed errors are raised in this appeal. We, however, find it unnecessary to address them in light of our interpretation of the scope of the statutory warranties contained in section 718.203, Florida Statutes (Supp. 1992). In particular, we believe the trial court erred in failing to grant the contractor's motion for a directed verdict on the indemnity claim at the conclusion of the developer's case because, as a matter of law, the statutory warranty set forth in section 718.203(2) was not applicable to the contractor.

Article 28(a) of the contract between the contractor and developer contains the following provision:

The Contractor warrants that it will furnish all of the materials and work necessary to complete the improvements in a good and workmanlike and first class manner and will furnish all of the equipment which will be installed in a good and workmanlike and first class manner, as all of the same are called for in the Contract Documents. And, the Contractor shall obtain and deliver to Owner such standard manufacturer's warranties as each equipment manufacturer may furnish with any equipment. The Contractor does not warrant or guarantee the design or sufficiency of the design of the improvements or that the materials and equipment furnished, assuming that they are the materials and equipment specified, will accomplish the purposes intended.

(emphasis added). The same article contains further language as follows:

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Related

Nikolits v. Nicosia
682 So. 2d 663 (District Court of Appeal of Florida, 1996)
Leisure Resorts, Inc. v. Frank J. Rooney, Inc.
654 So. 2d 911 (Supreme Court of Florida, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
624 So. 2d 773, 1993 WL 349928, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frank-j-rooney-v-leisure-resorts-fladistctapp-1993.