Great Northern Ins. Co. v. Leontarakis

904 A.2d 846, 387 N.J. Super. 583
CourtNew Jersey Superior Court Appellate Division
DecidedAugust 21, 2006
StatusPublished
Cited by10 cases

This text of 904 A.2d 846 (Great Northern Ins. Co. v. Leontarakis) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Great Northern Ins. Co. v. Leontarakis, 904 A.2d 846, 387 N.J. Super. 583 (N.J. Ct. App. 2006).

Opinion

904 A.2d 846 (2006)
387 N.J. Super. 583

GREAT NORTHERN INSURANCE COMPANY,[1] Plaintiff,
v.
George K. LEONTARAKIS, Defendant, and
Isadore Spiegel, Defendant/Third-Party Plaintiff-Appellant,
v.
George K. Leontarakis, Third-Party Defendant-Respondent, and
Robert W. Dill, Colonial Oaks Construction Inc., Preferred Construction, Inc., Joseph M. Mercandante, Inc., and David Guatarz, Third-Party Defendants.

Superior Court of New Jersey, Appellate Division.

Submitted March 22, 2006.
Decided August 21, 2006.

*848 Franzblau Dratch, attorneys for appellant (Stephen N. Dratch, of counsel and on the brief; Julian Wilsey, Livingston, on the brief).

Leonard H. Adoff, attorney for respondent.

Before Judges WECKER, FUENTES and GRAVES.

The opinion of the court was delivered by

GRAVES, J.A.D.

This case involves a dispute between adjoining landowners. Plaintiff Isadore Spiegel owns a two-story residence located atop a hill at 6-8 Watchung Road in Short Hills, an area of Millburn Township (the Township). The land owned by defendant George Leontarakis is below and to the east of Spiegel's property. At trial, Spiegel claimed he suffered property damage due to excavation work performed on Leontarakis's land, which resulted in the loss of lateral support to his property.

Spiegel appeals from an order of involuntary dismissal at the conclusion of his case. R. 4:37-2(b). The trial court reasoned that Leontarakis was not liable for any damage to Spiegel's property, because the excavation work that caused the damage was performed by an independent contractor. We reverse the involuntary dismissal order, however, because a reasonable jury could conclude Leontarakis breached a nondelegable statutory duty to provide lateral support to Spiegel's property. Spiegel also appeals from a pretrial order limiting his damage claim, but we affirm that order.

Spiegel's house faces north and the parties share a common boundary line along the eastern edge of Spiegel's property (if one is standing on Watchung Road facing Spiegel's house, Leontarakis's property is to the left of Spiegel's property). Spiegel's land slopes downward from west to east, so that the property owned by Leontarakis is lower than Spiegel's property.

In the early 1970s, Spiegel had a brick privacy wall constructed on his property along the common boundary line separating the two properties. The wall was 120-feet long, a foot thick, and it varied in height from six feet above the grade of Spiegel's property at its highest level, to two and one-half to three feet above grade at its lowest level. Spiegel also has an in-ground swimming pool in his backyard surrounded by a patio area, and there is a flagstone and concrete walkway, between six and eight feet wide, on the eastern side of Spiegel's house running from the front of the house to a set of steps behind the house. The foundation wall of Spiegel's house is located approximately seventeen feet from the common boundary line.

*849 In 1997 Leontarakis decided to construct a new home on his vacant lot, which he hoped to sell for a profit. In July 1997, he hired architect Robert Dill to prepare plans for a two-story house with a basement, and Leontarakis entered into a written agreement with Dill, whereby Dill would act as both architect and general contractor for the construction project. Dill hired Colonial Oaks to perform the construction work, and he hired Preferred Construction, Inc. (Preferred) to do the masonry work, which included installation of the foundation, basement, and a concrete slab for the garage.

Preferred hired David Guatarz to excavate the foundation and basement of the new home. When Guatarz finished excavating sometime in early 1998, there was approximately an eighteen-foot difference in grade between the bottom of the excavation and the ground level of Spiegel's adjacent lot. At its closest point, the foundation of the new home was about eighteen feet from the parties' shared property line. Engineer Andrew Sharick, who performed an inspection on behalf of Spiegel's home insurance company, Great Northern, described the soil in the area of the parties' common property line as "silty and sandy with few large rocks." In addition, Spiegel's structural engineer, Peter D. Matera, testified that soil test results indicated the soil near the parties' common property line adjacent to the excavation site "was in a very loose state."

After the excavation work was completed on Leontarakis's property, some of the soil supporting Spiegel's brick privacy wall "slid down into the basement excavation." Preferred, in consultation with Dill, then attempted to protect Spiegel's brick privacy wall by installing "steel sheeting." Despite these efforts, sections of Spiegel's brick privacy wall collapsed onto Leontarakis's property.

At trial, Spiegel alleged that the excavation work, and resulting loss of lateral support, caused extensive damage to his brick privacy wall, home, in-ground swimming pool, pool patio, flagstone and concrete walkway, and front steps. The total cost to repair the damage to Spiegel's property was estimated to be $925,874 as of January 26, 1999, including the sum of $366,600 to replace Spiegel's brick privacy wall. Spiegel's damages expert, Theodore Maglione, testified that the wall cannot be repaired, but must be replaced entirely.

A jury trial took place on November 8, 10, 12, 15, 16, and 17, 2004, regarding Spiegel's claims against Leontarakis, Dill, Colonial Oaks, and Guatarz.[2] At the conclusion of Spiegel's case, the trial court, relying upon the independent contractor rule, entered a directed verdict in favor of Leontarakis:

I have heard not one shred, iota, or imprints [sic] that Mr. Leontarakis ... did anything that could be considered negligent in any way in causing this incident. There's a homeowner that wants a home built, hires a professional architect, relies upon the architect to prepare the ... plans, to supervise, to do the construction.... [Mr. Leontarakis] didn't even have any direct contract dealings with the subcontractors. He was paying a set price to Mr. Dill to have the work done.
... [T]hat [Mr. Leontarakis] has input as to how many rooms, or the size, or whatever he would like it to be, he's still relying upon the architect to prepare the plan, to repair — to prepare any retaining walls, to do what has to be done to prevent any problems on the property. It is not expected that any homeowner *850 would have knowledge or reason to believe that he was causing a danger to the plaintiff's property.
... I've seen no New Jersey case that says that a [homeowner] ... has automatic liability without being involved in or having any responsibility for choosing how the work was done, or doing the work when they hire a contractor.... I don't think there's any case law. There's been no case law that's been presented, and I see no basis in this particular case to continue against Mr. Leontarakis. I think the plaintiff has... failed in establishing any negligence or any case directly against Mr. Leontarakis. And, therefore, the plaintiff's complaint will be dismissed as to [Mr. Leontarakis] I will enter a directed verdict on that issue.

Spiegel subsequently settled his remaining claims against Dill (for the sum of $30,000), Colonial Oaks (for $40,000), and Guatarz (for $42,500). Before trial, on August 8, 2003, Spiegel similarly entered into a settlement agreement with his insurer, Great Northern.

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Bluebook (online)
904 A.2d 846, 387 N.J. Super. 583, Counsel Stack Legal Research, https://law.counselstack.com/opinion/great-northern-ins-co-v-leontarakis-njsuperctappdiv-2006.