Infinity Real Estate Investments, Inc. v. Havenbrook Homes, LLC

CourtCourt of Appeals of Georgia
DecidedSeptember 10, 2020
DocketA20A1060
StatusPublished

This text of Infinity Real Estate Investments, Inc. v. Havenbrook Homes, LLC (Infinity Real Estate Investments, Inc. v. Havenbrook Homes, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Infinity Real Estate Investments, Inc. v. Havenbrook Homes, LLC, (Ga. Ct. App. 2020).

Opinion

FIFTH DIVISION REESE, P. J., MARKLE and COLVIN, JJ.

NOTICE: Motions for reconsideration must be physically received in our clerk’s office within ten days of the date of decision to be deemed timely filed. https://www.gaappeals.us/rules

DEADLINES ARE NO LONGER TOLLED IN THIS COURT. ALL FILINGS MUST BE SUBMITTED WITHIN THE TIMES SET BY OUR COURT RULES.

August 26, 2020

In the Court of Appeals of Georgia A20A1057, A20A1058. HAVENBROOK HOMES, LLC et al. v. INFINITY REAL ESTATE INVESTMENTS, INC. et al.; and vice versa. A20A1059. HAVENBROOK HOMES, LLC et al. v. WILLIAMS. A20A1060. INFINITY REAL ESTATE INVESTMENTS, INC. v. HAVENBROOK HOMES, LLC et al.

MARKLE, Judge.

After Gloria Williams and Sharon Williams were seriously injured when the

deck at Sharon’s home collapsed during a family gathering, Gloria filed a personal

injury action against RHA1, the property owner; Havenbrook Homes, LLC, the

property manager; Havenbrook Construction, LLC;1 Infinity Real Estate Investments,

1 We refer to these Havenbrook entities and RHA1 collectively as “the Havenbrook defendants.” Havenbrook Construction’s purpose is described as an entity that acquired property for RHA1 prior to 2015 and performed construction activities. Those acquisitions did not include the property involved in this case. Inc. (“Infinity”), the contractor for Havenbrook Homes; and TMC Services, LLC

(“TMC”), the subcontractor that performed the repairs. And Sharon filed suit against

Havenbrook Homes and RHA1 for negligence.2 Following various motions for

summary judgment related to claims for breach of contract and indemnification, the

trial court (1) granted Infinity’s motion with respect to RHA1’s and Havenbrook

Homes’s breach of contract and indemnification claims; (2) dismissed the

Havenbrook defendants’ common law claims for indemnification against Infinity, (3)

granted Sharon’s motion for partial summary judgment arising from the Havenbrook

defendants’ breach of contract counter-claim; and (4) allowed Havenbrook

Construction’s cross-claim against Infinity for breach of contract to proceed.

These appeals and cross-appeals ensued. In Case Nos. A20A1057 and

A20A1059, the Havenbrook defendants argue that the trial court erred in granting

Infinity’s motion for partial summary judgment and denying their corresponding

motion with regard to claims for breach of contract, indemnification, and insurance

issues. They further argue that the trial court erred in granting Sharon’s motion and

denying their motion for summary judgment based on Sharon’s alleged breach of the

rental agreement. In Case Nos. A20A1058 and A20A1060, Infinity appeals from the

2 The merits of Sharon’s negligence claims are not before us in this appeal.

2 trial court’s order denying its motion for partial summary judgment regarding

Havenbrook Construction’s cross-claims for breach of contract and indemnity. After

a thorough review of the record, we affirm the trial court’s order as to all motions.

“Summary judgment is proper when there is no genuine issue of material fact

and the movant is entitled to judgment as a matter of law. OCGA § 9-11-56 (c). We

review a grant or denial of summary judgment de novo and construe the evidence in

the light most favorable to the nonmovant.” (Citation omitted.) Sanderson Farms,

Inc. v. Atkins, 310 Ga. App. 423 (713 SE2d 483) (2011).

So viewed, the record shows that RHA1 was the owner of residential property

that was managed by Havenbrook Homes. At some time prior to 2015, Havenbrook

Construction was involved in the acquisition of properties for RHA1. Havenbrook

Construction entered into a Trade Contract Agreement (“TCA”) with Infinity to

provide construction work at Havenbrook Construction’s properties.

Havenbrook Homes, as the property manager, employed a number of

renovation technicians whose job was to “turn” the property between renters. This

task included inspecting the property and determining whether there were any repairs

needed. If the renovation technician identified any issues or repairs, the technician

would create a scope of work to be given to the “turn” contractor. The contractor

3 would meet the renovation technician at the property, discuss the scope of work,

including asking any clarifying questions or pointing out any other defects, and then

provide an estimate of the work. Once the contractor completed the work, the

renovation technician reinspected the site to confirm the work had been completed

properly, at which point the renovation technician would sign off on a completion

report.

In 2016, a renter moved out of one of RHA1’s properties in Decatur, and

renovation technician Mike Donahue began the “turn” process to prepare for the new

renter, Sharon Williams. The home had two separate, but adjacent, wooden decks in

the back; the first deck had been on the house since the 1970s, but the second portion

had been added more recently. When he inspected the house, Donahue noted that one

of the decks needed additional bolts where it connected to the house. Donahue

created a scope of work for the project, but did not specify whether the bolts were to

be added to the older or newer portion of the deck. Infinity bid out the job, and then

relied on its subcontractor, TMC, to do the work.

TMC installed the bolts only on the newer portion of the deck. After the bolts

were installed, Donahue signed off on the completion report. Although he could not

remember, Donahue thought it was possible that he instructed TMC to add bolts to

4 the older portion of the deck as well, but it is undisputed that bolts were never

attached to the older section.

In 2017, Sharon signed the lease and moved into the home. A few months later,

Sharon hosted a family gathering there and, as she and Gloria were on the deck with

a few other people, the older portion of the deck separated from the house and

collapsed. Sharon and Gloria were seriously injured as a result.

Gloria filed the instant action against the Havenbrook defendants, Infinity, and

TMC, alleging that each defendant was negligent in their repairs to, and inspection

of, the deck, as well as in their supervision of the work. Sharon also filed a negligence

claim against each defendant.

Thereafter, Havenbrook Construction filed a cross-claim against Infinity for

indemnification, contribution, and breach of contract arising from the alleged

negligent repairs and contractual obligations to indemnify and contribute. RHA1 and

Havenbrook Homes filed a counterclaim against Sharon, and a third-party complaint

against Sharon and Infinity, alleging that (1) Infinity breached its contract with

Havenbrook Homes and RHA1 when it failed to properly inspect and perform the

repairs, and that the TCA required indemnification and contribution for Infinity’s

5 negligent work, and (2) Sharon breached the rental agreement by failing to obtain

liability insurance and to indemnify them under the terms of the contract.3

Following discovery, Infinity filed a motion for partial summary judgment

against the Havenbrook defendants, arguing that the breach of contract claims failed

because there was no contract between RHA1 and Infinity, and that the common law

claims for indemnification and contribution failed as a matter of law.4 Havenbrook

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