Kohl's Department Stores, Inc. v. Target Stores, Inc.

290 F. Supp. 2d 674, 52 U.C.C. Rep. Serv. 2d (West) 173, 2003 U.S. Dist. LEXIS 20274, 2003 WL 22682264
District Court, E.D. Virginia·Decided November 7, 2003·No. CIV.A. 3:02CV633·Published·Cited by 5 cases

Opinion

MEMORANDUM OPINION

PAYNE, District Judge.

This consolidated action involves claims for damages to the buildings that make up the Chesterfield Crossing Shopping Center (“the Project”), a retail shopping establishment located in Chesterfield County, Virginia. The four buildings that make up the Project have sustained significant structural damage which began to appear shortly after construction. The owners of three of the four buildings each filed actions against Target Stores, Inc. (“Target”), the developer/owner of the Project, seeking contractual indemnification for the damage to their respective buildings. Target filed a third-party complaint against the site contractor on the same theory. A number of third-party indemnity claims ensued. The parties allege that Xtra Fill, a synthetic fill material consisting principally of fly ash sold by ReUse Technologies, Inc. (“ReUse”), caused this damage. ReUse has moved for partial summary judgment on several of the third-party claims pending against it, asserting that those claims based on negligence theories are time-barred under Virginia Code § 8.01-250, a statute of repose protecting improvers of real property, and that the indemnity claims sounding in warranty are time-barred under Virginia Code § 8.2-725, the statute of limitations contained in the Virginia Uniform Commercial Code (“UCC”).

STATEMENT OF FACTS

At some point before May 1997, Target and Ukrop’s Supermarkets, Inc. (“Ukrop’s”) purchased land at a site later developed as the Project. 1 In May 1997, Kohl’s Department Stores, Inc. (“Kohl’s”) and Ukrop’s, along with Chesterfield Crossing Shopping Center, L.L.C. (“CCSC”), entered into a site development agreement with Target. Under this agreement, Target agreed to convey a portion of its land to CCSC and to perform all of the site development on the Project for CCSC, Kohl’s and Ukrop’s.

Target contracted the site development work to the general contracting firm of *677 Williams Company of Orlando, Inc. (‘Williams”). Williams, in turn, contracted with various subcontractors; one of which was S.W. Rodgers Co., Inc. (“Rodgers”) which Williams retained to perform various earth-moving services. 2 Rodgers, in turn, purchased the Xtra Fill from ReUse.

After the Project was completed, the buildings owned by Target, Kohl’s, Uk-rop’s and CCSC began to experience cracks in the floors and walls. All parties but ReUse assert that the damage to the buildings is the result of the expansion of the Xtra Fill. The cause, says ReUse, is not the expansion of the Xtra Fill, but instead is the result of the failure properly to prepare the subsoil on which the Xtra Fill was placed. ReUse contends that this failure caused soil settlement which, in turn, caused the damage to the buildings.

Kohl’s filed a complaint against Target (the “Kohl’s action”). Upon receipt of this complaint, Target impleaded Williams which then filed a fourth-party complaint against, inter alia, Rodgers. Rodgers then filed a fifth-party complaint against ReUse seeking indemnity for any sums it was required to pay by virtue of Williams’ indemnity action against Rodgers. Rodgers’ various indemnity claims against ReUse are grounded in theories of both negligence and breach of warranty.

CCSC filed a complaint against Kohl’s (the “CCSC action”) which, in turn, filed a third-party complaint against Target, predicated on a contractual indemnity provision. Target filed a third-party complaint against Williams, which, in turn, im-pleaded Rodgers. Rodgers then filed a sixth-party complaint against ReUse seeking indemnity against all sums that Rodgers was required to pay to Williams. As in the Kohl’s action, the Rodgers’ indemnity claims are founded in both negligence and breach of warranty theories. 3

The actions filed by Kohl’s, Ukrop’s, and CCSC were consolidated. ReUse has moved for summary judgment on Rodgers’ allegations that sound, in whole or in part, in tort, relying on Virginia Code § 8.01-250, a statute of repose protecting certain improvers of real property. ReUse also has moved for summary judgment on all of Rodgers’ claims that sound, in whole or in part, in warranty, contending that those claims are time-barred by the statute of limitations set forth in the UCC, Virginia Code § 8.2-725. For the reasons that follow, ReUse’s motions for summary judgment on Rodgers’ negligence-based indemnity claims are granted and its motions for summary judgment on Rodgers’ warranty-based indemnity claims are denied.

DISCUSSION

The standards applicable to summary judgment motions are well established. Summary judgment is proper only when there are no genuine issues as to any material facts and the moving party is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c); see also Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. *678 2548, 91 L.Ed.2d 265 (1986). In reviewing a motion for summary judgment, the court must view the facts, and any inferences drawn from these facts, in the light most favorable to the nonmoving party. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986); Nguyen v. CNA Corp., 44 F.3d 234, 236 (4th Cir.1995). A fact is material “when proof of its existence or nonexistence would affect the outcome of the case, and an issue is genuine if a reasonable jury might return a verdict in favor of the non-moving party on the basis of such issue.” Northwestern Mut. Life Ins. Co. v. Atlantic Research Corp., 847 F.Supp. 389, 394 (E.D.Va.1994). The non-moving party is entitled to have its version of all that is disputed accepted, all conflicts resolved in its favor, and to have the benefit of all favorable legal theories invoked by the evidence. M & M Med. Supplies & Serv., Inc. v. Pleasant Valley Hosp., 981 F.2d 160, 163 (4th Cir.1992). These precepts inform and guide the resolution of the motions filed by ReUse.

I. The Statute Of Repose

ReUse argues that, because Rodgers sued ReUse more than five years after ReUse delivered the Xtra Fill to the Project, Rodgers’ claims sounding in tort 4 are barred by Virginia’s statute of repose. Va. Code Ann. § 8.01-250. 5 As explained below, ReUse’s motions based on the statute of repose contain no disputed issues of material facts. Moreover, an analysis of applicable case law illustrates that ReUse prevails on that theory as a matter of law.

Virginia’s statute of repose for improv-ers of real property provides in relevant part:

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Kohl's Department Stores, Inc. v. Target Stores, Inc., 290 F. Supp. 2d 674, 52 U.C.C. Rep. Serv. 2d (West) 173, 2003 U.S. Dist. LEXIS 20274, 2003 WL 22682264 (E.D. Va. 2003).

290 F. Supp. 2d 674 (Kohl's Department Stores, Inc. v. Target Stores, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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