McGuirk v. M t . Cranmore Condo CV-00-590-M 01/30/02 UNITED STATES DISTRICT COURT
DISTRICT OF NEW HAMPSHIRE
Joyce McGuirk and James McGuirk, Plaintiffs
v. Civil No. 00-590-M Opinion No. 2002 DNH 029 M t . Cranmore Condominium Association, Defendant, and
Mount Cranmore Ski Resort, Inc., Defendant, Cross Claim Defendant, and Third-Party Plaintiff
v.
L .A . Drew, Inc. and C&M Total Property Maintenance, Inc., Third-Party Defendants
O R D E R
Joyce McGuirk and her husband, James, bring this action
against the M t . Cranmore Condominium Association (the "Condo
Association") and its property manager. Mount Cranmore Ski
Resort, Inc. ("SRI"), seeking compensation for damages they claim
to have sustained after Joyce slipped and fell on an icy portion
of the condominium's common area. After being served with plaintiffs' complaint, the Condo
Association filed a cross claim against SRI. In it, the Condo
Association alleges that, pursuant to the parties' property
management agreement, SRI is obligated to maintain all of the
common area within the condominium and, among other things,
ensure that all walkways and parking areas are properly cleared
of snow and adequately sanded. And, says the Condo Association,
because SRI was contractually bound to provide (or, at a minimum,
arrange for) snow removal services, it is implicitly obligated to
indemnify the Condo Association for any losses incurred as a
result of the faulty performance of those services.
SRI, in turn, filed a third-party complaint against two
contractors that had been hired to provide snow removal services
at the condominium: L.A. Drew, Inc. (which was apparently
responsible for plowing roads and parking areas within the
condominium) and C&M Total Property Management, Inc. (which was
apparently responsible for removing snow and ice from walkways
within the condominium).
2 The Condo Association moves for summary judgment as to its
indemnification claim against the property manager, SRI. Third-
party defendant L.A. Drew, Inc. also moves for summary judgment,
claiming it is entitled to judgment as a matter of law with
regard to the claim asserted against it by SRI. For the reasons
set forth below, those motions are denied.
Standard of Review
When ruling on a party's motion for summary judgment, the
court must "view the entire record in the light most hospitable
to the party opposing summary judgment, indulging all reasonable
inferences in that party's favor." Griggs-Ryan v. Smith, 904
F.2d 112, 115 (1st Cir. 1990). Summary judgment is appropriate
when the record reveals "no genuine issue as to any material fact
and . . . the moving party is entitled to a judgment as a matter
of law." Fed. R. Civ. P. 56(c). In this context, "a fact is
''material' if it potentially affects the outcome of the suit and
a dispute over it is 'genuine' if the parties' positions on the
issue are supported by conflicting evidence." Intern'1 Ass'n of
Machinists and Aerospace Workers v. Winship Green Nursing Center,
103 F.3d 196, 199-200 (1st Cir. 1996) (citations omitted).
3 Discussion
I. The Condo Association's Motion for Summary Judgment.
In support of its motion for summary judgment, the Condo
Association asserts that, "under the management contract, [SRI]
was to manage and supervise the operation, care and maintenance
of the common areas, including parking areas and walkways, as
well as hire the necessary personnel and contractors to maintain
the common areas." Condo Association's memorandum (document no.
35) at 4. Arguably, the contract between the Condo Association
and SRI provides, at least implicitly, that SRI is responsible
for snow removal from all common areas of the condominium
(including, for example, walkways and parking areas) and
authorizes SRI to hire third parties to perform such tasks. See
Exhibit A to Condo Association's memorandum. Management Contract
Between M t . Cranmore Condominium Association and M t . Cranmore Ski
Resort, Inc., at para. 4. Consequently, the Condo Association
asserts that since Ms. McGuirk claims to have sustained injuries
when she slipped on ice located on a portion of the common area,
SRI has an implied obligation under the property management
agreement to indemnify the Condo Association for any resulting
losses.
4 SRI does not deny its contractual relationship with the
Condo Association. It does, however, deny that the parties ever
understood the property management agreement's language to
require SRI to provide snow removal services. It also denies
that it entered into contracts for the removal of snow with the
third-party defendants to meet any such obligation. Instead, it
asserts that the Condo Association contracted with those parties
directly.1 Thus, says SRI, the Condo Association's own behavior
demonstrates that neither SRI nor the Condo Association
considered snow removal to be part of SRI's contractual
obligations to the Condo Association. Instead, suggests SRI, the
Condo Association recognized that the Condo Association itself
was responsible for snow removal and, therefore, directly entered
into contracts with two different entities to provide such
services, rather than requiring SRI to arrange for those
services.
1 Although none of the parties has provided the court with copies of the snow removal contracts entered into with the third-party defendants, both of those third-party defendants say they contracted directly with the Condo Association, and not with SRI. See C&M Total Property Maintenance, Inc.'s Amended Answer to Third Party Complaint (document no. 37) at para. 8; L.A. Drew, Inc.'s Answer to Third Party Complaint (document no. 28) at para. 7.
5 In support of that position, SRI has submitted the affidavit
of Jennifer Warner, SRI's human resources director. In that
affidavit, Ms. Warner testifies that SRI has not, since at least
1994 (i.e., well prior to the execution of the property
management agreement at issue in this case), performed any
maintenance work (including snow removal) on behalf of the Condo
Association. Exhibit A to SRI's objection (document no. 38),
Affidavit of Jennifer A. Warner. Instead, according to Ms.
Warner, SRI functions exclusively in an administrative role,
soliciting and collecting bids from various contractors and
providing them to the Condo Association. The Condo Association's
board of directors, not SRI, reviews those bids, selects the
contractors with which it wishes to deal, and enters into
contracts with them directly. Id.
In light of the foregoing, SRI says that, at the very least,
there is a genuine factual dispute as to which parties had (and
allegedly breached) a contractual obligation to provide snow
removal services to the Condo Association. Viewed somewhat
differently, SRI seems to suggest that the property management
6 agreement between the Condo Association and SRI is ambiguous as
Free access — add to your briefcase to read the full text and ask questions with AI
McGuirk v. M t . Cranmore Condo CV-00-590-M 01/30/02 UNITED STATES DISTRICT COURT
DISTRICT OF NEW HAMPSHIRE
Joyce McGuirk and James McGuirk, Plaintiffs
v. Civil No. 00-590-M Opinion No. 2002 DNH 029 M t . Cranmore Condominium Association, Defendant, and
Mount Cranmore Ski Resort, Inc., Defendant, Cross Claim Defendant, and Third-Party Plaintiff
v.
L .A . Drew, Inc. and C&M Total Property Maintenance, Inc., Third-Party Defendants
O R D E R
Joyce McGuirk and her husband, James, bring this action
against the M t . Cranmore Condominium Association (the "Condo
Association") and its property manager. Mount Cranmore Ski
Resort, Inc. ("SRI"), seeking compensation for damages they claim
to have sustained after Joyce slipped and fell on an icy portion
of the condominium's common area. After being served with plaintiffs' complaint, the Condo
Association filed a cross claim against SRI. In it, the Condo
Association alleges that, pursuant to the parties' property
management agreement, SRI is obligated to maintain all of the
common area within the condominium and, among other things,
ensure that all walkways and parking areas are properly cleared
of snow and adequately sanded. And, says the Condo Association,
because SRI was contractually bound to provide (or, at a minimum,
arrange for) snow removal services, it is implicitly obligated to
indemnify the Condo Association for any losses incurred as a
result of the faulty performance of those services.
SRI, in turn, filed a third-party complaint against two
contractors that had been hired to provide snow removal services
at the condominium: L.A. Drew, Inc. (which was apparently
responsible for plowing roads and parking areas within the
condominium) and C&M Total Property Management, Inc. (which was
apparently responsible for removing snow and ice from walkways
within the condominium).
2 The Condo Association moves for summary judgment as to its
indemnification claim against the property manager, SRI. Third-
party defendant L.A. Drew, Inc. also moves for summary judgment,
claiming it is entitled to judgment as a matter of law with
regard to the claim asserted against it by SRI. For the reasons
set forth below, those motions are denied.
Standard of Review
When ruling on a party's motion for summary judgment, the
court must "view the entire record in the light most hospitable
to the party opposing summary judgment, indulging all reasonable
inferences in that party's favor." Griggs-Ryan v. Smith, 904
F.2d 112, 115 (1st Cir. 1990). Summary judgment is appropriate
when the record reveals "no genuine issue as to any material fact
and . . . the moving party is entitled to a judgment as a matter
of law." Fed. R. Civ. P. 56(c). In this context, "a fact is
''material' if it potentially affects the outcome of the suit and
a dispute over it is 'genuine' if the parties' positions on the
issue are supported by conflicting evidence." Intern'1 Ass'n of
Machinists and Aerospace Workers v. Winship Green Nursing Center,
103 F.3d 196, 199-200 (1st Cir. 1996) (citations omitted).
3 Discussion
I. The Condo Association's Motion for Summary Judgment.
In support of its motion for summary judgment, the Condo
Association asserts that, "under the management contract, [SRI]
was to manage and supervise the operation, care and maintenance
of the common areas, including parking areas and walkways, as
well as hire the necessary personnel and contractors to maintain
the common areas." Condo Association's memorandum (document no.
35) at 4. Arguably, the contract between the Condo Association
and SRI provides, at least implicitly, that SRI is responsible
for snow removal from all common areas of the condominium
(including, for example, walkways and parking areas) and
authorizes SRI to hire third parties to perform such tasks. See
Exhibit A to Condo Association's memorandum. Management Contract
Between M t . Cranmore Condominium Association and M t . Cranmore Ski
Resort, Inc., at para. 4. Consequently, the Condo Association
asserts that since Ms. McGuirk claims to have sustained injuries
when she slipped on ice located on a portion of the common area,
SRI has an implied obligation under the property management
agreement to indemnify the Condo Association for any resulting
losses.
4 SRI does not deny its contractual relationship with the
Condo Association. It does, however, deny that the parties ever
understood the property management agreement's language to
require SRI to provide snow removal services. It also denies
that it entered into contracts for the removal of snow with the
third-party defendants to meet any such obligation. Instead, it
asserts that the Condo Association contracted with those parties
directly.1 Thus, says SRI, the Condo Association's own behavior
demonstrates that neither SRI nor the Condo Association
considered snow removal to be part of SRI's contractual
obligations to the Condo Association. Instead, suggests SRI, the
Condo Association recognized that the Condo Association itself
was responsible for snow removal and, therefore, directly entered
into contracts with two different entities to provide such
services, rather than requiring SRI to arrange for those
services.
1 Although none of the parties has provided the court with copies of the snow removal contracts entered into with the third-party defendants, both of those third-party defendants say they contracted directly with the Condo Association, and not with SRI. See C&M Total Property Maintenance, Inc.'s Amended Answer to Third Party Complaint (document no. 37) at para. 8; L.A. Drew, Inc.'s Answer to Third Party Complaint (document no. 28) at para. 7.
5 In support of that position, SRI has submitted the affidavit
of Jennifer Warner, SRI's human resources director. In that
affidavit, Ms. Warner testifies that SRI has not, since at least
1994 (i.e., well prior to the execution of the property
management agreement at issue in this case), performed any
maintenance work (including snow removal) on behalf of the Condo
Association. Exhibit A to SRI's objection (document no. 38),
Affidavit of Jennifer A. Warner. Instead, according to Ms.
Warner, SRI functions exclusively in an administrative role,
soliciting and collecting bids from various contractors and
providing them to the Condo Association. The Condo Association's
board of directors, not SRI, reviews those bids, selects the
contractors with which it wishes to deal, and enters into
contracts with them directly. Id.
In light of the foregoing, SRI says that, at the very least,
there is a genuine factual dispute as to which parties had (and
allegedly breached) a contractual obligation to provide snow
removal services to the Condo Association. Viewed somewhat
differently, SRI seems to suggest that the property management
6 agreement between the Condo Association and SRI is ambiguous as
to whether SRI is obligated to provide snow removal services.2
If, as claimed by the Condo Association, SRI contracted with
the third-party defendants to provide snow removal services, that
conduct suggests that the parties interpreted the property
management agreement to impose upon SRI the obligation to keep
the common areas free of snow and ice. Under those
circumstances, the Condo Association might well have a legitimate
claim that SRI owes it an implied duty to indemnify it against
any losses sustained as a result of the sub-standard performance
of those snow removal services. If, on the other hand, the Condo
2 While it is not clear from its pleadings, SRI might also be asserting that a novation occurred. That is to say, the Condo Association's contracts with the third-party defendants served as "substitute contracts" concerning snow removal services at the condominium, thereby discharging SRI of its snow removal obligations under the property management agreement. See generally Skandinavia, Inc. v. Cormier, 128 N.H. 215, 219 (1986) ("A novation is a substituted contract that includes as a party one who was neither the obligor nor the obligee of the original duty. A novation requires: (1) a previous, valid obligation; (2) the agreement of all parties to a new contract; (3) the extinguishment of the old contract; and (4) validity of the new one.") (citations and internal quotation marks omitted); See also Tentindo v. Locke Lake Colony Ass'n., 120 N.H. 593, 598 (1980) ("Assent to the terms of a novation need not be shown by express words, but may be implied from the facts and circumstances attending the transaction and conduct of the parties.") (citation omitted).
7 Association contracted directly with the third-party defendants
for those services, it suggests that the Condo Association did
not believe the property management agreement required SRI to
provide snow removal services (or that a novation might have
occurred). Under those circumstances, SRI very likely has no
implied obligation to indemnify the Condo Association for any
losses it might sustain as a result of the negligent performance
of those snow removal services.
II. L.A. Drew, Inc.'s Motion for Summary Judgment.3
Third-party defendant L.A. Drew, Inc. also moves for summary
judgment, asserting that it was not contractually obligated to
remove snow or ice from "walkways" within the condominium's
common area. And, because plaintiffs' complaint alleges that Ms.
McGuirk fell while walking on "a pedestrian walkway," complaint
at para. 8, L.A. Drew claims it cannot be liable for any of
plaintiffs' alleged injuries.
3 Although L.A. Drew's motion is captioned as one to dismiss, the relief it seeks is summary judgment. See Id., at 3 ("Defendant, L.A. Drew, Inc., respectfully requests this Honorable Court grant L.A. Drew, Inc.'s motion for summary judgment.") . While plaintiffs' complaint alleges that Ms. McGuirk was
walking on a "pedestrian walkway" when she fell, it is unclear
precisely where she was when she slipped on the ice and fell. In
an affidavit submitted by Ms. McGuirk, however, she clarifies
that point, testifying that the area in which she fell is used as
both a pedestrian walkway and an access road. See Exhibit B to
plaintiffs' objection (document no. 40), Affidavit of Joyce
McGuirk. Photographs submitted as part of the accident
investigation report prepared by plaintiffs' agent support that
characterization of the area, revealing that the way on which Ms.
McGuirk slipped could be used by both pedestrians and motor
vehicles to access several condominium units. See Exhibit B to
plaintiffs' objection. Consequently, the complaint's
characterization of the area as a "walkway" does not resolve the
critical question presented by L.A. Drew's motion: who was
responsible for clearing snow and ice from that area.
Unfortunately, L.A. Drew has not provided the court with a
copy of the contract under which it assumed the obligation to
provide snow removal services at the condominium. Consequently,
the court cannot conclude, as a matter of law, that L.A. Drew was
9 not obligated to remove snow and ice from the area in which Ms.
McGuirk fell. Merely asserting that: (a) Ms. McGuirk fell on a
"walkway"; and (b) it was not obligated to remove snow from
"walkways" is insufficient to demonstrate that L.A. Drew is
entitled to judgment as a matter of law (as it requests in its
"motion to dismiss"). Presumably, the contract between L.A. Drew
and the Condo Association (or SRI, as the case may be) clearly
defines the scope of L.A. Drew's obligations and describes with
some measure of detail the precise areas within the condominium
from which it is obligated to remove snow. Without the benefit
of that contract, the court cannot grant L.A. Drew's motion for
summary judgment.
Conclusion
Because the record is, at best, sparsely developed, and
because there is a genuine dispute as to which party or parties
were contractually obligated to provide snow removal services to
the Condo Association, and because the property management
agreement is arguably ambiguous on that issue (and is certainly
silent as to any indemnification obligations on the part of SRI) ,
the Condo Association is not entitled to judgment as a matter of
10 law with regard to its indemnification claim against SRI. Its
motion for summary judgment (document no. 35) is, therefore,
denied without prejudice to refiling on a more complete record.
Similarly, the record is insufficiently developed to permit
the court to conclude that L.A. Drew, Inc. is entitled to summary
judgment with regard to the third-party claim asserted against it
by SRI. Consequently, its motion for summary judgment (document
no. 39) is also denied without prejudice.
SO ORDERED.
Steven J. McAuliffe United States District Judge
January 30, 2002
cc: Paul W. Chant, Esq. Caroline K. Delaney, Esq. Evan M. Hansen, Esq. Christopher P. Reid, Esq. Ronald J. Lajoie, Esq. Lawrence B. Gormley, Esq.