Moon v. Michael Koslow Construction, Inc.

458 S.E.2d 610, 193 W. Va. 673, 1995 W. Va. LEXIS 91
CourtWest Virginia Supreme Court
DecidedMay 18, 1995
DocketNo. 22516
StatusPublished
Cited by1 cases

This text of 458 S.E.2d 610 (Moon v. Michael Koslow Construction, Inc.) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Moon v. Michael Koslow Construction, Inc., 458 S.E.2d 610, 193 W. Va. 673, 1995 W. Va. LEXIS 91 (W. Va. 1995).

Opinion

PER CURIAM:

William Lee Moon and Carol Moon, plaintiffs below and appellees, filed suit in the Circuit Court of Cabell County against Michael Koslow Construction, Inc. (Koslow), defendant below and appellant, alleging it was negligent in constructing their residence. Koslow filed a third-party complaint against [674]*674its insurer, Motorists Insurance Companies (Motorists), alleging it had a duty to defend and indemnify in the suit., The circuit court referred the case to a special commissioner and adopted his findings of fact and conclusions of law that Koslow was liable for approximately $44,000 for damages to the Moon residence and that Koslow’s insurance policy provided no coverage for the claim. After reviewing the record and briefs of the parties, \ve find the circuit court erred in referring the matter to a special commissioner when Koslow demanded its right to a jury trial. Accordingly, we reverse the judgment below and remand this case for trial.

On May 5, 1993, the circuit court conducted a pretrial conference and determined that, due to the complexity of the case, it would refer the matter to a special commissioner. The circuit court also made a preliminary finding that Motorists had a duty to defend Koslow in the suit. The special commissioner heard testimony on October 7,1993; October 14, 1993; and November 3, 1993. The evidence presented to the special commissioner is as follows.

In June of 1988, the Moons entered into a contract with Koslow for the construction of their home in Huntington. The Moons informed Koslow that they wished to build the house based on the building plans of their previous home in Mississippi. Koslow stated that with a few modifications the home could be constructed upon the lot they had chosen. Construction began in the summer of 1988. The Moons moved into their home in January of 1989, when construction was substantially completed. Koslow performed some minor work on the house over the next few weeks, such as completing the deck and screened porch. The home was completed in early February, and Koslow was paid in full. The Moons made separate arrangements for landscaping because the contract called for Koslow to finish the site to “rough grade.”

In August of 1989, a landscaper noticed certain cracks in the brick veneer of the home and notified the Moons of the problem. The house was inspected by Jack Stafford, a structural engineer, in September. Mr. Stafford found cracking at three corners of the house between the mortar joints of the brick veneer. An interior inspection revealed cracking of the block work at the right rear corner and moisture on the block walls. It was Mr. Stafford’s opinion these cracks were due to ongoing differential settlement of the foundation. He stated that if a structure is settling in a nonuniform manner, it may be an indication it is situated on soft or wet materials. Concerned that an improperly graded lot could cause water problems, he inspected the lay of the lot and found no indication of improper grading. In a written report dated October 9, 1989, Mr. Stafford concluded the foundation of the home, footer drains, and waterproofing were installed by Koslow in a less than satisfactory manner. He identified the problems as serious and recommended corrective action be taken.

Michael Koslow inspected the home at the request of the Moons and encountered a remarkable amount of standing water under the crawl space. It was apparent that a foundation drain had failed because water was entering the area from the left front corner of the structure. Mr. Koslow testified that he offered to correct the damage by excavating around the house, underpinning the footer, and repairing the foundation drains, which he estimated would cost approximately $1,200, if the Moons would purchase $200 to $300 worth of brick. Mr. Moon declined the offer because he believed Mr. Koslow was going to fix only the appearance of the home and not undertake the more major problem of the origin of the water. No further discussions took place.

In November of 1989, counsel for the Moons notified Koslow of their claim. Kos-low, in turn, contacted its insurer, Motorists, which denied coverage. It was Motorists’ determination that it owed no duty to defend Koslow because the claim involved property damages arising out of Koslow’s work on the home. Furthermore, Motorist found no coverage available under the terms of the policy based on an alleged breach of contract or implied warranty. Nevertheless, Motorists hired PACE Engineers, Inc. (PACE), to inspect the home. After receiving PACE’s February, 1990, report, Motorists again advised Koslow that coverage was denied because the claim involved faulty construction.

[675]*675In January of 1990, NeighborgaU Construction Company (NeighborgaU) made several inspections and undertook substantial repairs to the home at the request of the Moons.

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Related

State Ex Rel. Dunlap v. Berger
567 S.E.2d 265 (West Virginia Supreme Court, 2002)

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Bluebook (online)
458 S.E.2d 610, 193 W. Va. 673, 1995 W. Va. LEXIS 91, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moon-v-michael-koslow-construction-inc-wva-1995.