New Bern Riverfront Development, LLC v. Weaver Cooke Construction, LLC (In re New Bern Riverfront Development, LLC)

516 B.R. 810, 2014 Bankr. LEXIS 4115
Procedural entryThis page is a short order in New Bern Riverfront Development, LLC v. Weaver Cooke Construction, LLC (In re New Bern Riverfront Development, LLC). Read the opinion of the Court — 521 B.R. 718
United States Bankruptcy Court, E.D. North Carolina·Decided September 26, 2014·No. CASE NO. 09-10340-8-SWH; ADVERSARY PROCEEDING NO. 10-00023-8-AP·Published

Opinion

ORDER ALLOWING MOTION OF HAMLIN ROOFING COMPANY, INC. FOR SUMMARY JUDGMENT ON INDEMNITY CLAIM

Stephani W. Humrickhouse, United States Bankruptcy Judge

Pending before the court is the final component of the motion for summary judgment filed by third-party defendant Hamlin Roofing Company, Inc. (“HRCI”) against Weaver Cooke Construction, LLC (“Weaver Cooke”), in its capacity as third-party plaintiff. The court already entered an order denying HRCI’s motion for summary judgment with respect to two of Weaver Cooke’s three claims against it (for negligence and breach of express warranty), which HRCI sought on grounds that the claims were barred by the applicable statutes of limitation and by the economic loss rule. This order addresses a remaining claim, in which Weaver Cooke asserts that HRCI must indemnify it for its losses. On August 22, 2014, the court entered summary judgment with respect to Weaver Cooke’s indemnity claim against defendants Stock Building Supply, LLC and PLF of Sanford, Inc. (formerly dba Lee Window & Door Co.) (herein collectively “Stock Supply”) on grounds that are equally applicable to HRCI. Accordingly, for the reasons outlined below, the court will enter summary judgment in favor of HRCI on this claim as well.

BACKGROUND

New Bern Riverfront Development, LLC (“New Bern”) is the owner and developer of the SkySail Luxury Condominiums (“SkySail Project”) located in New Bern, North Carolina. On March 30, 2009, New Bern initiated an action in Wake County Superior Court against nine individual defendants related to their roles in the construction of the SkySail Condos (the “State Action”). The named defendants in the State Action included New Bern’s general contractor, Weaver Cooke; Travelers Casualty and Surety Company of America (“Travelers”); National Erectors Rebar, Inc. f/k/a National Reinforcing Systems, Inc. (“NER”) and certain subcontractors of the general contractor.

On November 30, 2009, New Bern filed a petition for relief under chapter 11 of the Bankruptcy Code. The State Action was removed to the United States District Court for the Eastern District of North Carolina on December 16, 2009, and subsequently transferred to this court on February 3, 2010. After voluntarily dismissing its causes of action as to the subcontractors named as defendants in the State Action, New Bern filed its first amended complaint on May 6, 2010, asserting claims against the original parties of Weaver Cooke, Travelers, and NER, and the additional parties of J. Davis Architects, PLLC, and Fluhrer Reed, PA.

On May 27, 2010, Weaver Cooke filed an answer to New Bern’s first amended complaint and a third-party complaint against Wachovia Bank, N.A. and Wells Fargo & Company f/d/b/a Wachovia Corporation. Absent as third-party defendants in Weaver Cooke’s original third-party complaint were any of the subcontractors hired by Weaver Cooke during the construction of the SkySail Project. On June 14, 2012, Weaver Cooke filed its second, third-party complaint asserting claims of negligence, contractual indemnity and breach of express warranty against many of the subcontractors hired during the construction of the SkySail Project, including HRCI, along with Stock Building Supply, LLC [815]*815and PLF of Sanford, Inc. HRCI filed an answer to Weaver Cooke’s second, third-party complaint on August 13, 2012, asserting numerous defenses, including the statute of limitations.

On December 20, 2013, Stock Supply filed a motion for summary judgment regarding all three causes of action alleged against it by Weaver Cooke. HRCI also filed its motion for summary judgment on December 20, 2013, asserting similar grounds. In support of its motion, which is the motion on which the court ruled first, Stock Supply argued that (1) the applicable statute of limitations bars Weaver Cooke’s claims of negligence and breach of express warranty; (2) the economic loss rule bars Weaver Cooke’s negligence claim; and (3) N.C. Gen.Stat. § 22B-1 bars Weaver Cooke’s contractual indemnity claim.

The court dealt first with the statute of limitations issue, and entered an order denying HRCI’s motion for summary judgment on its statute of limitations defense on September 18, 2014. (An order granting summary judgment in favor of Stock Supply with respect to its statute of limitations defense to the negligence and breach of express warranty claims was entered June 10, 2014.) An order denying HRCI’s motion for summary judgment on the economic loss rule defense was entered on September 22, 2014.

HRCI’s motion for summary judgment on Weaver Cooke’s claim for indemnification remains, along with its motion based on contributory negligence, which will be addressed in a separate order. On August 22, 2014, the court granted Stock Supply’s motion for summary judgment on the indemnity claim. The discussion that follows is identical in substance to the discussion in that order because the indemnity provisions in the contract between Weaver Cooke and HRCI are identical to the provisions at issue in that order; further, the legal bases upon which the court granted Stock Supply’s motion for summary judgment on Weaver Cooke’s indemnity claim are identical in most respects to the reasons for which the court now grants HRCI’s motion for summary judgment on Weaver Cooke’s indemnity claim.

DISCUSSION

“[Sjummary judgment is proper ‘if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.’ ” Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 2552, 91 L.Ed.2d 265 (1986) (quoting Fed.R.Civ.P. 56(c)). In making this determination, conflicts are resolved by viewing all facts and inferences to be drawn from the facts in the light most favorable to the non-moving party. United States v. Diebold, Inc., 369 U.S. 654, 655, 82 S.Ct. 993, 994, 8 L.Ed.2d 176 (1962) (per curiam). Summary judgment is not a “disfavored procedural shortcut,” but an important mechanism for filtering out “claims and defenses [that] have no factual basis.” Celotex, 477 U.S. at 327, 106 S.Ct. at 2555.

With respect to the non-core matter now before the court, there is no dispute as to the relevant facts, contractual language, or applicable law. The court has jurisdiction to enter this order allowing summary judgment, in light of the right of de novo review by the district court. Ward v. United States Dept. of Educ., Case No. 5:13-CV-695-D (E.D.N.C. June 18, 2014), citing Exec. Benefits Ins. Agency v. Arkison, — U.S. -, 134 S.Ct. 2165, 189 L.Ed.2d 83 (2014).

The court’s analysis is governed by North Carolina state law, and in particular N.C. Gen.Stat. § 22B-1, which provides:

[816]*816Any promise or agreement in, or in connection with, a contract or agreement relative to the design, planning, construction, alteration, repair or maintenance of a building, structure, highway, road, appurtenance or appliance, including moving, demolition and excavating connected therewith, purporting to indemnify and hold harmless the promis-ee,

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New Bern Riverfront Development, LLC v. Weaver Cooke Construction, LLC (In re New Bern Riverfront Development, LLC), 516 B.R. 810, 2014 Bankr. LEXIS 4115 (N.C. 2014).

516 B.R. 810 (New Bern Riverfront Development, LLC v. Weaver Cooke Construction, LLC (In re New Bern Riverfront Development, LLC)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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