Recreational Design & Construction, Inc. v. Wiss, Janney, Elstner Associates, Inc.

820 F. Supp. 2d 1293, 2011 U.S. Dist. LEXIS 127774, 2011 WL 5117130
CourtDistrict Court, S.D. Florida
DecidedJanuary 24, 2011
DocketCase 10-cv-21549
StatusPublished
Cited by3 cases

This text of 820 F. Supp. 2d 1293 (Recreational Design & Construction, Inc. v. Wiss, Janney, Elstner Associates, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Recreational Design & Construction, Inc. v. Wiss, Janney, Elstner Associates, Inc., 820 F. Supp. 2d 1293, 2011 U.S. Dist. LEXIS 127774, 2011 WL 5117130 (S.D. Fla. 2011).

Opinion

ORDER GRANTING DEFENDANTS’ MOTION TO DISMISS

ALAN S. GOLD, District Judge.

THIS CAUSE came before the court upon Defendant Wiss, Janney, Elstner Associates’ and Defendant John F. Duntemann’s (“Defendants”) Motion to Dismiss (the “Motion”). [ECF No. 6], Plaintiff Recreational Design & Construction, Inc. (“Plaintiff’) filed a Response in opposition to the Motion, [ECF No. 12], and Defendants filed a Reply. [ECF Nos. 17, 18]. 1 I held a telephonic status conference on January 19, 2011, to discuss Plaintiffs intention to file an Amended Complaint and the implications that such an Amended Complaint may have on the Court’s subject matter jurisdiction. 2 For the reasons set forth below, I find oral argument unnecessary and grant Defendants’ Motion to Dismiss the Complaint without prejudice.

I. Background

This case concerns a construction project called “Victory Pool Renovations” located in the City of North Miami Beach (the “City”). The relevant facts, taken as true for purposes of this Motion to Dismiss, are as follows.

Plaintiff is a Florida corporation in the construction business. [ECF No. 1-1 ¶¶ 2, 8]. Defendants are two Illinois-based engineering corporations and two individual professional engineers who work for those corporations. [Id. ¶¶ 3 — 6]. 3 In February 2006, Plaintiff entered into a written agreement with the City in which Plaintiff was to perform all design and construction services for the “Victory Pool Renovations” project. [Id. ¶ 8]. 4 The City noted certain imperfections in the project after its completion and hired the Defendants to perform independent engineering evaluations of the project. [Id. ¶ 10]. Defendants concluded that the project was structurally unsafe and provided reports to the City advising it that a defective water slide, which was part of the project, needed to be immediately replaced. [Id. ¶ 11]. Defendants were aware that Plaintiff was the contractor on the project. [Id. ¶ 12],

Relying on Defendants’ engineering reports, the City directed Plaintiff to immediately replace the water slide. [Id. ¶ 13]. Plaintiff provided reports from other independent engineers, which refuted the conclusions in Defendants’ reports, but the City still insisted that Plaintiff build and install a new water slide because it had publicly disclosed the Defendants’ reports. [Id. ¶¶ 14-15]. Plaintiff rebuilt and rein *1296 stalled the water slide as requested by the City.

Plaintiff subsequently brought this action in state court alleging professional malpractice and negligent misrepresentation against each of the Defendant engineering companies and their individual engineers. [ECF No. 1-1]. Defendants removed this action pursuant to 28 U.S.C. §§ 1832 and 1441 5 and subsequently filed a Motion to Dismiss for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6). [ECF No. 1, 6].

II. Legal Standard and Governing Law

“To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’ ” Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 1949, 173 L.Ed.2d 868 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). Although this pleading standard “does not require ‘detailed factual allegations,’ ... it demands more than an unadorned, the-defendant-unlawfully-harmed-me accusation.” Id. (quoting Twombly, 550 U.S. at 555, 127 S.Ct. 1955). A pleading must contain “more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Twombly, 550 U.S. at 555, 127 S.Ct. 1955. Only a complaint that “states a plausible claim for relief survives a motion to dismiss.” Iqbal, 129 S.Ct. at 1950 (citing Twombly, 550 U.S. at 556, 127 S.Ct. 1955). To meet this “plausibility standard,” a plaintiff must “plead[] factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. at 1949.

When reviewing a motion to dismiss, a court must construe the complaint in the light most favorable to the plaintiff and take the factual allegations therein as true. See Brooks v. Blue Cross & Blue Shield of Fla., Inc., 116 F.3d 1364, 1369 (11th Cir.1997). Pleadings that “are no more than conclusions, are not entitled to the assumption of truth. While legal conclusions can provide the framework of a complaint, they must be supported by factual allegations.” Iqbal, 129 S.Ct. at 1950. A court’s analysis of a Rule 12(b)(6) motion “is limited primarily to the face of the complaint and the attachments thereto.” Brooks, 116 F.3d at 1368.

Both Parties agree that Florida law governs Plaintiffs substantive claims for professional malpractice and for negligent misrepresentation. Thus, I must determine if the Plaintiffs Complaint puts forth sufficient factual allegations to state plausible claims for relief under these two Florida causes of action.

III. Discussion

Defendants challenge Plaintiffs Complaint on the basis that Plaintiffs claims are “unprecedented” in that Plaintiff is *1297 “seeking to recover from Defendants what it is not entitled to recover from the City, the entity with which it had a contract.” [ECF No. 6, pp. 1-2]. I will consider this argument as it applies to the economic loss rule and each of Plaintiffs causes of action below.

a. Economic Loss Rule

As a preliminary matter, Defendants assert that all of Plaintiffs claims are barred by the economic loss rule. The Florida Supreme Court has defined the economic loss rule as follows:

The economic loss rule is a judicially created doctrine that sets forth the circumstances under which a tort action is prohibited if the only damages suffered are economic losses.
The prohibition against tort actions to recover solely economic damages for those in contractual privity is designed to prevent parties to a contract from circumventing the allocation of losses set forth in the contract by bringing an action for economic losses in tort, [citation omitted].

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Bluebook (online)
820 F. Supp. 2d 1293, 2011 U.S. Dist. LEXIS 127774, 2011 WL 5117130, Counsel Stack Legal Research, https://law.counselstack.com/opinion/recreational-design-construction-inc-v-wiss-janney-elstner-flsd-2011.