Seiler v. LEVITZ FURNITURE CO., ETC.

367 A.2d 999
CourtSupreme Court of Delaware
DecidedDecember 27, 1976
StatusPublished
Cited by1 cases

This text of 367 A.2d 999 (Seiler v. LEVITZ FURNITURE CO., ETC.) is published on Counsel Stack Legal Research, covering Supreme Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Seiler v. LEVITZ FURNITURE CO., ETC., 367 A.2d 999 (Del. 1976).

Opinion

367 A.2d 999 (1976)

Seymour SEILER, Defendant below, Appellant,
v.
LEVITZ FURNITURE COMPANY OF the EASTERN REGION, INC., Plaintiff below, Appellee, and
Wilmington Shopping Center, Inc., et al., Defendants below, Appellees.
WILMINGTON SHOPPING CENTER, INC., et al., Defendants below, Appellants,
v.
LEVITZ FURNITURE COMPANY OF the EASTERN REGION, INC., Plaintiff below, Appellee, and
Seymour Seiler, Defendant below, Appellant.

Supreme Court of Delaware.

Submitted March 12, 1976.
Decided November 24, 1976.
Reargument Submitted December 3 and 9, 1976.
Decided December 27, 1976.

*1001 James M. Tunnell, Jr., William H. Sudell, Jr., and Richard D. Allen, of Morris, Nichols, Arsht & Tunnell, and David Snellenburg, II, Wilmington, for Seymour Seiler.

Bruce M. Stargatt and Richard H. May, of Young, Conaway, Stargatt & Taylor, Wilmington, for Levitz Furniture Co. of the Eastern Region, Inc.

F. Alton Tybout, of Tybout & Redfearn, Wilmington, for Wilmington Shopping Center, Inc., and A.A.R. Realty Corp.

William D. Bailey, Jr., and Alan T. Boyd, of Bayard, Brill & Handelman, Wilmington, for A. A. Rosen, Miriam Rosen, Jerry Bauman and Selma Bauman and A. A.R. Realty Corp.

Before DUFFY and McNEILLY, Justices, and BROWN, Vice Chancellor.

*1000 DUFFY, Justice:

This is an action by Levitz Furniture Company of the Eastern Region, Inc. (Levitz) to recover for damages to its Tri-State Mall store resulting from two floods in 1970 and 1971, respectively.[1] Levitz also seeks damages for alleged defects in the air conditioning and electrical systems and in the flooring. Defendants are Wilmington Shopping Center, Inc. (Wilmington Shopping) and its successor in interest, A.A.R. Realty Corp. (AAR), developers and owners of the Mall,[2] Seymour Seiler, an architect-engineer who designed the Levitz building; and four individuals (A. A. Rosen and Miriam Rosen, his wife, and Jerry Bauman and his wife, Selma Bauman) who personally guaranteed obligations owed by AAR to Levitz.

After a ten-week trial, the Superior Court filed a comprehensive opinion with detailed findings and conclusions; it determined that all defendants were liable to plaintiff for damages caused by the flooding, but reserved for later determination the amount thereof as well as cross claims among defendants.[3] The Court also entered judgment in favor of Levitz against Seiler for deficiencies in the air conditioning and electrical systems but concluded that plaintiff had failed to prove its claim for defects in the flooring.

We consider appeals by all defendants.

I

The Levitz furniture store is a two-level building consisting of a combined showroom-warehouse located at the southeast corner of the Mall and bordered on the east by Naamans Creek. It was constructed by AAR pursuant to a Lease Agreement between Wilmington Shopping and Levitz, and in accordance with plans and specifications prepared by Seiler. Article XVI of the pre-construction agreement, which required the Landlord to construct a building in accordance with the Seiler plans, provided:

"OWNER shall not be liable for any damage to property of TENANT or of others located on the LEASED PREMISES *1002 nor for the loss of or damage to any property of TENANT or of others by theft or otherwise, OWNER shall not be liable for any injury or damage to persons or property resulting from fire, explosion, falling plaster, steam, gas, electricity, water, rain, or snow or leaks from any part of the LEASED PREMISES or from the pipes, appliances, or plumbing works or from the roof, street, or subsurface or from any other place or by dampness or by any other cause of whatsoever nature. OWNER shall not be liable for any such damage caused by other tenants or persons in the LEASED PREMISES, occupants of adjacent property, of the SHOPPING CENTER, or the public, or caused by operations in construction of any private, public, or quasi-public work. OWNER shall not be liable for any latent defect in the LEASED PREMISES or in the building of which they form a part except for a period of one (1) year from the date TENANT takes possession of the LEASED PREMISES. All property of TENANT kept or stored on the LEASED PREMISES shall be so kept or stored at the risk of TENANT only and TENANT shall hold OWNER harmless from any claims arising out of damage to the same, including subrogation claims by TENANT'S insurance carriers unless such damage shall be caused by the willful act or gross neglect of OWNER."

Amendment A to the Lease, executed on August 2, 1968 at the insistence of AAR's mortgagee, Mutual of New York (MONY), struck from Article XVI the phrase "unless such damage shall be caused by the willful act or gross neglect of OWNER."

Construction began in September 1968. By the following February it had become apparent that there were a number of problems with the project, including seepage and leakage into the basement and a "tilt" or lean in the west wall of the basement toward Naamans Creek. On March 5, 1969 Levitz engaged the engineering firm of Sanders and Thomas to determine the safety of the building. In a written report to Levitz, Sanders and Thomas described the tilting wall condition and concluded that the building was unsuitable for the intended function of furniture storage and display. In a subsequent investigation-and report, the engineering firm noted a water problem at the building and questioned its structural adequacy to safely support the floor and roof. Although Levitz originally sought damages on account of the tilting wall, it later withdrew that claim.

At trial Leon Levitz, President of the Levitz Company, testified that he became concerned about the structural integrity of the building and instructed the Company's attorney to obtain guarantees from the Owner that would protect Levitz from loss resulting from structural defects. The result was a "personal" agreement between Levitz and AAR which was executed on April 30, 1969 (the April 30 Agreement) and provided, in part, that if any structural portion of the building was defective and caused injury to Levitz (including injury to "any personal property of LEVITZ located on the demised premises"), the Owner would compensate Levitz for such injury.[4]

*1003 The Trial Court found that AAR did not want MONY to have an opportunity to terminate the mortgage commitment and, for that reason, the April 30 Agreement was not executed as an amendment to the Lease, but was made as an "agreement personal to the parties," namely, Levitz and AAR. On April 25, 1969, the parties had made an agreement in which the individual defendants personally guaranteed to Levitz full performance of the April 30 Agreement during the term of the lease and any renewals thereof.

Subsequently, Levitz and AAR executed another agreement, dated June 13, 1969, again "personal to the parties" and again prompted by the water problem.[5] The purpose of that agreement was to compensate Levitz for any adverse effect which the water condition might have on its use of the basement during the first year of operation; it also provided for future rental diminution if the problem continued after that period.

The Levitz store opened for business in June 1969.

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