Stoney v. Franklin

54 Va. Cir. 591, 44 U.C.C. Rep. Serv. 2d (West) 1211, 2001 Va. Cir. LEXIS 84
CourtSuffolk County Circuit Court
DecidedJune 18, 2001
DocketCase No. (Law) CL00-387
StatusPublished
Cited by14 cases

This text of 54 Va. Cir. 591 (Stoney v. Franklin) is published on Counsel Stack Legal Research, covering Suffolk County Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stoney v. Franklin, 54 Va. Cir. 591, 44 U.C.C. Rep. Serv. 2d (West) 1211, 2001 Va. Cir. LEXIS 84 (Va. Super. Ct. 2001).

Opinion

By Judge D. Arthur Kelsey

The plaintiffs, Archie and Nancy Stoney, hired a contractor to build a house for them. Claiming that the contractor used defective building materials, the plaintiffs seek to impose liability on the manufacturers and assemblers of these building materials on negligence, constructive fraud, and implied warranty grounds. For the following reasons, the Court sustains the defendants’ demurrers to the negligence and constructive fraud claims and overrules die demurrers to the implied warranty claims.

The Motion for Judgment asserts that the plaintiffs entered into a construction contract with John Franklin and Franklin Construction Co. to [592]*592build a residence at 104 Riverside Drive in Suffolk, Virginia, on property already owned by the plaintiffs. See Motion for Judgment ¶ 1. The builder completed the home and delivered it to the plaintiffs in December 1996. Id. ¶ 2. At “some point” thereafter, the plaintiffs “began noticing water intrusion at various points within the house, which is clad in an exterior insulation finish system (EIFS).” Id. ¶ 3. According to the plaintiffs’ inspector, the water entered the house through the EIFS and windows. Id. ¶ 5-6.

The plaintiffs allege that John Franklin and Franklin Construction Co. breached the construction contract by failing to apply adequate caulking around windows and doors, installing defective EIFS and windows, and installing a defective roofing system. Id. ¶ 10. These contractual breaches, the plaintiffs claim, caused them $150,000 in damages due to the cost of repairing damaged portions of the house and installing a new exterior siding for the structure. To the contractual count against the Franklin defendants, the plaintiffs add claims of negligence, constructive fraud, and breach of express warranty. See Motion for Judgment, Counts I to X (¶¶ 1-45).

The plaintiffs also assert claims against Dryvit Systems, Inc. (the manufacturer of the EIFS) for breach of implied warranty of merchantability (Count IX), breach of implied warranty of fitness for a particular purpose (Count X), negligence (Count XI), fraud (Count XII), negligent misrepresentation (Count XIII), and constructive fraud (Count XIV). The plaintiffs assert similar claims against MW Manufacturing, Inc. (the manufacturer of the window sashes) and Lowe’s Home Centers, Inc., Thomasville Millwork Division (the manufacturer and assembler of the window frames). See Motion for Judgment, Counts XV to XVIII.

The plaintiffs take particular aim at Diyvit, the manufacturer of the EIFS product, claiming Dryvit knew of the inadequacies of its product for many years. The plaintiffs rely on a 1984 “Inter-Departmental” memo addressing EIFS problems. In that memo, a Dryvit official stated to a colleague in the company:

I find appalling the position taken by the group that the public’s safety should be compromised as part of a business risk decision. Specifically, it was agreed that failures of the subject applications are inevitable and are a normal part of the risk assumed in the use of construction products. I beg to differ. Products which are inherently sensitive to failure due to normal in-use conditions such as water leakage, should not be used in applications where such deterioration could lead to failures which would jeopardize the public’s safety. Specifically, this relates to the subject applications on many projects, [593]*593particularly tall buildings, without the use of mechanical fasteners---I fear that the inevitable leakage which will deteriorate the sheathing will soon be upon us in terms of the life cycle of this product and its caulking joints soon being reached on the older projects.

Plaintiffs’ Response to Craving Oyer Motion, Exhibit A (Memo from L. Douglas Mauit to Robert G. Thomas, Jr.). The plaintiffs allege the internal debate at Dryvit festered into the 1990s, as evidenced by this “InterDepartmental” memo by another Dryvit official:

If Engineering Services is correct, can the EIFS industry survive and grow if job after job starts failing say five years from now? More importantly, could Diyvit survive?
If we continue on this road, 1 hope Dryvit structures a new and heavily beefed-up accrual fund based on each and every Direct Applied project we do. The fact that these position papers have been written suggests if future failures occur on a substantial percentage of completed jobs, we could be required to pay triple and punitive damages because of unfair and deceptive practices.
Are we playing the same game as Morton-Thiokol, the producer of the O-Rings for the Space Shuttle?

Plaintiffs’ Response to Craving Oyer Motion, Exhibit B (Dryvit Memo from Duncan Crowther to Doug Doscher).

Dryvit has filed a demurrer challenging all claims against it. MW and Lowe’s have filed similar demurrers relying on the arguments advanced by Dryvit In this Opinion and Order, the Court will address only the defendants’ objections to the plaintiffs’ negligence, constructive fraud, and implied warranty claims against Dryvit, MW, and Lowe’s.

Under settled principles, a demurrer “tests the legal sufficiency of a pleading and can be sustained if the pleading, considered in the light most favorable to the plaintiff, fails to state a valid cause of action.” Welding, Inc. v. Bland County Service Auth., 261 Va. 218, 226, 541 S.E.2d 909, 913 (2001) (citation omitted). The trial court should “consider as admitted the facts expressly alleged and those which fairly can be viewed as impliedly alleged or reasonably inferred from the facts alleged.” Id. The court, however, should not presume the “correctness of the pleading’s conclusions of law.” Yuzefovsky v. St. John’s Wood Apartments, 261 Va. 97, 102, 540 S.E.2d 134, 137 (2001); Thompson v. Skate America, Inc., 261 Va. 121, 128, 540 S.E.2d 123, 128 (2001).

[594]*594Ordinarily, the trial court looks only to factual allegations found in the motion for judgment In this case, however, the defendants filed a motion to crave oyer requesting that the plaintiffs produce and incorporate all documents referred to (or, in some cases, merely alluded to) in the motion for judgment. The plaintiff agreed to produce these documents, and thus, they will be treated as exhibits to the motion for judgment.1 See Ward’s Equip., Inc. v. New Holland North America, Inc., 254 Va. 379, 382, 493 S.E.2d 516, 518 (1997) (documents produced in response to craving oyer motion may be taken into account by a court ruling on a demurrer). “These documents are properly considered in determining whether a valid cause of action has been pleaded.” Welding, Inc., 261 Va. at 227, n. 3, 541 S.E.2d at 914, n. 3 (2001); Flippo v. F & L Land Co., 241 Va. 15, 17, 400 S.E.2d 156, 156 (1991).

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Bluebook (online)
54 Va. Cir. 591, 44 U.C.C. Rep. Serv. 2d (West) 1211, 2001 Va. Cir. LEXIS 84, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stoney-v-franklin-vaccsuffolk-2001.