Travelers Property Casualty Co of America v. City of Grand Rapids

CourtMichigan Court of Appeals
DecidedSeptember 13, 2016
Docket327787
StatusUnpublished

This text of Travelers Property Casualty Co of America v. City of Grand Rapids (Travelers Property Casualty Co of America v. City of Grand Rapids) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Travelers Property Casualty Co of America v. City of Grand Rapids, (Mich. Ct. App. 2016).

Opinion

STATE OF MICHIGAN

COURT OF APPEALS

TRAVELERS PROPERTY CASUALTY UNPUBLISHED COMPANY OF AMERICA, September 13, 2016

Plaintiff-Appellee/Cross-Appellant,

v No. 327787 Kent Circuit Court CITY OF GRAND RAPIDS, LC No. 13-003873-NZ

Defendant-Appellant/Cross- Appellee.

Before: MURRAY, P.J., and HOEKSTRA and BECKERING, JJ.

PER CURIAM.

Defendant, the City of Grand Rapids (the City), appeals as of right the opinion and order of the trial court that denied its motion for summary disposition on the ground of governmental immunity under MCR 2.116(C)(7). Plaintiff, Travelers Property Casualty Company of America, as subrogee of Calvin College, cross-appeals from the same order that also denied its competing motion for summary disposition pursuant to MCR 2.116(C)(10). Because material questions of fact remain regarding (1) whether the City knew, or with reasonable diligence should have known, about the defect in the sewer line and (2) whether the defect was a substantial proximate cause of the sewer event and resulting property damage, we affirm the trial court’s denial of both motions for summary disposition and remand for further proceedings.

On May 11, 2011, sewage and/or water flooded the first floors of two Calvin College apartment buildings located on Burton Street SE in Grand Rapids. Near the two apartment buildings in question sits “manhole 15109,” a “drop manhole” fed by two sewer pipes: a 12-inch pipe coming from the west and an 8-inch pipe coming from the east. On the day the apartment buildings flooded, the 8-inch pipe failed near manhole 15109, causing Burton Street to collapse. As a result of the flooding in the apartment buildings, plaintiff, Calvin College’s insurer, paid over $400,000 in remediation expenses.

Plaintiff then filed suit against the City under the “sewage disposal system event” exception to governmental immunity, seeking to recover damages in excess of $400,000. See MCL 691.1416-MCL 691.1419. The parties filed cross-motions for summary disposition, focusing their arguments on (1) whether the City knew, or in the exercise of reasonable diligence should have known, about the defect in the 8-inch pipe and (2) whether the defect in that pipe

-1- was a substantial proximate cause of the flooding. Important to these issues, the City had video footage from September 2010 of manhole 15109 as well as the nearby 8- and 12-inch pipes. Plaintiff retained an expert in sewer pipe analysis, Stephan Bichler, who opined based on his viewing of the sewer video that there were defects in the 8-inch pipe which caused the sewer failure and resulting property damage. In contrast, the City offered testimony from various employees to support its assertions that it did not know, and could not have known, of any defect because the video footage showed no defects and, in fact, the defect which specifically caused the failure in the pipe could not have been visible because it was on the bottom of the pipe, under sewage flowing in the pipe. The City also maintained that severe rainfall contributed to the sewer backup and that, because it was a defect in the bottom of the pipe which caused the backup, Bichler’s causation testimony amounted to mere speculation.

Considering the conflicting evidence presented, the trial court determined that fact questions remained in regard to the City’s knowledge of the defect and the issue of proximate causation. For this reason, the trial court denied the City’s motion for summary disposition under MCR 2.116(C)(7) as well as plaintiff’s motion for summary disposition under MCR 2.116(C)(10). The City now appeals as of right and plaintiff has filed a cross-appeal.

On appeal, the City again argues that it is entitled to summary disposition under MCR 2.116(C)(7) because it is a governmental agency and plaintiff has failed to show the applicability of the sewage system disposal event exception to governmental immunity. In particular, consistent with its arguments in the trial court, the City argues that plaintiff cannot show that the City knew, or should have known, of a defect in the 8-inch pipe because the video does not depict any defect in the 8-inch pipe and the defect in question would not have been visible because it was underneath sewage on the bottom of the pipe. The City also argues that severe rain played a significant role in the flooding of the apartment buildings and that, because a defect in the bottom of the pipe caused the backup, Bichler’s causation testimony is mere speculation. Like the trial court, we conclude that material questions of fact remain with respect to these issues, such that the City is not entitled to summary disposition.

This Court reviews de novo a trial court’s decision on a motion for summary disposition. Ernsting v Ave Maria College, 274 Mich App 506, 509; 736 NW2d 574 (2007). “Further, the determination regarding the applicability of governmental immunity and a statutory exception to governmental immunity is a question of law that is also subject to review de novo.” Snead v John Carlo, Inc, 294 Mich App 343, 354; 813 NW2d 294 (2011). When a claim is barred by governmental immunity, the moving party is entitled to summary disposition under MCR 2.116(C)(7). Odom v Wayne Co, 482 Mich 459, 466; 760 NW2d 217 (2008). “Under MCR 2.116(C)(7), all well-pleaded allegations must be accepted as true and construed in favor of the nonmoving party, unless contradicted by affidavits, depositions, admissions, or other documentary evidence submitted by the parties.” Willet v Waterford Charter Twp, 271 Mich App 38, 45; 718 NW2d 386 (2006) (citations and quotation marks omitted). Any documentary evidence submitted by the parties must be considered “in a light most favorable to the nonmoving party.” Snead, 294 Mich App at 354. “If no [material] facts are in dispute, or if reasonable minds could not differ regarding the legal effect of the facts, the question whether the claim is barred by governmental immunity is an issue of law.” Willett, 271 Mich App at 45 (citations and quotation marks omitted). “If, however, a pertinent factual dispute exists, summary disposition is not appropriate.” Snead, 294 Mich App at 354.

-2- A motion under MCR 2.116(C)(10) tests the factual sufficiency of the complaint. Cannon Twp v Rockford Pub Sch, 311 Mich App 403, 411; 875 NW2d 242 (2015). “When deciding a motion for summary disposition under MCR 2.116(C)(10), a court must consider the pleadings, affidavits, depositions, admissions, and other documentary evidence submitted in the light most favorable to the nonmoving party.” Ernsting, 274 Mich App at 509-510. “Summary disposition is proper under MCR 2.116(C)(10) if the documentary evidence shows that there is no genuine issue regarding any material fact and the moving party is entitled to judgment as a matter of law.” Id. at 509. “There is a genuine issue of material fact when reasonable minds could differ on an issue after viewing the record in the light most favorable to the nonmoving party.” Allison v AEW Capital Mgt, LLP, 481 Mich 419, 425; 751 NW2d 8 (2008).

“Under the governmental tort liability act, MCL 691.1401 et seq., governmental agencies are immune from tort liability when engaged in a governmental function.” Nawrocki v Macomb Co Rd Com'n, 463 Mich 143, 156; 615 NW2d 702 (2000). This immunity from tort liability “is expressed in the broadest possible language—it extends immunity to all governmental agencies for all tort liability whenever they are engaged in the exercise or discharge of a governmental function.” Id. There are statutory exceptions to governmental immunity; but, these exceptions must be “narrowly construed.” Cannon Twp, 311 Mich App at 415.

The statutory exception at issue in the present case is the sewage disposal system event exception, set forth in MCL 691.1416 through MCL 691.1419.

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Odom v. Wayne County
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Allison v. AEW CAPITAL MANAGEMENT, LLP
751 N.W.2d 8 (Michigan Supreme Court, 2008)
Willett v. Waterford Charter Township
718 N.W.2d 386 (Michigan Court of Appeals, 2006)
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Robinson v. City of Detroit
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Cannon Township v. Rockford Public Schools
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Ernsting v. Ave Maria College
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Snead v. John Carlo, Inc.
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Bluebook (online)
Travelers Property Casualty Co of America v. City of Grand Rapids, Counsel Stack Legal Research, https://law.counselstack.com/opinion/travelers-property-casualty-co-of-america-v-city-of-grand-rapids-michctapp-2016.