Vikell Investors Pacific, Inc. v. Kip Hampden Ltd.

946 P.2d 589, 1997 Colo. J. C.A.R. 1983, 1997 Colo. App. LEXIS 212, 1997 WL 578171
CourtColorado Court of Appeals
DecidedSeptember 18, 1997
Docket96CA0636
StatusPublished
Cited by52 cases

This text of 946 P.2d 589 (Vikell Investors Pacific, Inc. v. Kip Hampden Ltd.) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vikell Investors Pacific, Inc. v. Kip Hampden Ltd., 946 P.2d 589, 1997 Colo. J. C.A.R. 1983, 1997 Colo. App. LEXIS 212, 1997 WL 578171 (Colo. Ct. App. 1997).

Opinion

Opinion by

Judge DAVIDSON.

Plaintiff, Vikell Investors Pacific, Inc., (Vi-kell) appeals from a judgment entered on a jury verdict finding defendant Kip Hampden, Ltd., (Kip Hampden) not liable for the subsidence of real property owned by Vikell. Vi-kell also appeals from a directed verdict by the trial court dismissing its claim against defendants George Morris and his company, Lincoln DeVore, Inc., (collectively Morris) for breach of fiduciary duty. We affirm.

This controversy centers around the subsidence of a hill in Colorado Springs. Vikell owned real property at the top of the hill, located on which was a large apartment complex called Woodstone Apartments (Wood-stone). Kip Hampden owned adjoining property, occupied by a car dealership, at the bottom of the hill, directly below Woodstone.

In 1987, Kip Hampden decided to improve its property by grading the base of the hill and expanding a parking lot used by the car dealership. Kip Hampden hired Morris, an engineering consultant, to determine whether the excavation could be done safely and, if so, to plan the project. After Morris tested the slope stability, which test revealed water seepage in the hillside, he issued a report to Kip Hampden indicating that the hillside was subject to movement and landslides. Nevertheless, the report included a detailed plan for grading the base of the hill and expanding the parking lot.

Pursuant to Morris’ plan, Kip Hampden began the excavation and had thousands of *592 cubic yards of soil removed from the base of the hill below Woodstone.

In 1989, when Vikell acquired the Wood-stone property, it hired several consultants and contractors to refurbish and repair the apartment complex, which had fallen into disrepair after its prior owner declared bankruptcy.

Vikell hired a soils engineer to examine several of the Woodstone buildings, which were experiencing foundation cracking and other problems. That engineer advised that the buildings were moving, causing the foundation cracking, and he identified three possible reasons: expansive soils, slope instability, and foundation settlement caused by consolidation of non-compact fill used in the original building construction. He recommended that Vikell pay special attention to controlling water in the hillside, which he indicated could be aggravating the building movement.

A structural engineer hired by the bankruptcy court in 1988 to help bring Woodstone up to a reasonable standard of maintenance also advised Vikell representatives that controlling water in and around the hillside was critical to the repair project because water could be aggravating any downhill building movement.

Pursuant to the engineers’ recommendations, Vikell attempted to correct surface drainage problems and utility leaks in order to reduce the amount of water in the hillside and stop the building movement. After several repairs, all of the buildings stabilized with the exception of Woodstone buildings 410 and 420, which continued to move and crack.

In 1991,' Vikell hired Morris as its new soils engineer to study and solve the remaining problems with building movement. Morris did not inform Vikell that Kip Hampden had excavated the base of the hill in 1987 or that he had worked for Kip Hampden on the project.

Morris first theorized that the movement of buildings 410 and 420 was due to simple building settlement, and he recommended pressure grouting beneath the buildings to provide them with additional support. When the buildings continued to move, Morris shifted his focus to water problems. He dug up various parts of Vikell’s property to cheek for groundwater but, despite his earlier report to Kip Hampden that there was water seepage in the hillside, he found little, if any, water. Morris next recommended a second pressure grouting. After the second grouting, however, the building movement accelerated.

In 1994, Morris suggested that, although “unthinkable,” the entire hillside might be subsiding toward Kip Hampden’s property, causing buddings 410 and 420 to slide down the hillside. He performed a slope failure analysis and confirmed that the stability of the hillside had decreased. Morris’ report also revealed that Kip Hampden had cut away the base of the slope in 1987. However, his report did not indicate that he had worked on the project.

Shortly thereafter, Vikell hired a new soils expert who investigated the nature and cause of the building movement and determined that Kip Hampden’s removal of soil from the base of the hill contributed to the ongoing slope subsidence.

In 1995, major slope failures occurred and Vikell was forced to abandon and demolish buildings 410 and 420. Kip Hampden denied any responsibility for the slope failures. In a meeting between representatives of Vikell and Kip Hampden, Morris revealed for the first time that he was the soils engineer who had assisted Kip Hampden with its downhill excavation.

As a result of the damage caused by the slope subsidence, Vikell sued Kip Hampden for strict liability and for vicarious liability arising from Morris’ allegedly negligent work in planning the 1987 excavation. Vikell also sued Morris directly for negligence and breach of fiduciary duty. The trial court directed a verdict in favor of Morris on the claim for breach of fiduciary duty. The remaining issues were submitted to a jury, which found that Kip Hampden was neither strictly liable nor vicariously hable, that Morris was not negligent, and that Vikell was negligent. This appeal followed.

*593 I.

Vikell first contends that the trial court erred in instructing the jury on the appropriate standard of strict liability in lateral support eases. Specifically, it maintains that it was error to instruct the jury that additional sub-surface water and groundwater are artificial additions or improvements that a plaintiff must prove did not materially contribute to slope subsidence. We disagree.

As a general matter, one who withdraws naturally necessary lateral support of land in another’s possession is strictly liable for a subsidence of the land, as well as for harm to artificial additions resulting from the subsidence. Restatement (Second) of Torts § 817 (1979).

For strict liability to apply, however, a jury first must find that the weight of the buildings, artificial additions, and fill on the plaintiffs land did not materially increase the lateral pressure and thus that such added weight was not a proximate cause of the damage to the property. In fact, there is a legal presumption that the weight of the buildings, artificial additions, and fill did contribute to the subsidence, and the burden is on the plaintiff to overcome this presumption. Gladin v. Von Engeln, 195 Colo. 88, 575 P.2d 418 (1978).

Here, the trial court instructed the jury that:

Kip Hampden, Ltd. alleges that the artificial additions and fill have created additional sub-surface water and groundwater on Plaintiffs property ... [and] [t]he burden is upon the Plaintiff to overcome this presumption ... and to prove ... that the additional sub-surface water and groundwater has not materially contributed to the existing subsidences....

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946 P.2d 589, 1997 Colo. J. C.A.R. 1983, 1997 Colo. App. LEXIS 212, 1997 WL 578171, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vikell-investors-pacific-inc-v-kip-hampden-ltd-coloctapp-1997.