Watchung Hill Investments, LLC v. New Jersey American Water

CourtNew Jersey Superior Court Appellate Division
DecidedDecember 12, 2024
DocketA-1616-23
StatusUnpublished

This text of Watchung Hill Investments, LLC v. New Jersey American Water (Watchung Hill Investments, LLC v. New Jersey American Water) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Watchung Hill Investments, LLC v. New Jersey American Water, (N.J. Ct. App. 2024).

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION DOCKET NO. A-1616-23

WATCHUNG HILL INVESTMENTS, LLC,

Plaintiff-Appellant,

v.

NEW JERSEY AMERICAN WATER, AMERICAN WATER RESOURCES, ULTIMATE DRAIN CLEANING & SERVICE, and PREFERRED MUTUAL INSURANCE COMPANY,

Defendants-Respondents. ____________________________

Argued October 1, 2024 – Decided December 12, 2024

Before Judges Gilson and Bishop-Thompson.

On appeal from the Superior Court of New Jersey, Law Division, Somerset County, Docket No. L-0114-22.

Paul R. Sheehan argued the cause for appellant (Hill Wallack, LLP, attorneys; Paul R. Sheehan, on the briefs). Gina M. Stanziale argued the cause for respondent Ultimate Drain Cleaning & Service (Methfessel & Werbel, attorneys; Gina M. Stanziale, on the brief).

Michael Della Rovere argued the cause for respondents New Jersey American Water and American Water Resources (O'Toole, Couch & Della Rovere, LLC, attorneys; Michael Della Rovere, on the brief).

PER CURIAM

Plaintiff Watching Hills Investment, LLC appeals from the Law Division's

January 3, 2024 order granting summary judgment to defendants New Jersey

American Water (NJ American Water) and American Water Resources (AWR)

(collectively defendants), and dismissing plaintiff's complaint. We affirm.

I.

We glean the facts from the summary judgment record, viewing the facts

in the light most favorable to plaintiff as the non-moving party. Statewide Ins.

Fund v. Star Ins. Co., 253 N.J. 119, 125 (2023). Plaintiff is the owner of a

commercial office building (Property) located at 776 Mountain Boulevard in

Watchung. In February 2020, NJ American Water, the water utility company,

updated the water meter for the main water line with galvanized steel pipe and

copper located in the basement of the Property.

In August 2021, plaintiff filed a claim with NJ American Water stating

the water line entering the building developed corrosion after the water line

A-1616-23 2 update was performed. At that time, a leak was observed on the building exterior

but there was no water leak or water infiltration inside the Property.

Plaintiff had a water line protection plan with AWR that provided

coverage for repairs of the water line. NJ American Water hired Ultimate Drain

Cleaning & Service (Ultimate Drain) to investigate plaintiff's claim concerning

the corroded pipe. During Ultimate Drain's inspection, a leak was detected in

the water line five feet from the exterior of the foundation.

On September 7, 2021, Ultimate Drain began to repair the exterior leak

by shutting off the water and excavating a four-foot section between the building

and the parking lot curb to replace the affected portion of the water line. After

the repair began, however, Ultimate Drain discovered it did not have the correct

fitting to replace the pipe and halted the work.

Ultimate Drain returned the following day, exposed the leak, cut out the

section of the existing exterior galvanized pipe and replaced it with a "two-inch

poly" pipe, and backfilled the hole. When Ultimate Drain turned the water back

on, the pipe "immediately" burst. Ultimate Drain then turned the water back off

while it completed the repair. At approximately 7:00 p.m., Ultimate Drain

notified plaintiff the repair was completed, and the water was back on.

The next morning, September 9, plaintiff's tenant discovered over a foot

of water in the basement. Plaintiff notified Ultimate Drain regarding the flooded

A-1616-23 3 basement and Ultimate Drain returned to perform additional repairs. After

Ultimate Drain turned the water off, it discovered a second leak originated from

another section of galvanized piping on the same water line. That affected

section of galvanized pipe was also replaced with a two-inch poly pipe.

Plaintiff filed a complaint alleging that it suffered "extensive" property

damage because of the negligent water line repair and replacement. Plaintiff

alleges that the flooded basement originated because (1) NJ American Water

used corrosive materials to update the water line and (2) Ultimate Drain failed

to repair and replace the water line pipe related to the first leak that caused the

second leak.

Following the close of discovery, Ultimate Drain move for summary

judgment, which was granted on June 1, 2023.

Thereafter, NJ American Water and AWR moved for summary judgment

arguing plaintiff was unable to establish a theory of negligence. Defendants

relied on the deposition testimony of Ultimate Drain's Chief Operating Officer

Daryl Adams that the first leak was repaired and "twelve to eighteen hours later,"

the second leak occurred. Adams testified the two leaks were not related

because the second leak was three to five feet away from the first leak.

Defendants also highlighted the deposition testimony of plaintiff's Operation

Manager Rehan Murad that Ultimate Drain repaired the leak on September 9.

A-1616-23 4 Additionally, defendants argued plaintiff had not retained an expert to opine

regarding the causation of the second leak.

In opposing defendants' motion, plaintiff argued there was only one repair

to be made; and the repair was related to plaintiff's claim about the corroded

pipe. Plaintiff further argued the issue of the pipe's developing corrosion should

be presented to a jury "to view the evidence and determine whether there was a

second pipe break and leakage" or determine if that theory was "impossible."

Plaintiff also contended that no expert testimony was required because a jury

could use their common judgment and experience to determine the cause of the

leak.

Following oral argument, the trial court granted defendants' motion

dismissing plaintiff's complaint with prejudice. In a statement of reasons, the

court reasoned plaintiff could not establish the essential elements of the

negligence claim without expert testimony regarding causation. The court

explained "the cause of the leak and water infiltration at [p]laintiff's property is

beyond the 'knowledge or experience' of the average juror, and therefore

requires the specialized knowledge of an expert to prove." The court further

ruled: "Although [p]laintiff suggests that [d]efendants used corrosive materials

when updating [p]plaintiff's water meters, there is no competent proof that

[d]efendants' actions caused [p]laintiff's damages. Rather, without expert

A-1616-23 5 testimony, the jury would be left to speculate as to the cause of the leak and

water damage." This appeal followed.

II.

On appeal, plaintiff presents two arguments. First, it argues the trial court

erred in granting summary judgment because there are genuine issues of material

fact regarding the repair and replacement of the corroded pipe, which precluded

summary judgment. Second, plaintiff asserts the facts relied upon to prove

negligence are not beyond the ken of the average layperson. In that regard,

plaintiff asserts the jury can understand the concepts in this case using common

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Watchung Hill Investments, LLC v. New Jersey American Water, Counsel Stack Legal Research, https://law.counselstack.com/opinion/watchung-hill-investments-llc-v-new-jersey-american-water-njsuperctappdiv-2024.