Whitt v. American Property Construction, P.C.

157 A.3d 196, 2017 WL 1288572, 2017 D.C. App. LEXIS 74
CourtDistrict of Columbia Court of Appeals
DecidedApril 6, 2017
Docket15-CV-1199
StatusPublished
Cited by32 cases

This text of 157 A.3d 196 (Whitt v. American Property Construction, P.C.) is published on Counsel Stack Legal Research, covering District of Columbia Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Whitt v. American Property Construction, P.C., 157 A.3d 196, 2017 WL 1288572, 2017 D.C. App. LEXIS 74 (D.C. 2017).

Opinion

Fisher, Associate Judge:

Suzanne Whitt appeals from Superior Court judgments rejecting her claims for tortious interference with business relations, intentional infliction of emotional distress (“IIED”), and negligence. She argues that the trial judge erred by omitting a proposed jury instruction, by dismissing her negligence claim after applying the “economic loss doctrine,” by disqualifying one of her attorneys, and by directing verdicts for appellee Washington Gas Light Company (“Washington Gas”) while limiting the scope of her claims against appellee American Property Construction, P.C. (“APC”). We affirm the trial judge’s disqualification of appellant’s attorney. However, we reverse the trial court’s rulings regarding the proposed jury instruction, the economic loss doctrine, one of the directed verdicts for Washington Gas, and the limitation of the factual predicate on which APC’s liability was determined. We remand for further proceedings on all claims except IIED.

I. Background

From 2011 to 2013, Washington Gas and APC, along with two former defendants in this case — 660 Pennsylvania Avenue Associates, LLC (“660 Penn”), and Stanton Development Corporation (“Stan *200 ton”) — undertook a construction project next to appellant’s hair salon at 323 7th Street, S.E. 1 660 Penn owned the properties under construction, Stanton was a development company, APC served as general contractor, and Washington Gas allegedly was responsible for excavating the alley, laying a gas line, and re-paving the alley, 2

On July 1, 2011, 660 Penn obtained a permit that allowed it to close a section of the public alley to perform the construction. The permit specified that 660 Penn “[w]ffl not block access via C Street or business entrances of 7th Street alley.”

The principal entrance to appellant’s salon was in the'7th Street alley. Customers could reach the entrance by walking down the alley to a staircase near the back of a townhouse. That staircase led up to appellant’s salon, which was on the second floor. Although there technically was another entrance via the first floor of the building— which would not require one to enter the alley — appellant was not on good terms with the owners of the store on that floor, and one of the owners testified that he was not aware of any lease terms that would require'him to allow appellant to use that entrance.

Viewed in a light favorable to her, the evidence showed that appellant .encountered many problems during construction. For instance, the activity of workers and the presence of trash, construction equipment, and other miscellaneous items made it difficult to navigate the alley. At times, construction vehicles were parked directly in front of the salon entrance, filling the narrow alley so as to make access difficult, if not impossible. Road signs warning of construction activity were placed at the alley’s entrance. During one multi-week stretch, the entire entrance to the alley was blocked off with yellow “caution” tape and red cones, bricks were stacked near the entrance to the alley, and black plastic sheets covered the surface of the alley leading to appellant’s salon. Witnesses also testified that a port-a-potty emitting noxious odors and leaking a bluish liquid was placed near appellant’s door.

Appellant complained to Stanton, APC, and her city councilmember’s office, but the situation did not improve. She alleged that she steadily lost customers due to these problems and incurred approximately $265,000 in losses. She ultimately closed the salon and moved to South Carolina.

Appellant filed suit in the Superior Court against 660 Penn, Stanton, APC, and Washington Gas, alleging tortious interference with business relations, trespass, IIED, and negligence. She later voluntarily dismissed her trespass claim. In preparation for trial, one of appellant’s attorneys, Ursula Werner, created a summary of appellant’s 2014 income so that appellant’s expert could calculate damages. This was necessary because appellant had not yet filed her tax return for 2014. Ms. Werner created the summary from entries in appellant’s appointment book, which listed the names of customers on the day they visited the salon. Appellant told Ms. Werner the sums she would have received based on her knowledge of the services each customer requested.

On September 28, 2015, the day trial began, Judge Stuart G. Nash ruled on three of the four major issues in this appeal. First, he declined to include appellant’s proposed jury instruction elaborating on the “intent” element, of tortious *201 interference with business relations. Appellant had asked for a definition of intent which included conduct that appellees knew was certain or “substantially certain” to interfere with her business. However, Judge Nash concluded that appellant needed to show actual intent, stating that “the idea is that they did this for the purpose of harming Ms. Whitt and her business interests[.]”

Second, Judge Nash disqualified Ms. Werner from serving as appellant’s co-counsel. He stated that the defense should have “the ability to explore” how appellant’s expert had arrived at his damages figures, and he noted that Ms. Werner had “unconsciously, without any intention of doing so, ... injected [herself] into the process of [calculating the amount of appellant’s 2014 income] by going through the books and using [her] discretion to come up with a key piece of evidence in this case.” Judge Nash ruled that the defense could call Ms. Werner as a witness to describe how she had created the summary of income. Because Ms. Werner would be a necessary witness, she could not serve as counsel. See D.C. Rules of Prof 1 Conduct, R. 3.7 (a). Ms. Werner’s co-counsel, Ryan Spiegel, represented appellant at trial. 3

Finally, Judge Nash ruled that the “economic loss doctrine,” as described in Aguilar v. RP MRP Wash. Harbour, LLC, 98 A.3d 979 (D.C. 2014), barred appellant’s claims for economic damages allegedly caused by appellees’ negligence. Having previously ruled that appellant could not recover damages for the emotional distress allegedly caused by the negligence, Judge Nash dismissed the negligence claim.

During trial, appellant testified and called several witnesses, including her expert, former customers, Stanton’s co-president, and Ms. Werner. 4 At the conclusion of appellant’s case) both Washington Gas and APC moved for directed verdicts on the remaining claims of IIED and tortious interference'with business relations.

Judge Nash directed verdicts for Washington Gas, finding that “[e]ven if ... acts committed in pursuit of this trenching project were done intentionally to interfere with Ms. Whitt’s business or, in the case of the infliction of emotional distress, ... done recklessly,” there was no evidence “from which a reasonable fact finder could determine whether it was Washington Gas that committed those acts ;..

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Cite This Page — Counsel Stack

Bluebook (online)
157 A.3d 196, 2017 WL 1288572, 2017 D.C. App. LEXIS 74, Counsel Stack Legal Research, https://law.counselstack.com/opinion/whitt-v-american-property-construction-pc-dc-2017.