Yellowstone Log Homes, LLC v. City of Rigby

540 P.3d 990
CourtIdaho Supreme Court
DecidedDecember 20, 2023
Docket49562
StatusPublished
Cited by3 cases

This text of 540 P.3d 990 (Yellowstone Log Homes, LLC v. City of Rigby) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Yellowstone Log Homes, LLC v. City of Rigby, 540 P.3d 990 (Idaho 2023).

Opinion

IN THE SUPREME COURT OF THE STATE OF IDAHO Docket No. 49562

YELLOWSTONE LOG HOMES, LLC, ) an Idaho limited liability company, ) ) Plaintiff-Appellant- ) Cross Respondent, ) Rexburg, June 2023 Term ) v. ) Opinion Filed: December 20, 2023 ) CITY OF RIGBY, a municipal ) Melanie Gagnepain, Clerk corporation in the State of Idaho, ) ) Defendant-Respondent- ) Cross Appellant. )

Appeal from the District Court of the Seventh Judicial District of the State of Idaho, Jefferson County. Stevan H. Thompson, District Judge.

The order of the district court is reversed, and the case is remanded.

Nelson Hall Parry Tucker, PLLC, Idaho Falls, for Plaintiff-Appellant-Cross Respondent, Yellowstone Log Homes, LLC. Weston S. Davis argued.

Hall Angell & Associates, LLP, Idaho Falls, for Defendant-Respondent-Cross Appellant, City of Rigby. Sam Angell argued.

_____________________

STEGNER, Justice. This case involves an alleged tort arising from the breach of a sewer lateral. Yellowstone Log Homes, LLC (“Yellowstone”), owns a rental home in Rigby, Idaho, that suffered extensive damage after BorTek Utilities and Construction, LLC (“BorTek”), bored through a lateral sewer line connected to Yellowstone’s rental home. Prior to the project, an agent of the City of Rigby (“the City”) marked certain nearby utilities; however, it failed to mark the service lateral sewer pipe connecting to Yellowstone’s rental property. As a result of the severing of the sewer lateral, Yellowstone’s property sustained significant damage. After the incident, Yellowstone contacted the City, demanding that it take responsibility for the damages sustained and to compensate Yellowstone for those damages. The City refused. Yellowstone then filed suit against the City

1 alleging negligence per se and common law negligence for the City’s failure to have the service lateral marked. Both parties subsequently filed cross-motions for summary judgment. The district court concluded Yellowstone did not have standing under the Idaho Underground Facilities Damage Prevention Act (Idaho Code sections 55-2201 through 55-2212) (“the Act”), which creates a cause of action for excavators and underground facility owners, but not explicitly for end users. The district court determined that even if Yellowstone had standing to pursue its claims, it had failed to prove the City breached any duty owed to Yellowstone. As a result, the district court granted the City’s motion for summary judgment. At the same time, the district court denied the City’s request for attorney fees. Yellowstone appeals the district court’s grant of summary judgment to the City and the denial of summary judgment to Yellowstone. The City cross-appeals the district court’s denial of its request for attorney fees. For the reasons discussed below, we reverse the granting of summary judgment and remand the case for further proceedings. I. FACTUAL AND PROCEDURAL BACKGROUND This case began in spring 2020, when Direct Communications Rockland, Inc. (“Direct Comm”), contacted BorTek, a local excavation company, to bore through ground along Highway 48 in the City and “install a fiber communications line on behalf of [Direct Comm].” Prior to beginning the project, BorTek contacted Idaho Dig Line 1 to begin the process of marking underground facilities, such as sewer pipes. Yellowstone owned a rental home near the proposed excavation project (“the Property”). Before BorTek began excavating, “Rigby [through its agent] marked utilities in the area, but did not mark [Yellowstone’s] service lateral” that connected the home to the City’s main sewer system. During the project, “BorTek drilled through the service lateral leading to [Yellowstone]’s property and placed the fiber line in the service lateral obstructing the flow of sewage.” Yellowstone alleged that “[t]his breach of the sewer pipe leading to [the Property] occurred in a public right-of-way.” As a result of the obstructed lateral, raw sewage backed up into the Property, causing extensive damage and rendering the Property uninhabitable.

1 Idaho Dig Line is an Idaho corporation that is responsible for notifying underground facility owners, such as the City, of proposed excavation projects. The purpose of the notification is “to seek [underground facility owners’] assistance in locating their respective subsurface facilities[,]” so those facilities may be marked before underground digging begins.

2 After the sewer line was breached and the Property sustained significant damage, Yellowstone contacted the City, demanding that it repair the sewer line and compensate Yellowstone for the damages it had sustained. The City refused and recommended that Yellowstone contact Direct Comm, the company with which BorTek had contracted. In June 2020, Yellowstone again demanded that the City “accept liability for payment of the cost of the diagnosis and repair of the line as well as the restoration of the residence[.]” The City once again denied that it had any duty to mark service lines to Yellowstone’s property. In turn, Yellowstone notified the City that it intended to file a tort claim. Yellowstone filed a Notice of Tort Claim with the City advising it of Yellowstone’s intent to seek damages it sustained because of BorTek’s breaching of the sewer line. The City refused to accept responsibility. As a result, Yellowstone sued the City, alleging negligence per se and common law negligence. Yellowstone sought no less than $30,797.33 in damages. The City answered and asserted several affirmative defenses, including that Yellowstone had “failed to comply with requirements of the Idaho Tort Claims Act[,] . . . failed to exhaust [its] administrative remedies[,]” and did not have standing to sue under the relevant provisions of the Idaho Code. The City later moved for summary judgment, reiterating the defenses identified in its answer. Yellowstone also moved for summary judgment, arguing that Idaho Code section 55-2202 imposed a duty on the City to mark underground sewer lines in a public right-of-way, which the City had not done. Yellowstone argued alternatively that if the sewer line was “identified but unlocatable[,]” then the City had a duty to use the “ ‘best information available’ in order to mark the lines . . . .” Yellowstone argued that the City had breached those duties when it failed to mark the sewer lateral. Both parties requested attorney fees. The district court concluded that Yellowstone did not have standing to sue because Yellowstone did not have any preexisting rights as provided by Idaho Code section 55-2211(5). Instead, the district court determined that BorTek was the only entity with “the ‘right to receive compensation from the owner of the underground facility for costs incurred if the owner of the underground facility does not locate its facility[.]’ ” The district court then concluded that even if Yellowstone had standing to sue the City, summary judgment for the City would still be proper because there was no evidence that the City had breached a duty to “1) locate and mark its locatable service laterals with reasonable accuracy or 2) . . . locate and mark identified but unlocatable service laterals with the best information available to the owner of the underground facilities.”

3 Alternatively, the district court found that the City’s inability to locate the service lateral qualified as a discretionary function, which entitled the City to statutory immunity. Ultimately, the district court concluded that BorTek, not the City, was the proper entity for Yellowstone to have sued.

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Cite This Page — Counsel Stack

Bluebook (online)
540 P.3d 990, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yellowstone-log-homes-llc-v-city-of-rigby-idaho-2023.