BERNIE THORNTON V GINOP CONSTRUCTION INC
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STATE OF MICHIGAN
COURT OF APPEALS
BERNIE THORNTON,
UNPUBLISHED
May 5, 2011
Plaintiff-Appellant/Cross-Appellee,
v
No. 290923
Cheboygan Circuit Court
LC No. 04-007373-NO
GINOP CONSTRUCTION INC.,
Defendant-Appellee/CrossAppellant,
and
JIM’S HANDYMAN AND REPAIR SERVICES,
INC., JIM ZWAR INC., and ST. JOHN
EVANGELICAL LUTHERAN CHURCH,
Defendants-Appellees,
and
ROBIADEK & SONS EXCAVATING INC.,
Defendant.
Before: HOEKSTRA, P.J., and CAVANAGH and BORRELLO, JJ.
PER CURIAM.
Plaintiff Bernie Thornton appeals as of right the order granting defendant Ginop
Construction, Inc.’s (hereinafter “defendant”) motion for directed verdict and dismissing
plaintiff’s case with prejudice. Defendant cross-appeals, arguing that the trial court erred in
denying its motion for summary disposition. For the reasons set forth in this opinion, we find
that the trial court erred in granting defendant’s motion for directed verdict and we therefore
reverse.
I. FACTS AND PROCEDURAL HISTORY
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This case arises as a result of a personal injury accident at a construction site. Defendant
is a Michigan Corporation that conducts business in excavation, earth moving and roadway and
driveway construction. Defendant entered into a contract with defendant St. John Evangelical
Lutheran Church (hereinafter “church”) to excavate and install a roadway or service driveway.
On December 10, 2002, plaintiff, an employee of Indian River Custom Log homes, was working
at the construction site at the church. Plaintiff and a co-worker were working on “a lift vehicle
known as a Pettibone, which [i]s a four-wheel drive piece of heavy equipment designed for use
on construction sites.” At the time of the accident, plaintiff’s co-worker was driving the
Pettibone, and plaintiff was on a work platform connected to the Pettibone, approximately three
feet above the ground. According to plaintiff, defendant had “excavated the land extensively,
changed the topography, and built a driveway, a berm next to the driveway and inadequate
foundation soil supports for these structures.” Plaintiff alleges that as his co-worker drove the
Pettibone partially outside the driveway on the berm, the berm collapsed due to defendant’s
defective workmanship, and the Pettibone slid backwards down a slight incline and flipped over.
As a result of the accident, plaintiff sustained injuries that rendered him a paraplegic. Plaintiff
filed suit against defendant,1 alleging that defendant performed “negligent excavation, earth
moving, filling, compaction, roadway and driveway construction work” on the church premises.
In November 2006, defendant moved for summary disposition pursuant to MCR
2.116(C)(8) and (10). Citing Banaszak v Northwest Airlines, Inc, 477 Mich 895; 722 NW2d 433
(2006), and Fultz v Union-Commerce Assoc, 470 Mich 460; 683 NW2d 587 (2004), defendant
argued that its sole duty arose from its contractual relationship with the church and it owed no
duty to plaintiff that was separate and distinct from its contractual duty. Plaintiff argued that
defendant owed a duty to plaintiff that was separate and distinct from its duties under the
contract because defendant created a new hazard by excavating on the church property and
creating a berm, and plaintiff was injured when the berm collapsed and the Pettibone slipped
down the collapsed berm and overturned. The trial court held a hearing on the motion, and
granted plaintiff 14 days to amend his complaint to allege obligations that were separate and
distinct from defendant’s obligations under the contract. On February 6, 2007, plaintiff filed its
fifth amended complaint. In an order dated March 14, 2007, the trial court denied defendant’s
motion for summary disposition.
In September 2007, defendant filed a renewed motion for summary disposition.
Defendant argued that under its contract with the church it was required to excavate and install
the lower drive, and plaintiff alleged that he was injured when the soil adjacent to the lower drive
collapsed. Because the hazard was the subject of the contract, defendant asserted that it owed no
duty to plaintiff that was separate and distinct from its duties under the contract. The trial court
denied the motion. In denying defendant’s motion, the trial court ruled that defendant created a
new hazard in constructing the service driveway and that defendant therefore owed plaintiff a
duty separate and distinct from its obligations under the contract:
1
Plaintiff also filed suit against other defendants, but they are not involved in this appeal.
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In the present case, pursuant to the contract, Ginop created a roadway
where one had not previously existed. . . . It was known that the drive would be
used by motor vehicles including various subcontractors working on the job
essentially inviting them to traverse the drive with vehicles and equipment. If one
relied on the construction of this drive as being adequate to sustain vehicular
traffic and in fact it was not, this would result in the creation of a new hazardous
condition which did not exist prior to the performance under the contract. This
creates a separate and distinct duty to third parties as described in the Fultz
decision.
Thereafter, defendant moved for rehearing, and the trial court also denied that motion, stating:
Therefore, assuming Ginop constructed the roadway in a negligent fashion
thereby rendering it subject to collapse; Ginop would be responsible to any third
parties that were injured as a result of this negligence whether or not there was a
contract. If Ginop gratuitously undertook the construction of a roadway to make
travel easier in the community, there is a duty owed to construct it in such a
fashion that it would not be hazardous to parties who might use this road. This
duty exists irregardless of the existence of a contract.
Thereafter, the case proceeded to trial. After plaintiff rested, defendant renewed its
motion for summary disposition based on the absence of any duty owed to plaintiff that was
separate and distinct from the duty owed by defendant under the contract with the church.
Defendant also moved for a directed verdict, arguing that plaintiff failed to establish a prima
facie case of negligence against defendant because there was no evidence that defendant’s work
violated any standard of reasonable conduct.
The trial court granted defendant’s motion for directed verdict and issued its opinion on
the record. In granting the motion, the trial court noted that defendant finished its work on the
service driveway in July 2002, and plaintiff’s accident at the construction site did not occur until
months later, in December 2002. According to the trial court, there was evidence that other
workers were storing materials on the slope after defendant finished its work there. Furthermore,
the trial court noted that the photographic evidence revealed that there was a disturbance in the
area between the service driveway and the edge of the slope that occurred after defendant had
finished its work on the driveway and that the slope itself had been worked on after defendant’s
work was completed. Regarding a soil collapse, the trial court ruled that while “[n]obody said
they saw a collapse[,]” the photographic evidence revealed a small collapse: “[t]he collapse is
very small. It’s a little bit of sliding and it gets into the mud and it slides down on two wheels.”
Ultimately, the trial court granted defendant’s motion for directed verdict based on plaintiff’s
failure to establish a genuine issue of material fact regarding whether defendant caused the
accident:
As to what exactly caused the accident, it’s not known. If I give the
plaintiff the benefit of the doubt. There was some soil shifting and it wasn’t Mr.
Lalonde [the driver of the Pettibone] simply backing down too far. There was soil
shifting again. It’s in this really disturbed area that was disturbed by somebody
other than a Ginop, so if that caused it—I’m not saying the proofs indicate that
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caused it, and if I give that benefit of the doubt to the plaintiffs, it still doesn’t
establish the case because that uneven soil condition was created by all this
activity that was going on there for the four months plus that Ginops [sic] had
been off the job, so I—I don’t think there is reasonable minds that could differ on
that, so I would grant a directed verdict.
On February 18, 2009, the trial court entered an order granting defendant’s motion for directed
verdict “for the reasons stated on the record.”
Plaintiff appeals as of right the trial court’s granting of defendant’s motion for directed
verdict, and defendant cross-appeals as of right the denial of its motion for summary disposition.
II. DIRECTED VERDICT—CAUSATION
Plaintiff argues that the trial court erred in granting defendant’s motion for directed
verdict because the evidence, viewed in a light most favorable to plaintiff, established a genuine
issue of material fact regarding defendant’s negligence. Defendant counters that the trial court
properly granted its motion for directed verdict because plaintiff’s evidence regarding causation,
or how the accident occurred, was insufficient as a matter of law. Specifically, defendant
contends that plaintiff failed to introduce sufficient evidence of a soil collapse.
This Court reviews de novo the trial court’s decision on a motion for directed verdict.
Sniecinski v Blue Cross & Blue Shield of Michigan, 469 Mich 124, 131; 666 NW2d 186 (2003).
In reviewing the trial court’s ruling, this Court views the evidence presented up to the time of the
motion in the light most favorable to the nonmoving party, grants that party every reasonable
inference, and resolves any conflict in favor of that party to determine if a question of fact
existed. Thomas v McGinnis, 239 Mich App 636, 643-644; 609 NW2d 222 (2000). A directed
verdict is only appropriate if there is no factual question on which reasonable jurors could differ.
Zantel Marketing Agency v Whitesell Corp, 265 Mich App 559, 568; 696 NW2d 735 (2005). “A
motion for directed verdict . . . should be granted only if the evidence viewed in this light fails to
establish a claim as a matter of law.” Sniecinski, 469 Mich at 131. “Further, this Court
recognizes the unique opportunity of the jury and the trial judge to observe witnesses and the
fact-finder’s responsibility to determine the credibility and weight of the testimony.” Wiley v
Henry Ford Cottage Hosp, 257 Mich App 488, 491; 668 NW2d 402 (2003). Directed verdicts
are disfavored in negligence cases. Hunt v Freeman, 217 Mich App 92, 99; 550 NW2d 817
(1996).
In a premises liability action, a plaintiff must prove the following elements of negligence:
“(1) that the defendant owed a duty to the plaintiff, (2) that the defendant breached the duty, (3)
that the defendant’s breach of the duty caused the plaintiff’s injuries, and (4) that the plaintiff
suffered damages.” Kennedy v Great Atlantic & Pacific Tea Co, 274 Mich App 710, 712; 737
NW2d 179 (2007). To preclude summary disposition based on the lack of a material factual
dispute, a disputed factual issue must be material to the dispositive legal claims. Auto Club Ins
Ass’n v State Auto Mut Ins Co, 258 Mich App 328, 333; 671 NW2d 132 (2003).
In this case, the trial court concluded that plaintiff failed to establish an issue of material
fact regarding whether defendant caused plaintiff’s injuries. According to the trial court, even
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though there was evidence of some soil shifting and a slight soil collapse, the evidence
established that defendant had been finished with the service drive for months before the
accident occurred and that other workers had worked and stored equipment in the area after
defendant finished its work on the service driveway.
Generally, the existence of cause in fact is a question for the jury to decide, but if there is
no issue of material fact, the question may be decided by the court. Genna v Jackson, 286 Mich
App 413, 418; 781 NW2d 124 (2009). “A plaintiff must present substantial evidence from
which a jury may conclude that more likely than not, but for the defendant’s conduct, the
plaintiff’s injuries would not have occurred.” Id. “A mere possibility of such causation is not
sufficient; and when the matter remains one of pure speculation and conjecture, or the
probabilities are at best evenly balanced, it becomes the duty of the court to direct a verdict in
favor of the defendant.” Id.
At trial, there was evidence that defendant knew that the soil at the church was poor and
unstable. There was evidence that defendant excavated an area 12 to 14 feet wide for the service
driveway and then compacted it with a compactor and trucks. However, defendant did not
excavate or compact an area about six inches to two feet between the service driveway and the
edge of the slope. Plaintiff introduced expert testimony that it violated reasonable standards of
design and construction to leave the six inch to two feet area of uncompacted problematic soil
along the edge of the slope and that leaving the area uncompacted would make it less stable.
Plaintiff’s expert explained that only if the soil in that area “was very good dense compacted
hard packed quality material” would one leave such an area next to a slope uncompacted and that
the soil did not appear to be dense and compacted. According to plaintiff’s expert, if the
driveway had been compacted to the edge of the slope, the edge would not have broken down
even if a Pettibone had driven on it.
Defendant contends that the trial court properly granted its motion for directed verdict
because even viewing the evidence in a light most favorable to plaintiff, plaintiff failed to
introduce sufficient evidence of causation. Specifically, defendant asserts that plaintiff failed to
introduce any evidence that the six inch to two feet wide area between the service driveway and
the edge of the slope collapsed. Our review of the evidence reveals that, contrary to defendant’s
contention, there was evidence that the six inch to two feet area between the service driveway
and the slope collapsed. The police report for the accident was admitted into evidence, and it
contains a description of the accident. According to the police report, the operator of the
Pettibone was backing up when “the right front and rear tires gave way to a [sic] embankment
causing the forklift to slide down the embankment and roll on its side . . . .” James Lalonde, the
driver of the Pettibone at the time of the accident, testified regarding his statements in the police
report. According to Lalonde’s testimony, he was “creeping” forward2 on the service driveway
about a foot from the slope, when the “embankment g[a]ve away.” Lalonde testified that all four
2
Lalonde testified that the police report was incorrect in stating that he was backing up the
Pettibone at the time of the accident.
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tires were on the service driveway and that “[d]irt right from the—underneath the tire kind of let
loose.” Although the police report and Lalonde’s testimony differ on whether Lalonde was
driving the Pettibone forwards or backwards, when viewed in a light most favorable to plaintiff,
both permit the inference that the soil gave way or collapsed either on the service driveway itself
or in the area between the service driveway and the edge of the slope, causing the Pettibone to
slide down the slope. Furthermore, when asked if he had looked at the photos and whether he
could see any soil collapse, Lalonde responded: “I seen [sic] it underneath the rear tire collapse.”
Lalonde testified that he stated in his deposition that the soil collapsed “[s]omething like” one
foot. Similarly, plaintiff testified that the accident “happened because the ground gave way.”
As noted previously, directed verdicts are disfavored in negligence cases. Hunt, 217
Mich App at 99. Viewing Lalonde’s testimony, plaintiff’s testimony and the police report in a
light most favorable to plaintiff, there was a genuine issue of material fact regarding whether the
soil between the service driveway and the slope collapsed, thus causing the Pettibone to slide
down the slope. Furthermore, the trial court erred in concluding that plaintiff failed to establish
causation because other contractors had worked in the area of the accident and stored equipment
after defendant had completed its work on the service drive. Plaintiff’s expert testified that
defendant violated reasonable standards of design and construction by leaving the six inch to two
feet area between the service driveway and the edge of the slope uncompacted and that if the
driveway had been compacted to the edge of the slope, the edge would not have broken down
even if a Pettibone had driven on it. Viewing this evidence in a light most favorable to plaintiff,
even if other contractors stored equipment and worked in the area after defendant finished its
work on the service driveway, there is still evidence that defendant’s failure to compact the area
between the service driveway and the edge of the slope caused a soil collapse that caused the
Pettibone to slide down the slope and injure plaintiff. Given plaintiff’s evidence that there was a
soil collapse and that defendant should have compacted the area, causation was not a matter of
pure speculation and conjecture. See Genna, 286 Mich App at 418. At the very least, plaintiff’s
causation evidence raises a genuine issue of material fact upon which reasonable minds could
differ. Holland v Liedel, 197 Mich App 60, 64; 494 NW2d 772 (1992). Thus, we hold that the
trial court erred in granting defendant’s motion for directed verdict.
Defendant argues that Lalonde’s testimony that the soil collapsed is contradicted by the
photographic evidence and that “[t]estimony which is contrary to physical facts as shown by
unimpeached photographs is legally insufficient to create a genuine issue of material fact and is
properly disregarded.” In support of its argument, defendant cites federal cases, cases from other
jurisdictions and an unpublished case decided by this Court. Adams v K-Mart Corp, unpublished
opinion per curiam of the Court of Appeals, issued March 1, 2007 (Docket No. 271819). In
Adams, this Court rejected the plaintiff’s claim that a danger from sidewalk pavement was not
open and obvious, concluding that “plaintiff’s own photographic exhibits prove otherwise.”
Because Adams is unpublished it has no precedential effect under the rule of stare decisis. MCR
7.215(C)(1). In any event, the trial court actually concluded that the photographic evidence
revealed a small collapse: “[t]he collapse is very small. It’s a little bit of sliding and it gets into
the mud and it slides down on two wheels.” Moreover, we have reviewed the photographic
evidence, and we disagree with defendant’s contention that the photos clearly show that there
was no soil collapse. In our view, the photos are inconclusive regarding whether there was a soil
collapse in the area between the edge of the service driveway and the slope. Only a few of the
photos actually depict the area between the service driveway and the edge of the slope, and, at
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most, these photos reveal that the area appears muddy and is uneven and heavily rutted.
Contrary to defendant’s argument, some of the ruts might be interpreted as a soil collapse.
In sum, we find that given that directed verdicts are generally disfavored in negligence
actions and given plaintiff’s testimony, Lalonde’s testimony, plaintiff’s expert testimony and the
police report, there was sufficient evidence that defendant’s failure to compact the area between
the service driveway and the edge of the slope caused a soil collapse that caused the Pettibone to
slide down the slope and injure plaintiff. We therefore reverse the trial court’s order granting of
a directed verdict in favor of defendant.
III. SUMMARY DISPOSITION—DUTY
On cross-appeal, defendant argues that the trial court erred in denying its motion for
summary disposition because based on our Supreme Court’s decisions in Banaszak and
Mierzejewski v Torre & Bruglio, Inc, 477 Mich 1087; 729 NW2d 225 (2007), defendant did not
owe plaintiff a duty that was separate and distinct from defendant’s obligations under its contract
with the church.
This Court’s review of a trial court’s grant of summary disposition pursuant to MCR
2.116(C)(10)3 is as follows:
This Court reviews de novo a trial court’s grant or denial of summary
disposition under MCR 2.116(C)(10). Spiek v Dep’t of Transportation, 456 Mich
331, 337; 572 NW2d 201 (1998). A motion brought under MCR 2.116(C)(10)
tests the factual support for a claim. Downey v Charlevoix Co Rd Comm’rs, 227
Mich App 621, 625; 576 NW2d 712 (1998). The pleadings, affidavits,
depositions, admissions, and any other documentary evidence submitted by the
parties must be considered by the court when ruling on a motion brought under
MCR 2.116(C)(10). Downey, supra at 626; MCR 2.116(G)(5). When reviewing
a decision on a motion for summary disposition under MCR 2.116(C)(10), this
Court “must consider the documentary evidence presented to the trial court ‘in the
light most favorable to the nonmoving party.’” DeBrow v Century 21 Great
Lakes, Inc (After Remand), 463 Mich 534, 539; 620 NW2d 836 (2001), quoting
Harts v Farmers Ins Exchange, 461 Mich 1, 5; 597 NW2d 47 (1999). A trial
court has properly granted a motion for summary disposition under MCR
2.116(C)(10) “if the affidavits or other documentary evidence show that there is
no genuine issue in respect to any material fact, and the moving party is entitled to
judgment as a matter of law.” Quinto v Cross & Peters Co, 451 Mich 358, 362;
3
Because defendant attached documentary evidence to its motion for summary disposition, and
it appears that the trial court relied on at least some of this documentary evidence in deciding the
motion, we treat the motion, and the trial court’s ruling on the motion, as governed by the
standards set forth in MCR 2.116(C)(10).
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547 NW2d 314 (1996). [Clerc v Chippewa Co War Mem Hosp, 267 Mich App
597, 601; 705 NW2d 703 (2005), remanded in part 477 Mich 1067 (2007).]
The starting point for our analysis in this case is our Supreme Court’s decision in Fultz.
In Fultz, the defendant snow removal company contracted with a property owner to provide
snow and salt services for the property owner’s parking lot. Fultz, 470 Mich at 462. The
plaintiff was injured when she slipped and fell on the snow- and ice-covered parking lot; when
plaintiff fell, defendant had not plowed the parking lot in approximately fourteen hours and had
not salted it. Id. Our Supreme Court held that the defendant owed no duty to the plaintiff that
was independent of the defendant’s contract with the property owner and that plaintiff therefore
“fail[ed] to satisfy the threshold requirement of establishing a duty that [defendant] owed to her
under the ‘separate and distinct’ approach set forth in this opinion.” Id. at 468.
Under Fultz, “[t]he threshold question in a negligence action is whether the defendant
owed a duty to the plaintiff.” Id. at 463. “‘It is axiomatic that there can be no tort liability unless
defendants owed a duty to plaintiff.’” Id., quoting Beaty v Hertzberg & Golden, PC, 456 Mich
247, 262; 571 NW2d 716 (1997). In a case involving a tort claim brought by a third party to a
contract, “the threshold question is whether the defendant owed a duty to the plaintiff that is
separate and distinct from the defendant’s contractual obligations. If no independent duty exists,
no tort action based on a contract will lie.” Fultz, 470 Mich at 467. A duty is separate and
distinct if it creates a new hazard to plaintiff that the defendant knew or should have known or
anticipated would pose a dangerous and hazardous condition. Id. at 469.
In this case, we must examine the contract between defendant and the church. This
contract required defendant to
excavate & install lower drive using existing materials, install 1000’ of 4” drain
lines including drain stone for perimeter drain around building, install 260’ of 24”
pipe for drainage ditch, excavate for basement to bottom of footings, backfill with
sand under lower level floor & along side walls, install 22A gravel for parking
area, grade, topsoil, seed & mulch disturbed areas, install new septic tank, pump
tank, pipe from pump tank to field, install new field (pump not included).
A significant component of defendant’s contract with the church was the excavation and
installation of a service driveway. Plaintiff’s complaint alleges that defendant’s “negligent
excavation, earth moving, filling, compaction, roadway and driveway construction work” caused
the Pettibone on which plaintiff was working to slide down the berm and injure plaintiff.
Plaintiff’s allegations regarding defendant’s negligence concern defendant’s excavation and
installation of the service driveway, which was the subject of defendant’s contract with the
church.
The question is whether under Fultz, defendant owed plaintiff a separate and distinct duty
from its contractual obligations by creating a new hazard to plaintiff that defendant knew or
should have known or anticipated would pose a dangerous and hazardous condition. Id. at 467,
469. Both this Court and our Supreme Court have generally limited the Fultz concept of the
creation of a new hazard resulting in a separate and distinct duty to the plaintiff. See, e.g.,
Banaszak, 477 Mich 895; Mierzejewski, 477 Mich 1087; Mutual v Kojaian Management Corp,
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unpublished opinion per curiam of the Court of Appeals, issued December 21, 2010 (Docket
Nos. 293740 & 295842); Frommert v Teera Construction Co, unpublished opinion per curiam of
the Court of Appeals, issued December 21, 2010 (Docket No. 292097); Gerzanics v Boston
Market Corp, unpublished opinion per curiam of the Court of Appeals, issued November 18,
2010 (Docket No. 294192); Zweifel v Fairway Sales Co, Inc, unpublished opinion per curiam of
the Court of Appeals, issued November 16, 2010 (Docket No. 293775); Loweke v Ann Arbor
Ceiling & Partition Co, Inc, unpublished opinion per curiam of the Court of Appeals, issued
April 22, 2010 (Docket No. 289451), lv gtd ___ Mich ___ ; 788 NW2d 461 (2010).
Nevertheless, we reject any suggestion that defendant’s contract with the church
immunized defendant from tort liability by eliminating any duty of care to third parties damaged
by defendant’s negligence in the performance of the contract. “If the actor’s negligent
performance of his undertakings results in increasing the risk of harm to a third person, the fact
that he is acting under a contract . . . with another will not prevent his liability to the third
person.” 2 Restatement Torts, 2d, § 324A, comment c, p 143.4 Moreover, in Boylan v FiftyEight Ltd Liability Co, ___ Mich App ___ ; ___ NW2d ___ (Docket No. 291141, rel’d
September 7, 2010) (2010 Mich App LEXIS 1657), this Court recently addressed this issue and
observed that “Fultz specifically contemplates that despite the existence of a contract, under
certain circumstances tort duties to third parties may lie.” Id., slip op p 3. In Boylan, the
plaintiff, who rented a residence from the defendant Fifty-Eight Limited Liability Company
(Fifty-Eight), filed a complaint against the defendant after the residence flooded and sewage
backed up into the bathroom and kitchen sinks. Id. at 2. The defendant’s property manager
concluded that Pamar Enterprises, Inc., which had contracted with Lyon Township for the
installation of a water main, improperly graded the earth on the property when installing the
water main. Id. at 2, 6. Fifty-Eight thus filed a third-party complaint against Pamar that
included a negligence claim. Id. at 2. Fifty-Eight’s third-party complaint alleged that Pamar
violated its duty to properly grade the earth. Id. Pamar moved for summary disposition, arguing
that under Fultz, it owed no duty to Fifty-Eight that was separate and distinct from its obligations
under the contract with Fifty-Eight. Id. at 2-3. The trial court concluded that Pamar owed FiftyEight no duty in tort and granted Pamar summary disposition of Fifty-Eight’s negligence claim.
Id. at 3. Fifty-Eight appealed to this court, and this Court reversed the trial court’s order granting
Pamar summary disposition of Fifty-Eight’s negligence claim.
In reversing, this Court carefully examined our Supreme Court’s decision in Fultz and
rejected the conclusion that under Fultz, a contractor never owes a duty to third parties. Id. at 4.
Relying on language from Fultz, this Court concluded that “tort liability may attach [to third
parties] in the presence of a duty that arises separately and distinctly from the contractual
4
In Fultz, our Supreme Court acknowledged that “Michigan courts have accepted the
Restatement of Torts, 2d, § 324A, as an accurate statement of Michigan law . . . .” Fultz, 470
Mich at 464. However, the Supreme Court did not address Comment c to § 324A and also stated
that judicial opinions endorsing Ҥ 324A . . . must not be invoked uncritically or without regard
to limiting principles within our case law.” Id.
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agreement.” Id. Furthermore, this Court observed that under Fultz, the creation of a “‘new
hazard’” may give rise to a breach of a duty that is separate and distinct from the contract. Id.,
quoting Fultz, 470 Mich at 469 (emphasis in Fultz).
In Boylan, this Court held that “separate and distinct from Pamar’s contract to install a
new water main for Lyon Township, Pamar bore a duty to exercise reasonable care when it
entered onto and altered private property” and that Pamar’s contract with the township “neither
created this separate duty of care, nor eliminated it.” Boylan, slip op p 6. This Court
characterized Pamar’s duty as several common-law duties to avoid permanently damaging the
property and explained that
The common law indisputably recognizes a landowner’s right to the full
enjoyment of her land. For example, the private nuisance doctrine penalizes
an interference with the occupation or use of land or an interference with
servitudes relating to land. There are countless ways to interfere with the
use and enjoyment of land including interference with the physical
condition of the land itself, disturbance in the comfort or conveniences of
the occupant including his peace of mind, and threat of future injury that is
a present menace and interference with enjoyment. The essence of private
nuisance is the protection of a property owner’s or occupier’s reasonable
comfort in occupation of the land in question. [Id., quoting Adkins v
Thomas Solvent Co, 440 Mich 293, 303; 487 NW2d 715 (1992).]
This Court also concluded in Boylan that “Pamar’s water main construction work created
a ‘new hazard’ consisting of interference with the subject property’s drainage system.” Id. at 7.
Explaining how Pamar’s conduct created a new hazard, this Court stated:
Record evidence establishes that in the course of constructing the water main,
Pamar entered onto Fifty-Eight’s property, graded the land, and eliminated a
swale that had been present before the water main work commenced. Fultz
explains that a party to a contract breaches a duty ‘separate and distinct’ from the
contract when it creates a ‘new hazard’ that it should have anticipated would pose
a dangerous condition to third persons. 470 Mich at 468-469. Viewed in the light
most favorable to Fifty-Eight, the facts reasonably support that Pamar’s
rearrangement of the soil on Fifty-Eight’s premises, and Pamar’s elimination of a
preexisting swale, created a new condition on the premises that it should have
foreseen could predispose the property to flooding. [Id.]
In light of Boylan, we find that defendant in this case bore a common-law duty to
exercise reasonable care when it entered and altered the church property. There was evidence
that defendant excavated an area that was 12 to 14 feet wide and two to 4-1/2 feet deep for the
service driveway and then brought in pit run gravel to fill it in. There was also evidence that
defendant compacted the service driveway with a compactor and trucks, but did not compact or
excavate an area about six inches to two feet wide between the service driveway and the edge of
the slope. Plaintiff introduced expert testimony that it violated reasonable standards of design
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and construction to leave the six inch to two feet area of uncompacted soil along the edge of the
slope and that leaving the area uncompacted would make it less stable.
Under Boylan, defendant had a common-law duty not to interfere with the physical
condition of the land itself and not to create a threat of injury that is a present menace. Id. at 6.
By leaving an area six inches to two feet wide between the edge of the service driveway and the
edge of the slope that was not excavated and not compacted, defendant did interfere with the
physical condition of the land itself and, in doing so, created a condition that threatened injury to
workers who were working in the area. Moreover, the six inch to two feet wide area did not
exist before defendant worked on the church’s property. Thus, this narrow strip of unexcavated
and uncompacted earth between the service driveway and the edge of the slope constitutes a new
hazard that did not exist before defendant worked on the property and that was created by
defendant. This area, which had not been compacted, created a “new hazard” that defendant
should have anticipated would pose a dangerous condition to third persons. Fultz, 470 Mich at
469; Boylan, slip op p 7.
Furthermore, Edward Ginop, one of defendant’s owners, was aware that there
were soil problems on the property. He was also aware that a service driveway can collapse if it
is built wrong. Furthermore, he was aware that the church “needed a good road that would be
able to handle a well truck[.]” Thus, defendant knew or should have known that the service
driveway would need to be able to handle heavy trucks or equipment. Viewing the evidence in a
light most favorable to plaintiff, plaintiff’s excavation and installation of the service driveway
created a new condition on the church’s property that defendant should have foreseen could have
caused injury. Boylan, slip op p 7; see also Davis v Venture One Constr, Inc, 568 F3d 570 (CA
6, 2009) (holding that defendant construction company owed a separate and distinct duty to a
third party to the contract where the defendant created a new hazard by removing a door and
leaning it against a wall outside the construction zone).
Defendant argues that the Supreme Court’s decisions in Banaszak and Mierzejewski
changed the law that had been stated in Fultz by broadening the protection given to construction
contractors and eliminating the “new hazard” test of a separate and distinct duty. This argument
is not persuasive. Neither Banaszak nor Mierzejewski explicitly overruled Fultz, and nothing in
the language of either order can reasonably be interpreted as implicitly overruling Fultz.
Banaszak does not cite Fultz or even motion the “new hazard” test. As this Court observed in
Boylan, Mierzejewski “specifically invoked Fultz in support of its holding . . . .” Boylan, slip op
p 5. We reject defendant’s argument in this regard.
In sum, we find that the trial court did not err in denying defendant’s motion for summary
disposition. Viewing the evidence in a light most favorable to plaintiff, defendant’s construction
of the service driveway created a new hazard that resulted in a duty to plaintiff that was separate
and distinct from defendant’s duties under defendant’s contract with the church.
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Reversed. Plaintiff, being the prevailing party, may tax costs pursuant to MCR 7.219.
/s/ Mark J. Cavanagh
/s/ Stephen L. Borrello
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