{"id":900548,"date":"2022-11-03T15:54:50","date_gmt":"2022-11-03T21:54:50","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=900548"},"modified":"2022-11-03T15:54:54","modified_gmt":"2022-11-03T21:54:54","slug":"construction-defect-claims-subsequent-purchaser","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/construction-defect-claims-subsequent-purchaser\/","title":{"rendered":"Subsequent Purchaser can Assert Claims for Construction Defects"},"content":{"rendered":"\n

David Adelstein | Florida Construction Legal Updates<\/a><\/p>\n\n\n\n

Can a\u00a0subsequent purchaser<\/strong>\u00a0pursue\u00a0construction defec<\/strong>t claims<\/a> relating to the original construction of the property?\u00a0 This was the threshold issue on a motion for summary judgment by a drywall manufacturer against a subsequent purchaser of a home in\u00a0Karpel v. Knauf Gips KG<\/em>, 2022 WL 4366946 (S.D. Fla. 2022).\u00a0 This matter deals with the defective Chinese drywall that was installed in homes years ago.\u00a0 The plaintiffs, which were subsequent purchasers of a home, sued the manufacturer of the defective drywall for various theories including negligence, negligence per se, strict liability, breach of express and\/or implied warranty, private nuisance, unjust\u00a0enrichment,\u00a0and Florida\u2019s Deceptive and Unfair Trade Practices Act.<\/p>\n\n\n\n

The trial court noted, from the onset, that Florida does NOT have a subsequent purchaser rule that prohibits subsequent purchasers from asserting construction defect claims. With this consideration in mind, the trial court went through the claims the plaintiff, as a subsequent purchaser, asserted against the manufacturer to determine whether they were viable claims as a matter of law.<\/p>\n\n\n\n

Negligence Claim<\/strong><\/h4>\n\n\n\n

The trial court found that a subsequent purchaser could sue in negligence.  \u201cFlorida courts have long allowed subsequent purchasers to sue for negligence including in construction defect litigation<\/strong>.\u201d  Karpel, supra<\/em>, at *2.<\/p>\n\n\n\n

Negligence Per Se and Strict Liability Claims<\/strong><\/h4>\n\n\n\n

The trial court held that the plaintiff\u2019s negligence per se and strict liability claims were duplicative. Both could not stand; for this reason, the court entered summary judgment as to the duplicative negligence per se claim. \u201cStrict liability means negligence as a matter of law or negligence per se, the effect of which is to remove the burden from the user of proving specific acts of negligence.<\/strong>\u201d Karpel, supra<\/em>, at *3 (quotation and citation omitted).<\/p>\n\n\n\n

A subsequent purchaser could pursue a strict liability claim<\/strong> against a manufacturer.  \u201c[A] manufacturer is strictly liable in tort when an article he places on the market, knowing that it is to be used without inspection for defects, proves to have a defect that causes injury to a human being.<\/strong>\u201d  Karpel, supra<\/em>, at *4 (quotation and citation omitted).<\/p>\n\n\n\n

Even Section 402A of the Second Restatement of Torts, adopted by Florida\u2019s Supreme Court, provides: \u201c(1) One who sells any product in a defective condition unreasonably dangerous to the user or consumer or to his property is subject to liability for physical harm caused to the ultimate user or consumer, or to his property, if (a) the seller is engaged in the business of selling such product, and (b) it is expected to and does reach the user or consumer without substantial change in the condition in which it is sold.\u201d Karpel, supra<\/em>, at *4.<\/p>\n\n\n\n

There are, however, limits on strict liability.<\/p>\n\n\n\n

\u201cFirst, Florida disallows recovery in tort where plaintiffs only claim economic losses such as \u2018damages for inadequate value, costs of repair, and replacement of the defective product, or consequent loss of profits\u2014without any claim of personal injury or damage to other property.<\/strong>\u201d Karpel, supra<\/em>, at *4 (citation omitted).<\/p>\n\n\n\n

\u201cSecond, Florida courts will disallow recovery for strict liability where the purchaser was subject to the common law doctrine of caveat emptor<\/strong>.\u201d  Karpel, supra<\/em>, at *4.<\/p>\n\n\n\n

Thus, a subsequent purchaser\u2019s strict liability claim could be pursued against a manufacturer provided such damages are not barred by the economic loss rule or the doctrine of caveat emptor (which applies to commercial property and property purchased at judicial auction sales).  Karpel, supra<\/em>, at *4.<\/p>\n\n\n\n

Breach of Implied Warranty<\/strong><\/h4>\n\n\n\n

The trial court found that a subsequent purchaser could NOT sue a manufacturer for breach of implied warranty.  \u201c[I]t is abundantly clear that in cases like these, where no contractual relationship between a subsequent purchaser and a manufacturer exists, the former\u2019s recourse is a claim for strict liability.<\/strong>\u201d Karpel, supra<\/em>, at *4.<\/p>\n\n\n\n

Breach of Express Warranty<\/strong><\/h4>\n\n\n\n

While a contractual relationship is typically required for breach of express warranty, this requirement is relaxed if the express warranty is intended to benefit subsequent purchasers.  \u201cA manufacturer\u2019s liability for breach of an express warranty derives from, and is measured by, the terms of that warranty<\/strong>.\u201d  Karpel, supra<\/em>, at *4 (quotations and citation omitted).  However, in this case, plaintiff\u2019s breach of express warranty claim failed because the plaintiff never introduced any express warranty into the record.<\/p>\n\n\n\n

Private Nuisance<\/strong><\/h4>\n\n\n\n

The trial court held that the subsequent purchaser could NOT pursue a private nuisance<\/strong> claim against the manufacturer.   To sustain a private nuisance claim, the plaintiff must prove that the defendant\u2019s maintenance of the nuisance was the proximate cause of the plaintiff\u2019s damages.  Karpel, supra<\/em>, at *8.  \u201cThe Plaintiffs\u2019 ownership and current control over the drywall conclusively forecloses them from arguing that the Defendants actively \u201cmaintain\u201d the \u2018nuisance\u2019 they complain of<\/strong>.\u201d  Id<\/em>.<\/p>\n\n\n\n

Unjust Enrichment<\/strong><\/h4>\n\n\n\n

The trial court held that the subsequent purchaser could NOT pursue an unjust enrichment claim against the manufacturer.  An unjust enrichment claim requires the plaintiff to prove that the plaintiff conferred a direct benefit<\/strong> on the defendant. \u201cThe Plaintiffs conferred no direct benefit on the Defendant<\/strong>.\u201d Karpel, supra<\/em>, at *8 (finding that plaintiffs, as subsequent purchasers, obtained their homes from previous owners so the plaintiffs conferred no direct financial benefit on the manufacturer).<\/p>\n\n\n\n

Florida\u2019s Deceptive and Unfair Trade Practices Act (FDUTPA)<\/strong><\/h4>\n\n\n\n

The trial court found that a subsequent purchaser could theortetically pursue a FDUTPA claim. \u201cBecause the law is clear that a plaintiff need not have actually relied on the purported deceptive or unfair practice, the Court\u2019s analysis need not go further\u2026.The Plaintiffs\u2019 status as subsequent purchasers does not foreclose them from arguing that the Defendants\u2019 practices violated FDUTPA.<\/strong>\u201d  Karpel, supra<\/em>, at *9.<\/p>\n\n\n\n

However, the trial court noted that\u00a0actual damages<\/strong>\u00a0under FDUTPA may implicate the economic loss rule because actual damages under the statute \u201care the difference in the market value of the product or service in the condition in which it was delivered and its market value in the condition in which it should have been delivered according to the contract of the parties<\/strong>.\u201d\u00a0\u00a0Karpel, supra<\/em>, at *9 (quotation and citation omitted). For this reason, the court ordered the plaintiff and defendant to submit supplemental briefing because if the economic loss rule is implicated, the FDUTPA claim will fail (due to the same limitations relating to the strict liability claim).<\/p>\n\n\n\n

\n\n\n\n

When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes – please call Advise & Consult, Inc. at 888.684.8305, or email experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

David Adelstein | Florida Construction Legal Updates Can a\u00a0subsequent purchaser\u00a0pursue\u00a0construction defect claims relating to the original construction of the property?\u00a0 This was the threshold issue on a motion for summary judgment by a drywall manufacturer against a subsequent purchaser of a home in\u00a0Karpel v. Knauf Gips KG, 2022 WL 4366946 (S.D. Fla. 2022).\u00a0 This matter… Continue reading Subsequent Purchaser can Assert Claims for Construction Defects<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[11015],"tags":[9895,228],"class_list":["post-900548","post","type-post","status-publish","format-standard","hentry","category-construction-claims","tag-advise-consult","tag-construction-defect-claims","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nSubsequent Purchaser can Assert Claims for Construction Defects - 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