2711 HOLLYWOOD BEACH CONDOMINIUM ASSOCIATION, INC. v. TRG HOLIDAY, LTD., Etc.
CourtDistrict Court of Appeal of Florida
Date FiledSeptember 16, 2020
Docket3D18-1834
StatusPublished
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Full Opinion
Third District Court of Appeal
State of Florida
Opinion filed September 16, 2020.
Not final until disposition of timely filed motion for rehearing.
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No. 3D18-1834
Lower Tribunal No. 13-35751
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2711 Hollywood Beach Condominium Association, Inc.,
Appellant,
vs.
TRG Holiday, LTD., etc., et al.,
Appellees.
An Appeal from the Circuit Court for Miami-Dade County, Jennifer D.
Bailey, Judge.
Siegfried, Rivera, Hyman, Lerner, De La Torre, Mars & Sobel, P.A., Stuart
Sobel and Steven M. Siegfried; Colson Hicks Eidson P.A., W. Allen Bonner and
Patrick Montoya, for appellant.
Bowman and Brooke LLP, and Wendy F. Lumish, Donald A. Blackwell and
Alina Alonso Rodriguez, for appellee Nibco, Inc.
Shook, Hardy & Bacon L.L.P., and Daniel B. Rogers; Shook, Hardy & Bacon
L.L.P., and Philip S. Goldberg (Washington, D.C.), for National Association of
Manufacturers, as amicus curiae.
Before LOGUE, HENDON and GORDO, JJ.
PER CURIAM.
2711 Hollywood Beach Condominium Association appeals the trial court’s
order granting Nibco Inc.’s motion for partial summary judgment on the
Association’s negligence and strict product liability claims. Specifically, the
Association appeals the trial court’s finding with respect to the economic loss rule.
For the reasons that follow, we affirm.
The Association purchased the condominium building from the developer.
The building included a fire suppression system (“FSS”), which was installed during
construction. The FSS was to be composed of Blazemaster chlorinated polyvinyl
chloride pipe; Lubrizol Advanced Materials, Inc., galvanized steel pipe coated with
an interior antimicrobial coating; and Blazemaster CPVC fittings. A portion of the
fittings incorporated into the FSS were purchased from Nibco. Nibco manufactured
its fittings through a process using Blazemaster CPVC resin purchased from
Lubrizol.
Eventually, the Association noticed leaks in the FSS. The Association then
filed suit against several parties involved in the construction of the building as well
as numerous manufacturers of component parts of the FSS, including Nibco, seeking
damages for future repairs and replacement of the FSS. Nibco moved for partial
summary judgment on the Association’s negligence and strict liability claims based
on the economic loss rule. Nibco, citing to Casa Clara Condominium Association
v. Charley Toppino & Sons, Inc., 620 So. 2d 1244, 1247 (Fla. 1993), argued that the
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economic loss rule limited a defendant’s tort liability for allegedly defective
products to injuries caused to persons or damage caused to property other than the
defective product itself.
The trial court held a hearing regarding the application of the economic loss
rule. At the hearing, the Association conceded that Casa Clara was binding on the
trial court but urged the court not to apply it for policy reasons. The trial court
partially granted the motion for summary judgment, finding that because the FSS
was a part of the building, the economic loss rule barred the Association’s claims
against Nibco. The trial court subsequently entered judgment in favor of Nibco, and
this appeal followed.
In Casa Clara, the Florida Supreme Court held that to the extent a products
liability claim arises in the context of real estate, the economic loss rule applies. 620
So. 2d at 1247–48. The court applied the “object of the bargain” rule—in order “to
determine the character of a loss, one must look to the product purchased by the
plaintiff, not the product sold by the defendant.” Id. at 1247 (citing King v. Hilton–
Davis, 855 F.2d 1047 (3d Cir. 1988)). The allegedly defective material in Casa
Clara, the concrete, was an “integral part of the finished product,” and, as such, the
injury it caused was not considered damage to “other” property. Id.
The Association bargained for, purchased and received a building; Nibco’s
fittings were only a component of the FSS, incorporated into the building. Applying
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the rule set forth in Casa Clara, the Association purchased a completed building from
the developer. Nibco’s fittings were “an integral part of the finished product and,
thus, did not injure ‘other’ property.” Id.; see also Saratoga Fishing Co. v. J.M.
Martinac & Co., 520 U.S. 875, 883 (1997) (stating that parts and fittings that become
integral components of something else “constitute a single product for purposes of
the economic loss doctrine” because “all but the very simplest machines have
component parts” and any other holding “would require a finding of ‘property
damage’ in virtually every case where a product damages itself.” (quoting Va. Sur.
Co. v. Am. Eurocopter Corp., 955 F. Supp. 1213, 1216 (D.Haw. 1996); E. River S.S.
Corp. v. Transamerica Delaval, Inc., 476 U.S. 858, 867 (1986)). Injury to the
building itself is not injury to “other” property because the product purchased by the
Association was the building. See Casa Clara, 620 So. 2d at 1247. The economic
loss rule therefore bars the Association’s recovery as to Nibco to the extent that it
sought damages to replace the FSS and repair damage to the building.
On appeal, the Association again concedes that Casa Clara is good law but
argues that this Court should refrain from applying it here for policy reasons. We
decline that invitation. In the over thirty years the economic loss rule has been
applied by Florida courts, the Florida Supreme Court has carved out several
exceptions. This case, however, falls squarely within the parameters of the rule.
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We therefore affirm the trial court’s grant of partial summary judgment and
entry of final judgment as to Nibco.
Affirmed.
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