Rhodes-Haverty Partnership v. Robert & Co. Associates
Rhodes-Haverty Partnership v. Robert & Co. Associates
Opinion of the Court
Rhodes-Haverty Partnership brought this action against Robert and Company Associates, Metropolitan Atlanta Rapid Transit Authority, and Fruin-Colnan Corp., seeking recovery for damages to the exterior facing of the Rhodes-Haverty Building in downtown Atlanta. Following extensive discovery, Robert & Co. moved for and was granted summary judgment. The trial court concluded that the Partnership could not maintain this action against Robert & Co. because no privity of contract had been shown between them and also because the Partnership was not a foreseeably injured entity.
On February 9, 1978 Arthur Rubloff & Company, an Illinois corporation (hereinafter Rubloff of Illinois), entered into a real estate sales contract with Shouky A. Shaheen for the purchase of the Rhodes-Haverty Building. Arthur Rubloff & Company of Georgia
On May 22,1978 the building was purchased by the Partnership, which is comprised of six partners. Five of the partners are employees of either Rubloff of Illinois or Rubloff of Georgia, and the remaining partner is Lake Michigan Properties, Inc., a wholly-owned subsidiary of Rubloff of Illinois. The Partnership contends that it relied on the Robert & Co. report in its decision to purchase the building. Robert & Co. admits that it “understood that its report could be utilized, in connection with a possible purchase of the Rhodes-Haverty Building, by Rubloff of Georgia and perhaps other unidentified persons or entities. . .” although it was never specifically advised that the Partnership would utilize or rely thereon. Several months after the acquisition, a piece of terra cotta facing broke loose from the top portion of the building and fell to the sidewalk below. Shortly thereafter it was determined that substantial repairs to the exterior facing would be required; the cost of these repairs has exceeded $139,000.00 to date.
Despite the absence of any contractual relationship between them, the Partnership filed this action against Robert & Co. to recover damages based on the foregoing structural deficiencies in the building. Count I of the complaint alleged that the inspection and written report by Robert & Co. were negligently performed because Robert & Co. did not communicate the potential seriousness of the cracks in the exterior masonry. Count II alleged a “breach of warranty” in failing to “adequately and reliably describe the observable and ascertainable defects in the building in their entirety.” The evidence of record discloses considerable dispute as to the sufficiency of the inspection report by Robert & Co. Therefore, our review of this case will be limited to a determination of whether Robert & Co. owed any duty to the Partnership to exercise ordinary care in the preparation of the inspection report.
“The law imposes upon persons performing architectural,
Judgment reversed.
Dissenting Opinion
dissenting.
In MacNerland v. Barnes, 129 Ga. App. 367 (199 SE2d 564) (1973), Judge Quillian made a distinction, in my opinion, between an unaudited and an audited professional report. This case held that no liability obtains where an unaudited informal report is presented and later relied upon by a third party. Howard v. Dun & Bradstreet, Inc., 136 Ga. App. 221 (220 SE2d 702) (1975) also followed this principle because no audited or certified business report was provided. If the title certificate or policy in Sherrill v. Louisville Title Ins. Co., 134 Ga. App. 322 (214 SE2d 410) (1975) had been addressed “to whom it may concern” a different result may have been obtained. Allred v. Dobbs, 137 Ga. App. 227 (223 SE2d 265) (1975), one judge concurring in the judgment only, and Johnson v. Landing, 157 Ga. App. 313 (277 SE2d 307) (1981) appear to differ from MacNerland, supra, in that the inspection or report is certified and audited and a guarantee or a type of warranty exists which is based on a comprehensive complete inspection. The latter cases (a) indicate that where a third party might reasonably rely on the inspection and (b) where a definite audited, unlimited, certified, guaranteed inspection exists liability to a third party may occur.
In the instant case (a) above obtains, but (b) is absent. The informal “walk-through” inspection and “general evaluation” resembles more of an unaudited non-certified unofficial type report or opinion and is exemplified and controlled by the first two cases cited. Further, the report disclosed and there was notice as to the “cracks” appearing in the building from the “walk-through” inspection which was given and could have been then more comprehensively investigated and the damage ascertained by the third parties by obtaining proven engineering techniques. Thus, we do not reach the argued question of whether engineering is an exact science. Compare Blount v. Moore, 159 Ga. App. 80, 84 (282 SE2d 720) (1981). I would affirm the judgment of the trial court for the reasons outlined and affirm applying the “right for any reason rule,” therefore, I must respectfully dissent.
Reference
- Full Case Name
- RHODES-HAVERTY PARTNERSHIP v. ROBERT & COMPANY ASSOCIATES Et Al.
- Cited By
- 14 cases
- Status
- Published