Opinion

Volovetz v. Tremco Barrier Solutions, Inc.

  • 2016 Ohio 7707
Court
Ohio Court of Appeals
Filed
Nov 10, 2016
Status
Published
On the bench
Klatt
Cited by
18 cases
Authority
More cited than 73.4%

The opinion

[Cite as Volovetz v. Tremco Barrier Solutions, Inc., 2016-Ohio-7707.]

IN THE COURT OF APPEALS OF OHIO

TENTH APPELLATE DISTRICT

Boris Volovetz et al., :

Plaintiffs-Appellants, :

No. 15AP-1056

v. : (C.P.C. No. 14CV-6750)

Tremco Barrier Solutions, Inc. et al., : (ACCELERATED CALENDAR)

Defendants-Appellees. :

D E C I S I O N

Rendered on November 10, 2016

On brief: Gillett Law Office, LLC, and Gary A. Gillett, for

appellants. Argued: Gary A. Gillett.

On brief: Zeiger, Tigges & Little LLP, Matthew S. Zeiger,

and Zachary M. Sugarman, for appellee Tremco Barrier

Solutions, Inc. Argued: Matthew S. Zeiger.

On brief: Lane Alton, Joseph A. Gerling and Eric S. Bravo,

for appellee North Central Insulation, Inc. Argued: Eric S.

Bravo.

APPEAL from the Franklin County Court of Common Pleas

KLATT, J.

{¶ 1} Plaintiffs-appellants, Boris and Inna Volovetz, appeal judgments of the

Franklin County Court of Common Pleas granting summary judgment to defendants-

appellees, Tremco Barrier Solutions, Inc. ("Tremco") and North Central Insulation, Inc.

("NCI"). For the following reasons, we affirm in part and reverse in part the judgment

granting Tremco summary judgment, and we reverse the judgment granting NCI

summary judgment.

No. 15AP-1056 2

{¶ 2} The Volovetzes own a house located at 6883 Jersey Drive in New Albany,

Ohio. During construction of the house, Boris Volovetz acted as the general contractor.

{¶ 3} Volovetz contracted with NCI to insulate the Jersey Drive house. Michael

White, a salesperson with NCI, proposed that NCI also waterproof the house's basement.

Volovetz and White then discussed terms for the purchase of a Tuff-N-Dri basement

waterproofing system and installation of that system around the exterior of the house's

foundation. The Tuff-N-Dri basement waterproofing system, which is sold by Tremco,

consists of two components: a spray-on polymer modified asphalt emulsion called Tuff-

N-Dri and fiberglass foundation boards called Warm-N-Dri. Installation of the Tuff-N-

Dri system entails applying the Tuff-N-Dri asphalt emulsion to the foundation walls to

create a waterproof membrane and placing the Warm-N-Dri boards over the membrane.

{¶ 4} During the initial negotiations between Volovetz and White, Volovetz

requested a 50-year warranty on the Tuff-N-Dri system. White informed Volovetz that

the manufacturer only offered a 30-year warranty. White assured Volovetz that a 30-year

warranty provided him with sufficient protection because "if you have any issues it will

occur in the first couple of years." (Ex. 38, Volovetz Dep.) Volovetz then acceded to a 30-

year warranty.

{¶ 5} On May 10, 2013, White sent Volovetz an email with two PDF files attached.

The first attachment was entitled "6883 jersey dr.pdf" and the second "WP NOTICE –

v05-08-12.pdf." (Ex. 6, Volovetz Dep.) The body of the email stated, "Boris[:] Here is

you[r] quote and a summary of the waterproofing[.] I need you to sign both and send

back[.]" Id. The PDF file entitled "6883 jersey dr.pdf" contained a pre-printed NCI quote

form that White had completed with the terms for waterproofing the basement of the

Jersey Drive house. The quote provided:

NCI will WATERPROOF THE FOUNDATION of this home by

installing Tuff-[N]-Dri Asphalt-based Spray-on Membrane

along with 1 3/16" Ri[d]gid Fiberglas[s] Board

on the first 12 courses[.]

NCI will spray the top two courses only[.]

This will rate an R-factor of 5 and has a 30-year warrantee.

Prior to this being installed, all drains should be completed

before backfilling and the grade line marked with ample

visibility.

Parge[t]ing is not required for this application.

TOTAL $2905.00

No. 15AP-1056 3

Id.

{¶ 6} The PDF file entitled "WP NOTICE – v05-08-12.pdf" comprised five pages.

The first page stated:

WATERPROOFING INSTRUCTIONS AND NOTICES.

Dear Valued Customer,

We thank you for making NCI your waterproofing

contractor of choice. In order to ensure the best possible

experience we ask that you read and sign below as well as

initial each of the attached documents outlining:

1. The details of what has to be done in order to properly

prepare a job for the application of the Tuff-N-Dri

waterproofing system.

2. The details of the Tuff-N-Dri warranty.

3. Instructions on what needs to be done after NCI

completes the application in order to protect the

waterproofing installation from damage.

Id. The next four pages of the PDF file contained the documents described. The second

document was entitled "Tuff-N-Dri® Basement Waterproofing Systems 30-YEAR

LIMITED WARRANTY" (hereinafter referred to as the "Limited Warranty"). The Limited

Warranty stated that it was from Tremco, and it provided:

What Is Covered:

***

Under normal use and service, the vertical surface of your

foundation wall not obscured or covered by other building

materials should be free from water leakage or seepage

through the areas that are treated with TUFF-N-DRI

Basement Waterproof System product ("Leakage"), EXCEPT

FOR EXCEPTIONS, EXCLUSIONS AND LIMITATIONS SET

FORTH BELOW.

What We Will do If the Product Fails:

If the TUFF-N-DRI Basement Waterproofing System fails, we

will either repair or have repaired the area in question or

provide replacement of the TUFF-N-DRI Basement

Waterproofing System as your remedy * * *. We will exercise

our judgment and shall have the sole option to select the best

method by which to remedy leakage, whether by interior or

exterior solution. We will undertake the cost of providing any

replacement of the TUFF-N-DRI Basement Waterproofing

No. 15AP-1056 4

System necessary, and pay for labor costs necessary to reapply

or patch the TUFF-N-DRI Basement Waterproofing System

within a reasonable time. Our total responsibility during the

life of this Warranty shall not exceed an amount equal to

$3.00 per square foot of foundation wall treated with the

TUFF-N-DRI Basement Waterproofing System and requiring

repair, or a total of $10,000, whichever is lower.

Id.

{¶ 7} After receiving the email from White, Volovetz reviewed the first attachment

and determined that the price quoted was higher than the price offered by another

contractor with whom Volovetz was negotiating. Volovetz contacted White and told him

so. White responded with a second email, also dated May 10, 2013. Like the first email,

the second email attached two PDF files. The first PDF file—"6883 JERSEY DR

REPRICED.pdf"—contained a revised quote. (Ex. 7, Volovetz Dep.) The revised quote

was identical in form to the initial quote, except that the total was listed as $2,815, not

$2,905. The second PDF file—"WP NOTICE – v05-08-12.pdf"—contained the exact same

content as the file of that name attached to the first email. Id. The body of the second

email stated, "Boris[:] This is the best price….please sign both….thanks." Id.

{¶ 8} While Volovetz primarily focused his attention on the quotes attached to the

two emails, Volovetz also opened the PDF file entitled "WP NOTICE – v05-08-12."

However, the first few pages in the file "ma[d]e no sense" to Volovetz. (Volovetz Dep. at

65.) Volovetz stopped his review of the file and contacted White to ask for an in-person

meeting. Volovetz requested that White bring to the meeting "whatever he want[ed]

[Volovetz] to sign so [they could] both review it." Id. at 141. When White appeared for

the meeting, he had with him only the revised quote. White and Volovetz reviewed the

terms of the revised quote, Volovetz made handwritten additions, and then Volovetz

signed the revised quote.

{¶ 9} Volovetz never signed or initialed the documents contained in the PDF file

entitled "WP NOTICE – v05-08-12." Volovetz never saw or read the Limited Warranty

prior to contracting with NCI.

{¶ 10} NCI installed the Tuff-N-Dri basement waterproofing system during May

and June 2013. Unfortunately, the Tuff-N-Dri system did not keep the Volovetzes'

basement waterproof. In November 2013 and May 2014, Volovetz observed water leaking

No. 15AP-1056 5

through the foundation walls. Volovetz contacted NCI and informed it that the Tuff-N-

Dri system had failed. In May 2014, after Volovetz learned from NCI that it had

purchased the Tuff-N-Dri system from Tremco, Volovetz also contacted Tremco to inform

it of the system's failure. In response, Tremco offered to apply two coats of Zinsser

WaterTite paint to the interior of the foundation walls. Volovetz rejected that remedy.

{¶ 11} On June 30, 2014, the Volovetzes filed suit against NCI and Tremco. The

Volovetzes asserted claims against NCI for breach of express warranty, breach of the

implied duty to perform in a workmanlike manner, and breach of the implied warranties

of merchantability and fitness for a particular purpose. The Volovetzes asserted claims

against Tremco for breach of the implied warranty that a product is free of defects and

negligence in how Tremco instructed NCI regarding the installation of the Tuff-N-Dri

system. The Volovetzes maintained that NCI and Tremco were liable in the amount

needed to excavate the foundation; remove the excavated materials; remove the Tuff-N-

Dri system; repair the foundation; apply a new exterior waterproofing system; backfill the

foundation with gravel and dirt; replace paving, concrete, drain tiles, and landscaping

damaged by the excavation; remove and reinstall the electrical panels and low-voltage

systems; and treat the inner foundation walls for mold.

{¶ 12} NCI and Tremco each answered the complaint. In addition to answering,

Tremco also filed a counterclaim seeking a declaratory judgment that: (1) the Limited

Warranty governed and defined Tremco's obligation with respect to the Volovetzes and

their Tuff-N-Dri basement waterproofing system, (2) Tremco acted consistent with and

fully complied with its obligation under the Limited Warranty, and (3) the Volovetzes

could not circumvent the remedies provided in the Limited Warranty by recasting their

warranty claims as non-warranty claims.1

{¶ 13} After conducting discovery, Tremco moved for summary judgment on its

claim for declaratory judgment and the Volovetzes' claims against it. In relevant part,

Tremco argued that the Volovetzes were bound by the limitations contained in the

Limited Warranty because that warranty was expressly incorporated into the contract that

Volovetz and NCI executed. Pursuant to the Limited Warranty, Tremco had the sole

1 In this decision, we only recount the procedural history relevant to this appeal. We recognize that this

action included additional claims and parties, but we do not detail them here.

No. 15AP-1056 6

option to select the remedy for the failure of the Tuff-N-Dri basement waterproofing

system. Tremco determined that the best remedy for the leakage was coating the

basement walls with a waterproofing paint. Thus, Tremco contended that the Limited

Warranty barred the Volovetzes from demanding any other remedy.2 In the alternative,

Tremco argued that the Ohio Product Liability Act ("OPLA"), R.C. 2307.71 et seq.,

precluded the Volovetzes from pursuing their claims against Tremco.

{¶ 14} In response to Tremco's motion, the Volovetzes conceded that summary

judgment was proper on their implied warranty claim, but not on their negligence claim.

The Volovetzes argued that the remedy limitation contained in the Limited Warranty

should not apply to them because Volovetz did not know about it when he signed the

contract with NCI. With regard to Tremco's OPLA argument, the Volovetzes maintained

that the OPLA did not preclude their negligence claim because they only sought economic

damages for Tremco's negligence.

{¶ 15} The trial court granted Tremco summary judgment on the basis that the

Limited Warranty exclusively governed the relationship between the Volovetzes and

Tremco. Without any analysis, the trial court concluded that the Limited Warranty was

specifically referenced and incorporated into the contract between Volovetz and NCI. The

trial court then held that the remedy limitation in the Limited Warranty applied, despite

Volovetz's ignorance of its existence, based on the legal maxim that a party is held to the

terms of a contract that he signs regardless of whether he reads it. The trial court

reasoned that, because the Volovetzes were bound by the remedy limitation, they could

not recover for negligence. The trial court did not address Tremco's OPLA argument.

{¶ 16} Confusingly, even though the trial court had granted Tremco's motion for

summary judgment in its entirety, the trial court retained Tremco as a party so the

Volovetzes could recover from it to the extent the Limited Warranty allowed. In a later

entry clarifying its initial ruling, the trial court recognized that it could not retain Tremco

as a party when it had granted summary judgment on the claim Tremco had asserted, as

2 In making this argument, Tremco did not explain why a limitation on the remedies recoverable for a

breach of an express warranty would legally preclude the Volovetzes from suing Tremco for negligence.

Thus, two questions remain unanswered: (1) why a defense to a breach-of-express-warranty claim would

apply to a negligence claim, and (2) why a remedy limitation would preclude plaintiffs from asserting a

claim. As the Volovetzes raised neither of these questions in response to summary judgment, we do not

endeavor to answer them in this decision.

No. 15AP-1056 7

well as the claims the Volovetzes had asserted against Tremco. The trial court thus

dismissed Tremco from the action.

{¶ 17} The Volovetzes moved for reconsideration of the summary judgment ruling.

In relevant part, the Volovetzes argued that, contrary to the trial court's assertion, the

contract with NCI did not incorporate by reference the terms contained in the Limited

Warranty. Thus, argued the Volovetzes, they never agreed to the remedy limitation in the

Limited Warranty, and consequently, that limitation could not bar their negligence claim

against Tremco. The trial court rejected this argument and denied the motion for

reconsideration.

{¶ 18} The day after the trial court denied the Volovetzes' motion for

reconsideration, NCI moved for summary judgment. NCI argued that the Limited

Warranty also exclusively governed its relationship with the Volovetzes. NCI then

contended that the Limited Warranty precluded the Volovetzes from asserting any of the

claims they had pled against NCI. In a decision and entry dated October 27, 2015, the trial

court accepted this argument and granted NCI summary judgment.3

{¶ 19} The Volovetzes now appeal the trial court's decisions granting Tremco and

NCI summary judgment, and they assign the following errors:

[1.] The Trial Court erred in granting Summary Judgment

to [Tremco] and NCI on grounds that the Appellants are

contractually bound by the Thirty[-]Year Limited Warranty

when the quote which is the basis of the contract did not

incorporate the Thirty[-]Year Limited Warranty by reference.

[2.] The Trial Court erred in granting Summary Judgment

to [Tremco] and NCI as there are material issues of fact in

dispute which preclude Summary Judgment as to both

parties.

{¶ 20} Both of the Volovetzes' assignments of error challenge the trial court's

rulings on summary judgment. A trial court will grant summary judgment under Civ.R.

56 when the moving party demonstrates that: (1) there is no genuine issue of material

fact; (2) the moving party is entitled to judgment as a matter of law; and (3) reasonable

minds can come to but one conclusion when viewing the evidence most strongly in favor

3 Neither the trial court nor NCI explains why or how a remedy limitation in an express warranty issued

by Tremco would preclude the Volovetzes from asserting claims against NCI. However, as the Volovetzes

did not raise that issue in response to NCI's motion for summary judgment, we do not address it.

No. 15AP-1056 8

of the nonmoving party, and that conclusion is adverse to the nonmoving party. Hudson

v. Petrosurance, Inc., 127 Ohio St.3d 54, 2010-Ohio-4505, ¶ 29; Sinnott v. Aqua-Chem,

Inc., 116 Ohio St.3d 158, 2007-Ohio-5584, ¶ 29. Appellate review of a trial court's ruling

on a motion for summary judgment is de novo. Hudson at ¶ 29. This means that an

appellate court conducts an independent review, without deference to the trial court's

determination. Zurz v. 770 W. Broad AGA, L.L.C., 192 Ohio App.3d 521, 2011-Ohio-832,

¶ 5 (10th Dist.); White v. Westfall, 183 Ohio App.3d 807, 2009-Ohio-4490, ¶ 6 (10th

Dist.).

{¶ 21} By their first assignment of error, the Volovetzes argue that they are not

bound by the remedy limitation contained in the Limited Warranty because the contract

with NCI does not incorporate the Limited Warranty by reference. We agree.

{¶ 22} "Any affirmation by the seller, which forms a part of the 'basis of the

bargain,' may constitute an express warranty." Slyman v. Pickwick Farms, 15 Ohio

App.3d 25, 27 (10th Dist.1984), quoting R.C. 1302.26(A)(1). A seller's breach of an

express warranty can give rise to the buyer's right to recover incidental and consequential

damages. Sutphen Towers, Inc. v. PPG Industries, Inc., 10th Dist. No. 05AP-109, 2005-

Ohio-6207, ¶ 60, citing R.C. 1302.88. Such damages include, but are not limited to, any

reasonable expense incident to the breach and injury to property proximately resulting

from the breach. R.C. 1302.89(A) and (B)(2).

{¶ 23} However, "[r]emedies for breach of warranty can be limited in accordance

with the provisions of * * * [R.C.] 1302.93 * * * on contractual modification of remedy."

R.C. 1302.29(D). Pursuant to R.C. 1302.93(A)(1), "[t]he agreement * * * may limit or alter

the measure of damages recoverable * * *, as by limiting the buyer's remedies to return of

the goods and repayment of the price or to repair and replacement of nonconforming

goods or parts." This provision gives the parties to a contract of sale the right to include

any reasonable provision with respect to what remedies are available upon breach. 4B

Lawrence, Anderson on the Uniform Commercial Code, Section 2-719:4, at 8 (3d Ed.

2001). Thus, parties to a contract of sale may consensually allocate the loss resulting from

the failure of the goods to perform as warranted, as long as minimum adequate remedies

remain available for a beach. Id.

No. 15AP-1056 9

{¶ 24} Notably, " '[t]he limitation [or exclusion of remedies] must be a part of the

parties' bargain in fact.' " Insurance Co. of N. Am. v. Automatic Sprinkler Corp., 67 Ohio

St.2d 91, 96 (1981), quoting Nordstrom, Law of Sales, Section 89, at 276 (1970); accord

Sanco, Inc. v. Ford Motor Co., 771 F.2d 1081, 1086 (7th Cir.1985) (holding that "a seller

may not 'spring' a warranty disclaimer on a customer after a sale has been consummated.

The parties must have understood that the warranty, and any disclaimers or limitations,

were part of their deal."); Haithcock v. Graham Ford, Inc., 10th Dist. No. 81AP-935

(Dec. 30, 1982) (holding that " '[a] limitation of warranties to be effective must have been

bargained for' "). Inclusion of a remedy limitation in the parties' agreement is essential

because "[a] limitation of remedy is binding only because it is a term of the contract

between the parties." Lawrence, Section 2-719:16, at 14; accord Olathe Mfg., Inc. v.

Browning Mfg., 259 Kan. 735, 755 (1996) (holding that a manufacturer's "remedy

limitation [was] not directly applicable to [the buyer] because it was not part of the basis

of the bargain"); Duffin v. Idaho Crop Improvement Assn., 126 Idaho 1002, 1012 (1995)

("[A] remedy limitation is effective only as a term of the parties' agreement."); 1 American

Law of Warranties, Section 7:18, at 566 ("A disclaimer or limitation that is not part of the

contract of the parties is not binding on the buyer.").

{¶ 25} Here, in order for NCI and Tremco to rely on the remedy limitation in the

Limited Warranty, the bargain between NCI and the Volovetzes must include the Limited

Warranty. All parties acknowledge that the contract at issue is the one-page, pre-printed

quote form completed by White and signed by both White (on behalf of NCI) and

Volovetz. The Limited Warranty is a separate document. To overcome the separate

nature of the contract and the Limited Warranty, NCI and Tremco point to the term in the

contract that the Tuff-N-Dri waterproofing system "has a 30-year warrantee." Tremco

and NCI argue that this contractual term refers to the Limited Warranty and that the

reference is sufficient to incorporate the Limited Warranty into the contract.

{¶ 26} Ohio contract law includes the doctrine of incorporation by reference. See

Mohmed v. Certified Oil Corp., 8th Dist. No. 102049, 2015-Ohio-2398, ¶ 35; KeyBank

Natl. Assn. v. Columbus Campus, LLC, 10th Dist. No. 11AP-920, 2013-Ohio-1243, ¶ 21;

Blanchard Valley Farmers Coop., Inc. v. Carl Niese & Sons Farms, Inc., 143 Ohio App.3d

795, 802 (3d Dist.2001). Under that doctrine, when a document is incorporated into a

No. 15AP-1056 10

contract by reference, that document becomes part of the contract. KeyBank Natl. Assn.

at ¶ 21; Blanchard Valley Farmers Coop., Inc. at 802. Ohio law, however, does not set

forth any standard for determining when a contract incorporates another document by

reference. To articulate that standard, we turn to out-of-state precedent.

{¶ 27} Generally, "the parties to a contract may incorporate contractual terms by

reference to a separate, noncontemporaneous document, including * * * a separate

document which is unsigned[,]" if "the contract makes clear reference to the document

and describes it in such terms that its identity may be ascertained beyond doubt." 11

Lord, Williston on Contracts, Section 30:25, at 294-301 (4th Ed.2012); accord Rinard v.

E. Co., 978 F.2d 265, 269 (6th Cir.1992), fn. 4 ("For the terms of another document to be

incorporated by reference into the document executed by the parties, the reference must

be clear and unequivocal * * *.") (Emphasis sic.); Ingersoll-Rand Co. v. El Dorado Chem.

Co., 373 Ark. 226, 233 (2008) (holding that "a majority of states have concluded" that in

order for a contract to incorporate another document "the contract must clearly and

specifically reference the document to be incorporated"). Moreover, mere reference to

another document is not sufficient to incorporate that document into a contract; the

contract language must also clearly demonstrate that the parties intended to incorporate

all or part of the referenced document. Pennaco Energy, Inc. v. KD Co., LCC, 2015 WY

152, 363 P.3d 18, ¶ 79; Woodruff v. Thames, 143 So.3d 546, 555 (Miss.2014); NSTAR

Elec. Co. v. Dept. of Pub. Util., 462 Mass. 381, 394 (2012); accord Microsoft Corp. v. Big

Boy Distrib. LLC, 589 F.Supp.2d 1308, 1319 (S.D.Fla.2008) ("A document may be

incorporated by reference in a contract if the contract specifically describes the document

and expresses the parties' intent to be bound by its terms."); Hous. Auth. v. Snyder, 2002

UT 28, 44 P.3d 724, ¶ 19 (holding that the contract's reference to another document "

'must be clear and unequivocal,' and alert the non-drafting party that terms from another

document are being incorporated"). In other words:

the language used in a contract to incorporate extrinsic

material by reference must explicitly, or at least precisely,

identify the written material begin incorporated and must

clearly communicate that the purpose of the reference is to

incorporate the referenced material into the contract * * *.

No. 15AP-1056 11

Northrup Grumman Information Technology, Inc. v. United States, 535 F.3d 1339, 1345

(Fed.Cir.2008). Whether a contract has incorporated another document by reference

presents a question of law for a court to determine. Lord, Section 30:25, at 308.

{¶ 28} In the case at bar, the contract states that the Tuff-N-Dri basement

waterproofing system "has a 30-year warrantee." We agree with Tremco and NCI that

this provision could refer to the Limited Warranty. However, the contractual language

does not attain the clarity and specificity necessary to incorporate the Limited Warranty

by reference. As we stated above, "[a]ny affirmation by the seller, which forms a part of

the 'basis of the bargain,' may constitute an express warranty." Slyman, 15 Ohio App.3d

25, at 27. The basis of the bargain at hand was the payment of money in exchange for the

sale and installation of a product to stop water from infiltrating the foundation walls of

the Volovetzes' house. In the contract, NCI affirmed that the Tuff-N-Dri basement

waterproofing system would waterproof the foundation. Thus, the promise of a "30-year

warrantee" can be read as a complete, independent contractual term that extends an

express warranty that the Tuff-N-Dri system would waterproof the foundation for 30

years. Interpreted as a self-contained promise, the term providing a "30-year warrantee"

does not refer to another document or indicate an intent to incorporate another document

into the contract. Because incorporation by reference cannot occur without a clear

identification of the extrinsic document and a clearly expressed purpose to incorporate

that document, we conclude that this contract's equivocal language does not incorporate

the Limited Warranty by reference.

{¶ 29} As incorporation by reference did not occur here, the terms of the Limited

Warranty, including the remedy limitation, do not bind the Volovetzes. Without a remedy

limitation contractually binding the Volovetzes, the trial court's reasoning for granting

summary judgment fails. Accordingly, we sustain the first assignment of error.

{¶ 30} By their second assignment of error, the Volovetzes argue that the trial court

erred in granting summary judgment because genuine issues of material fact remain in

dispute regarding Volovetz's knowledge about the Limited Warranty prior to contracting

with NCI. Given our ruling on the first assignment of error, the second assignment of

error is moot. Consequently, we do not address it.

No. 15AP-1056 12

{¶ 31} Based on our ruling on the first assignment of error, we conclude that the

trial court erred in granting summary judgment to NCI. With regard to Tremco, however,

our analysis is not over. Tremco asserted below, and, now, raises on appeal, an

additional, alternative ground for summary judgment; namely, that the OPLA preempts

all common-law product liability claims, and thus, the Volovetzes' claim for negligence

must fail. We agree with Tremco.

{¶ 32} The OPLA "abrogate[s] all common law product liability claims or causes of

action." R.C. 2307.71(B). A "product liability claim" is a claim or cause of action that:

seeks to recover compensatory damages from a manufacturer

or supplier for death, physical injury, emotional distress, or

physical damage to property other than the product in

question, that allegedly arose from any of the following:

(a) The design, formulation, production, construction,

creation, assembly, rebuilding, testing, or marketing of that

product;

(b) Any warning or instruction, or lack of warning or

instruction, associated with that product;

(c) Any failure of that product to conform to any relevant

representation or warranty.

R.C. 2307.71(A)(13).

{¶ 33} The OPLA preemption provision extinguishes any common-law claim that,

as pled, actually meets the statutory definition of a product liability claim. Evans v.

Hanger Prosthetics & Orthotics, Inc., 735 F.Supp.2d 785, 796 (N.D.Ohio 2010); Miles v.

Raymond Corp., 612 F.Supp.2d 913, 918 (N.D.Ohio 2009). The essential nature of the

substantive allegations of the plaintiff's claim, not the artificial label attached to the claim,

determines the claim's true nature. Evans at 796; Miles at 921.

{¶ 34} In the case at bar, the Volovetzes alleged in their complaint that Tremco

negligently instructed NCI regarding how to install the Tuff-N-Dri system. This conduct

is the same sort of conduct described in R.C. 2307.71(A)(13)(b), which states that a

statutory product liability claim can arise from any instruction, or lack of instruction,

associated with a product. Additionally, by their claim for negligence, the Volovetzes

sought recovery for the damage to the foundation walls caused by the failure of the Tuff-

No. 15AP-1056 13

N-Dri system. This type of recovery constitutes "compensatory damages * * * for * * *

physical damage to property other than the product in question." R.C. 2307.71(A)(13).4

Therefore, the Volovetzes' negligence claim satisfies the criteria to constitute a statutory

product liability claim. As the negligence claim is actually a statutory product liability

claim, the OPLA preempts the claim and Tremco is entitled to summary judgment on it.

{¶ 35} Given the conclusions we reach above, we find that the trial court properly

granted Tremco summary judgment on its negligence claim. The trial court, however,

erred in granting summary judgment on: (1) Tremco's declaratory judgment action and

(2) the claims against NCI for breach of express warranty, breach of the implied duty to

perform in a workmanlike manner, and breach of the implied warranties of

merchantability and fitness for a particular purpose. Therefore, upon remand, Tremco's

declaratory judgment action and the claims against NCI will remain pending before the

trial court.

{¶ 36} For the foregoing reasons, we sustain the first assignment of error, which

renders the second assignment of error moot. We affirm in part and reverse in part the

judgment granting Tremco summary judgment, we reverse the judgment granting NCI

summary judgment, and we remand this matter for further proceedings consistent with

law and this decision.

Judgments affirmed in part, reversed in part; cause remanded.

DORRIAN, P.J., and SADLER, J., concur.

4 We recognize that a claim for purely economic loss is not included in the statutory definition of "product

liability claim," and, consequently, a plaintiff with such a claim may pursue a common-law remedy.

LaPuma v. Collinwood Concrete, 75 Ohio St.3d 64, 66 (1996). Here, however, the Volovetzes seek

damages for property other than the defective product. Such damages fall outside the definition of

economic loss. Compare R.C. 2307.71(A)(2) (defining "economic loss" and stating that "[h]arm is not

economic loss") with R.C. 2307.71(A)(7) (defining "harm" to include "physical damage to property other

than the product in question"). Consequently, the holding of LaPuma does not apply to this case.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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