Corvias Military Living, LLC v. Ventamatic, LTD.
116307
| Kan. Ct. App. | Jun 2, 2017Background
- Corvias built, owned, and managed privatized family housing at Fort Riley and installed 3,785 Ventamatic “NuVent” bathroom exhaust fans; some used Jakel motors. Corvias is not in privity with Ventamatic or Jakel.
- Two separate fires (June 2012 and February 2013) allegedly were caused by defective Jakel motors in NuVent fans; Corvias removed and replaced the remaining NuVent fans and retained an expert who opined a design/coil defect existed in the Jakel motors and NuVent fans generally.
- Corvias sued Ventamatic, Jakel, and others asserting product liability, breach of express and implied warranties, Magnuson‑Moss and related claims; all defendants except Ventamatic and Jakel were voluntarily dismissed before summary judgment.
- Ventamatic and Jakel moved for summary judgment arguing the economic loss doctrine barred Corvias’s tort/product liability recovery and that implied warranty recovery failed because the fans were not inherently dangerous; the district court granted summary judgment in their favor.
- On appeal, the court examined whether the bathroom fans and housing units constituted an “integrated system” (which would trigger the economic loss doctrine) and whether Corvias could pursue product liability claims under the Kansas Product Liability Act.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the economic loss doctrine bars Corvias’s product liability/tort claim | Corvias argued the fans are distinct products that caused damage to other property (houses) and therefore economic loss doctrine does not bar recovery | Ventamatic/Jakel argued the fans were integrated components of the housing units so damage is to the product itself and barred by the economic loss doctrine | Court held the fans were not an integral part of the houses; economic loss doctrine does not bar Corvias’s product liability claim |
| Whether the exhaust fans became indistinguishable/integral to the housing units (integrated systems test) | Corvias: fans are separable, not essential to house function, so not part of an integrated system | Defendants: fans were components of the houses and thus part of an integrated system | Court held as a matter of law that the fans were not integral/essential to the houses’ function and thus not part of an integrated system |
| Whether Corvias may proceed under the Kansas Product Liability Act despite lack of privity | Corvias relied on KPLA to pursue product liability without privity | Defendants asserted common‑law/privity limitations and economic loss bar | Court held KPLA governs product liability claims and, because economic loss doctrine did not apply, Corvias may proceed under the Act |
| Whether Corvias can recover on an implied warranty theory because fans are inherently dangerous | Corvias argued design/manufacture defects create product liability and warranty claims | Defendants argued bathroom fans are not inherently dangerous so implied warranty recovery unavailable | Court did not decide this issue; because it reversed on the economic loss point, it left implied warranty question unresolved and remanded |
Key Cases Cited
- East River S.S. Corp. v. Transamerica Delaval, 476 U.S. 858 (U.S. 1986) (economic loss doctrine: manufacturers generally have no tort duty to prevent a product from injuring itself)
- Koss Constr. v. Caterpillar, 25 Kan. App. 2d 200 (Kan. Ct. App. 1998) (adopted economic loss doctrine for damage to the product itself)
- David v. Hett, 293 Kan. 679 (Kan. 2011) (economic loss doctrine should not bar homeowner claims for negligently performed residential construction services)
- Northwest Ark. Masonry, Inc. v. Summit Specialty Prods., 29 Kan. App. 2d 735 (Kan. Ct. App. 2001) (component that becomes indistinguishable part of final product triggers integrated‑systems analysis)
- Wausau Tile, Inc. v. County Concrete Corp., 226 Wis. 2d 235 (Wis. 1999) (integrated systems/integral component test used to determine when economic loss doctrine applies)
- State Farm Fire & Cas. Co. v. Hague Quality Water Int’l, 345 Wis. 2d 741 (Wis. Ct. App. 2012) (defective product must be integral to function of damaged property to qualify as integrated system)