Greenview Local School Dist. Bd. of Edn. v. Staffco Constr., Inc.
2016 Ohio 7321
Ohio Ct. App.2016Background
- In 2000–2001 Staffco Construction was the general contractor on a Greenview Local School District high-school construction project; Federal Insurance issued a guaranty/bond. The Board took occupancy in August 2001.
- After occupancy Staffco performed some repairs; no litigation followed until March 9, 2015, when the Board sued alleging defective, non‑workmanlike construction causing water leaks and building‑envelope problems.
- On May 1, 2015 Staffco and Federal answered and filed counterclaims alleging the Board negligently failed to inspect, maintain, and repair the school, causing damages remedied by Staffco (economic expenditures for repairs).
- The Board moved for judgment on the pleadings under Civ.R. 12(C), arguing it is immune from tort liability under R.C. Chapter 2744; the trial court denied the motion and the Board appealed.
- The Second District considered whether the R.C. 2744.02(B)(4) exception (liability for employee negligence causing injury on government building grounds) applied when the alleged damages were purely economic repair costs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Board is immune from Staffco’s negligence counterclaim under R.C. Chapter 2744 | Board: general immunity applies; Staffco’s claimed losses are purely economic so R.C. 2744.02(B)(4) exception does not apply | Staffco: R.C. 2744.02(B)(4) applies because Board employees’ negligence caused property defects and Staffco incurred damages to remedy them | Held: Board immune. Economic‑loss rule bars tort recovery for purely economic repair costs; (B)(4) exception not triggered; negligence counterclaim reversed. |
| Whether Federal (surety) has an independent tort claim against the Board | Board: Federal has no independent tort right against a political subdivision for purely economic losses | Federal: asserts claims via subrogation and seeks recovery against Board | Held: Federal has no independent tort cause of action against the Board; subrogation against Staffco may remain but not a tort claim against the Board. |
Key Cases Cited
- Peterson v. Teodosio, 34 Ohio St.2d 161 (procedural standard for Civ.R. 12(C))
- State ex rel. Midwest Pride IV, Inc. v. Pontious, 75 Ohio St.3d 565 (procedural principles on motions to dismiss/judgment on pleadings)
- Colbert v. Cleveland, 99 Ohio St.3d 215 (general rule of political‑subdivision immunity under R.C. 2744.02)
- Hubbell v. City of Xenia, 115 Ohio St.3d 77 (order denying immunity under R.C. 2744 is final and appealable)
- Floor Craft Floor Covering, Inc. v. Parma Comm. Gen. Hosp., 54 Ohio St.3d 1 (economic‑loss rule prevents tort recovery for purely economic losses)
- Chemtrol Adhesives, Inc. v. Am. Mfrs. Mut. Ins. Co., 42 Ohio St.3d 40 (foundational statement of the economic‑loss rule)
- Queen City Terminals v. Gen. Am. Transp. Corp., 73 Ohio St.3d 609 (limitations on negligence recovery where only economic loss asserted)
- Corporex Dev. & Constr. Mgt., Inc. v. Shook, Inc., 106 Ohio St.3d 412 (discussing economic‑loss rule and tort vs. contract balance)