560 P.3d 684
Okla. Civ. App.2024Background
- Glendale Apartments LLC (plaintiff) owned an apartment complex damaged by an automobile.
- Plaintiff's insurer, American Property Insurance Company (APIC), hired Day Engineering Consultants and its president Corbin Swain to assess the structural damage and provide repair recommendations.
- During his inspection for APIC, Swain discovered and reported additional structural problems unrelated to the vehicle impact to city officials.
- The City's subsequent action, based on Swain’s report, resulted in all three apartment buildings being closed and tenants being evicted.
- Plaintiff sued Day Engineering and Swain for negligence, arguing alleged harm from the latter’s reporting extending beyond his insurance investigation mandate.
- The trial court granted defendants’ motion to dismiss, ruling no duty was owed to the plaintiff; plaintiff appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Duty of Care by Engineer to Insured | Swain owed a duty as a professional engineer, not an adjuster. | Defendants (Swain/Day) owed no duty; protected by Trinity and its progeny. | Generally no duty, but not immune for acts beyond insurer assignment. |
| Scope of Trinity Immunity | Trinity immunity does not apply to Swain's actions beyond insurance claim work. | Trinity immunity broadly protects all acts performed in inspection assignment. | Immunity limited; no protection for actions outside insurance investigation. |
| Personal Liability of Swain | Swain is liable personally for his own tortious conduct. | Swain acts within corporate capacity, thus shielded under corporate law. | Not resolved; further proceedings required on scope of Swain's actions. |
| Motion to Dismiss vs. Summary Judgment Standards | Dismissal improper; motion treated as summary judgment w/o due process. | Trial court properly considered as motion to dismiss based on law. | Dismissal reversed; case remanded for proceedings on substantive claims. |
Key Cases Cited
- Trinity Baptist Church v. Brotherhood Mut. Ins. Servs., LLC, 341 P.3d 75 (Okla. 2014) (no duty of care owed by independent insurance adjusters and third-party consultants to insured for negligence in claim investigation)
- Brown v. State Farm, 58 P.3d 217 (Okla. Civ. App. 2002) (lack of privity not a bar to duty, but abrogated in relevant respects by Trinity)
- National Diversified Business Services, Inc. v. Corporate Financial Opportunities, Inc., 946 P.2d 662 (Okla. 1997) (standards for dismissal for failure to state a claim)