North Peak Construction, LLC v. Architecture Plus, Ltd.
254 P.3d 404
Ariz. Ct. App.2011Background
- North Peak, an Arizona licensed residential contractor, sued Architecture Plus and Mark Fredstrom for breach of implied warranty and negligence.
- Architect designed a custom home on Haugen's hillside lot with a limited view corridor intended to maximize city views.
- Scaramella contracted with Architect for further design work; North Peak later built the home per those plans.
- North Peak discovered during construction that the plans oriented the house toward a water tank and mountain, not the city lights, leading to additional costs.
- North Peak alleged Architect’s design plans implied it would use reasonable skill and care and comply with project specs; sought attorneys’ fees.
- The trial court dismissed the implied warranty claim as tort-based and thus not recoverable under the contract-based rule for attorneys’ fees.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| breach of implied warranty viable against Architect | North Peak relies on Donnelly to permit implied warranty against design professionals without privity. | Barmat precludes contract-based implied warranty claims for design professionals absent privity or express contract terms. | Yes; implied warranty claim stated and reversible. |
| Architect personally liable for implied warranty | Fredstrom signed and sealed plans; duties attach personally under modern doctrine. | Capacity is corporate; personal liability not shown. | Yes; North Peak may pursue Fredstrom personally. |
Key Cases Cited
- Donnelly Constr. Co. v. Oberg/Hunt/Gilleland, 139 Ariz. 184 (Ariz. 1984) (design professionals owe implied warranty of reasonable care regardless of privity)
- Barmat v. John and Jane Doe Partners A-D, 155 Ariz. 519 (Ariz. 1987) (attorneys’ fees under § 12-341.01(A) not available for claims arising outside contract; limits on implied-in-law contracts)
- Lofts at Fillmore Condo. Ass’n v. Reliance Commercial Constr., Inc., 218 Ariz. 574 (Ariz. 2008) (implied warranty of habitability/workmanlike performance sounds in contract)
- Woodward v. Chirco Constr. Co., Inc., 141 Ariz. 514 (Ariz. 1984) (implied warranty concepts tied to contract-based duties)
- Ramsey Air Meds, L.L.C. v. Cutter Aviation, Inc., 198 Ariz. 10 (Ariz. App. 2000) (duty to perform in a workmanlike manner is imposed by law)