28 Feb 2024
Layes v. Ramar Construction Limited
Background:
- In 2013, Layes and Blinn contracted Ramar Construction to build a home for $459,000.
- By 2014, dissatisfied with the work, plaintiffs withheld the final payment, citing deficiencies.
- They took possession of the home in October 2014, fully moving in by September 2015.
- Ramar registered a builder’s lien in September 2014, leading to litigation that settled in November 2019.
Key Issues:
- Res Judicata & Issue Estoppel:
- Defendants argued the 2020 action is barred due to the 2019 settlement and previous litigation, invoking res judicata, issue estoppel, and abuse of process.
- Structural Defects:
- Plaintiffs alleged new significant structural defects discovered in 2020, making the house uninhabitable, including foundation problems, unauthorized roof truss modifications, and improper plumbing venting causing mold.
- Summary Judgment Motion:
- Defendants sought dismissal of the 2020 claims as an abuse of process and statute-barred. The court needed to decide if the claims were barred by the prior settlement or statute of limitations.
Court’s Decision:
- The court reviewed whether the 2020 claims were essentially the same as those settled in 2019 and evaluated the timing of the plaintiffs’ discovery of defects and potential for abuse of process.
Successful Party:
- The decision was mixed, with partial successes for both parties. The Ramar Defendants' motion for summary judgment was partially granted concerning the claim that the foundation walls were too low, but the plaintiffs' other claims were allowed to proceed.
Monetary Awards/Costs/Damages:
- 2019 Settlement: $80,000 to the plaintiffs, and $261,263.55 to Ramar Construction.
- 2024 Decision: The plaintiffs' new claims were allowed to proceed, except for the foundation wall height issue. The exact damages or costs will be determined in subsequent proceedings.