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Comras v. City of Canyon Lake9/2/2004
In consolidated appeals arising from judgments on the pleadings, the plaintiffs assert that certain statutory immunities do not apply to shield the City of Canyon Lake from liability for misrepresentations made by independent contractors who performed building inspections for the city.
We hold that because the complaints alleged only economic damages, the city is immune from liability for damages resulting from the inspectors' misrepresentations. We therefore affirm the judgments.
PROCEDURAL BACKGROUND
In separate actions, Sam and Jill Comras and Robert and Gertrude Denyer (hereafter sometimes plaintiffs) sued the City of Canyon Lake, alleging that the city was liable for damages resulting from intentional misrepresentations by the city's building inspectors that construction on their residences met the requirements of the building code.
In each case, the city brought a motion for judgment on the pleadings, asserting that it is immune from liability for damages arising from building inspections, whether the inspection was negligently done or was intentionally fraudulent, and that it is immune from liability for any injury resulting from any misrepresentation of an employee or independent contractor, whether negligent or fraudulent. The motions were granted, and judgment was entered in favor of the city in both cases. The plaintiffs each filed a timely notice of appeal. We consolidated the two appeals.
STANDARD OF REVIEW
In an appeal from a judgment on the pleadings, we accept as true the facts alleged in the complaint (Gerawan Farming, Inc. v. Lyons (2000) 24 Cal.4th 468, 515-516) and independently determine whether the complaint states a cause of action. (Ludgate Ins. Co. v. Lockheed Martin Corp. (2000) 82 Cal.App.4th 592, 602.)
FACTS
Comras case
The Comrases engaged Joseph Geldreich (Geldreich) to perform a major remodeling of their residence within the City of Canyon Lake. Kenneth Larsen and Marsha Larsen (Larsen), doing business as National Code Consultants, and John Rodriguez (Rodriguez) were independent contractors who provided building inspection services to the city.
During the remodeling of the Comras residence, Larsen and Rodriguez inspected, or purported to inspect, the work at various stages and signed the inspection card, signifying that work to that point was according to code and permitting the work to move on to the next phase. Before the construction was complete, the Comrases discovered that the construction did not comply with the building code in a number of material respects, including serious structural deficiencies which could cause the residence to collapse and serious deficiencies in the electrical wiring which could cause a fire. Larsen and Rodriguez knew that the construction did not meet building code requirements and that the defects in the structure created a risk of serious bodily injury to anyone entering the structure, but approved the construction anyway, knowing the Comrases would rely on their approvals. The Comrases incurred damages of not less than $300,000 as a result of the deficiencies and the inspectors' failure to report them. Their damages were limited to the cost of rectifying the defects in the construction.
Denier case
The Denyers engaged Geldreich to build a new residence for them within the City of Canyon Lake. Larsen and Rodriguez performed inspections as agents of the city and approved the construction at different phases. The Denyers discovered numerous serious defects in the construction, including nonexistent foundations and structural supports. The defects put the structure at risk of col
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