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Souci v. William C. Smith & Co.

12/7/2000

ing flood-related problems in his unit, and that he attempted for several months to persuade Smith & Co. to address them. He alleges, however, that Smith & Co. ignored or rebuffed his complaints. Shortly before Smith & Co. proposed to make the repairs to Mr. Souci's floor --those final repairs that Smith & Co. deemed necessary -- Mr. Souci refused Smith & Co. any further access to his unit. Smith & Co. then sent Mr. Souci a check in the amount of $800 to cover the cost of the repairs to his floor. Mr. Souci declined to accept this payment and returned the check to Smith & Co.


On May 20, 1998, Mr. Souci brought the present action, alleging negligence and intentional infliction of emotional distress by Smith & Co. On May 24, 1999, Smith & Co. filed a motion for summary judgment. On July 16, 1999, the trial judge granted Smith & Co.'s motion in a brief written order. This timely appeal followed.


II. LEGAL DISCUSSION


A. Standard of review.


"We review a grant of summary judgment de novo, applying the same standard as the trial judge." Bullock, supra, 735 A.2d at 952 (citations omitted). Summary judgment may be granted only if "there are no genuine issues of material fact in dispute and the moving party is entitled to judgment as a matter of law." Id. In evaluating whether there are disputed material facts, "we view the entire record in the light most favorable to the" non-moving party, i.e., here to Mr. Souci. Id.


B. Mr. Souci's negligence claim against Smith & Co.


In order to prevail on a claim of negligence, the plaintiff must establish that the defendant owed him a duty of care, that the defendant breached that duty, and that the plaintiff sustained harm as a proximate result of the defendant's breach. Id. Mr. Souci contends that he has sufficiently alleged all of the required elements of a claim of negligence, and that the facts set forth in his affidavit and supporting materials, if true, would entitle him to relief. He argues that he has raised genuine issues of material fact, and that the trial judge erred by granting summary judgment in favor of Smith & Co. Smith & Co. contends, on the other hand, (a) that Mr. Souci lacked standing to maintain his negligence action against Smith & Co., (b) that Smith & Co. had a contractual obligation to the Co-op to perform the repairs necessitated by the flooding, but owed no separate duty to Mr. Souci, and (c) that Mr. Souci has failed to allege any injury or damages for which he is entitled to recover from Smith & Co. on a negligence theory. Smith & Co. therefore contends that Mr. Souci's negligence claim fails as a matter of law.


(1) Standing.


According to Smith & Co., Mr. Souci does not have standing to assert a claim of negligence against it. Smith & Co. bases this contention on the lack of privity of contract between the two parties. This argument would be more plausible if Mr. Souci's claim sounded in contract, but it is unpersuasive in this action for tort.


To be sure, Mr. Souci is the owner of shares in a co-operative corporation, rather than the owner of a condominium apartment or the tenant of rental property. Co-operative corporations are "legal hybrids," and disputes involving them often "present analytical difficulties." The Clydesdale, Inc. v. Wegener, 372 A.2d 1013, 1015 (D.C. 1977). Smith & Co.'s theory that Mr. Souci lacks standing is based on the rather esoteric distinction that Mr. Souci owns shares rather than real estate , and that damage to the unit in which he lives therefore does not injure him directly.


In our view, however, Smith & Co

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