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Northwest Arkansas Masonry

9/14/2001

Appeal from Johnson District Court; LAWRENCE E. SHEPPARD, judge.


Affirmed.


This is a products liability case concerning an alleged product defect in Type S masonry cement powder purchased by Northwest Arkansas Masonry, Inc., (Northwest) from Summit Specialty Products, Inc., (Summit), a supplier, manufactured by Ash Grove Cement Company (Ash Grove), and packaged by Materials Packaging Corporation (Materials Packaging).


Northwest sued the supplier, manufacturer, and packager under product liability and contract theories. The trial court granted summary judgment in favor of Summit and entered judgment as a matter of law for Ash Grove and Materials Packaging following a jury verdict in favor of Northwest. Northwest appeals both judgments. Ash Grove and Materials Packaging jointly filed a cross-appeal. Northwest has moved for our order to dismiss the cross-appeal as untimely.


The Facts


Northwest subcontracted to perform the masonry work in the Home Depot store being built in Olathe, Kansas. The work consisted of building the outer walls of the store for which Northwest was to receive $666,700. Northwest's contract required it to purchase all the necessary materials to construct the masonry walls of the building. The materials included concrete block, rebar, spacers and connectors, masonry cement, insulation, and various other products.


Northwest purchased Type S masonry cement powder from Summit. Type S masonry cement powder is a premixed product containing Portland cement and lime. Northwest made Type S mortar at the construction site by mixing the Type S masonry cement powder with sand and water. The significance of Type S mortar is that it will, if properly mixed, achieve a minimum bonding strength of 1,800 pounds per square inch and meet the plans and specifications of the contract.


In constructing the masonry wall, Northwest used the mortar it made at the construction site to bind the layers of concrete block in the wall. The wall was made by laying concrete blocks, inserting rebar in the blocks' cells at various intervals, and then filling the cells with mortar.


Several days into the project, Northwest discovered the mortar was not hardening properly. Testing confirmed the mortar was not meeting specified strengths. The general contractor ordered Northwest to tear down the walls after 20,000 concrete blocks had been laid and bonded together with the mortar made with Ash Grove's Type S cement product.


Prior to trial, the district court granted Summit's motion for summary judgment on all pending claims. Northwest proceeded to jury trial against Ash Grove and Materials Packaging. Ultimately, Northwest presented only its strict liability claim to the jury.


As part of its claim, Northwest presented itemized damages to the jury by exhibits and testimony. The jury returned a verdict finding Northwest 15% at fault, Ash Grove 42.5% at fault, and Materials Packaging 42.5% at fault. The damages awarded totaled $124,540.64 after deducting Northwest's fault percentage.


Upon motion by Ash Grove and Materials Packaging, the district court entered judgment as a matter of law in favor of Ash Grove and Materials Packaging. The court set aside the jury verdict on the basis that the damages awarded were entirely barred as a matter of law by the economic loss doctrine set forth in East River Steamship Corp. v. Transamerica Delavel, Inc., 476 U.S. 858, 90 L. Ed. 865, 106 S. Ct. 2295 (1986); Koss Construction v. Caterpillar, Inc., 25 Kan. App. 2d 200, 960 P.2d 255, rev. denied 265 Kan. 885 (1998); and Elite Professionals, Inc. v. Carrier Corp., 16 Kan. App. 2d 625, 827 P.2d 1195 (1992).

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