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Wallkill 5 Associates II v. Tectonic Engineering, P.C.

United States District Court for the District of New Jersey
1997 WL 452252 (1997)


Facts

Through a predecessor in interest, Wallkill 5 Associates II (Wallkill) (plaintiff), a New Jersey partnership, retained Tectonic Engineering, P.C. (Tectonic) (defendant), a New York corporation, to conduct geotechnical tests and prepare a formal report regarding land that Wallkill was considering purchasing for commercial development. Tectonic’s report indicated that the land would be suitable for development after the application of certain remedial measures. Wallkill bought the property and hired Walter Poppe General Contractors, Inc. (Poppe), a New Jersey corporation, to develop the land and construct a warehouse on it. Poppe found that certain areas of the property required more remediation than set forth in Tectonic’s report. As a result, Wallkill incurred significantly higher costs than anticipated to develop the property. Wallkill sued Tectonic in a New Jersey federal court, alleging breaches of performance, contract, warranties, and professional care. Wallkill did not sue Poppe. Tectonic moved to dismiss for lack of personal jurisdiction, improper venue, and failure to join an indispensable party. Tectonic also moved, in the event its motions to dismiss were denied, for (1) a transfer of venue and (2) that Poppe be joined as a third-party defendant on the ground that Poppe’s own conduct created the newly discovered problems with the property.

Rule of Law

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Issue

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Holding and Reasoning (Wolin, J.)

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  • A "yes" or "no" answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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