Summary
holding that a fire investigator's duty to non-negligently investigate and report fire loss to insurance companies under the terms of a contract did not extend a duty to investigate non-negligently to the individual who suffered the fire loss on his property
Summary of this case from Waldron v. RotzlerOpinion
December 19, 1986
Appeal from the Supreme Court, Monroe County, Tillman, J.
Present — Callahan, J.P., Denman, Boomer and Pine, JJ.
Order, insofar as appealed from, unanimously reversed, on the law, without costs, and motion granted. Memorandum: The motion of defendants John F. Connell Consultants, Ltd. and Peter Rincones pursuant to CPLR 3212 for summary judgment dismissing the complaint against them should have been granted in its entirety. The two remaining counts as to which Special Term denied the motion allege that these defendants negligently investigated plaintiffs' fire loss. Liability for negligent conduct may be imposed only if it can be established that the defendants owe a duty to the plaintiffs (see, Pulka v. Edelman, 40 N.Y.2d 781). Connell and Rincones had a duty under their contract with Kemper Insurance Company and American Manufacturers Mutual to investigate and report on the fire loss in a nonnegligent manner. That duty did not extend to plaintiffs. Although an obligation rooted in contract may sometimes engender a duty owed to those not in privity (see, Strauss v. Belle Realty Co., 65 N.Y.2d 399, 402), and while the absence of privity does not foreclose recognition of a duty, the general rule is that "privity or its equivalent remains the predicate for imposing liability for nonperformance of contractual obligations" (Henry v. Guastella Assoc., 113 A.D.2d 435, 437, lv denied 67 N.Y.2d 605, and cases cited therein; see also, Calamari v. Grace, 98 A.D.2d 74; Holden v. Boyle, 80 A.D.2d 281).
White v. Guarente ( 43 N.Y.2d 356), relied on by Special Term, is inapposite. There the court found that defendant accounting firm, retained by a limited partnership to perform an audit and prepare tax returns, owed a duty to plaintiff, a limited partner, as a member of a "known group possessed of vested rights, marked by a definable limit and made up of certain components (see Ultramares Corp. v. Touche, 255 N.Y. 170, 182-185, supra)" (White v. Guarente, 43 N.Y.2d 356, 361, supra). In contrast, plaintiffs here do not qualify as members of a limited class whom defendants should have expected to rely upon their report. The duty of Rincones and Connell to investigate the fire loss in a competent manner was owed only to Kemper and American.