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Kenneth Vogel and Lea Vogel v. Foth and Van Dyke Associates, Inc.
Citations: 266 F.3d 838; 32 Envtl. L. Rep. (Envtl. Law Inst.) 20125; 2001 U.S. App. LEXIS 20482; 2001 WL 1078319Docket: 01-1070
Court: Court of Appeals for the Eighth Circuit; September 17, 2001; Federal Appellate Court
Kenneth and Lea Vogel, property owners in Iowa, allege that their plans to develop a residential subdivision were undermined by the negligence of Foth and Van Dyke Associates, Inc., an engineering firm hired to locate a new landfill site. The firm identified a neighboring parcel as a finalist for the landfill, adversely affecting the Vogels' property value and development prospects. The Vogels filed a negligence suit in state court, claiming the proposed site was unsuitable under Iowa law. Foth and Van Dyke removed the case to federal court, seeking dismissal based on failure to state a claim and lack of ripeness. The district court granted the dismissal, but the Vogels appealed, arguing their claim was ripe and eligible for relief. The appeals court reviewed the dismissal de novo, addressing ripeness first. Foth and Van Dyke contended that the claim was speculative since no landfill had been selected. However, the court found that the Vogels' injury was immediate and not contingent, stemming from the announcement itself, which diminished their property's marketability. The court concluded that the Vogels' claim was sufficiently ripe for judicial intervention. Next, the court examined the substance of the negligence claim, noting that Iowa law recognizes the tort of negligently supplying information. The court highlighted that while the traditional elements of negligence apply, the nature of the harm dictates the specific legal framework relevant to the case. The Vogels' claim pertains to the negligent provision of information regarding a landfill site, which they argue directly impacted their economic interests. Iowa recognizes a tort that allows recovery for those who provide false information during business transactions if the information is intended for guiding others. The Vogels allege that Foth and Van Dyke supplied false information about a landfill site to Bluestem, for which they were compensated. However, to establish liability under this tort, the Vogels must demonstrate that Foth and Van Dyke owed them a duty, which is limited to those intended recipients or a specific class of individuals. The Vogels were not direct recipients of the information, nor were they indirectly benefited, as Bluestem did not provide the information to them for their guidance. Consequently, the Vogels do not fall within the protected class under the tort. Additionally, the Vogels' complaint lacks any assertion that they relied on the information provided by Foth and Van Dyke, which is a necessary element for recovery. They may have suffered harm due to the landfill site announcement, but this does not automatically confer liability on Foth and Van Dyke, who did not intend for the Vogels to rely on the information. Recognizing a duty under these circumstances would expose information providers to unlimited liability. Thus, the district court concluded that the Vogels failed to state a valid claim, leading to an affirmation of the ruling.