H.H. Taylor, C.A. v. Ramsay-Gerding Construction Co.

Facts

In 1998, plaintiffs, H.H. (Todd) Taylor and his wife, C.A. Taylor, began construction of a hotel in Lincoln City. They hired Ramsay-Gerding Construction Company as their general contractor. In turn, Ramsay-Gerding hired a subcontractor to install stucco plaster exterior siding. Ramsay-Gerding proposed using a stucco system called “SonoWall,” manufactured by ChemRex, Inc., and plaintiffs approved that proposal. During construction, plaintiff Todd Taylor grew concerned about possible rusting of the galvanized fittings. At the meeting were Taylor, a representative of Ramsay-Gerding, who also brought Mike McDonald, ChemRex’s territory manager for Oregon, and a representative of the stucco installer. In response to Taylor’s concerns, McDonald asserted that the SonoWall system was bullet-proof against rust but noted that a corrosion inhibitor would provide further protection. In July 1999, McDonald sent a letter to the stucco installer on ChemRex letterhead, which stated that ChemRex will warrant the SonoWall stucco system for 5 years. In late 1999, an employee of plaintiffs’ company noticed discoloration on the exterior walls of the hotel. In 2001, plaintiffs initiated this action against Ramsay-Gerding for breach of the construction contract.