Carriage Homes, Inc. was a general contractor that built multifamily residential and land-development projects in Minnesota. John

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Carriage Homes, Inc. was a general contractor that built multifamily residential and land-development projects in Minnesota. John Arkell was Carriage Homes’

chief executive officer, president, and sole shareholder. Carriage Homes built Southwinds, a condominium development of 38 residential units in Austin, Minnesota. The foundation elevations of some of the Southwinds units were lower than permitted under the State Building Code, causing storm water to pool in the units’ driveways and garages. The city of Austin’s development director sent Arkell a series of seven letters in 1999 and 2001 concerning the elevation problems, and Arkell gave the letters to the project managers, who failed to resolve the problems.

Minnesota makes a violation of the State Building Code a misdemeanor.

On May 30, 2001, the state charged Carriage Homes and Arkell with three misdemeanor counts each, alleging a violation of the Uniform Building Code

(UBC).

184 Part 1 The Legal and Social Environment of Business Carriage Homes pleaded guilty and was sentenced to a $1,000 fine. But Arkell pleaded not guilty, asserting that he could not be held criminally responsible for the violation. After a bench trial, the district court found Arkell guilty. He was sentenced to pay a fine, pay restitution to the condominium owners, and serve 90 days in jail, with 80 days stayed pending his compliance with sentencing conditions. Mr. Arkell appealed on the grounds that the employees and subcontractors had simply not followed his orders and he was not responsible for their failures. Is he correct? [State v Arkell, 657 NW2d 883 (Minn. App. 2003)]

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Anderson's Business Law And The Legal Environment

ISBN: 9780324638189

20th Edition

Authors: David P Twomey, Marianne M Jennings, Ivan Fox

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