Barbara L. Sarb v. Julie W. Phillips

CourtCourt of Appeals of South Carolina
DecidedAugust 27, 2025
Docket2023-001713
StatusUnpublished

This text of Barbara L. Sarb v. Julie W. Phillips (Barbara L. Sarb v. Julie W. Phillips) is published on Counsel Stack Legal Research, covering Court of Appeals of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barbara L. Sarb v. Julie W. Phillips, (S.C. Ct. App. 2025).

Opinion

THIS OPINION HAS NO PRECEDENTIAL VALUE. IT SHOULD NOT BE CITED OR RELIED ON AS PRECEDENT IN ANY PROCEEDING EXCEPT AS PROVIDED BY RULE 268(d)(2), SCACR.

THE STATE OF SOUTH CAROLINA In The Court of Appeals

Barbara L. Sarb, Respondent/Appellant,

v.

Julie W. Phillips and Joseph M. Phillips, Appellants/Respondents.

Appellate Case No. 2023-001713

Appeal From Florence County H. Steven DeBerry, IV, Circuit Court Judge

Unpublished Opinion No. 2025-UP-302 Heard May 8, 2025 – Filed August 27, 2025

AFFIRMED IN PART, REVERSED IN PART, AND REMANDED

Valerie Garcia Giovanoli, of McCabe, Trotter & Beverly, P.C., and Fiona R. Reed, of Miller, Dawson, Sigal & Ward, LLC, both of Columbia, for Respondent/Appellant.

Edward Andrew Love and Robert Thomas King, both of King, Love & Hupfer, LLC, of Florence, for Appellants/Respondents. PER CURIAM: In June 2019, Dr. Barbara Sarb (Buyer) and Julie and Joseph Phillips (collectively, Sellers) entered into a contract (the Purchase Agreement) for the sale of a home in Florence (the Property). Paragraph 8 of the Purchase Agreement sets forth the procedure for any repairs requested by Buyer. It also states, "Buyer at Buyer's expense shall have the privilege and responsibility of inspecting the structure['s] . . . plumbing systems, . . . [and] waste water systems." Paragraph 9 of the Purchase Agreement is titled "INSPECTION/REINSPECTION RIGHTS" and states "Buyer and SC licensed and insured inspectors ("Inspectors") reasonably perform any reasonable ultimately non-destructive examination and make reasonable record of the Property . . . ." It further provides that "Buyer and persons they choose may make reasonable visual observations of Property." Paragraph 23 of the Purchase Agreement states, in part,

If Buyer defaults in the performance of any of the Buyer's obligations under this Contract ("Default"), Seller may: (i) Deliver Notice of Default to Buyer and terminate Contract; and (ii) Pursue any remedies available to Seller at law or equity; and (iii) Recover attorneys' fees and all other direct costs of litigation if Buyer found in default/breach of Contract.

As required by the Residential Property Condition Disclosure Act (the Act),1 Sellers provided Buyer with a Residential Property Condition Disclosure Statement (the Disclosure Statement) representing that they did not have actual knowledge of any "defects, malfunctions, damages, conditions or characteristics" with the Property. The Disclosure Statement contained a standard provision stating it did not "limit the obligation of the purchaser to inspect the property and improvements which are the subject of the real estate contract."

Prior to and shortly after moving in, Buyer experienced issues with the Property, including (1) flooding in the basement, (2) problems with sewage disposal systems and plumbing, and (3) an infestation of cockroaches. Buyer filed a complaint against Sellers, claiming (1) a violation of the Act; (2) fraud; (3) constructive fraud; (4) negligent misrepresentation; (5) negligence, gross negligence, and negligence per se; (6) breach of contract/breach of implied covenant of good faith

1 S.C. Code Ann. §§ 27-50-10 et seq. (2007 & Supp. 2024). and fair dealing; and (7) breach of contract/breach of implied covenant of good faith and fair dealing accompanied by a fraudulent act. Sellers filed an answer asserting multiple defenses and counterclaims, including a claim for "Breach of Contract—Failure to Inspect."2

At trial, Buyer testified that before entering into the Purchase Agreement, she personally inspected the house with her realtor, John Etheridge. After entering into the Purchase Agreement and before closing, Buyer visited the Property "[f]ive or six" times and never noticed any issues with the house. Buyer hired two companies to inspect the Property to ensure "there w[ere] no major structural problems prior" to closing. She explained the first inspection was a CL-100 inspection, which is used to check for wood infestation and pests. Buyer stated the CL-100 revealed (1) no "pest infestations or wood destroying infestations"; (2) no "wood destroying pests"; (3) no concerns about standing water or groundwater infiltration; and (4) that non-active wood destroying fungi were present. She explained the CL-100 revealed some evidence of "[w]ater/moisture related" "[w]ood/decay damage" in "various locations to sub fascia"—but this damage was located "under the overhead of the roof" and "nowhere near the basement." The CL-100 also revealed "[w]ood/decay damage [wa]s evident to the window trim and window stool at the rear right side of the basement" and was "water/moisture related."

Buyer testified the second inspection was a home inspection by HouseMaster, which inspected "the rooms in the house, the outside, the basement, and the crawl space"; the inspector detailed his findings in a report (the HouseMaster report). HouseMaster reported similar findings to those found in the CL-100. It also noted decay in the basement windows because one window was level with the ground, and it recommended replacing the vinyl on the window. The HouseMaster report did not contain "any finding or indication that there was actually water in the" basement area, but it recommended "reach[ing] out to the prior owner about whether there was any type of water penetration." Buyer explained she requested that Etheridge ask Sellers whether there was "any water in the" house; Sellers responded that "water never came into the house."3

After reviewing the reports, Buyer and Etheridge created a Residential Repair

2 This was the only counterclaim heard by the jury. 3 Etheridge also testified that he called Sellers' broker to ask whether there had been any water in the basement, and Sellers "relay[ed]" to him that there had not been any "water problems in the house." Addendum Agreement (the Addendum) requesting that Sellers repair some of the issues noted in the inspections prior to closing. Sellers agreed to most of the requested repairs and accepted the estimate from Buyer's contractor, John Sims. Buyer testified the estimate from Sims addressed the issues noted in the inspections and that the repairs would "cover everything." She stated she closed on the Property, Sellers credited her the estimated cost of the repairs, and Sims completed the repairs.

Buyer moved into the Property around August 26. She testified she purchased the Property during a dry summer. However, Buyer presented evidence that the area received almost two inches of rain on August 16 and August 17, and she testified that when she went to check on the Property on August 18, the basement was flooded with "several inches of water." Buyer claimed there was consistently standing water in the basement over the next year and the flooding occurred "[a]ny time there was a moderate amount of rain." She moved out of the Property in December of that year because of the high moisture levels and the related health issues she was experiencing.

Buyer also testified that shortly after moving in, she started noticing "mud that came out of the drain" in the shower, the toilet water "breathing," the sinks draining slowly, and some minor leaks in the bathrooms. She explained she called a plumber but the issues got worse; she could not flush the toilets or drain the sinks and everything "backed up." Buyer testified a different plumber came to inspect and told her the sewer "pipe that went from [the Property] to the street was clogged" and there was a "hole in the PVC pipe" that measured approximately four inches by two inches where someone had previously attempted to clean it out. She explained the sewer pipe was also at "a reverse slope," meaning the sewage backed up into the Property; the plumber told her the sewer pipe needed to be replaced.

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Bluebook (online)
Barbara L. Sarb v. Julie W. Phillips, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barbara-l-sarb-v-julie-w-phillips-scctapp-2025.