Coldwell Banker v. Superior Court

11 Cal. Rptr. 3d 564, 117 Cal. App. 4th 158
CourtCalifornia Court of Appeal
DecidedMarch 29, 2004
DocketD042574
StatusPublished

This text of 11 Cal. Rptr. 3d 564 (Coldwell Banker v. Superior Court) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coldwell Banker v. Superior Court, 11 Cal. Rptr. 3d 564, 117 Cal. App. 4th 158 (Cal. Ct. App. 2004).

Opinion

11 Cal.Rptr.3d 564 (2004)
117 Cal.App.4th 158

COLDWELL BANKER RESIDENTIAL BROKERAGE COMPANY, INC., Petitioner,
v.
The SUPERIOR COURT of San Diego County, Respondent;
Marcos Sawyer Salazar, a Minor, etc., Real Party in Interest.

No. D042574

Court of Appeal, Fourth District, Division 1

March 29, 2004

*567 Gemmill, Thornton & Baldridge, Bruce M. Thornton and Carlos V. Yguico, Los Angeles, for Petitioner.

No appearance for Respondent.

Speckman & Associates and David L. Speckman for Real Party in Interest.

McCONNELL, P.J.

Marcos Sawyer Salazar (Marcos), a minor, claims he developed asthma caused by toxic mold in the house in which he lived with his mother, Maria Angelina Casteneda (Casteneda). Casteneda and Marcos[1] sued the seller of the house, the seller's broker Coldwell Banker Residential Brokerage Company Inc. (Coldwell Banker) and others, alleging they breached various duties of care, including failing to disclose the existence of microbial contamination. Coldwell Banker unsuccessfully demurred to Marcos' complaint on the ground it did not owe him a duty of care because he was not a party to the real estate transaction. We conclude Marcos cannot state a cause of action against Coldwell Banker and grant its petition for writ of mandate.

FACTUAL[2] AND PROCEDURAL BACKGROUND

Casteneda bought a house from Michael Behnke. Coldwell Banker was the listing agent in the sale. After Casteneda and Marcos moved into the house, Casteneda noticed a moldy smell in the kitchen and downstairs bathroom. An environmental test showed a dangerous level of mycotoxins and mold spores. The estimated cost to fix the problem was more than $25,000. The exposure to mold caused Casteneda and Marcos to become ill and caused Marcos to develop asthma.

In his second cause of action for negligence, Marcos alleged Coldwell Banker, as a licensed real estate broker, owed him a duty under Civil Code[3] section 2079 et seq. to conduct a reasonably competent and diligent inspection of the property and to disclose known or reasonably ascertainable defects, including the presence of dangerous microbial contamination. Coldwell Banker, who knew Marcos would be living in the house with his mother, breached this duty by failing to conduct a reasonable inspection, failing to disclose known or reasonably ascertainable defects, and representing that the property was in excellent condition while working with other defendants to hide evidence of microbial contamination.

Marcos' seventh cause of action alleged the defective and dangerous condition of the property constituted a nuisance, thereby depriving him of its safe, healthy and comfortable use. His eighth cause of action alleged Coldwell Banker actively and intentionally concealed the defective and *568 dangerous condition, with the intent of causing Marcos severe emotional distress. In his ninth cause of action, Marcos alleged fraud and misrepresentation.

Coldwell Banker demurred, arguing only the parties to a real estate transaction can maintain an action against the seller's real estate broker for failing to disclose defective conditions in a home. In his opposition, Marcos argued Coldwell Banker owed him a duty of care because it knew he was the buyer's child and would be living in the home. Thus, Coldwell Banker could reasonably foresee the risk of physical injury to him.

The court overruled the demurrer to the second, seventh and eighth causes of action, finding Marcos sufficiently stated a cause of action for negligence, nuisance and intentional infliction of emotional distress. The court sustained without leave to amend the ninth cause of action for fraud and misrepresentation, finding Marcos could not show he relied on Coldwell Banker's representations. This petition followed. We issued an order to show cause and calendared argument.

DISCUSSION

A

Standard of Review

On review of a ruling on demurrer, we exercise our independent judgment on whether, as a matter of law, the complaint states a cause of action. (Lazar v. Hertz Corp. (1999) 69 Cal.App.4th 1494, 1501, 82 Cal.Rptr.2d 368; Trinkle v. California State Lottery (1999) 71 Cal.App.4th 1198, 1201, 84 Cal.Rptr.2d 496.) We accept as true the properly pleaded material facts but do not assume the truth of contentions, deductions or conclusions of fact or law. (Interinsurance Exchange v. Narula (1995) 33 Cal.App.4th 1140, 1143, 39 Cal.Rptr.2d 752; Hernandez v. City of Pomona (1996) 49 Cal.App.4th 1492, 1497, 57 Cal.Rptr.2d 406.) We examine the complaint's factual allegations to determine whether they state a cause of action on any available legal theory. (Wolfe v. State Farm Fire & Casualty Ins. Co. (1996) 46 Cal.App.4th 554, 560, 53 Cal.Rptr.2d 878.)

B

Duty

"A tort, whether intentional or negligent, involves a violation of a legal duty, imposed by statute, contract or otherwise, owed by the defendant to the person injured." (5 Witkin, Summary of Cal. Law (9th ed. 1988) Torts, § 6, p. 61; Romero v. Superior Court (2001) 89 Cal.App.4th 1068, 1078, 107 Cal.Rptr.2d 801.) Without such a duty, any injury is injury without wrong. (5 Witkin, supra, § 6, p. 61; Quelimane Co. v. Stewart Title Guaranty Co. (1998) 19 Cal.4th 26, 57-58, 77 Cal.Rptr.2d 709, 960 P.2d 513 [duty is threshold element of cause of action for negligence].) "The existence and scope of duty are legal questions for the court." (Merrill v. Navegar, Inc. (2001) 26 Cal.4th 465, 477, 110 Cal.Rptr.2d 370, 28 P.3d 116; Ann M. v. Pacific Plaza Shopping Center (1993) 6 Cal.4th 666, 674, 25 Cal.Rptr.2d 137, 863 P.2d 207.)

To state a cause of action for any of the tort claims alleged — negligence, nuisance or intentional infliction of emotional distress — Marcos must show Coldwell Banker owed him a duty of care. "Duty" is simply "`an expression of the sum total of those considerations of policy which lead the law to say that the particular plaintiff is entitled to protection.'" (Dillon v. Legg (1968) 68 Cal.2d 728, 734, 69 Cal.Rptr. 72, 441 P.2d 912.) "Courts, however, have invoked the concept of duty to limit generally `the otherwise potentially infinite liability which would follow from every negligent *569 act....'" (Thompson v. County of Alameda (1980) 27 Cal.3d 741, 750, 167 Cal.Rptr. 70, 614 P.2d 728.)

The existence of duty here arises in the context of a real estate transaction. "Real estate brokers are subject to two sets of duties: those imposed by regulatory statutes, and those arising from the general law of agency. [Citation.]" (Carleton v. Tortosa (1993) 14 Cal.App.4th 745, 755, 17 Cal.Rptr.2d 734; Padgett v. Phariss (1997) 54 Cal.App.4th 1270, 1279, 63 Cal.Rptr.2d 373.) Marcos does not, nor could he, attempt to enforce any obligation based on agency principles. Instead, he claims Coldwell Banker breached its statutory duty to him under section 2079.

C

Statutory Duty of Care to Prospective Buyer

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Carleton v. Tortosa
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11 Cal. Rptr. 3d 564, 117 Cal. App. 4th 158, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coldwell-banker-v-superior-court-calctapp-2004.