Colton MacPherson v. Carolina Pena and Suzanne Anderson Properties LLC

Court of Appeals of Texas·Decided December 15, 2022·No. 09-20-00221-CV·Published

Opinion

In The

Court of Appeals

Ninth District of Texas at Beaumont

NO. 09-20-00221-CV

COLTON MACPHERSON, Appellant V.

CAROLINA PENA AND

SUZANNE ANDERSON PROPERTIES LLC, Appellees

On Appeal from the 284th District Court Montgomery County, Texas

Trial Cause No. 20-09-11021-CV

MEMORANDUM OPINION

Colton MacPherson appeals a series of summary judgments involving his purchase of a home granted in favor of Carolina Pena and Suzanne Anderson Properties LLC (Anderson Properties), the seller’s real estate agent and the broker through which the agent worked.

MacPherson bought the home from Leila Shahin Aglony, and his claims against her went to trial. 1 Pena, a registered real estate agent with Anderson Properties, represented Aglony in the transaction. The transaction involved MacPherson’s decision to purchase a home Aglony bought in a foreclosure sale in Montgomery County, which she then had remodeled by contractor. After her contractors remodeled the home, she sold to MacPherson for $140,000. In one issue, MacPherson contends the trial court erred in granting Pena’s and Anderson Properties’ combined traditional and no- evidence motions for summary judgment because: (1) the “as is” clause in his real estate contract with Aglony did not negate causation; (2) his pre- purchase inspection of the home did not negate his reliance on the representations that Aglony, as the seller, made about the house; (3) proof that Pena and Anderson Properties intended to defraud him or had

1Macpherson sued Aglony in the same suit, but after the trial court granted Pena’s and Anderson Properties’ motions for summary judgment, the trial court severed the case involving them into a separate cause. The case against Aglony was then tried to the bench, but the trial court in the bench trial rendered a take-nothing judgment against Macpherson on those claims. In September 2022, the Ninth Court of Appeals affirmed the trial court’s judgment as the Macpherson’s case against Aglony. MacPherson v. Aglony, No. 09-21-00004-CV, 2022 Tex. App. LEXIS 7105, at *1 (Tex. App.—Beaumont Sept. 22, 2022, no pet. h.).

knowledge of Aglony’s false representations made by Aglony in her disclosures about the home are not elements required to prove statutory fraud or a claim under the DTPA; (4) the summary-judgment evidence includes proof sufficient to raise issues of material fact on causation and reliance; and (5) the summary-judgment evidence supports each of the elements of his claims. We conclude MacPherson didn’t present evidence raising an issue of material fact on at least one of the essential elements of each of his claims. We will affirm the trial court’s ruling granting Pena’s and Anderson Properties’ no-evidence motion.

Factual and Procedural Background The factual background provided below is based largely on depositions the parties included in the summary-judgment evidence. The evidence shows that Aglony buys, renovates, and sells houses. Carolina Pena, a registered real estate agent with Anderson Properties, testified that she has represented Aglony in around eighteen transactions.

As to the home at issue in this suit, Aglony inspected the home before she bought it in a foreclosure sale in March 2017. When she bought the home, Aglony acknowledged knowing the home needed repairs before it could be listed for sale. That said, Aglony also testified she couldn’t

recall whether, in the inspection she conducted before buying the home, she noticed there were any problems with the walls or floors. Even so, a photograph from a website maintained by agents who are members of the Houston Association of Realtors, which was taken before Aglony bought the home, shows a crack in the living room running across the floor. Except for the pre-purchase inspection Aglony conducted before buying the home, there is no other evidence showing she saw the home again until after the contractors she hired completed their repairs.

Aglony testified she paid contractors around $45,000 to repair the home before she put it on the market. The work she paid for included repairing floors with a material known as shotcrete. Invoices from Aglony’s contractors show that shotcrete was used in more than one of the rooms of the home. 2 Aglony also paid contractors for work they did to repair interior walls and to replace five windows on the back of the home. Aglony’s contractors also installed flooring, carpeting, kitchen

2Shotcrete, also known as gunite, is “a mixture of cement, sand and water applied through a pressure hose, producing a dense hard layer of concrete used in building for lining tunnels and structural repairs.” NEW OXFORD AMERICAN DICTIONARY 775, 1617 (3d ed. 2010) (defining gunite as quoted above and indicating that shotcrete “is another term for gunite” at page 1617).

counters, and painted the inside of the home. Due to the repairs, the cracks on the floors and the walls inside the home were no longer visible in a walk-through inspection of the home.

Pena, as Aglony’s agent, listed the home for $145,00 on an internet listing, which Pena arranged to have posted in June 2017. The listing includes general information about the fact the home had been remodeled and updated throughout. That said, nothing is mentioned about the shotcrete treatment applied to the floors of some of the rooms. Still, nothing in the contractors’ invoices shows whether the shotcrete treatment was cosmetic or structural, and there is also nothing in the invoices showing how wide the cracks were in the floor. There is also no evidence that Pena knew the contractors had used shotcrete to repair the floors or that Pena knew whether the contractors had performed any structural repairs on the walls of the home.

In July 2017, MacPherson signed a contract to purchase the home for $140,000. MacPherson, as the buyer, and Aglony, as the seller, were represented by separate real estate agents in the transaction. To document the transaction, the parties used the “Texas Real Estate Commission (TREC) One to Four Family Residential Contract (Resale)”

form. As to the condition of the property, the contract contains two options. First, a buyer may accept the property “as is,” a term the contract defines as “the present condition of the property with any and all defects and without warranty except for the warranties of title and the warranties in this contract.” Second, the buyer may accept the property as is subject to repairs that the seller specifically lists on the form. Under the agreement MacPherson signed, MacPherson selected the first option, accepting the property “as is.” But even then, MacPherson had the right to inspect the property at reasonable times after signing the contract, and he also had the option to terminate the contract for any reason for ten days. As discussed below, the summary-judgment evidence shows that MacPherson used a home inspector to inspect the property. Even though the inspector found several problems during the inspection, MacPherson did not exercise his option and cancel the contract; instead, he elected to close on the home.

The summary judgment evidence includes the “Seller’s Disclosure Notice,” a standard form used by Houston Realtors. The disclosure notice Aglony signed states: “Seller acknowledges that the statements in this notice are true to the best of Seller’s belief and that no person including

the broker(s), has instructed or influenced Seller to provide inaccurate information or to omit any material information.” MacPherson acknowledged receiving the notice, and he acknowledged “the brokers have relied on this notice as true and correct and have no reason to believe it to be false or inaccurate. YOU ARE ENCOURAGED TO HAVE AN INSPECTOR OF YOUR CHOICE INSPECT THE PROPERTY.”

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Colton MacPherson v. Carolina Pena and Suzanne Anderson Properties LLC, (Tex. Ct. App. 2022).

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