Cornelius Joe Ergonis and Linda Ergonis v. William Thomas Sultzbaugh, Sharon Elliott Sultzbaugh A/K/A Sharon Carr, Ebby Halliday Real Estate, Inc., Kathy Gibson, Paul Wood Inspection Group, Inc., Caleb Wood, and James Alan Peterson

CourtTexas Court of Appeals, 2nd District (Fort Worth)
DecidedMarch 19, 2026
Docket02-25-00043-CV
StatusPublished

This text of Cornelius Joe Ergonis and Linda Ergonis v. William Thomas Sultzbaugh, Sharon Elliott Sultzbaugh A/K/A Sharon Carr, Ebby Halliday Real Estate, Inc., Kathy Gibson, Paul Wood Inspection Group, Inc., Caleb Wood, and James Alan Peterson (Cornelius Joe Ergonis and Linda Ergonis v. William Thomas Sultzbaugh, Sharon Elliott Sultzbaugh A/K/A Sharon Carr, Ebby Halliday Real Estate, Inc., Kathy Gibson, Paul Wood Inspection Group, Inc., Caleb Wood, and James Alan Peterson) is published on Counsel Stack Legal Research, covering Texas Court of Appeals, 2nd District (Fort Worth) primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cornelius Joe Ergonis and Linda Ergonis v. William Thomas Sultzbaugh, Sharon Elliott Sultzbaugh A/K/A Sharon Carr, Ebby Halliday Real Estate, Inc., Kathy Gibson, Paul Wood Inspection Group, Inc., Caleb Wood, and James Alan Peterson, (Tex. Ct. App. 2026).

Opinion

In the Court of Appeals Second Appellate District of Texas at Fort Worth ___________________________ No. 02-25-00043-CV ___________________________

CORNELIUS JOE ERGONIS AND LINDA ANN ERGONIS, Appellants

V.

WILLIAM THOMAS SULTZBAUGH, SHARON ELLIOTT SULTZBAUGH A/K/A SHARON CARR, EBBY HALLIDAY REAL ESTATE, INC., KATHY GIBSON, PAUL WOOD INSPECTION GROUP, INC., CALEB WOOD, AND JAMES ALAN PETERSON, Appellees

On Appeal from the 362nd District Court Denton County, Texas Trial Court No. 19-5640-362

Before Kerr, Bassel, and Walker, JJ. Memorandum Opinion by Justice Kerr MEMORANDUM OPINION

Within two years of buying a luxury golf-course home for around $1.2 million,

Appellants Cornelius Joe and Linda Ann Ergonis (the Buyers) sued—and sought

$2.9 million to demolish the home “to the studs” and rebuild it from—Appellees

William Thomas and Sharon Elliott Sultzbaugh a/k/a Sharon Carr (the Sellers);

Appellees Ebby Halliday Real Estate, Inc. and Kathy Gibson (collectively, the Sellers’

Agent); and Appellees Paul Wood Inspection Group, Inc.; Caleb Wood; and James

Alan Peterson (collectively, the Buyers’ Inspectors). Under various legal theories, the

Buyers claimed that the Sellers and their Agent had not disclosed, and that the

Inspectors had failed to identify, certain information about the home’s foundation and

structure.

The Sellers, the Sellers’ Agent, and the Inspectors each moved for summary

judgment. Among other things, the Sellers and their Agent argued that the Buyers

signed an “as is” contract, knew of the complained-of defects, and hired their own

inspectors. The Inspectors argued that their damages were contractually limited to

$1,299—the inspection fee.

The trial court granted the motions and signed a final judgment (1) adjudging

that the Buyers take nothing but the $1,299 that the Inspectors had deposited into the

court’s registry after conditionally stipulating to liability and (2) awarding the Sellers

and their Agent their attorneys’ fees, expenses, and costs. In three appellate issues, the

2 Buyers complain that the trial court erred by granting each summary-judgment

motion. We will affirm.

I. Background Facts

A. The Sellers prepared to sell their home.

The Sellers owned an over-6,600-square-foot home located in Frisco, Texas.

Built in 1988, the home had two stories and a pier-and-beam foundation.

In 2014, the Sellers hired TCS Engineering LLC to inspect the home’s

foundation and recommend repairs. According to TCS, the home’s first floor was not

level within normal standards, and “bowed wooden floor stringer beams” were

causing “floor depressions.” A few weeks later, the Sellers engaged Power Lift

Foundation Repair, Inc. to make TCS’s recommended repairs.

In 2016, the Sellers hired Jensen Engineering to inspect their home, and Jensen

also documented “differential foundation movement and related structural distress.”

In an April 13, 2016 report, Jensen identified the home’s floor elevations, observed

prior improper foundation repairs, and recommended further repairs. It also

recommended correcting the second floor’s sagging at the master bed and bathroom,

and it recommended delaying repairing the foundation until after assessing the second

floor’s framing.

During Fall 2016, the Sellers made foundation repairs through Thompson

Foundation Repair and attic repairs through Rob Sexton Construction. Thompson

repaired the foundation per Jensen’s April 2016 report. Jensen then inspected

3 Thompson’s work and—after Thompson made further repairs—reinspected and

wrote a December 2016 report stating, “Foundation repair work set forth in our

report is now complete and in substantial compliance with our initial report. Interior

foundation was not raised to level to avoid severe cosmetic damage to floor and wall

finishes.”

Additionally, according to the Sellers, Sexton Construction looked in the attic

and opened the downstairs ceiling to assess the second floor’s sagging and determined

that the support beams for the home’s heavy roof were improperly resting on a non-

load-bearing wall, causing the sagging. So in the attic, Sexton installed a beam to a

load-bearing wall to support the roof. Sexton also removed, replaced, and leveled the

second floor’s master sitting area.

B. The Sellers hired a realtor and prepared the disclosure notice.

During these repairs and before Jensen’s December 2016 report, the Sellers

prepared to sell the home and hired the Sellers’ Agent. They also filled out a Seller’s

Disclosure Notice (SDN) on their Agent’s form to give to prospective buyers.

SDN Sections 12 and 13 concerned inspection reports and notices. The Sellers

disclosed in Section 12 that they had “not received any notices in the last [five] years,

either oral or written, regarding the need for repair or replacement of any portion of

the [p]roperty from any governmental agency, appraiser, mortgage lender, repair

service[,] or other, except: ‘4-13 Pier & Beam Needed Adjustments with Attic.’”

4 Under Section 13, which instructed the Sellers to list and attach any written

inspection reports they had received in the last five years, the Sellers wrote,

In Section 14, which concerned structural information, the Sellers again

disclosed that the foundation had been repaired in 2016, describing the repairs as “RE

SUPPORT PIER & BEAM FOUNDATION.” And on the next page in Section 21,

the Sellers disclosed that they were aware of the house settling, explaining “Pier &

Beam – Adjustments Have Been Done.”

Sections 32 and 33 specifically concerned foundation information. The Sellers

were asked the following two questions: (1) “Has the Seller ever obtained a written

report about the condition of the foundation from any engineer, contractor, inspector,

or expert?” and (2) “Have repairs been made to the foundation of the Property since

its original construction?” Despite checking “Yes” to both questions and having

disclosed the three companies earlier in the SDN, in the space provided in Sections

32 and 33, the Sellers did not identify any reports, indicate whether they had provided

such reports to the listing broker, or explain any completed repairs. Directly behind

the SDN form, the Sellers attached an email to their Agent stating among other

5 things, “The attachment from Thompson should be attached to our disclosure form[.]

. . . Please add this to the disclosure form!” Undisputedly, the SDN did not mention

TCS or Power Lift.

C. The Buyers became interested in buying the home and received the SDN.

The Sellers’ Agent testified that she included the SDN—with the attached April

13, 2016 Jensen report and Thompson’s repair records—in a bound brochure set out

for prospective buyers. In late 2016, the Buyers attended showings of the Sellers’

house and became interested in buying it. During one showing, the Sellers’ Agent gave

one of the bound brochures to the Buyers.

As we will explain below, the Sellers eventually came to dispute what was in the

brochure. Linda recalled that it included Thompson’s report, and although Joe

admitted that he did not read the entire brochure, he and Linda claimed that the

brochure did not include Jensen’s report.1

Regardless, during the parties’ negotiations, the brochure’s contents were not at

issue.

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Cornelius Joe Ergonis and Linda Ergonis v. William Thomas Sultzbaugh, Sharon Elliott Sultzbaugh A/K/A Sharon Carr, Ebby Halliday Real Estate, Inc., Kathy Gibson, Paul Wood Inspection Group, Inc., Caleb Wood, and James Alan Peterson, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cornelius-joe-ergonis-and-linda-ergonis-v-william-thomas-sultzbaugh-txctapp2-2026.