DAVID M. COX, INC. v. Pitts

29 So. 3d 795, 2009 Miss. App. LEXIS 468, 2009 WL 2152278
CourtCourt of Appeals of Mississippi
DecidedJuly 21, 2009
Docket2008-CA-00499-COA
StatusPublished
Cited by4 cases

This text of 29 So. 3d 795 (DAVID M. COX, INC. v. Pitts) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DAVID M. COX, INC. v. Pitts, 29 So. 3d 795, 2009 Miss. App. LEXIS 468, 2009 WL 2152278 (Mich. Ct. App. 2009).

Opinion

ROBERTS, J.,

for the Court.

¶ 1. This suit involves the sale of Lot 17 in The Trace Subdivision (The Trace) in Hattiesburg, Mississippi, whereupon a new home sat that was purchased in 1999 by the Defendants, Rembert and Phyllis Pitts (the Pittses), individually and as guardians for their son, Jason Pitts. The home was built by Barron Hendry. Although he was an experienced builder, Hendry was mistaken about the boundary line between Lot 17 and Lot 16. As a result, the home he built on Lot 17 encroached five feet onto the required ten-foot setback, which was stated in The Trace subdivision covenants. His error also caused the driveway appended to the home to encroach upon Lot 16 of The Trace. Lot 16 was then and at the time of trial owned by David M. Cox, Inc. (Cox, Inc.). The Pittses later built a detached garage directly at the end of the encroaching driveway. The construction of the detached garage took place in the year 2000. Although David Cox (Cox), the developer of The Trace and founder of Cox, Inc., witnessed the construction of the new garage on a daily basis, the garage was completed without any objection from him or any agent of Cox, Inc., until a new survey of Lot 16 was taken in 2004. Cox, Inc., through its attorney, noticed the Pittses that they would have to remove the detached garage. Thereafter, when the Pittses did not remove the garage, Cox, Inc., filed suit against the Pittses seeking to have the garage removed and the driveway repositioned. Finding Cox, Inc., to be the more responsible party and the party with superior knowledge, the chancellor ordered Cox, Inc., to convey title of the affected portion of Lot 16 to the Pittses in exchange for the highest stated market value. We affirm.

FACTS AND PROCEDURAL HISTORY

¶ 2. On February 5, 1999, the Pittses purchased a home for $180,000 from Hen-dry via a warranty deed. The home is located on Lot 17 in The Trace, which is a platted subdivision in Lamar County, Mississippi developed by Cox, Inc. The neighborhood is naturally hilly, with creeks and lakes and some wetlands, and it has approximately 200 lots. Hendry, a long-time acquaintance and business affiliate of Cox, purchased Lot 17 in order to build a “spec home” in the new development. Cox and Hendry had a personal and business relationship that spanned twenty-five years.

¶ 3. In order to begin construction, Hen-dry and a co-worker located four stakes, which were placed on the four corners of the property, and “pulled a string” from corner to corner in order to establish the perimeter of Lot 17. Hendry testified that he did not obtain an independent survey of the property because the method he used to identify the perimeter of the property was standard procedure, especially in new developments; Cox had recently had the property surveyed; and there were four stakes in the corners of the lot with Lot 17 written on them. 1 Hendry’s deposition testimony was corroborated by the sworn *798 testimony of Johnny Gatwood. Gatwood helped Hendry build the home, and he was present at the time Hendry located the stakes and “pulled the string” to establish the perimeter of the property. Echoing Hendry’s testimony, Gatwood testified that this practice was standard procedure. He also testified that had they not located four stakes indicating the property corners, they would not have proceeded any further. Gatwood testified that Hendry was diligent to personally locate the stakes and establish the perimeter of property before beginning any construction, in order to avoid mistakes such as those that have occurred in the instant case.

¶ 4. Hendry testified that Cox drove past the home’s construction site regularly, and he often stopped to chat. Although Cox testified that he did not “meddle” in Hendry’s or any contractors’ business, Hendry testified that there was no doubt that Cox was aware of where the new home was being placed on Lot 17. After completion of the home, Hendry listed the home for sale with Cox, Inc., which was also a real estate business. Sherry Cox Underwood, who is the daughter of Cox and the vice-president of Cox, Inc., acted as the a dual agent for Hendry and the Pittses in the sale/purchase of the home situated on Lot 17. Underwood was also the listing agent for the Pittses’ home on Lexington Drive in Hattiesburg, which was the home they lived in prior to the purchase of the home in The Trace. The Pittses’ new home purchase was contingent upon the home having special accommodations for their disabled son and receiving approval by the chancery court. Their son, Jason, had been in a vegetative state since he was involved in a car accident when he was nine years old; he was twenty-three at the time of the trial. Hen-dry retrofitted the new construction in order to equip the home with the appropriate accommodations. The home in The Trace was purchased primarily with settlement money held by the Pittses as guardians for their physically and mentally incapacitated son, Jason. However, the detached garage was financed solely with personal funds of the Pittses.

¶ 5. At trial, Rembert testified that he had placed complete confidence in Underwood, and that he and his wife, Phyllis, “thought the world of her and still [does].” He explained that Underwood “seemed very compassionate about Jason ... [and] [she] was very touched and very professional about wanting to handle the things and help [them].” Rembert testified that in the early stages of the home’s purchase, he informed Undeiwood that he was placing his trust in her by asking her “[w]hat have we got to do?” Rembert also testified that, based upon the way Underwood handled herself, they had “no reservations in trusting her because she [was] very confident, very knowledgeable, and very professional acting.” He explained that they and Underwood went over a “punch list of expenses,” and he testified that when they got to the item of “survey” on the list, he asked if they needed one. He testified that he was asking this out of concern for their financial situation, given that their financial situation was “taxing.” He stated that he wanted to make sure that they would be able to fund everything related to the home’s purchase. Rembert testified that Underwood replied, “daddy owns the subdivision. It’s a platted subdivision. And[,] there would be no need for a survey. He’s the only owner, and it went straight to Mr. Hendry.... [Y]ou could really get by without that because he is the original owner.... I know that because David Cox is my daddy.” Rembert’s testimony was substantiated by Hendry. When asked about the events at the real estate closing, Hendry testified as follows:

*799 Everything was going smoothly; well, it did go smooth. [Rembert] asked for a termite. 2 He said, do we have a survey [?] I had the termite that I gave him. I said, I did not survey, nobody asked for one. It was discussed and the lady from [D]eposit Guaranty said they didn’t need one. I said, I did the house according to the survey that was there, and [Rembert] agreed. He said, I trust you and Mr. Cox both. So that is where we left that, and I believe [Underwood] said, Dad has done a many one or something to that effect.

(Footnote added).

¶ 6.

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29 So. 3d 795, 2009 Miss. App. LEXIS 468, 2009 WL 2152278, Counsel Stack Legal Research, https://law.counselstack.com/opinion/david-m-cox-inc-v-pitts-missctapp-2009.