Durbin v. Ross

916 P.2d 758, 276 Mont. 463, 53 State Rptr. 471, 1996 Mont. LEXIS 90
CourtMontana Supreme Court
DecidedMay 14, 1996
Docket95-378
StatusPublished
Cited by35 cases

This text of 916 P.2d 758 (Durbin v. Ross) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Durbin v. Ross, 916 P.2d 758, 276 Mont. 463, 53 State Rptr. 471, 1996 Mont. LEXIS 90 (Mo. 1996).

Opinion

*466 JUSTICE NELSON

delivered the Opinion of the Court.

Katharine and Phil Durbin (the Durbins) appeal from the Montana Twentieth Judicial District Court, Sanders County, order granting summary judgment in favor of Barbara Ross, Ross Realty, Lynne Piazzola (the Realtors) and dismissing the Durbins’ claims against the Realtors. We reverse and remand.

ISSUES

1. Did the District Court err in ruling that the Durbins failed to establish a standard of care through the expert testimony of a real estate broker?

2. Should this Court direct the District Court on the admissibility of expert standard of care testimony?

BACKGROUND

The parties agreed to the following facts in the pretrial order:

1. Plaintiffs Phil and Katharine “Gail” Durbin are husband and wife. On April 26, 1993 the Durbins purchased for the sum of $35,000.00 a piece of property consisting of 20 acres and a single-family residence located at 209 Upper River Road, Heron, Montana (the “Property’) from Defendants Wayne, Rachel and Michael Sherrill, the sellers of the Property.
2. Defendants Wayne and Rachel Sherrill and their children resided on the Property from May of 1987 until they sold the Property to the Durbins. Defendant Michael Sherrill resided on the Property for part of that time.
3. Defendants Lynne Piazzola and Barbara Ross are real estate agents licensed by the State of Montana. Lynne Piazzola is a licensed sales agent and was the listing and sales agent for the sale of the Property to the Durbins. Barbara Ross was the supervising broker for Defendant Piazzola for this sale. Defendants Piazzola and Ross both worked for Ross Realty, a real estate office located in Noxon, Montana. Defendant Ross was the owner of Ross Realty at the time of this sale.
4. This case involves claims by Plaintiffs Durbin that the condition of the Property was misrepresented to them. The Durbins contend, among other things, that the septic system, household water system, and other aspects of the Property were not accurately represented by the Defendants. Defendants Ross and Piazzola deny these contentions. Defendants Ross and Piazzola con *467 tend, among other things, that they did not make any misrepresentations to the Durbins. ...

The Durbins contend that the Realtors told them that 1) the property had a legal septic system with a 750 gallon tank, when there was only a 200 gallon drywell with no drainfield; 2) that the household water was safe for normal household purposes when the water was contaminated with coliform bacteria and was not safe for any household purposes; and 3) that the access road was on the property when it was on the neighbor’s property. The Durbins further contend that the Realtors failed to disclose other serious defects in the home such as the fact that there were no hot water pipes and thus no hot water, that the plumbing drain lines were not connected to the main sewer line and drained directly into the soil in the crawlspace under the home, and that the roof leaked. In summary, the Durbins argue that the Realtors misrepresented that the house was in good condition.

The Realtors dispute the Durbins’ allegations of misrepresentation. The Realtors in fact claim that they performed a diligent inspection of the property and disclosed the information gleaned from that inspection. They also claim that the Sherrills informed the Durbins of the property’s shortcomings and that those shortcomings were reflected in the purchase price.

The Durbins were not represented by an agent in the transaction. Therefore, the Durbins filed a complaint against the Realtors and the Sherrills claiming that they made material misrepresentations about the property, concealed material facts regarding the property, and that the Durbins relied on the information in agreeing to purchase the property. The Durbins disclosed their trial expert on January 31, 1995, but later withdrew that expert witness.

Defendants Wayne Sherrill, Rachel Sherrill, and Michael Sherrill did not appear in the action. Their defaults were entered on February 2, 1994. The Realtors moved for summary judgment on the ground that the Durbins could not prove any of their claims without expert testimony establishing the relevant standard of care. The District Court granted summary judgment in favor of the Realtors and pursuant to Rule 54(b), M.R.Civ.P., certified for immediate appeal its order dismissing all claims against the Realtors. The Durbins appeal the District Court’s determination that for the Realtors to be found liable as individuals for their conduct toward the Durbins, the Durbins must first establish a duty owed by the seller’s broker to the purchasers and that the standard of care relating to such duty and *468 breach thereof must be established by expert testimony as a matter of law.

DISCUSSION

1. Did the District Court err in ruling that the Durbins failed to establish a standard of care through the expert testimony of a real estate broker?

The Durbins contend that the Realtors committed actual fraud and constructive fraud by misrepresenting the condition of the property or, in the alternative, committed negligent misrepresentation by failing to exercise reasonable care in investigating the truth of the information they passed on to the Durbins, violated the Montana Real Estate Licensing Act by misrepresenting facts about the property, and violated the Montana Consumer Protection Act by committing deceptive acts in the conduct of their real estate business. The Durbins argue that standard of care testimony is neither necessary nor relevant to these claims. Specifically, the Durbins argue that they do not have to present expert testimony to establish claims for fraud and claims of statutory violations in this case for two reasons. First, the Realtors did not represent the Durbins in this transaction and thus did not create a professional relationship. Second, the elements of the fraud claims focus on the knowledge and state of mind of the Realtors in this case and not on the standard of care by other professionals and the statutory violations involve the conduct of the Realtors in this case and whether that conduct conformed with statutorily mandated rules. In summary, the Durbins assert that the District Court erred in granting summary judgment because expert testimony is irrelevant to any factual issue required to establish the Durbins’ claims.

In contrast, the Realtors assert that the District Court properly granted summary judgment finding that the gravamen of the Durbins’ claims sounds in negligence and that these claims fail because the Durbins did not establish the appropriate standard of care and breach of that standard. The Realtors further assert that the Durbins had to provide expert testimony to prove duty and breach in a negligence claim against a professional.

We review a grant of summary judgment de novo using the same criteria initially used by the District Court under Rule 56, M.R.Civ.P. Mead v. M.S.B., Inc. (1994), 264 Mont. 465, 470, 872 P.2d 782, 785.

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Cite This Page — Counsel Stack

Bluebook (online)
916 P.2d 758, 276 Mont. 463, 53 State Rptr. 471, 1996 Mont. LEXIS 90, Counsel Stack Legal Research, https://law.counselstack.com/opinion/durbin-v-ross-mont-1996.