Estes v. Bradley

954 So. 2d 455, 2006 WL 3593451
CourtCourt of Appeals of Mississippi
DecidedDecember 12, 2006
Docket2004-CA-02124-COA, 2005-CA-01264-COA
StatusPublished
Cited by3 cases

This text of 954 So. 2d 455 (Estes v. Bradley) 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
Estes v. Bradley, 954 So. 2d 455, 2006 WL 3593451 (Mich. Ct. App. 2006).

Opinion

954 So.2d 455 (2006)

Billy ESTES and Phillys Estes, Appellants,
v.
Daniel BRADLEY, Jerome Schmidt and Bonita Schmidt, Appellees.
Jerome Schmidt and Bonita Schmidt, Appellants,
v.
Daniel Bradley, Appellee.
Joe Schicke and Jean Schicke, Appellants,
v.
Jerome Schmidt and Bonita Schmidt, Appellees.

Nos. 2004-CA-02124-COA, 2005-CA-01264-COA.

Court of Appeals of Mississippi.

December 12, 2006.
Rehearing Denied April 24, 2007.

*458 Phil R. Hinton, Corinth, attorney for appellants in No. 2004-CA-02124-COA.

John A. Ferrell, Booneville, Donald Ray Downs, Corinth, William Wayne Smith, Booneville, attorneys for appellees in No. 2004-CA-02124-COA.

Tommy Dexter Cadle, Kenneth Eugene Floyd, attorneys for appellants in No. 2005-CA-01264-COA.

William Wayne Smith, Booneville, attorney for appellees in No. 2005-CA-01264-COA.

Before MYERS, P.J., SOUTHWICK and BARNES, JJ.

SOUTHWICK, J., for the Court.

¶ 1. The suit involves claims arising from defects in the construction of a home. The current owner (the third since construction) sued both of the previous owners as well as the contractor. Cross-claims were then filed. Claims against the original owners were dismissed, and summary judgments were granted the contractor. Other claims remain pending below.

¶ 2. The trial court ruled that the statute of repose applicable to claims regarding construction defects had run and barred claims against the builder and against the original owners. Further, the court found no personal jurisdiction existed for the current and second owners' claims against the original owners, who now reside out-of-state. We disagree with the analysis on *459 the statute of repose and on in personam jurisdiction. We therefore reverse those judgments and remand. However, the original owners' appeal of summary judgment denying their claims against the builder has not been perfected. We dismiss that appeal.

FACTS

¶ 3. Jerome and Bonita Schmidt moved to Corinth, Mississippi in early 1994. The Schmidts purchased a lot in Corinth and contracted with Daniel Bradley to construct a house on the lot. The Schmidts moved into the completed home in the latter part of October 1994. In 1996, the Schmidts discovered that a brick above a window on the north side of the house had become loose. They asked Bradley to repair the problem. In February or December 1996, Bradley went to the Schmidts' home, dug up the foundation, poured concrete and placed concrete piers below the house. Jerome Schmidt claimed that he did not know the specifics of Bradley's work on the home, though he knew the work was related to the loose brick and was for "fortifying" the foundation. Later, Schmidt discovered a crack about one-quarter of an inch in width in the floor of the house's game room. The Schmidts again called Bradley, and Bradley made repairs.

¶ 4. In 1997, the home was sold to Caterpillar, Inc., Jerome Schmidt's employer, and the family moved to Illinois. The Schmidts executed what in essence was a blank warranty deed and special power of attorney naming an agent to execute documents in connection with the eventual sale of the home. This document was dated on October 17, 1997. In 1998, Joe and Jean Schicke purchased the home. Their names were inserted into the warranty deed earlier signed by the Schmidts. The Schickes received a "homeowner's disclosure statement" — executed by the Schmidts on October 9, 1997 — in which the Schmidts denied knowledge of any defects in the foundation, slabs, or floors of the house. Caterpillar is not a party in this litigation.

¶ 5. In 2001, Billy Estes contracted to purchase the home from the Schickes. Billy and Phillys Estes are the plaintiffs. Attached to the contract was a "seller's disclosure statement" in which the Schickes asserted that they were unaware of any prior repairs made to the foundation of the home. They also stated that the house's foundation was not in need of repair. The Esteses executed warranty deeds on June 29, 2001. Later, with the aid of engineers, the Esteses discovered a number of defects in the foundation which they allege were known to the Schickes but not disclosed.

¶ 6. The Esteses filed suit on June 27, 2002 naming as defendants their sellers, the Schickes; the original owners, the Schmidts; and the builder, Bradley. The Esteses claimed that the Schickes made fraudulent representations that the house was in good condition, when they knew that there were "material and substantial defects and deficiencies in the foundation." Also claimed was that the Schmidts knew of defects in the house's foundation when they placed the house on the market, and their disclosure statement misrepresented to prospective buyers the condition of the house. The Esteses also alleged that Bradley made repairs in such a way as to hide the flaws in the foundation.

¶ 7. The Schickes (second owners) cross-claimed against their sellers, the Schmidts, for indemnification. The Schmidts made a cross-claim against the builder for indemnification.

¶ 8. The court granted summary judgment or dismissed certain claims, as follows:

*460 (1) On September 17, 2004, summary judgment was granted against the claims by the present owners, the Esteses, against the builder Bradley. No certification of this judgment as final for purposes of appeal was then made, but that certification was entered on September 11, 2006.
(2) On September 17, 2004, an order of dismissal was entered against the claims brought by the second and third owners, the Schickes and the Esteses, against the original owners, the Schmidts. A certification that this judgment should be treated as final was entered as part of the original order.
(3) On December 2, 2004, summary judgment was granted the builder Bradley against the claim brought by the Schmidts, who had contracted with Bradley for the construction of the home. There is a still-pending motion at the trial court for findings on this summary judgment, and there is no Rule 54(b) certification. This judgment is not properly before us.

¶ 9. The Esteses and the Schickes are properly before us on their challenges to the dismissal of their claims against the original owner, the Schmidts. The Esteses also have validly presented their appeal that entering summary judgment on their claims against the builder Bradley was error.

DISCUSSION

I. Dismissal of Estes claim against Schmidt

¶ 10. The Esteses' assert error in the dismissal of the claims against the Schmidts. We will discuss the personal jurisdiction point first and later address the statute of repose.

¶ 11. The Schmidts are now residents of Illinois. They properly raised the absence of personal jurisdiction in their first responsive pleading. M.R.C.P. 12(h)(1). In determining whether one of our state courts may exercise personal jurisdiction over a nonresident defendant, we first examine whether the defendant is amenable to suit by virtue of the Mississippi "long-arm statute." Horne v. Mobile Area Water & Sewer Sys., 897 So.2d 972, 976 (Miss.2004). If the defendant is included within the reach of the statute, we examine whether the grant of personal jurisdiction is consistent with the due process clauses of both the state and federal constitutions. Id.

A.1. Long-arm statute

¶ 12. In the complaint, the Esteses alleged that when "Mr. and Mrs. Schmidt, placed the real estate in question on the market, they executed and delivered to prospective buyers, including the Defendants, Mr. and Mrs.

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Bluebook (online)
954 So. 2d 455, 2006 WL 3593451, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estes-v-bradley-missctapp-2006.