Fowerbaugh v. Sliman

2022 Ohio 1314
Ohio Court of Appeals·Decided April 21, 2022·No. 110657·Published·Cited by 5 cases

Opinion

COURT OF APPEALS OF OHIO

EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

PAUL T. FOWERBAUGH, ET AL., :

No. 110657

Plaintiffs-Appellees, :

v. :

DAVID A. SLIMAN, JR., ET AL., :

Defendants-Appellants. :

JOURNAL ENTRY AND OPINION

JUDGMENT: AFFIRMED

RELEASED AND JOURNALIZED: April 21, 2022

Civil Appeal from the Cuyahoga County Common Pleas Court Case No. CV-18-908090

Appearances:

Jerome, Grauer and Associates, Ltd., and John D. Grauer, for appellees.

John D. Toth, for appellant David A. Sliman, Jr.

EILEEN A. GALLAGHER, P.J.:

This case involves a dispute arising out of a residential real estate transaction between plaintiffs-appellees Paul and Margaret Fowerbaugh (collectively, the “buyers”) and defendant-appellant David A. Sliman, Jr. and defendant Marin Fowler (collectively, the “sellers”). Sliman contends that (1) the trial court erred by granting the buyers’ motion for summary judgment as to liability on their claim for fraudulent concealment and misrepresentation (“fraud claim”) and (2) the trial court abused its discretion by awarding the buyers $82,985.62 in attorney fees on their fraud claim.

For the reasons that follow, we affirm the trial court’s judgment.

Procedural and Factual Background In January 2017, Sliman purchased a single-family residence located on Wooster Road in Rocky River, Ohio (the “residence” or the “home”) for $225,000. Shortly thereafter, Sliman began renovating the home. Fowler is Sliman’s wife.

Sliman worked in the construction industry as “project manager” or “assistant project manager/superintendent” for WXZ Residential/Development, a real estate development company. Sliman’s role at WXZ Residential/Development involved reviewing blueprints, budgeting for framing expenses, gathering quotes for commercial construction projects and “hands-on” carpentry and tile work. Sliman also did construction work through a company he owned and operated, Ridge Design, LLC.

Sliman had a set of “drawing renderings” prepared for his renovation project (the “drawings”). The drawings stated that all electrical work, plumbing work and HVAC work was to be “in strict conformance” with local, state and national codes. Sliman claimed that he “didn’t pay much attention to any of that because * * * the estimating was too much in order to do [that] specific rendering” and it was “not a permitted plan,” but rather, was “just * * * conceptual.”

Over the next several months, Sliman (and other tradespeople at his direction) performed renovations that involved substantial alterations to the residence. The renovations included framing and structural support changes, alterations to the HVAC system and plumbing and electrical work. The plumbing and electrical work were not performed by licensed plumbers or electricians.

Dennis Austin, one of the tradespeople Sliman had hired to assist in renovating the residence, testified that Sliman told him “we did not need to pull any permits as trades” because Sliman, as the homeowner, was “pulling the permits.” Sliman obtained only one permit for the renovations — a permit for exterior windows. During his deposition, Sliman testified that he “was completely unaware of the other [permits] that may or may not have been needed to be pulled.” However, in June 2017, an inspector (the “building inspector”) for the Rocky River Building and Housing Department (the “building department”) contacted Sliman regarding the renovation work he was doing on the residence. The building inspector indicated that, based on a drive-by inspection and what he had observed through the home’s windows, it appeared that additional work was being done that required permitting. The building inspector requested that Sliman obtain the necessary permits or arrange a time when the inspector could conduct an interior inspection of the residence. Sliman met with the building inspector at the building department. Sliman testified that he could not recall “the full conversation” or what specifically he said during his meeting with the building inspector other than that he “basically” told the building inspector that the project involved “slight alterations” and “replacing bad components in the house.” The building inspector testified that he explained the type of work that required permits to Sliman and that Sliman told him he was not doing any work that required permitting, i.e., that he was not performing any electrical or plumbing work, making any changes to framing or installing a new HVAC system. Based on Sliman’s representation that the project involved “just dry wall and cabinets,” the building inspector did not seek to compel an interior inspection of the residence.

On October 20, 2017, after the renovations were substantially completed, the sellers listed the residence for sale for $499,000. The buyers visited the home twice while it was on the market. The sellers’ real estate agent informed the buyers that Sliman was “a finish carpenter by trade” and had made the recent renovations to the home for his family. A “Home Updates” form, which was provided to the buyers by Sliman’s real estate agent, described the electrical panel as having been “updated” in 2017, the garage as having “new electrical 2017” and the windows, bathroom, shower or tub, kitchen, flooring, cabinets, fixtures, furnace, air conditioner and outlets as “[b]rand new 2017.”

On October 22, 2017, the sellers signed and delivered a residential property disclosure form to the buyers (the “residential property disclosure form”). In the residential property disclosure form, the sellers represented that they knew of no “violations of building or housing codes * * * affecting the property,” no

“problems or defects” affecting the residence’s mechanical systems (including the electrical and plumbing systems), no material problems affecting any structural components and no other known material defects affecting the property. The form did not contain the disclosures provided to Sliman when he purchased the home. When Sliman acquired the property, the residential property disclosure form he received from the sellers stated “floor drain in basement snaked and repaired broken pipe in basement and front yard (2016). Repaired leak in first floor bathroom near slider and patched ceilings. No issues since.”

After receiving the residential property disclosure form, the buyers’

real estate agent inquired whether Sliman had pulled permits for the renovation work he had performed. She was told by Sliman (or by his real estate agent relaying Sliman’s response) that permits “weren’t needed.” The buyers also inquired (through their real estate agent) whether a certificate of occupancy was needed — which would have required an inspection by the building department — in light of the substantial renovations that had been made to the home. Sliman responded that because he did the renovation work himself as the homeowner, none was needed.

The buyers agreed to purchase the property for $460,000, subject to a home inspection. The buyers’ home inspection identified various potential issues with the property.1

1 The issues identified in the home inspection report included: settling cracks in the driveway; a trip hazard on the sidewalk; an uneven rise at the front steps; an open junction box on the front porch; some gaps in brick and windows requiring sealing; the lack of GCFI protection on certain electrical outlets; overhanging tree branches; a dead tree; missing handrailings; a disconnected ground wire; minor paint flaking in certain

Following their home inspection, the buyers waived all contingencies with the exception of a few “punch list” items that had been added as an addendum to the sales agreement. These items included: installation of a kitchen and basement handrailing, a tile backsplash in kitchen, a range hood and appliances supplied by the buyers, vent covers, a bathroom cabinet door and rods in the bedroom closets; the caulking of counters throughout the home and the repair of a leak in the ceiling above the door in the family room.

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Fowerbaugh v. Sliman, 2022 Ohio 1314 (Ohio Ct. App. 2022).

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