Gauld v. O'SHAUGNESSY REALTY COMPANY

671 S.E.2d 79, 380 S.C. 548, 2008 S.C. App. LEXIS 222
CourtCourt of Appeals of South Carolina
DecidedNovember 14, 2008
Docket4455
StatusPublished
Cited by18 cases

This text of 671 S.E.2d 79 (Gauld v. O'SHAUGNESSY REALTY COMPANY) is published on Counsel Stack Legal Research, covering Court of Appeals of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gauld v. O'SHAUGNESSY REALTY COMPANY, 671 S.E.2d 79, 380 S.C. 548, 2008 S.C. App. LEXIS 222 (S.C. Ct. App. 2008).

Opinion

ANDERSON, J.:

Samantha Gauld (Gauld) appeals the summary judgment granted in favor of Respondents on her claims for breach of contract, breach of contract with a fraudulent act, breach of fiduciary duty, negligence, negligent misrepresentation, and violation of the South Carolina Unfair Trade Practices Act. We affirm. 1

FACTUAL!PROCE DURAL BACKGROUND

In this case arising from Samantha Gauld’s purchase of 102 Lucretia Lane in Summerville, she alleged breach of contract, breach of contract accompanied by a fraudulent act, breach of fiduciary duty, negligence, violation of the South Carolina Unfair Trade Practices Act, and negligent misrepresentation against her real estate agent, Julie Lynch (Lynch); the agent of the seller, Chip Allen (Allen); and the employer for both, O’Shaugnessy Realty Company d/b/a Prudential Carolina Real Estate (Prudential).

At the hearing for the defendants’ motion for summary judgment, Gauld agreed to dismiss the breach of contract *551 claim against Allen. The circuit court expounded in its order, “there is no admissible or credible evidence as to the existence or amount of any alleged damage and, as such, summary judgment is appropriate as to all Defendants and all causes of action.”

Over a fifteen year period preceding this action, Gauld purchased, refurbished and resold numerous homes across the country. In fall of 2002, while living in Maine, Gauld became interested in the Charleston market. After deciding Charleston was beyond her budget, her search expanded to include the Summerville area. Ideally, she sought a historic property suitable as a bed and breakfast. If real estate with these characteristics could not be found, Gauld had a “Plan B” which entailed “a short term investment that I expected to make a big profit on in a very short period of time while we continued to look for a historic property.”

Gauld made trips from Maine to South Carolina in 2002, 2003, and 2004, and she enlisted the services of Lynch, a real estate agent with Prudential’s Mount Pleasant office. Gauld and her husband routinely reviewed realty websites and discovered 102 Lucretia Lane in the Tea Farm subdivision. The owner had relocated out of state and hired Allen, an agent with Prudential’s Summerville office, to sell the home.

Gauld offered to buy the residence “as is” for $400,000, but made the deal contingent upon her satisfaction with a home inspection and an appraisal at or above the purchase price. After the home inspection and an appraisal valuing the home at $420,000, Gauld accepted the property “as is” and closed in May 2004. She and her husband moved in and made substantial repairs. Gauld testified that, within a week of closing, she was approached by a landscaper asking to cut her lawn. Through their conversation, she became aware of the proposed extension of Phase III of the Berlin G. Myers Parkway along the Sawmill Branch, three hundred feet behind the home. According to Allen’s deposition, Phase III has been discussed over the last thirty-five years with citizens and environmental attorneys resisting its construction. Phases I and II were completed years ago. Approximately six months after the closing on 102 Lucretia Lane, a Dorchester County tax referendum passed providing potential funds for road projects. In *552 Allen’s estimation, this event made the construction of the road a “probability.”

Multiple appraisals were conducted on 102 Lucretia Lane valuing it at $570,000 in April 2005, $605,000 in May 2005, and $650,000 in January 2006. On January 4, 2005, Gauld put the property up for sale with an asking price of $650,000, which she later increased to $660,000. In June 2005, the house was advertised at $660,000, and a listing in the record, dated July 7, 2006, features a price of $787,500. When asked why she listed the home at more than its appraisal, Gauld explained:

A: Again, I’m not a realtor, but usually when you’re selling real estate, you don’t put the price you want. You add a little on top. No one is ever going to offer you what you’re asking, that I’m aware of. Secondly, there was some personal property conveyed, and that value was not reflected in here. I, also, in following the local comps, was aware that land right in Tea Farm was selling for — like, a cluster lot was selling for 200,000, and my opinion, my lot, a portion of the price was low in here. I’m not an expert, but to me it seemed a little low on the golf course. I have great views. That’s just my personal opinion. That means nothing. I’m not an appraiser.

Although Gauld’s deposition is difficult to follow, it indicates she received offers of $650,000, $629,500, and $665,000. Additionally, she averred to having been offered $630,000 in a cash deal. In her deposition, Gauld was asked about the home’s worth:

Q: [Yjou’ve listed it more than what it appraised for throughout the whole thing. You keep listing it at higher [than] the appraisal when you know that an appraisal is going to require it be reduced?
A: Maybe, maybe not. I don’t know that.
Q: Have you examined — this property now as I understand it, in your estimation, what should it sell for?
A: Well, there’s two answers to that question. There’s what it should be worth without the parkway. And if I were to buy into the theory that not only does the parkway not negatively impact this property and yet it’s actually a positive selling point, and if you look at *553 the comps currently in Tea Farm, there’s a property listed on East Johnson Street at $305 a square foot. There’s a property that just sold right behind mine at 160 a square foot. And say I hypothetically accept that my property is not superior to that on East Johnson at 305 a square, yet I believe it’s definitely superior to the property that just sold on East Shephard at 160 a square foot, if you cut that down the middle, my property without the parkway will be would over a million dollars, if you do the math. Now, because of the parkway, I would never get anywhere near that amount of money.

Jeffery Wyman, Gauld’s expert witness, opined the house was worth a maximum of $650,000. Wyman was asked about the increase in property values in the neighborhood:

Q: Okay. Do you have an idea of the average annual appreciation for Tea Farm and the Miler Country Club area for the last five years?
A: I didn’t do an appreciation study, per se. But if we look at sales and resales of houses — for example, the Gauld house, which is the subject of this, she purchased at 400,000 approximately two years ago and at least got an offer of 650 to 665. So you’re talking about 50 percent over two years — 45 percent. So it’s probably in the neighborhood of any where from 15 to 20 percent average. But, again, the latest statistics I saw show the prices going down, people reducing prices to move property.

When shown the listing for Gauld’s first attempt to sell the house, Wyman stated:

A: This is 1-4-05. Okay, this is a listing, she’s asking $660,000, which is about six months, more or less, after she purchased it....

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Cite This Page — Counsel Stack

Bluebook (online)
671 S.E.2d 79, 380 S.C. 548, 2008 S.C. App. LEXIS 222, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gauld-v-oshaugnessy-realty-company-scctapp-2008.