Hannah v. Sibcy Cline Realtors

769 N.E.2d 876, 147 Ohio App. 3d 198
CourtOhio Court of Appeals
DecidedDecember 21, 2001
DocketAppeal No. C-010084, Trial No. A-9905341.
StatusPublished
Cited by3 cases

This text of 769 N.E.2d 876 (Hannah v. Sibcy Cline Realtors) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hannah v. Sibcy Cline Realtors, 769 N.E.2d 876, 147 Ohio App. 3d 198 (Ohio Ct. App. 2001).

Opinion

Painter, Judge.

{¶ 1} In this case, we are asked to determine, in part, whether a real estate agent or broker has the fiduciary duty to (1) inform a client whether a neighborhood or community is ethnically diverse or (2) direct the client to resources that provide ethnic-diversity information. We conclude that, while a real estate agent or broker may choose to provide such information to a client or to direct a client to resources about the ethnic diversity of a particular neighborhood or community, the agent or broker does so at its own risk, and that there is no fiduciary duty to do so.

*201 I. Finding a Home in the Cincinnati Area

{¶ 2} Appellants Joel and Zondra Hannah and their three school-aged sons were considering moving their family from Virginia to Cincinnati, Ohio, for both lifestyle and employment reasons. (We refer to the Hannahs by their first names when applicable because they share the same surname.) Zondra contacted appellee Sibcy Cline, Inc. (apparently, Sibcy Cline, Inc. is the proper name of appellee), a real estate brokerage, concerning housing in the summer of 1997. Appellee Mary Kay Carroll, a real estate agent and relocation specialist associated with Sibcy Cline, worked with the Hannahs over a year-long period. The Hannahs also contacted a real estate agent with West Shell and spoke with her three times during the period that they were dealing with Carroll. That agent sent them an information packet. Zondra also contacted Star One Realty and received a relocation guide from the agent there.

{¶ 3} During the initial telephone conversation with Carroll, Zondra explained what she wanted — a five-bedroom house in move-in condition that contained a living room, a dining room, a family room, an eat-in kitchen, a finished basement, and two and one-half baths. She wanted a house of 2,600 to 3,000 square feet that cost $190,000 to $225,000 and sat on either an acre of land or a private setting. Zondra also specified that the house be located in an excellent school district and an ethnically diverse neighborhood. Zondra wanted to replicate her Virginia neighborhood in Cincinnati. Carroll sent the Hannahs a relocation packet that contained a guidebook, a map, and some general brochures.

{If 4} According to Zondra, she constantly asked Carroll whether the areas in which Carroll suggested houses were ethnically diverse. The Hannahs both confirmed that Carroll told them that she could not give them that information. But, according to Zondra, Carroll would imply that a neighborhood was diverse by stating that it fit the Hannahs’ criteria. Zondra asked Carroll where she could get information concerning ethnic diversity of schools and communities and asked whether organizations existed that she could contact regarding ethnic diversity in neighborhoods. Zondra testified that Carroll responded that no such agencies or organizations existed (Carroll disputed this) and that Zondra could learn the information by cruising around the neighborhoods or from a realtor who knew the areas. Zondra never received the requested information from Carroll.

{¶ 5} Zondra believed that Carroll was sending her Multiple Listing Services sheets that met the criteria the Hannahs were interested in — specific physical characteristics of the house, a racially and economically diverse area, and a good school district. Zondra also received test-score information from different schools both from Carroll and from the schools. Zondra contacted six schools using the telephone numbers supplied in the guidebooks received from Carroll. She asked the person she contacted at each school whether the school was *202 racially diverse. She did not ask whether a certain percentage of the student body was African-American, but did state that she did not want her child to be the only African-American in his class.

{¶ 6} Zondra also contacted a children’s advocacy group to learn about special education in the Cincinnati area. According to Joel, Zondra contacted the local NAACP and the Urban League but did not receive information about ethnic diversity.

A. The House-Hunting Visits

{¶ 7} The Hannahs met with Carroll in Cincinnati in the fall of 1997. They again told Carroll that they wanted to target racially diverse areas. Carroll took them to several areas. When Zondra asked Carroll about the ethnic diversity of a neighborhood, she responded that most Cincinnati neighborhoods were diverse and that she had chosen the neighborhoods that were being shown based on the Hannahs’ criteria. Zondra stated that Carroll would use body language as well to imply responses to her requests.

{¶ 8} The last week of June 1998, the Hannahs returned to Cincinnati either to buy or rent a house because Joel had been transferred to Cincinnati. At that time, the Hannahs asked Carroll to be their agent. On July 4,1998, the Hannahs and the sellers of a home signed a Disclosure of Agency Relationship form stating that, by signing the form, the Hannahs were consenting to the agency relationship disclosed in the form. It contained a provision that the buyer’s agent and the brokerage owed to the buyer the duties of loyalty, obedience, confidentiality, accounting and reasonable skill and care in performing their duties, as well as the “duty to disclose to the buyer all material information obtained from the seller or from any other source.” It is this agreement on which the Hannahs’ breach-of-contract claim was based.

{¶ 9} During this visit, the Hannahs looked at homes for four days, narrowing their search to the Sycamore, Princeton, Wyoming, and Indian Hill school districts. Failing to find a home to purchase, the Hannahs decided that they wanted to rent. Carroll discouraged them from doing so. Joel asked about a house that he had seen on a listing located in either Loveland or Milford. When Zondra asked whether the areas were ethnically diverse, Carroll sighed and said that they had been “through this before.”

{¶ 10} The Hannahs looked at the home in Milford. Zondra talked to two people in the neighborhood. When Zondra asked one neighbor about the schools, the neighbor said that she would either continue to educate her children at home or send them to private school. That neighbor had two bi-racial children, of possibly Hispanic and African-American ethnicity. Zondra talked to another neighbor who said that she knew nothing about the Milford schools because her *203 children attended Catholic school. Zondra asked both neighbors whether the neighborhood was “well rounded.” One made no response, and the other said that she was not certain.

B. The Purchase of the Milford Home

{¶ 11} The Hannahs made an offer on the Milford house on July 4, 1998. But, upon returning to Virginia, they decided that they did not know enough about Milford. The Hannahs called Carroll at 1:00 a.m. on July 5. They agreed to talk later in the day. Carroll told the Hannahs that they would be happy in Milford and that the test scores indicated that the schools were good. Zondra expressed concern about whether the area was ethnically diverse and stated that she did not want to walk into a supermarket and feel uncomfortable or to have her children be the only African-American children in their class.

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Bluebook (online)
769 N.E.2d 876, 147 Ohio App. 3d 198, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hannah-v-sibcy-cline-realtors-ohioctapp-2001.