Harkala v. Wildwood Realty, Inc.

558 N.E.2d 195, 200 Ill. App. 3d 447, 146 Ill. Dec. 232, 1990 Ill. App. LEXIS 883
CourtAppellate Court of Illinois
DecidedJune 19, 1990
Docket1-89-2176
StatusPublished
Cited by38 cases

This text of 558 N.E.2d 195 (Harkala v. Wildwood Realty, Inc.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harkala v. Wildwood Realty, Inc., 558 N.E.2d 195, 200 Ill. App. 3d 447, 146 Ill. Dec. 232, 1990 Ill. App. LEXIS 883 (Ill. Ct. App. 1990).

Opinion

JUSTICE HARTMAN

delivered the opinion of the court:

The circuit court entered summary judgment for defendants on plaintiffs’ complaint charging violation of the Consumer Fraud and Deceptive Business Practices Act (Consumer Fraud Act or Act) (Ill. Rev. Stat. 1981, ch. 121½, pars. 262 through 272). Later, the court directed verdicts for defendants on counts charging breach of fiduciary duty and negligent misrepresentation. Plaintiffs appeal.

Plaintiffs Ronald and Sharon Harkala (Harkalas) bought a house located at 5157 North Kilbourn in Chicago, from defendants, Robert and Lorraine Hilgert (Hilgerts). Wildwood Realty (Wildwood) acted for both the Hilgerts and the Harkalas in this transaction. Wildwood’s Joe Rosprim 1 was the Hilgert’s broker, and Wildwood’s Mary Lou Quinn was the Harkalas’ broker. The Harkalas moved into their new home on September 9, 1979. In February 1980, the Harkalas discovered that the house was termite infested.

The decade-long history of this case began on September 26, 1980, when the Harkalas filed their first complaint against the Hilgerts, Wildwood, Rosprim, Quinn and Wildwood’s president, Helen Beierle. This appeal arises out of the Harkalas’ second amended complaint filed on February 19, 1982, which consisted of five counts. Count I of the complaint alleged fraud against the Hilgerts, as vendors. Count II alleged negligent misrepresentations by Wildwood and its brokers (sometimes collectively defendants). Count III alleged common law fraud against defendants. Count IV alleged violations by defendants of the Act. Count V alleged a breach of fiduciary duty by the realtors.

Summary judgment in defendants’ favor was granted as to counts III and IV of the second amended complaint. The order also struck count II, an amended version of which was later refiled with leave of court.

In July 1989 the cause proceeded to trial. The Harkalas adduced the following evidence. Sharon Harkala testified that she moved into the house on September 9, 1979. Wildwood’s Quinn helped the Harkalas sell their old house, and they asked her to help them find a new one. Sharon first saw the Kilbourn house at an “open house” after reading about it in a newspaper. While there, the Harkalas met Wild-wood’s Joe Rosprim, who showed them around the house. Sharon explained that, as she toured the house, she looked for “interior type things” such as “how big the rooms were and things like that.” Her husband also looked for “the basic things that you look for in a house.” At this time, no one mentioned any problems with or defects in the house. Sharon detected none. Quinn also was at the open house although she only stayed for 15 to 20 minutes; she and Quinn had little conversation on that date.

When asked by Sharon’s husband about the electrical wiring, Rosprim responded that the house was in a nice area; a good buy; in good condition; and in sound condition. About one week later, the Harkalas, accompanied by Quinn, returned to the house and looked around again, checking window and room sizes. Again, Sharon noticed nothing unusual about the house. She overheard Quinn tell her husband that the house was a “good buy” and in a “good area.” In September, the Harkalas bought it and moved in. Sharon never asked the Hilgerts about termites nor did she ask Quinn about any insect or structural problems.

Sharon first discovered termites in February 1980. She found little white ants crawling inside a porch post, called a pesticide control company, and had it start treatment to kill the termites. Sharon stated that she and her husband found termites in the kitchen and bathroom window sills, and in a concrete stump below some outside wood.

The evidence deposition of Charles Johnston was read into the record. Johnston knew the Hilgerts for over 30 years and was distantly related to Lorraine Hilgert. In 1976, Johnston did repair work on the Hilgert home, fixing the gutters, the window sills and the cement stoop. Hilgert had told Johnston that every time it rained, water would come down the side or leak in and cause the wood to rot. Johnston saw no termites during his repairs; the wood he used to cover the cement stoop was brand new and bug free. Hilgert never asked Johnston to rip out the wood, but just to seal it. Johnston concluded further that the damage was all water related.

Ronald Harkala’s testimony mirrored his wife’s in all material aspects. He insisted Rosprim told him, during the open house, that the house was in good condition and that he “shouldn’t have any problems with it.” Harkala did not recall any further conversation with Rosprim or Quinn. On the second visit to the house one week later, Harkala looked at the rooms “basically to visualize the size of the rooms for the furniture in the bedrooms.” Harkala spoke with Hilgert regarding the electrical wiring of the house. Hilgert told him of a defective garage door. Harkala saw no other defects, stating the house looked “very clean” and “very nice.”

After the Harkalas discovered termites, they made extensive repairs to the house. Harkala did some of the work himself, and he hired a contractor to do the rest. Harkala did not ask either the realtors or the Hilgerts about possible termite infestation, nor did he ask about the condition of the roof, whether the windows leaked or when the house had last undergone major repair. He had no inspections done before the closing. Quinn told him the house was “structurally sound.”

Ronald Harkala’s mother, Mildred, testified that she accompanied him and his wife to the Hilgert open house. At the open house, Rosprim told them that the house was in “very good condition.” Mrs. Harkala also stated that the house looked “very nice.”

Robert Hilgert testified that he was the previous owner of the home, having purchased it in 1972. In 1976, Hilgert instructed Johnston to do some repairs, and Johnston complied. The following year Hilgert painted the house “inside and out.” He never saw any termites at that time.

The Harkalas questioned Quinn as an adverse witness. (Ill. Rev. Stat. 1987, ch. 110, par. 2—1102.) Quinn was not initially at the Hilgert open house with the Harkalas, having been conducting another open house in the vicinity. The Harkalas stopped by and asked her to accompany them to look at a house they claimed was “perfect” for them. The Harkalas showed Quinn the house on Kilbourn, asking for her opinion. She left after 15 minutes; she could not recall either saying that the house was “in good condition” or visiting the house a second time.

Quinn explained that, prior to visiting the Hilgert home, she had given the Harkalas information as to all the property in the area in the price range they were looking for. The Hilgert property was not an exclusive listing, but was on a “multiple listing.” Realtors are “free to show other office’s listings.” Quinn was not familiar with the condition of the Hilgert home; it was not her job to do an investigation. She only received commissions when she sold another office’s property. Wildwood received two commissions on the Hilgert/Harkala sale; however, both commissions were paid by the Hilgerts.

Helen Beierle, president of Wildwood Realty, testified that she had never met the Hilgerts until the first day of trial.

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Bluebook (online)
558 N.E.2d 195, 200 Ill. App. 3d 447, 146 Ill. Dec. 232, 1990 Ill. App. LEXIS 883, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harkala-v-wildwood-realty-inc-illappct-1990.