Hettle v. Construction Contractors Board

316 P.3d 344, 260 Or. App. 135, 2013 WL 6665102, 2013 Ore. App. LEXIS 1491
CourtCourt of Appeals of Oregon
DecidedDecember 18, 2013
Docket171009101; A142840
StatusPublished
Cited by4 cases

This text of 316 P.3d 344 (Hettle v. Construction Contractors Board) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hettle v. Construction Contractors Board, 316 P.3d 344, 260 Or. App. 135, 2013 WL 6665102, 2013 Ore. App. LEXIS 1491 (Or. Ct. App. 2013).

Opinion

EGAN, J.

Complainant filed a claim with the Construction Contractors Board (the board) against Homemasters, Inc. (respondent), alleging that respondent performed negligent and improper work in connection with examining windows in a home that complainant was preparing to purchase and providing an opinion about related damage. Complainant seeks judicial review of a final board order, which dismissed his complaint and concluded that complainant had failed to state a claim for relief for negligent or improper work pursuant to ORS 701.1401 and OAR 812-004-0535(l)(b).2 We conclude that the board did not err in dismissing the claim and affirm.

We review the board’s findings of fact for substantial evidence; that is, we must determine whether the record, viewed as a whole, would permit a reasonable person to make the factual findings that the board made. ORS 183.482(8)(c). We review the board’s legal conclusions for errors of law and substantial reason. The latter requires us to determine whether the board’s “findings of fact logically lead to its conclusions of law.” Goin v. Employment Dept., 203 Or App 758, 763, 126 P3d 734 (2006).

Because, as we explain below, we reject complainant’s challenges to the board’s factual findings, we state the facts consistently with the board’s Final Order on Second Reconsideration (final order).

In April 2007, complainant was negotiating with Schlottman (seller) to purchase seller’s house. Licensed residential inspector McLean inspected the house and wrote a report noting, in part:

“#5: Windows - Water Intrusion - Sills of windows in S.E. bedroom show swelling; sills of windows in den below this room also show swelling and one window shows water damaged paint on its die casing - Indications of water [138]*138intrusion, possible rot damage, mold etc., in walls. Consult qualified specialty contractor to evaluate and remediate water intrusion as deemed appropriate.”

Based on that report, complainant and seller entered into a “Buyer’s Repair Addendum,” in which the parties agreed that seller would remove the moss on the roof and have a “[[licensed and bonded contractor *** identify and correct [the] source of [the] water intrusion per item 5 of inspection and identify and repair/replace and paint all water damaged areas.”

Seller contacted respondent to clean the roof and gutters. When respondent’s corporate president, Richard Lundstrom, visited the house to check on the work performed, seller requested that he look at two windows on the southeast corner of the house. Seller and seller’s real estate agent, Raja, were present when Lundstrom inspected the windows from the interior of the house only. Lundstrom assisted seller in removing the window sills and sheetrock beneath one of the windows, and seller took pictures of the wood underneath the sills.

Lundstrom later wrote a letter to seller, dated April 25, 2007, on respondent’s corporate letterhead, but Lundstrom had not seen a copy of either the Buyer’s Repair Addendum or the initial inspection report before writing the letter. The letter, written at seller’s request, reads:

“On April 25, 2007 [,] I removed the window sills in both the upstairs front bedroom and the main floor front room ***. Neither window has water damage. The visual surface problem was contained to the * * * window sill and it would be my recommendation to replace the * * * bottom sill of both windows.
“There is absolutely no mold, dry rot[,] or other damage.”

At the request of complainant’s realtor, Lundstrom later added the following paragraph to the letter:

“The visual problem with the sheetrock around the front window is of no concern. My recommendation would be to remove, retexture and reapply paint in the area.”

Based on those recommendations, seller had the drywall repaired and the window sills replaced.

[139]*139In May 2007, complainant purchased, and moved into, the house. In October 2007, after a heavy rain, complainant found water leaking into the upstairs window. In December 2007, he discovered water leaks around the downstairs window. Complainant then filed a complaint with the board against respondent, alleging that respondent performed improper and negligent work on his house, pursuant to OAR 812-004-0535(1), and seeking monetary damages. The board dismissed the complaint, concluding that respondent did not perform negligent or improper work. Complainant thereafter requested a hearing.

At the hearing, complainant testified that he had received the April 25, 2007, letter from seller, who had had the window sills replaced and interior carpentry work done based on the recommendations contained in the letter.

Complainant’s realtor testified that, because seller’s realtor, Raja, had told him that the April 25, 2007, letter satisfied the requirements of the Buyer’s Repair Addendum, he believed that Lundstrom had inspected the windows per the terms of the addendum.

Raja stated that she was present when Lundstrom examined the windows and felt that Lundstrom’s inspection satisfied the terms of the addendum. She also believed that seller had hired respondent, a licensed and bonded contractor, to satisfy the requirements of the Buyer’s Repair Addendum.

Seller testified that he had asked Lundstrom to inspect the windows and that he had supplied pictures of the window sills to complainant after the repairs were complete. Seller noted that complainant declined to have the repairs inspected by a third party.

Complainant called two licensed residential real estate inspectors to testify. The first, McLean, had initially identified the potential water damage. Before the hearing, McLean examined the photos taken by seller in April 2007 while the window sills were removed. He opined that the pictures showed staining and darkening from water damage that had occurred over a period of time. The second inspector, McMullen, testified that he had noticed construction [140]*140defects near the windows as he approached the house for the first time. McMullen determined that water had leaked in around the upper window and then ran down the wall cavity, which compounded the effects of a similar leak on the lower window. He found that flashing had not been installed and that the decorative trim near the window was angled toward the house, worsening the leakage problem. McMullen opined that a proper investigation of the source of the water intrusion would require an investigation of the house’s exterior and that Lundstrom’s inspection was inadequate.

Lundstrom testified that seller contacted his company to obtain roof cleaning services. Lundstrom recalled that seller “needed to have [the window] looked at” because it “had some water intrusion.” Lundstrom initially agreed to look at the window because he believed that seller thought that respondent’s pressure washing had caused the window leak. After looking at the windows, seller asked his opinion, and Lundstrom responded that he did not think it was a problem. Seller mentioned to Lundstrom that the window had been left open and that he had never noticed any leaks.

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Cite This Page — Counsel Stack

Bluebook (online)
316 P.3d 344, 260 Or. App. 135, 2013 WL 6665102, 2013 Ore. App. LEXIS 1491, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hettle-v-construction-contractors-board-orctapp-2013.