Hoke v. Beck

587 N.E.2d 4, 224 Ill. App. 3d 674, 167 Ill. Dec. 122, 1992 Ill. App. LEXIS 20
CourtAppellate Court of Illinois
DecidedJanuary 10, 1992
Docket3-91-0106
StatusPublished
Cited by15 cases

This text of 587 N.E.2d 4 (Hoke v. Beck) 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
Hoke v. Beck, 587 N.E.2d 4, 224 Ill. App. 3d 674, 167 Ill. Dec. 122, 1992 Ill. App. LEXIS 20 (Ill. Ct. App. 1992).

Opinion

JUSTICE HAASE

delivered the opinion of the court:

The plaintiffs, Kenneth and Annetta Hoke, brought this action against the defendants, Melvin and Carol Beck, for damages because of defects in a house sold to them by the defendants. The third amended complaint set out two counts. The first alleged that the defendants failed to disclose defective conditions of the house in violation of the Consumer Fraud and Deceptive Business Practices Act (Consumer Fraud Act) (Ill. Rev. Stat. 1989, ch. 121½, par. 261 et seq.). The second alleged that the defendants had breached a warranty of habitability implied in the sale of the house. Following a bench trial, the trial court entered judgment for the plaintiffs on both counts, awarding them $7,600 in damages and $6,017.30 in attorney fees. Thereafter, the court denied the defendants’ post-trial motion. The defendants appeal.

Count I of the plaintiffs’ complaint alleged that the defendants, as builder-vendors for the purposes of the Consumer Fraud Act, knew or should have known of the following defects and failed to disclose them: (1) that pipes to the master shower leaked, causing damage to the wall, baseboard and floor; (2) that the window trim was improperly installed; (3) that a severe moisture problem existed under the house causing odor and damage to the floor and foundation; (4) that the garage was not completely insulated as stated by the defendants; (5) that two electrical outlets did not work; (6) that overhang was rotten and a section of siding was undone; (7) that the plumbing was improperly installed, causing a continuous sewer gas smell; (8) that the furnace was improperly installed in numerous ways; (9) that shingles on the roof were not properly affixed; (10) that the crawl space was improperly installed; (11) that joist braces were not installed; (12) that the garage door headers were not properly built; (13) that the utility room roof and floor were not level; and (14) that vents were not securely fastened.

Count II of the plaintiffs’ complaint alleged that the defendants, as builder-vendors of a commercial nature, breached the implied warranty of habitability as a result of the above-described defects.

Melvin Beck testified that he was not a construction contractor and had never built a house by himself, but he did have a hand in the construction of several houses. From 1969 through 1982, he had five homes built. He and his wife lived in each of them for about two years before selling them. The first house was built in 1969 and sold in 1971. At the time the first house was sold, construction on a second house had begun. The Becks lived in the second house until they had a third house built next door in 1973. The Becks sold the third house in late 1976 or early 1977. The Becks then had a fourth house constructed adjacent to the two previous new homes. The Becks sold the fourth house in 1979. In November of 1981, construction was begun on the Becks’ fifth house, which is the subject of this lawsuit.

Melvin stated that he performed various tasks in the construction of the homes such as carpentry work, painting and clean up work, common labor, and installation of the plumbing and furnace. He noted that he did not have any written contracts with the carpenters, but paid them on an hourly basis. He also stated that his wife kept the financial books and they both paid the bills for the supplies and materials.

Regarding the house in question, Melvin testified that the house was located across the street from his mother’s house and he did not intend to sell it. He only decided to sell it after suffering a significant financial reversal. He worked on the crawl space, installed the plumbing and heating systems, and helped with the carpentry work. He knew there was a moisture problem in the crawl space area when the house was constructed. According to Melvin, he told the Hokes that he had fixed the water problem, but if it was not fixed, they would have to pump it out with a new sump pump he would give them. Melvin further stated that he had told the Hokes that the garage was insulated and that the best of everything was used in the house.

The Becks’ tax returns introduced into evidence indicated that they filed a schedule D form and a 2119 form with the IRS only in 1978. A 2119 form is apparently required for the sale of a personal residence.

Tom Leach, an engineer and licensed plumber, testified that he examined the plaintiffs’ furnace on February 12, 1986. In so doing, he smelled carbon monoxide fumes and observed numerous problems with the way the furnace was installed. He called the gas company and had the gas shut off. He advised the Hokes to vacate the premises. Leach further testified that the plumbing system violated several State plumbing laws.

Herb Bozard, a carpenter-builder, testified that various portions of the house did not meet general industry standards. He noted that the use of Visqueen and limestone rock in the crawl space was improper and created additional water problems.

Annetta Hoke testified that Carol Beck approached her regarding the purchase of the house in question. One week later, Melvin Beck showed her the house and told her that he had installed the furnace and plumbing. He also told her that he had built other homes with the help of other people such as his son-in-law and Steve Coatsenberg. According to Annetta, Melvin further stated to her that he guaranteed that the crawl space would be dry and that the most water they would have would be a quart. Melvin also represented to her that the garage was insulated.

Kenneth Hoke testified that both of the Becks showed him the house on two occasions. During that time, Melvin told Kenneth and his wife that the house was the best quality and that it was the best house he had ever built. After they purchased the house, the Hokes noticed that an odor emanated from their crawl space. They eventually determined that the crawl space was very wet. Kenneth also testified regarding various other problems with the construction of the house.

The plaintiffs’ attorney, Jim Lucie, testified that he worked 71.6 hours at $75 per hour, which was a reasonable rate in the area. He introduced into evidence an itemized bill showing dates and times that he rendered services for the plaintiffs.

At the outset, the defendants argue on appeal that the trial court improperly found defendant Carol Beck liable.

We agree. There was no evidence establishing that Carol was a builder-vendor or that she made any misrepresentations in violation of the Consumer Fraud Act. In our opinion, Carol Beck had an ownership interest in the property but was not a builder-vendor either for purposes of the warranty of habitability or for the purposes of the Consumer Fraud Act. Accordingly, we reverse the court’s judgment pertaining to Carol.

Defendant Melvin Beck next argues that he was not a builder-vendor for the purposes of the implied warranty of habitability. He asserts that he was not a builder-vendor because he did not intend to sell the house in question and that his course of conduct in having other homes built over the years was very attenuated.

The warranty of habitability is a creature of public policy to protect purchasers of new houses when latent defects are discovered. (Petersen v.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Stribling Investments, LLC v. Mike Rozier Construction Company, Inc.
189 So. 3d 1216 (Mississippi Supreme Court, 2016)
Cuculich v. Thomson Consumer Electronics, Inc.
739 N.E.2d 934 (Appellate Court of Illinois, 2000)
Elson v. State Farm Fire & Casualty Co.
691 N.E.2d 807 (Appellate Court of Illinois, 1998)
Scarsdale Builders, Inc. v. Ryland Group, Inc.
911 F. Supp. 337 (N.D. Illinois, 1996)
Roberts v. Robert v. Rohrman, Inc.
909 F. Supp. 545 (N.D. Illinois, 1995)
Lionel Trains, Inc. v. Albano
35 F.3d 568 (Seventh Circuit, 1994)
Malooley v. Alice
621 N.E.2d 265 (Appellate Court of Illinois, 1993)
Breckenridge v. Cambridge Homes, Inc.
616 N.E.2d 615 (Appellate Court of Illinois, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
587 N.E.2d 4, 224 Ill. App. 3d 674, 167 Ill. Dec. 122, 1992 Ill. App. LEXIS 20, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hoke-v-beck-illappct-1992.