Jackowski v. Borchelt

209 P.3d 514
CourtCourt of Appeals of Washington
DecidedJune 16, 2009
Docket36944-3-II
StatusPublished
Cited by11 cases

This text of 209 P.3d 514 (Jackowski v. Borchelt) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jackowski v. Borchelt, 209 P.3d 514 (Wash. Ct. App. 2009).

Opinion

209 P.3d 514 (2009)

Timothy L. JACKOWSKI and Eri Jackowski, husband and wife, Appellants,
v.
David BORCHELT and Robin Borchelt, husband and wife; Hawkinspoe, Inc. dba Coldwell Banker Hawkins-Poe Realtors; Himlie Realty, Inc., and Vince Himlie, Broker for Windermere Himlie Real Estate, real estate brokers, and Robert Johnson and Jef Conklin, real estate agents, Respondents.

No. 36944-3-II.

Court of Appeals of Washington, Division 2.

June 16, 2009.

*516 Jon Emmett Cushman, Attorney at Law, Benjamin D. Cushman, Stephanie M.R. Bird, Cushman Law Offices PS, Olympia, WA, for Appellants.

Jeffrey Paul Downer, Lee Smart PS Inc., Melanie A. Leary, L'Nayim Shuman-Austin, Demco Law Firm PS, Matthew F. Davis, Attorney at Law, Seattle, WA, Carolyn Miller Bixel, Law Offices of Carrie M. Bixel PS, Issaquah, WA, Robert William Johnson, Attorney at Law, Shelton, WA, for Respondents.

BRIDGEWATER, J.

¶ 1 Following landslide damages to their waterfront home, Timothy and Eri Jackowski appeal the Mason County Superior Court's summary judgment dismissal of their fraud and misrepresentation claims against the seller, the seller's agent, and the Jackowskis' own real estate agent. The Jackowskis also fault the trial court for granting their real estate agent's motion to strike the Jackowskis' jury demand. We affirm in part and reverse and remand in part.

FACTS

¶ 2 Hawkins-Poe Real Estate and its real estate agent, Robert Johnson, represented the Jackowskis in a real estate transaction for the purchase of a waterfront home in Mason County from the sellers, David and Robin Borchelt. Windermere Himlie Real Estate and its agent, Jef Conklin, represented the Borchelts in the transaction.

¶ 3 The Jackowskis purchased the house from the Borchelts in 2004. The majority of *517 the Jackowskis' claims involve the Borchelts' actions several years before the sale. For example, several years before the transaction, the Borchelts sought and received a slope stability report from geologist Harold Parks while preparing to add an additional bedroom to the house. The slope drawing attached to the report indicates "New building addition to be west of house." CP at 1223. Parks stated during his deposition that adding the bedroom would not create any additional instability for the house. He indicated that the slope down to the water was unstable only within the first 25 feet of the shoreline, especially within the first 10 feet. He noted that the house was not within 25 feet of the shoreline. In 2002, the Borchelts built the addition to the north of the house instead of the west.

¶ 4 The Borchelts then attempted to improve a road going from their house, down the slope, and to the water, but the county issued a stop-work order. The county ordered the Borchelts to revegetate the slope, requiring at least 90 percent of the plants to survive.

¶ 5 At the time of the sale to the Jackowskis, the parties signed a Residential Real Estate Purchase and Sale Agreement (RESPA) and the Borchelts completed a real property transfer disclosure statement (Form 17), which they provided to the Jackowskis before closing. The Borchelts checked the box labeled "NO" on Form 17 in response to the following questions:

4. STRUCTURAL
....
E. Has there been any settling, slippage, or sliding of the property or its improvements?

CP at 921.

7. GENERAL
....
B. Does the property contain fill material?
C. Is there any material damage to the property from fire, wind, floods, beach movements, earthquake, expansive soils, or landslides?
10. FULL DISCLOSURE BY SELLERS
....
A. Other conditions or defects:
Are there any other existing material defects affecting the property that a prospective buyer should know about?

CP at 922. The Borchelts amended Form 17 on May 13, 2004, to include the following language:

Please refer to Mason County Dept. of Community Development letter attached regarding restoration bond of $4,400.

CP at 923. The letter indicates that the "following critical areas are present on this property: ... Landslide Hazard Areas."[1] CP at 549. The letter also referenced the geotechnical report conducted by geologist Harold Parks.

¶ 6 The Borchelts faxed a copy of the letter to Conklin, their real estate agent. The fax included an addendum, provided by Parks, which again referenced his geotechnical report. Conklin faxed the letter and addendum to Johnson, who then gave them to the Jackowskis. Tim Jackowski admitted receiving and reading both the letter and Park's addendum the day after he made his purchase offer.

¶ 7 The parties included an inspection addendum to the RESPA that provided:

INSPECTION CONTINGENCY. The above Agreement is conditioned on Buyer's personal approval of an inspection of the Property and the improvements on the Property. Buyer's inspection may include, at Buyer's option, the structural, mechanical and general condition of the improvements to the Property, compliance with building and zoning codes, an inspection of the Property for hazardous materials, a pest inspection, and a soils/stability inspection.

CP at 540. The contingency allowed the Jackowskis 15 days to provide a notice of disapproval, with three days provided for the *518 Borchelts to respond. The Jackowskis did not conduct any investigation regarding soil stability before the sale closed. The sale closed on June 30, 2004.

¶ 8 On February 3, 2006, the house slid such that sheetrock cracked and doors stuck. The Jackowskis sued the Borchelts seeking rescission, or in the alternative, damages for fraud, negligent misrepresentation, or breach of contract. The Jackowskis sued Hawkins-Poe, Johnson, Windermere Himlie Real Estate, and Conklin, alleging that they knew or should have known and failed to disclose that the property was in a landslide area. The trial court allowed the Jackowskis to amend their complaint to include claims that Hawkins-Poe and Johnson violated RCW 18.86.050(1)(c) by failing to advise the Jackowskis during the pendency of the real estate transaction to seek the advice of a geotechnical expert, but it denied the Jackowskis' request to include breach of contract claims against Hawkins-Poe and Johnson. The Jackowskis' claims all relate to alleged fraud or misrepresentation regarding the risk of landslides on the property and about the presence of fill on the property.

BORCHELTS

¶ 9 The Borchelts moved for summary judgment on all of the Jackowskis' claims against them, including the Jackowskis' claims for rescission of the sale agreement, fraudulent misrepresentation, constructive fraud, and negligent misrepresentation. The Borchelts argued before the trial court that the Jackowskis' breach of contract claim should fail because the Jackowskis failed to respond to the portion of the Borchelts' motion for summary judgment regarding breach of contract. The trial court agreed and granted that portion of the Borchelts' motion.

¶ 10 The trial court then granted the Borchelts' motion regarding the Jackowskis' negligent misrepresentation claims based on the economic loss rule as described in Alejandre v. Bull, 159 Wash.2d 674, 153 P.3d 864 (2007).

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Cite This Page — Counsel Stack

Bluebook (online)
209 P.3d 514, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jackowski-v-borchelt-washctapp-2009.