Jeffrey Hammond and Callie Hammond v. Crista L. Hanser, Jeffrey W. Connell, Michael W. Clapp, DSJMM, LLC and Flutobo, Inc. D/B/A Keller Williams Realty Northeast

CourtCourt of Appeals of Texas
DecidedOctober 31, 2024
Docket01-22-00707-CV
StatusPublished

This text of Jeffrey Hammond and Callie Hammond v. Crista L. Hanser, Jeffrey W. Connell, Michael W. Clapp, DSJMM, LLC and Flutobo, Inc. D/B/A Keller Williams Realty Northeast (Jeffrey Hammond and Callie Hammond v. Crista L. Hanser, Jeffrey W. Connell, Michael W. Clapp, DSJMM, LLC and Flutobo, Inc. D/B/A Keller Williams Realty Northeast) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Jeffrey Hammond and Callie Hammond v. Crista L. Hanser, Jeffrey W. Connell, Michael W. Clapp, DSJMM, LLC and Flutobo, Inc. D/B/A Keller Williams Realty Northeast, (Tex. Ct. App. 2024).

Opinion

Opinion issued October 31, 2024

In The

Court of Appeals For The

First District of Texas ———————————— NO. 01-22-00707-CV ——————————— JEFFREY HAMMOND AND CALLIE HAMMOND, Appellants V. CRISTA L. HANSER, JEFFREY W. CONNELL, MICHAEL W. CLAPP, DSJMM, LLC AND FLUTOBO, INC. D/B/A KELLER WILLIAMS REALTY NORTHEAST, Appellees

On Appeal from the 269th District Court Harris County, Texas Trial Court Case No. 2019-67684

MEMORANDUM OPINION

Appellants Jeffrey and Callie Hammond purchased a home from appellee

Crista L. Hanser. After discovering problems with the home, the Hammonds sued

Hanser and appellees Jeffrey W. Connell (Hanser’s real estate agent), Michael W. Clapp (Connell’s supervising broker), and Flutobo, Inc. doing business as Keller

Williams Realty Northeast (Connell’s brokerage agency) (collectively, the Listing

Agents).1 The Hammonds alleged causes of action for negligence and gross

negligence, negligent misrepresentation, common-law fraud and fraud by

nondisclosure, statutory fraud in the sale of real estate, violation of the Texas

Deceptive Trade Practices Act (DTPA), and civil conspiracy and aiding and

abetting against Hanser and the Listing Agents, and they also alleged breach of

contract against Hanser. Hanser and the Listing Agents both moved for traditional

and no-evidence summary judgment on all of the Hammonds’ claims. The trial

court granted the summary judgments, dismissing all of the Hammonds’ claims

with prejudice.

On appeal the Hammonds assert that the trial court “erred in granting the

two final summary judgment motions,” arguing that (1) the trial court erred in

granting summary judgment in Hanser’s favor on all of the Hammonds’ causes of

action against her; (2) the trial court erred in granting summary judgment in favor

of the Listing Agents on all of the Hammonds’ causes of action against them; and

(3) the trial court erred in sustaining Hanser’s objections to certain summary-

judgment exhibits.

1 The Hammonds also named DSJMM, LLC, as a defendant, but this entity was later non-suited and is not a party to this appeal. 2 Because we conclude that the trial court’s summary judgments were proper,

we affirm.

Background

A. Relevant Facts

The property in question is a four-story home located at 411 West 17th

Street in Houston, Texas (the Property). It was built in 2011 by InTown, Ltd. The

exterior of the free-standing Property is covered in stucco siding. After purchasing

the Property directly from InTown, Hanser lived there until July 2017. When

Hanser needed to relocate for work, she listed the Property for sale through

Connell. Connell and Hanser had been dating, and he spent some time in the

Property in the course of their relationship.2

The Hammonds agreed to purchase the Property in the fall of 2017. Hanser

completed a “Seller’s Disclosure Notice” using the form promulgated by the Texas

Real Estate Commission (TREC). The TREC disclosure contains the following

language:

This notice is a disclosure of seller’s knowledge of the condition of the property as of the date signed by seller and is not a substitute for any inspections or warranties the buyer may wish to obtain. It is not a warranty of any kind by seller, seller’s agents, or any other agent.

2 Hanser and Connell eventually married in 2018. He disclosed his relationship with Hanser to the Hammonds at the time of the sale. 3 Hanser marked that she was not occupying the Property at the time she completed

the Seller’s Disclosure Notice, and she had not occupied the Property since July

15, 2017. She signed the Seller’s Disclosure on August 17, 2017.

In Section 2 of the TREC Seller’s Disclosure Notice, Hanser marked that she

was not “aware of any defects or malfunctions” in various components of the

Property, including in the “exterior walls” or “other structural components.”

Section 3 of the Seller’s Disclosure Notice asked, “Are you (Seller) aware of any

of the following Conditions?,” and Hanser marked “No” for “water penetration”

and “wood rot” among other conditions. Section 4 of the Seller’s Disclosure Notice

asked, “Are you (Seller) aware of any item, equipment, or system in or on the

Property that is in need of repair, which has not been previously disclosed in this

notice?” Hanser did not identify any items in need of repair.

The Hammonds acknowledged their receipt of the Seller’s Disclosure on

September 26, 2017. The Hammonds and Hanser also entered into a “One to Four

Family Residential Contract (Resale)” containing an as-is provision. The contract,

completed on a form promulgated by the TREC, provided that Hanser was

obligated to permit the Hammonds access to the Property and to permit

inspections. It also provided that the Hammonds agreed to accept the Property “As

Is,” which the contract defined:

As Is means the present condition of the Property with any and all defects and without warranty except for the warranties of title and the 4 warranties in this contract. Buyer’s agreement to accept the Property As Is under [this paragraph] does not preclude Buyer from inspecting the Property [as provided in this paragraph], from negotiating repairs or treatments in a subsequent amendment, or from terminating this contract during the Option Period, if any.

The contract contained two options—(1) “Buyer accepts the Property As Is”; and

(2) “Buyer accepts the Property As Is provided Seller, at Seller’s expense, shall

complete the following specific repairs and treatments[.]” The contract was

marked, “(1) Buyer accepts the Property As Is.”

The Hammonds also obtained an inspection of the Property from Fox

Inspection Group before the sale closed. The inspection report from Fox did not

identify any major concerns. The report stated, in relevant part, “A limited visual

inspection of what appears to be traditional hard coat/cement-based stucco exterior

siding did not indicate any specific areas of concern for this inspector.” The

inspection report further stated, “However, no representation is made regarding the

lack of or possibility of unseen/undetected/hidden/latent water damage behind the

stucco exterior.” The report encouraged the Hammonds to arrange for a separate

“stucco intrusive inspection prior to the expiration of any option period” if they

had concerns. The inspector recommended “adding cap flashing at all exposed

stucco walls,” stating that the “[p]otential for water penetration is very high if left

unprotected.” The inspector also pointed out the lack of a “weep screed” that

5 would “provide a means for moisture to exit from behind the stucco if the wall

assembly leaks.”

The inspection report noted that the “Walls (Interior and Exterior)” were

“inspected” and found “deficient.” The inspector noted that “[n]o moisture, mold

and/or indoor air quality (IAQ) tests were performed,” and stated, “If concerned

the client is advised to contact a qualified IAQ Professional for further evaluations

of this property.” The report specifically identified concerns with “holes/openings

in garage walls and/or ceilings”; “nail heads . . . pushing through the interior

finish” in places; “[w]ater stains, damage or repairs observed, moisture detection

equipment indicated that stains are not active (wet) at time of inspection; kitchen

windows,” but “[m]oisture meter registers water stains as active; in master closet at

baseboards.

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Jeffrey Hammond and Callie Hammond v. Crista L. Hanser, Jeffrey W. Connell, Michael W. Clapp, DSJMM, LLC and Flutobo, Inc. D/B/A Keller Williams Realty Northeast, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jeffrey-hammond-and-callie-hammond-v-crista-l-hanser-jeffrey-w-connell-texapp-2024.