Jessup v. Ketchings

482 F.3d 336, 2007 U.S. App. LEXIS 6170, 2007 WL 779170
CourtCourt of Appeals for the Fifth Circuit
DecidedMarch 16, 2007
Docket05-30833
StatusPublished
Cited by3 cases

This text of 482 F.3d 336 (Jessup v. Ketchings) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jessup v. Ketchings, 482 F.3d 336, 2007 U.S. App. LEXIS 6170, 2007 WL 779170 (5th Cir. 2007).

Opinion

PRADO, Circuit Judge:

Plaintiff-Appellant Julia B. Jessup (“Jessup”) purchased a triplex in the French Quarter from Defendant-Appellee Walter H. Ketchings (“Ketchings”) and later discovered extensive damage to the property, including termite damage and water damage from a broken roof drain pipe. Jessup brought an action under Louisiana law against Ketchings seeking a reduction in the purchase price due to these redhibitory defects.

Exercising diversity jurisdiction under 28 U.S.C. § 1332, the district court granted summary judgment in favor of Ketch-ings on Jessup’s claims. Jessup now appeals. For the reasons that follow, we AFFIRM in part and REVERSE and REMAND in part.

I. FACTUAL AND PROCEDURAL BACKGROUND

This appeal arises out of the sale of a multi-story triplex consisting of three residential apartments, units 510A, 510B, and 512, located in the French Quarter of New Orleans, Louisiana. In 2002, Ketchings listed the property for $495,000. The property, portions of which were over 100 years old, was listed in “mint,” “pristine,” and “perfect” condition. The Property Disclosure Addendum (“Disclosure Addendum”), signed by Ketchings on October 30, 2002, stated that the “[s]eller[ ] elect[s] to sell property ‘As is’ with full waiver of redhibition rights in act of sale .... ” On the Disclosure Addendum, Ketchings checked “yes” in response to whether the property had “ever had termites or other wood destroying organisms.”

Jessup visited the property on one occasion. Thereafter, she negotiated a contract with Ketchings to purchase the property, reserving the right to have various inspections performed. On December 5, 2002, she signed an “Agreement to Purchase or Sell,” offering to purchase the triplex for $475,000. She also signed the Disclosure Addendum, acknowledging that she had read the seller’s disclosures.

After further negotiations, on December 13, 2002, the parties executed a second “Agreement to Purchase or Sell,” in which Jessup agreed to purchase the triplex for $465,000. An addendum to the second agreement explained that the purchase price had been reduced for replacement of the roof on the main building of the triplex and that Jessup had ten working days to complete her property inspections.

Jessup obtained several reports on the condition of the property. On December 18, 2002, Edwin Gary Wehlen (“Wehlen”), the co-owner of E&G Pest Control, Inc. (“E&G”), inspected the property and pre *339 pared a termite inspection report for Jess-up. The E&G report noted that it was “made on the basis of what was visible and accessible at the time of the inspection” and cautioned that “[i]f visible evidence of active or previous infestation of listed wood destroying insects is reported/indicated on graph, it should be assumed that some degree of damage is present, visible or not.” The report had a check mark next to the statement “[g]et termite history on the home from whomever has the termite contract. This is your responsibility as a purchaser.”

In the E&G report, Wehlen commented that “sub-flooring 2nd floor termite damaged and broken tiles, Recommended exposing this area for further termite damages.” Wehlen later explained in an affidavit that his handwritten statement on sub-floor and tile damage was limited to the kitchen of unit 512.

On December 18, 2002, Jessup also received a property inspection report from consulting engineer Michael K.A. Gurtler of Gurtler Brothers Consultants, Inc. (“Gurtler report”). The Gurtler report cautioned that it “can only include visible elements and conditions and does not purport to cover inaccessible areas or hidden damage. It is not intended to replace, supersede or include the contents of a formal disclosure statement and we highly recommend that such a disclosure statement be obtained.” The report also noted that Mr. B Services had the contract for the control of termites on the property, and advised that Jessup should contact them to determine the history of termite treatment and any previous infestation of the house.

The Gurtler report identified problems with the following areas:

Termite damages, identified by E&G Pest Control in their report dated 12/18/02, were noted to the left front corner of the apartment 510A living room, the wood base at the stairs of apartment 510B, the left front corner of the ceiling in apartment 510B bath, the flooring in apartment 510B bath near the closet and the walls and floors of apartment 512 of the utility area and kitchen.

It recommended that the damage to the walls in the living room of unit 510A “be further investigated by removing the effected [sic] sheetrock and checking the condition of the wood framing behind the sheetrock.” It also mentioned damages to the wood and ceramic floors in unit 510B, noting that the ceramic floors are cracked and uneven and that damage may exist to the framing below the ceramic and the framing above the ceiling materials. With respect to these problems, the report suggested that “[fjloors and ceilings should be opened and repaired as necessary.” Finally, the report noted that “[djamages to the wood floor in apartment 512 at the front of the refrigerator in the kitchen appear substantial” and that “[tjhe ceramic floors are also cracked and uneven.” It warned that “[djamages may exist to the framing below the ceramic and the framing. Floors should be opened and repaired as necessary.”

In the description next to unit 512 (which is located on the upper levels of the triplex), the Gurtler report stated that “[tjhe stairwell plaster is considerably moisture deteriorated. This may be caused by leakage of the parapet walls above or by water ‘wicking’ or rising from the ground below through the load-bearing brick walls.” The report noted moisture damage in unit 510B on the ceilings of the rear bedroom and bathroom, as well as on the right wall of the breakfast room. The report also explained that “much of the plumbing system is underground or behind *340 the walls and is therefore not visible for inspection.”

On December 26, 2002, Jessup submitted to Retchings a Property Condition Clause Response, which identified the problems disclosed by the E&G and Gurt-ler reports, and asked Retchings to comply with an addendum prepared by Dorian M. Bennett, Inc. (“Bennett Addendum”). The Bennett Addendum stated in relevant part:

—Apt. 510A, further investigate damages to walls as recommended. Have interior inspected by Gurtler Bros, and E&G Pest control when wall is opened, and repaired and/or treated as per their specifications.
—Apt. 510B, further investigate damage to wood floors, have inspected by Gurt-ler Bros, and E&G when opened, and repaired and/or treated as per their specifications.
—Apt. 512, further investigate damages to the wood floor in kitchen, have inspected by Gurtler Bros, and E&G when opened, and repaired and/or treated as per their specifications.

Retchings did not want to comply with the Bennett Addendum; instead, he initially offered to reduce the purchase price of the triplex by an additional $10,000.

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Cite This Page — Counsel Stack

Bluebook (online)
482 F.3d 336, 2007 U.S. App. LEXIS 6170, 2007 WL 779170, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jessup-v-ketchings-ca5-2007.