Kevin Orndorff and wife, Marguerite Orndorff v. Edward Ron Calahan and wife, Diane R. Calahan

CourtCourt of Appeals of Tennessee
DecidedOctober 9, 2008
DocketM2007-02060-COA-R3-CV
StatusPublished

This text of Kevin Orndorff and wife, Marguerite Orndorff v. Edward Ron Calahan and wife, Diane R. Calahan (Kevin Orndorff and wife, Marguerite Orndorff v. Edward Ron Calahan and wife, Diane R. Calahan) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kevin Orndorff and wife, Marguerite Orndorff v. Edward Ron Calahan and wife, Diane R. Calahan, (Tenn. Ct. App. 2008).

Opinion

IN THE COURT OF APPEALS OF TENNESSEE AT NASHVILLE August 8, 2008 Session

KEVIN ORNDORFF ET AL. v. EDWARD RON CALAHAN ET AL.

Appeal from the Chancery Court for Davidson County No. 05-1862-I Claudia C. Bonnyman, Chancellor

No. M2007-02060-COA-R3-CV - Filed October 9, 2008

The buyers of a home in Nashville sued the sellers for misrepresentation, fraud, and breach of contract. The proof showed the sellers did not acquire the proper permits and inspections required by the applicable building codes and that work on the plumbing, the electrical system, and the heating and air conditioning system was not performed in accordance with the codes. The sellers did not disclose the lack of permits and improper work on the statutorily required disclosure form. The chancellor found for the buyers. The sellers appealed. We affirm.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Chancery Court Affirmed

ANDY D. BENNETT , J., delivered the opinion of the court, in which RICHARD H. DINKINS, J., joined. PATRICIA J. COTTRELL, P.J., M.S., not participating.

Fred C. Dance, Franklin, Tennessee, for the appellants, Edward Ron Calahan and wife, Diane R. Calahan.

Phillip P. Welty, Nashville, Tennessee, for the appellees, Kevin Orndorff and wife, Marguerite Orndorff.

OPINION

According to the Joint Statement of the Evidence,1 the defendants, Ron and Diane Calahan, purchased the property, including a house, at 204 Wilsonia Avenue in Nashville, Tennessee, in 1998. The house was originally built in the 1950s. About a year after their purchase, the Calahans embarked upon an extensive remodeling of the house that included the addition of a new kitchen, great room, bathroom, and garage. They also added a new upstairs with two bedrooms and full bathrooms. In 2004, Mr. Calahan took a new position with his employer, and the family moved out

1 The Joint Statement of the Evidence concerns the first day of trial only. No transcript is available for that day. of state. The property was put up for sale. The MLS listing indicated that the property had a “top to bottom renovation: new roof, gutters, plumbing electrical, 3 HVAC’s, kitchen, baths!”

Mr. Orndorff visited the property in early July, 2004. Mrs. Orndorff visited it on July 24, 2004, with their real estate agent and the Calahans’ real estate agent, Vernice Bryan. During the visit or shortly before, Mrs. Orndorff received the MLS listing. Ms. Bryan also told Mrs. Orndorff about the additions, bathrooms, kitchen, laundry room, HVAC units, and appliances during the visit. At no time during this visit was Mrs. Orndorff told by Ms. Bryan or anyone else about any problems with the property, code compliance or approval, or defects in the property’s systems or their functions. She did not observe or experience any problems during the visit.

Mrs. Orndorff found the Calahan’s property appealing because it was newly remodeled and updated. On Sunday, July 25, 2004, the Orndorffs decided to make an offer to purchase the property. They filled out a contract offering a purchase price of $965,000, signed it, and faxed it to their real estate agent in Nashville. The next day, they received a faxed Tennessee Residential Property Disclosure Form dated July 26, 2004, and signed by the Calahans. Later that day, the Orndorffs received a counter-offer from the Calahans which, among other things, changed the purchase price to $985,000. Mrs. Orndorff reviewed the counter-offer and disclosure form with Mr. Orndorff by telephone that day and then faxed the contract back to their real estate agent with another counter- offer of $970,000. The Calahans accepted that price. The copy of the contract obtained from the Orndorffs’ real estate agent states, “Effective Date of Contract July 27, 2004.”

The Orndorffs were never informed of any problems with the property or of any code compliance issues. The Disclosure Form states at items 6, 7, and 26 that there are no issues or problems of compliance with building codes or permits or any other government regulation. No other problems respecting the property or the function of its systems are set forth in the Disclosure Form.

An inspection period was provided for in the contract. A home inspection was done which noted a number of minor issues, but it did not cover structural issues or building code compliance. The Orndorffs did not have a more extensive inspection because they never had any indication or reason to believe that there was any problem with the structure or with its building code compliance. Mrs. Orndorff testified that had they been aware of any such problems, they would have terminated the contract and not purchased the property.

The closing occurred on September 10, 2004, and the Orndorffs moved in a couple of days later. About September 26, 2004, they started experiencing problems. There were periodic smells of raw sewage in the upstairs bathroom. The toilets in three bathrooms periodically and unpredictably bubbled, gurgled, and/or overflowed. The laundry room sink backed up and filled with water as the washing machine emptied. The kitchen sink backed up. The air-conditioning and heating units ran simultaneously. These problems caused significant expense, hassle and hardship.

-2- The remainder of the evidence is found in the trial transcript and in the exhibits. Everett Turner, Jr. worked for his father2 on the renovations to the Calahan home. They did the demolition, framing, siding, and the roof. Everett Turner testified that they were subcontractors, not general contractors. They had no control over any of the subcontractors. He thought Mr. Calahan obtained the permits and was overseeing all the subcontractor work.

Portions of Mrs. Calahan’s deposition were read into evidence. She considered Mr. Turner to be the contractor. She hired him to fulfill her responsibility under the building permit to request inspections and ensure compliance with the codes. She had nothing to do with the permits.

Byron Hall, the Chief Building Inspector for the Metropolitan Government of Nashville and Davidson County, testified about the information possessed by the Codes Department. The self- building permit granted to Mrs. Calahan was never expanded to cover additional work performed beyond the description of constructing a 12 foot by 22 foot addition, remodeling a portion of the interior and adding a gable roof. The permit was canceled in June 2001. The framing failed an initial inspection but was subsequently approved. A plumbing permit related to the self-building permit was requested by the plumbing contractor for one water closet, one lavatory, and one shower drain. The permit indicated plumbing work had been rejected by an inspector, who noted the need for a permit for a second bathroom, unfinished and improper vents,3 concern about nail plates for the PVC pipe, and need for access to the tub’s pipes. There was no record of further inspections or final approval. Another plumbing permit was issued for a water closet, lavatory and tub. That one passed the initial “rough-in” inspection but noted that permits were needed for two water closets, two tubs, three lavatories, and one yard sewer. There was no record of a final inspection for this permit, and no record of any permits for the two water closets, two tubs, three lavatories, and one yard sewer. Permits for the electrical work and the security system related to the self-building permit were issued, and final approvals are noted on them. No permits were issued for the addition of a new kitchen, a sink, the addition of gas to the kitchen, or the HVAC systems.

The architect, William T. Bayer, testified that he provided advice and concept drawings but did not prepare full construction plans. All his contacts with the project were through Mr. and Mrs. Calahan.

Cindy Keane, Mr.

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Bluebook (online)
Kevin Orndorff and wife, Marguerite Orndorff v. Edward Ron Calahan and wife, Diane R. Calahan, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kevin-orndorff-and-wife-marguerite-orndorff-v-edwa-tennctapp-2008.