Kipp v. Myers

753 F. Supp. 2d 1102, 2010 U.S. Dist. LEXIS 120297, 2010 WL 4683984
CourtDistrict Court, D. Kansas
DecidedNovember 12, 2010
DocketCivil Action 09-1293
StatusPublished
Cited by3 cases

This text of 753 F. Supp. 2d 1102 (Kipp v. Myers) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kipp v. Myers, 753 F. Supp. 2d 1102, 2010 U.S. Dist. LEXIS 120297, 2010 WL 4683984 (D. Kan. 2010).

Opinion

MEMORANDUM AND ORDER

MONTI L. BELOT, District Judge.

Before the court is the Myers’ motion for summary judgment. (Doc. 22). The matter has been fully briefed and is ripe for decision. (Docs. 23, 26, 27). The Kipps bring claims for breach of contract, negligent misrepresentation, fraud by silence, fraudulent misrepresentation, and rescission for mistake of fact. For the reasons set forth below, the Myers’ motion is denied.

I. FACTS

The following facts are either stipulated to in the parties’ pretrial order (Doc. 20) or mostly uncontroverted in their briefs. The court will consider any controverted facts in light most favorable, along with all favorable inferences, to the Kipps. See Hall v. United Parcel Serv., No. Civ. A. 992467-CM, 2000 WL 1114841, at *5 (D.Kan. July 31, 2000) (citing Adler v. Wal-Mart Stores, Inc., 144 F.3d 664, 670 (10th Cir.1998)). To the extent relevant, any factual disagreements between the parties will be noted.

The Kipps are husband and wife who moved to Gypsum, Kansas from Arizona. Donald Kipp is a contractor and Caron Kipp is an experienced real estate agent.

The Myers are husband and wife who lived on a 20-acre farm located at 8240 E. K-4 Highway, Gypsum, Kansas. The Myers owned the property from April 2000 until early January 2005. The Myers purchased the property from George Frisbie who owned the property for several years.

The house and several out buildings are located on the far western edge of the property. There is a flood gate located approximately 10 to 15 feet from the northeast corner of the property, which is used by the City of Gypsum (“the City”) to stop water from flowing into the City. The City controls when the flood gate is opened and closed. When the City closes the flood gate during a heavy rain, water backs up onto the property. Kansas Department of Transportation (“KDOT”) sends crews out to warn traffic when the water rises and there is a risk that it will cross K-4 Highway. KDOT records indicate that there were five occurrences during the five-year period that the Myers owned the property in which crews were sent to warn traffic of high water on K-4 Highway. There is a dispute regarding whether the Kipps were aware of the flood gate prior to purchasing the property.

In July 2005, the Myers listed their house and property for sale. The Kipps saw the listing and the parties had several telephone conversations about the property in October and November 2005. Sometime in November, Mrs. Kipp made a trip to visit the property. During her visit, Mesdames Kipp and Myers mostly discussed the house and the barn. Mrs. Kipp observed large trees lining one side of the property and asked whether there was a creek or river. Ms. Myers replied “that there was a ditch that ‘was dry most of the time’ and that the [pjroperty had occasional ‘ponding’ in that portion of the far eastern pasture.” Mrs. Kipp “understood that Mrs. Myers was telling her that there would be puddles of water in the pasture right at the fence line on the east side of the [pjroperty.” (Doc. 26 at 8). Mrs. Kipp explained that she wanted to have horses on the property and was hoping to establish a business boarding horses. Other than the comment about ponding, the Myers said nothing about flooding or that KDOT had closed K-4 Highway five times during their ownership of the property.

On December 13, 2005, the Kipps were faxed the Myers’ disclosure form. Mr. *1106 Kipp either did not read or does not remember reading the disclosure form. Mrs. Kipp does not remember reading the disclosure form, but hopes she would have. The Kipps signed the Buyers’ Acknowledgment section on the disclosure form on December 15, 2005.

After receiving the disclosure form, the Kipps requested that their real estate agent, Steve Thompson, check if the property was in a flood plain. The Kipps also made the real estate agreement contingent on the property not being in a flood plain because they could not get flood insurance. Both the title company and the Kipps’ insurance company reported that the property was not in a flood plain.

On January 11, 2006, the parties closed on the property for the purchase price of $283,000. The Kipps soon began remodeling the residence as well as making the property suitable for boarding horses. The renovations and improvements cost approximately $200,000.

On April 26, 2009, a storm producing about four inches of rain came through the Gypsum area. The city closed the flood gate which in turn caused water to accumulate near and on the property. At its worst, approximately 18 acres of the property were under water excluding the residence. As a result of the flooding, the Kipps suffered extensive damage to their land, out-buildings, and basement, which resulted in approximately $3,900 in cleanup costs. The Kipps also permanently lost clients who had boarded their horses during the flood and word about the flood spread, which reduced the number of inquiries on boarding horses.

Soon after the April flood, Frisbie approached the Kipps and handed them a compilation of documents that he had kept regarding the property and other surrounding properties. The documents portrayed a history of the flooding on the property and efforts by several landowners to alleviate the flooding in the area. The Kipps learned that Mr. Myers was involved in a project called the “hillside drainage project,” which was created to try and solve the flooding of area properties when the flood gate was closed. The Kipps also discovered that the Myers’ grass was damaged as a result of some of these floods. Based upon Frisbie’s documentation, the Kipps believe that the Myers were well aware that their property floods, had suffered damages as a result of the flood, and made material omissions when they failed to mention the flooding and misrepresented the flooding as ponding.

II. SUMMARY JUDGMENT STANDARD

The rules applicable to the resolution of this case, now at the summary judgment stage, are well-known and are only briefly outlined here. Federal Rule of Civil Procedure 56(c) directs the entry of summary judgment in favor of a party who “show[s] that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed.R.Civ.P. 56(c). An issue is “genuine” if sufficient evidence exists so that a rational trier of fact could resolve the issue either way and an issue is “material” if under the substantive law it is essential to the proper disposition of the claim. Adamson v. Multi Community Diversified Svcs., Inc., 514 F.3d 1136, 1145 (10th Cir. 2008). When confronted with a fully briefed motion for summary judgment, the court must ultimately determine “whether there is the need for a trial-whether, in other words, there are any genuine factual issues that properly can be resolved only by a finder of fact because they may reasonably be resolved in favor of either party.” Anderson v. Liberty Lobby, Inc.,

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753 F. Supp. 2d 1102, 2010 U.S. Dist. LEXIS 120297, 2010 WL 4683984, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kipp-v-myers-ksd-2010.