Lance v. Bowe

648 N.E.2d 60, 98 Ohio App. 3d 202, 1994 Ohio App. LEXIS 4991
CourtOhio Court of Appeals
DecidedOctober 26, 1994
DocketNo. 16777.
StatusPublished
Cited by7 cases

This text of 648 N.E.2d 60 (Lance v. Bowe) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lance v. Bowe, 648 N.E.2d 60, 98 Ohio App. 3d 202, 1994 Ohio App. LEXIS 4991 (Ohio Ct. App. 1994).

Opinion

Cook, Judge.

Appellants, Sharon and Stephen Bowe (“the Bowes”), appeal from a trial court judgment awarding $7,000 in damages and $2,900 in attorney fees to appellees, Teresa and Daniel Lance (“the Lances”). We affirm because (1) sufficient evidence supported the trial court’s finding of fraud; (2) the Lances did not waive their right to rely on oral statements made by the Bowes; (3) the Lances were not estopped from advancing their claim; (4) the trial court did not abuse its discretion by awarding exemplary damages to the Lances; and (5) the trial court did not abuse its discretion by awarding attorney fees to the Lances. However, we reduce the Lances’ award to $7,000 because their complaint asked for only $7,000 compensatory damages and no punitive damages.

Because the parties agreed that the referee’s findings would be final, we take these findings as fact. Civ.R. 53(E)(3). The Lances wanted to buy a house; a real estate agent directed them to the Bowes’ house. During their inspection of the house, the Lances repeatedly told Sharon Bowe (“Sharon”) that they did not want to buy a house with any basement water problems. Sharon assured them that the basement did not leak. During the inspection, standing water was discovered in the basement’s fruit cellar. When asked about this condition, *206 Sharon remembered that water had previously flooded the fruit cellar but claimed that the rest of the basement had no water problems. On the sellers’ disclosure form, the Bowes indicated that the northwest corner of the house, the corner where the fruit cellar was located, had a problem with leaking.

The Bowes and Lances executed a purchase agreement. About two weeks after the parties had entered into this agreement, the Lances hired an independent inspector to examine the house. The inspector noted some effervescence on the basement walls and also noticed a partial bowing of one of the walls. He concluded that these imperfections could have been the result of the house’s age. After this inspection was completed, the Lances signed a document entitled “Satisfaction of Right to Inspect.” This document indicated that the Lances had exercised their right to inspect and were satisfied with the house’s condition “as is.”

Soon after the Lances moved into the house, a storm flooded the entire basement. Water entered the basement during later rains. The basement also flooded whenever the Lances watered their lawn. Daniel Lance (“Daniel”) attempted to correct the problem by cleaning the gutters, downspouts, and drain lines. His efforts were to no avail, leading the Lances to pay $4,700 for repairs which corrected the basement’s problems.

The Lances sued the Bowes, seeking $7,000 in damages (but no punitive damages) and reasonable attorney fees. The parties agreed to submit the case to a referee. The referee found that the Bowes had made fraudulent representations as to the basement’s condition. He awarded the Lances $7,000 for actual and exemplary damages and another $2,900 for attorney fees. The trial court adopted the referee’s award. The Bowes appeal from this judgment, asserting five assignments of error.

Assignment of Error I

“The trial court erred in finding that sufficient evidence existed to support a finding of fraud.”

The Bowes assert that the Lances failed to show the falsity of the Bowes’ representations concerning the basement. They claim that they had no reason to believe that the basement leaked water, except for the fruit cellar.

In a civil case, a “[jJudgment supported by some competent, credible evidence going to all the essential elements of the case will not be reversed by a reviewing court as being against the manifest weight of the evidence.” C.E. Morris Co. v. Foley Constr. Co. (1978), 54 Ohio St.2d 279, 8 O.O.3d 261, 376 N.E.2d 578, syllabus. Except in extreme instances, an appellate court will not second guess the lower court’s findings as to weight and credibility. Sykes *207 Constr. Co., Inc. v. Martell (Jan. 8, 1992), Summit App. Nos. 15034 and 15038, unreported, at 19, 1992 WL 2919.

We find that sufficient evidence supported the referee’s determination that the Bowes made false statements about the basement. Sharon originally stated that the basement had no water problems. She later revised that statement, saying that the fruit cellar had problems with leaking water, but the rest of the basement was dry. Contrary to these statements, the referee found that the basement flooded every time it rained and also flooded when the Lances watered the lawn. Sharon assured the Lances that the flooding.would stop after the downspouts were cleaned; however, the flooding continued after Daniel cleaned the downspouts. The Lances discussed the problem with Sharon after the first flood. Sharon said that when she stated the basement was dry, “it all depended upon what one meant by dry.” The company which repaired the basement indicated that the problem which caused the flooding occurred gradually. Based upon these facts, we find that sufficient evidence supported the referee’s finding regarding the falsity of the Bowes’ representations.

The Bowes’ first assignment of error is overruled.

Assignment of Error II

“The trial court erred in not finding that, as a matter of law, Appellees had waived their right to claim reliance on statements made by Appellants.”

The Bowes assert that the Lances waived their right to argue reliance on the Bowes’ representations about the basement. They cite paragraph nineteen of the purchase agreement, which stated: “Explain any statement(s) that you as buyer/seller have relied on that is/are not written or printed herein.” The paragraph left space for the parties to list these statements. In their space, the Lances wrote “none” and initialed the notation. The Bowes note that this clause was not boilerplate language; instead, the clause provided space for the Lances to list all of the representations they had relied upon. The Lances also signed a document indicating satisfaction of their right to inspect the house. This document indicates that the Lances exercised their right to inspect the house prior to purchase and were satisfied with the house’s condition at that time.

Generally, this court has held that “as is” clauses in purchase agreements do not bar fraud claims. Kaye v. Buehrle (1983), 8 Ohio App.3d 381, 383, 8 OBR 495, 497, 457 N.E.2d 373, 376; Mancini v. Gorick (1987), 41 Ohio App.3d 373, 374, 536 N.E.2d 8, 9-10.

In Sanfillipo v. Rarden (1985), 24 Ohio App.3d 164, 24 OBR 253, 493 N.E.2d 991, the purchase agreement contained a clause much like the one at issue here. It stated that the purchaser relied solely on his own examination and inspections *208 and was not relying upon any representations by the real estate agents involved.

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Bluebook (online)
648 N.E.2d 60, 98 Ohio App. 3d 202, 1994 Ohio App. LEXIS 4991, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lance-v-bowe-ohioctapp-1994.