Lesieur v. Fryar

325 S.W.3d 242, 2010 WL 2788277
CourtCourt of Appeals of Texas
DecidedAugust 31, 2010
Docket04-09-00397-CV
StatusPublished
Cited by39 cases

This text of 325 S.W.3d 242 (Lesieur v. Fryar) 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.

Bluebook
Lesieur v. Fryar, 325 S.W.3d 242, 2010 WL 2788277 (Tex. Ct. App. 2010).

Opinions

OPINION

Opinion by:

MARIALYN BARNARD, Justice.

This appeal arises out of a real estate sale in Medina County, Texas. Appellant George Lesieur, the buyer, brought suit against the sellers, Timothy and Sandra Fryar, and the Fryars’ real estate agents, Cynthia Morales d/b/a Morales Realty and Cynthia Gonzalez, alleging claims for fraud, violations of the DTPA, negligence, negligent misrepresentation, and civil conspiracy. In essence, Lesieur claimed the sellers and the real estate agents misrepresented and concealed defects in the home prior to Lesieur’s purchase. The trial court granted the traditional and no evidence motions for summary judgment filed by the Fryars, Morales, and Gonzales, thereby ruling that Lesieur take nothing on his claims. Thereafter, the trial court granted summary judgment in favor of Morales and Gonzales on their counterclaim for attorney’s fees. The trial [244]*244court also granted a motion for severance, making the judgment final for purposes of appeal.2 On appeal, Lesieur raises four issues, challenging all of the orders in this case. We affirm the trial court’s order granting summary judgment in favor of the Fryars, Morales, and Gonzales on Le-sieur’s substantive claims, but reverse and render judgment in favor of Lesieur on the issue of attorney’s fees.

Background

In 2002, Timothy and Sandra Fryar purchased a house and surrounding property in Medina County, Texas. Cynthia Morales d/b/a Morales Realty and Cynthia Gonzales (collectively “Morales Realty”) had listed the property on behalf of Jerry and Gloria Kane. Before the purchase, the Fryars hired Adams Home Inspection Company to inspect the house. According to the report generated as a result of the inspection (“the Adams Report”), the foundation of the house showed “[sjigns of structural movement,” but was supporting the house. As evidence of structural movement, the inspector noted “[cjracks in walls and/or ceilings,” “[d]oor frames out of square,” and “[cjracks in brick/stone veneers.” However, the inspector did not check the box that would have advised the foundation was “Not Functioning or In Need of Repair.” The Fryars purchased the home, and admittedly made no repairs.

In 2005, the Fryars decided to sell the house and property, and hired Morales Realty to list it. Lesieur was interested in purchasing the house and property, and the parties began to take steps to conclude a sale. On June 28, 2005, Lesieur and his wife3 entered into a “Farm and Ranch Contract” (“the contract”) with the Fryars for the sale of the property. The contract set the closing date for July 28, 2005.

The contract noted that a “Seller’s Disclosure Notice” (“the disclosure”) had been provided to Lesieur. Within the disclosure, the Fryars were required to note defects, malfunctions, or conditions of which they were aware. They noted no problems with the foundation, walls, floors, or ceilings. The Fryars also disclaimed receiving any written inspection reports from any licensed inspector within the last four years. This was despite the Adams Report the Fryars admittedly received in 2002, which was maintained in their real estate file by Morales Realty.

The contract allowed Lesieur to have the property inspected by a licensed inspector of his choice. In accordance with this contract provision, Lesieur hired National Property Inspection to conduct an inspection of the house. As a result of the inspection, the inspector generated a report (“the NPI Report”). The NPI Report lists the client as the Lesieurs, and described numerous problems in the section of the report applicable to “Structural Systems,” which included the foundation, floors, walls, ceilings, doors, windows, the roof, and carport. The report specifically noted “[sjtress cracks” in the floor tile in the carport and inside the house. The inspector noted these cracks were “observed both through the tile as well as in the grout joints.” The inspector opined that “[tjhese types of cracks usually reflect what is occurring on the slab itself.” “Stress/settlement cracks” or “[sjettlement cracks” were also observed in the interior and exterior walls, and the ceiling. Just as the inspector who prepared the Adams [245]*245Report, the NPI inspector did not check the box that would have advised the foundation was “Not Functioning or In Need of Repair.”

Lesieur, who was represented by his own real estate agent and attorney, was advised by his realtor to review the inspection report, concentrating on safety and structural issues. The realtor also reminded Lesieur that pursuant to the contract he had a ten-day option to terminate the contract, and noted the expiration date. Lesieur testified in his deposition that he reviewed the report, and decided on the repairs he wanted the Fryars to complete. Lesieur never contacted the inspector or spoke to him about the report. As a result of the inspection, an amendment to the contract was signed, requiring numerous repairs or treatments. However, there was no mention of repairs to the foundation, or to any cracks observed during the inspection, despite the advice from Lesieur’s realtor to focus on structural problems. Lesieur admitted he saw the inspector’s comments regarding the foundation and the various cracks throughout the house, but did not talk to the inspector about these issues, and felt comfortable proceeding with the closing. Lesieur stated he believed the problems noted were “cosmetic.”

In addition to hiring his own inspector, Lesieur and his wife completed a walk-through of the house before the closing. They signed a “Buyer’s Walk-Through and Acceptance Form” on the day of, but prior to, the closing. At the closing, the Fryars and the Lesieurs met for the first time. Both were represented at the closing by their own realtors and attorneys.

Lesieur moved into the house approximately two months after the closing. Shortly after he moved in, he began to notice signs of possible foundation problems. Lesieur hired Olshan Foundation Repair Company (“Olshan”) to conduct another inspection. The Olshan inspector claimed the foundation needed repair, and “there was an attempt to conceal signs of damage to the foundation of the home” by taping and floating cracks in the drywall of interior walls, and covering up exterior cracks with mortar. The inspector did not say who concealed the alleged evidence of foundation damage, or when it might have occurred.

After receiving the report from Olshan, Lesieur filed suit against the Fryars and Morales Realty, among others, alleging violations of the DTPA, common law fraud, statutory fraud pursuant to section 27.01 of the Texas Business and Commerce Code, civil conspiracy, negligence, and negligent misrepresentation. His claims were based, for the most part, on the alleged concealment of the Adams Report and the foundation problems he contends were noted therein. Lesieur claimed he was fraudulently induced into the contract in at least three particulars. First, the Fryars knowingly misrepresented on the Seller’s Disclosure that they knew of no defective conditions with regard to the property. This representation was made despite the fact that the Fryars had the Adams Report, which noted conditions that could potentially affect the foundation, which they admittedly never repaired. Second, both the Fryars and Morales Realty knew about the Adams Report, yet concealed its existence, with the Fryars going so far as to deny any inspection had been conducted in the last four years.

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325 S.W.3d 242, 2010 WL 2788277, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lesieur-v-fryar-texapp-2010.