Medlock v. Chilmark Home Inspections, LLC

195 A.3d 277
CourtSuperior Court of Pennsylvania
DecidedAugust 31, 2018
Docket3596 EDA 2017
StatusPublished
Cited by6 cases

This text of 195 A.3d 277 (Medlock v. Chilmark Home Inspections, LLC) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Medlock v. Chilmark Home Inspections, LLC, 195 A.3d 277 (Pa. Ct. App. 2018).

Opinion

OPINION BY STEVENS, P.J.E.:

Appellants, Chilmark Home Inspections, LLC, Michael McKinney, and Matthew Brown, appeal from the judgment entered in the Court of Common Pleas of Philadelphia County following a non-jury trial and verdict in favor of Glenn S. Gitomer and Jane E. Gitomer, husband and wife ("the Gitomers"). 1 After a careful review, we affirm.

The relevant facts and procedural history are as follows: George D. Medlock, Jr., and Alicia Medlock, husband and wife ("the Medlocks"), entered into an agreement of sale with the Gitomers to buy the Gitomers' home. The agreement of sale included a home inspection contingency clause, and the Medlocks retained Chilmark Home Inspections, LLC ("Chilmark") to conduct a home inspection. On August 8, 2014, Michael McKinney, an employee of Chilmark, conducted the home inspection, and on October 2, 2014, settlement occurred on the property. Thereafter, the Medlocks moved into the home.

Subsequently, the Medlocks filed a complaint 2 against Chilmark, Mr. McKinney, and Matthew Brown, who was the owner of Chilmark (collectively "the Chilmark parties"), averring that "[i]n reliance on the representations and statements contained in the [home inspection] report, [the Medlocks] did not require the home seller to make any repairs or perform any investigations of the conditions...as was their *280 right pursuant to the agreement of sale." Medlocks' Amended Complaint, filed 10/16/15, at 3. Further, they averred they "were moving to the area from out of state and accordingly relied upon the inspection to provide notice and information about material conditions of the property." Id.

The Medlocks averred that, after living in the home for seven months, they discovered a brown water stain forming around one of the recessed lights in the finished basement, which sits below a tiled patio. In an effort to discover the source of the leak, Mr. Medlock removed a readily accessible panel located in the basement wall, and he discovered "large sections of wet, rotten wood that could be viewed from the readily openable access panel on the floor directly behind the panel." Id. at 4. The Medlocks averred the wet, rotten wood was from a support beam, the beam was darkened from water penetration, and there "were several large gaps from missing wood in the support beam that were viewable from the readily openable access panel[.]" Id. Moreover, the Medlocks averred there was evidence of mold in the wall directly behind the access panel, and the insulation behind the access panel was wet to the touch. Id. The Medlocks posited "[t]he conditions existing behind the readily openable access panel evidenced a water infiltration problem which was, or which should have been, ascertainable upon a reasonable inspection by [Mr. McKinney]." Id.

The Medlocks contended Mr. McKinney identified a stain next to the readily openable access panel, but he failed to open the panel as part of the inspection. Accordingly, the inspection report did not include the damage, which was readily observed once the access panel was opened. Thus, the extent of the damage to the basement was neither identified nor referred for repair prior to the Medlocks' purchase of the home.

On July 18, 2015, the Medlocks sent a letter via certified mail to Chilmark, in care of Mr. McKinney, requesting that their insurance carrier be put on notice of a claim. The Medlocks followed up with emails, and subsequent to one of the emails, on September 24, 2015, Mr. Brown responded that he did not have insurance to cover the Medlocks' claim because he failed to follow the requirements of his policy. Specifically, Mr. Brown responded that, because he failed to provide a written agreement to the Medlocks to perform the inspection services, his insurance carrier indicated it would deny coverage for a claim.

Based on the aforementioned, the Medlocks raised against the Chilmark parties a violation of the PA Unfair Trade Practices and Consumer Protection Law ("UTPCPL"), negligence, a breach of contract, and negligent misrepresentation.

The Chilmark parties filed an answer to the Medlocks' complaint, and on July 8, 2016, they filed a joinder complaint seeking to join the Gitomers as well as Long & Foster Real Estate, Inc. ("the real estate company"), for which Mrs. Gitomer worked as a real estate agent. Specifically, the Chilmark parties alleged the Medlocks purchased the subject property from the Gitomers, and during the transaction, Mrs. Gitomer acted in a dual capacity: as both seller and seller's agent. Further, the Chilmark parties averred the Gitomers purposefully concealed the rot and water damage at issue, as well as failed to disclose such information in the seller's property disclosure statement. The Chilmark parties also averred the Gitomers failed to disclose in the seller's disclosure statement that they had remodeled the basement during their ownership and this omission was a proximate cause of the Medlocks' damages.

*281 Accordingly, the Chilmark parties sought contribution and indemnification. Moreover, indicating the Medlocks had resolved their claims against the Chilmark parties and had expressly assigned their rights to them, the Chilmark parties raised, as the Medlocks' assignee, claims against the Gitomers and the real estate company, including negligent misrepresentation, violation of the Pennsylvania Real Estate Seller Disclosure Law ("RESDL"), and violation of the UTPCPL.

The Gitomers filed preliminary objections, which the trial court denied, 3 as well as an answer with new matter and a cross-claim. In the cross-claim, the Gitomers averred the Chilmark parties were solely liable to the Medlocks.

On August 21, 2017, the matter proceeded to a bench trial at which the parties informed the trial court that the real estate company settled with the Chilmark parties prior to trial, and Mrs. Gitomer was released from liability as an agent, but not in her individual capacity. N.T., 8/21/17, at 8-9. The Chilmark parties reiterated that the Medlocks settled their claims against the Chilmark parties and expressly assigned their rights to the Chilmark parties. Accordingly, at trial, the Chilmark parties proceeded as "the plaintiffs" with the Gitomers as "the defendants."

Mr. Medlock testified that, in connection with the purchase of the home, the Medlocks received a seller's disclosure statement from the Gitomers. Id. at 22. Mr. Medlock explained he understood the form to require the sellers to inform the buyers of "anything that is wrong with the property," and the Medlocks relied upon the information provided in the form. Id. at 22-23. Mr. Medlock testified the Gitomers did not include in the seller's disclosure statement that there had been any additions or alterations done to the rear basement. Id. at 23. Mr. Medlock confirmed Chilmark performed an inspection of the home prior to the Medlocks' purchase thereof. Id.

Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
195 A.3d 277, Counsel Stack Legal Research, https://law.counselstack.com/opinion/medlock-v-chilmark-home-inspections-llc-pasuperct-2018.