Novell v. Migliaccio

2008 WI 44, 749 N.W.2d 544, 309 Wis. 2d 132, 2008 Wisc. LEXIS 295
CourtWisconsin Supreme Court
DecidedMay 28, 2008
Docket2005AP2852
StatusPublished
Cited by65 cases

This text of 2008 WI 44 (Novell v. Migliaccio) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Novell v. Migliaccio, 2008 WI 44, 749 N.W.2d 544, 309 Wis. 2d 132, 2008 Wisc. LEXIS 295 (Wis. 2008).

Opinions

ANN WALSH BRADLEY, J.

¶ 1. The petitioners, Anthony and Andrea Migliaccio, seek review of an unpublished court of appeals decision reversing a circuit court order that had granted summary judgment in favor of the Migliaccios and dismissed the Wis. Stat. § 100.181 statutory misrepresentation claim of Chad Novell, the respondent.2 They contend that the court of appeals erred when it concluded that reasonable reliance is not an element of the statutory misrepresentation claim.

¶ 2. Rather, the Migliaccios assert that in pursuing a § 100.18 cause of action, a plaintiff is required to prove reasonable reliance as an element of the statutory misrepresentation claim. Additionally they advance that even if the plaintiff does not have the burden to prove reasonable reliance as an element of the statutory claim, the circuit court nevertheless correctly granted summary judgment because there existed no genuine issue of material fact that the reliance here was unreasonable.

¶ 3. Based on an examination of the words of the statute, its purpose, and our case law interpreting the statute, we conclude that a plaintiff is not required to prove reasonable reliance as an element of a § 100.18 misrepresentation claim. However, the reasonableness [137]*137of a plaintiffs reliance may be relevant in considering whether the representation materially induced (caused) the plaintiff to sustain a loss. We further conclude that the circuit court erred in granting summary judgment because there remained genuine issues of material fact as to whether the reliance on the representation was unreasonable, that is whether the representation here was a matérial inducement causing the plaintiffs loss. Accordingly, we affirm the decision of the court of appeals.

H-I

¶ 4. This dispute arises from the sale of a house with a leaky basement. In the fall of 2002, Chad Novell ("Novell") was living with his parents and was in the market to purchase a home. A woman who was a long-time friend of Novell's mother and the family's former cleaning lady was aware of Novell's search. She informed the Novells that her sister and brother-in-law, Andrea and Anthony Migliaccio, were thinking of selling their home.

¶ 5. After hearing this information, the Novells contacted the Migliaccios regarding the sale of their home. In October 2002, after the Novells viewed the home, Novell's father e-mailed the Migliaccios stating that they had prepared an offer to purchase. The Migliaccios replied that they were not yet ready to sell.

¶ 6. In January 2003, the Novells again contacted the Migliaccios asking if they were ready to entertain an offer to purchase. In response, the Migliaccios informed the Novells that they would be willing to discuss the sale after they had secured financing for their new home. The Novells replied, asking for a timeline. In April, Andrea Migliaccio contacted Novell and advised [138]*138that they were willing to sell their home. Novell viewed the home for a second time in June 2003 and made an offer to purchase the home for $172,500. The Migliac-cios accepted the offer.

¶ 7. As a part of the sale, the Migliaccios prepared a Real Estate Condition Report. The Real Estate Condition Report is a standard report required under Wisconsin law that obliges the sellers of a home to attest to any known defects in the property. Wis. Stat. § 709.02. A "defect" is defined in the report as "a condition that would have a significant adverse effect on the value of the property. ..." Wis. Stat. § 709.03. Consistent with § 709.03, the form advises sellers that while it is not a warranty, prospective buyers may rely on their statements in deciding whether to purchase the property and under what terms.

¶ 8. The form specifically inquires regarding conditions of the home. Relevant here, it asks if the seller is "aware of defects in the basement or foundation (including cracks, seepage, and bulges)." It further defines basement defects as including "flooding, extreme dampness or wet walls, unsafe concentrations of mold, or defects in drain tiling or sump pumps." The Migliaccios' response on the form denied any knowledge of such defects.

¶ 9. At the end of the Real Estate Condition Report is a separate inquiry regarding the Migliaccios' knowledge of water or moisture problems. Again, they denied any "aware[ness] of the presence of. . . water or moisture intrusions or conditions that might indicate the growth of unsafe levels of mold." Both Andrea and Anthony Migliaccio signed and dated the form under the "Owner's Certification," thereby attesting to the accuracy of their statements.

[139]*139¶ 10. Before closing, Novell hired a home inspector to inspect the home. The home inspection report categorized and evaluated areas of the Migliaccios' home. Under each area, the inspector evaluated items in the area as either "Acceptable," "Not Present," "Not Inspected," "Marginal," or "Defective." The inspector listed the foundation as "Marginal" and noted displacement and stair step cracks in the basement walls. He recommended that Novell hire a foundation specialist to provide further evaluation and suggested that the wall cracks should be monitored.

¶ 11. On a separate page, in the "Basement" section of the report, the inspector described the sump pump and moisture readings in the southwest corner of the basement as "Marginal." He stated that the sump pump was operative but submerged and that the drain line was not properly connected or not draining away from the foundation.

¶ 12. The inspector also noted water stains in the southwest corner of the basement and high moisture readings. To remedy the problem, he recommended "extending exterior downspouts [,] proper grading [and] extend[ing] the sump pump piping to divert water away from foundation." The Migliaccios agreed to make these improvements as a condition of the sale.

¶ 13. After examining the house and preparing the inspection report, the inspector went through the house with Novell, Novell's father, and Anthony Migli-accio. During this visit, the inspector had concerns regarding bowing and cracking in the basement walls and the presence of water in the basement. In order to ascertain whether he should remove wood paneling that covered much of the basement walls, the inspector pointed out the bowing and cracking to Anthony Migli-accio and expressed his concern about whether the wall [140]*140or the cracks had been moving and if there had been water in the basement before. Migliaccio responded that "[t]here had never been water in the basement. . . [that] the bow had not moved, and [that] the cracks had not moved since the time that they had occupied the house." At the time the Migliaccios sold their home, they had been living there for approximately nine years.

¶ 14. The inspector also asked if the walls had been painted by the Migliaccios or whether they had been painted by the previous owner. Migliaccio responded that he had not painted the walls, but that they had been painted by the previous owner.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Mitchell Grunwald v. Andrew J. Helm
Court of Appeals of Wisconsin, 2025
Dennis Speerly v. General Motors, LLC
143 F.4th 306 (Sixth Circuit, 2025)
Glendale Stewart v. Mike Pozorski
Court of Appeals of Wisconsin, 2024
Dr. David Kornreich v. Town of Cedarburg
2023 WI App 46 (Court of Appeals of Wisconsin, 2023)
State v. Engine & Transmission World, LLC
2023 WI App 42 (Court of Appeals of Wisconsin, 2023)
Watson v. Larsen-Berryhill
E.D. Wisconsin, 2023
Milford v. Roehl Transport Inc
E.D. Wisconsin, 2023
Hepper v. Theoharis
E.D. Wisconsin, 2022
Louis Pagoudis v. Marcus Keidl
2021 WI App 56 (Court of Appeals of Wisconsin, 2021)
Scott Weaver v. Champion Petfoods USA Inc.
3 F.4th 927 (Seventh Circuit, 2021)

Cite This Page — Counsel Stack

Bluebook (online)
2008 WI 44, 749 N.W.2d 544, 309 Wis. 2d 132, 2008 Wisc. LEXIS 295, Counsel Stack Legal Research, https://law.counselstack.com/opinion/novell-v-migliaccio-wis-2008.