Pascoe v. Detke
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Opinion
[Cite as Pascoe v. Detke, 2026-Ohio-1971.]
COURT OF APPEALS OF OHIO
EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA
MOLLY PASCOE, ET AL., :
Plaintiffs-Appellants, : No. 115577 v. :
ELEANOR DETKE, ET AL., :
Defendants-Appellees. :
JOURNAL ENTRY AND OPINION
JUDGMENT: AFFIRMED RELEASED AND JOURNALIZED: May 28, 2026
Civil Appeal from the Cuyahoga County Court of Common Pleas Case No. CV-23-989136
Appearances:
Ice Miller LLP, Michael B. Pascoe, Robert Port, and Ally Petrillo, for appellants.
Susan M. Gray; Thomas C. Loepp, Law Office, Co., LPA, and Thomas C. Loepp; and Anxhela Dalipi, for appellee Eleanor Detke.
Marshall Dennehey P.C., and Jillian L. Dinehart, for appellees Carolyn Bentley and Howard Hanna Real Estate. MARY J. BOYLE, J.:
This appeal involves a dispute arising out of a residential real estate
transaction between plaintiffs-appellants Michael Pascoe (“Michael”) and Molly
Pascoe (“Molly”) (collectively the “Pascoes”), and defendants-appellees, Eleanor
Detke (“Detke”), Carolyn Bentley (“Bentley”), and Howard Hanna Real Estate
(“Howard Hanna”). The Pascoes appeal the trial court’s decision granting Detke’s
and Bentley and Howard Hanna’s motions for summary judgment. The Pascoes
raise the following three assignments of error for review:
Assignment of Error I: The trial court erred as a matter of law in granting summary judgment in favor of [Detke] based on (i) the doctrine of caveat emptor and (ii) the “as-is” clause in the residential purchase agreement between [the Pascoes] and Detke to preempt [the Pascoes’] fraud claims for which there was substantial evidence to defeat summary judgment.
Assignment of Error II: The trial court erred as a matter of law in apply[ing] the doctrine of caveat emptor because of the existence of fraud and the issues complained of are not open and obvious.
Assignment of Error III: The trial court erred as a matter of law in finding that there was no evidence to support [the Pascoes’] claims for fraud, concealment, conspiracy, or negligence against Detke, [Bentley,] and [Howard Hanna].
Because the conditions that the Pascoes complain of were either open
and able to be discovered upon reasonable inspection or were otherwise not
actionable as a basis for a fraudulent-misrepresentation or inducement claim, we
affirm the trial court’s decision. I. Facts and Procedural History
On September 3, 2020, the Pascoes entered into an agreement
(“agreement”) with Detke to purchase a then 108-year-old home located on Lake
Avenue in Lakewood, Ohio (“property”) for $408,000. Bentley represented Detke
with the sale and is an independent contractor of Howard Hanna, the broker. The
Pascoes were not represented by a realtor. The property was first listed for sale on
February 13, 2020. Detke completed the Residential Property Disclosure Form
(“February 2020 Disclosure Form”) on February 14, 2020. The February 2020
Disclosure Form states, in pertinent part:
C) ROOF: Do you know of any previous or current leaks or other material problem with the roof or rain gutters? x Yes □ No
If “Yes”, please describe and indicate any repairs completed (but not longer than the past 5 years): Limb from neighbor[’s] tree (to west) fell on roof and needed repair. (2019)_________________________
D) WATER INTRUSION: . . . Do you know of any water or moisture related damage to floors, walls, or ceiling as a result of . . . leaking pipes[?] □ Yes x No
...
G) MECHANICAL SYSTEMS: Do you know of any previous or current problems or defects with the following existing mechanical systems? . . .
3) Central heating x Yes □ No
If the answer . . . is “Yes”, please describe and indicate any repairs to the mechanical system (but not longer than the past 5 years): 3rd floor units never been used in years being updated now______________ (Emphasis in original.) (February 2020 Disclosure Form, p. 2-4.) At the time this
Disclosure Form was completed, Detke indicated she was in the process of repairing
the third-floor heating units. Detke also indicated that the roof was repaired in 2019
because of damage from the neighbor’s tree.
In July 2020, which was prior to the sale of the property to the
Pascoes, Detke had a water leak. Detke hired Parkway Plumbing (“Parkway”) to
complete the repair, which was covered by Detke’s homeowner insurance. Prior to
entering into the agreement with Detke, the Pascoes were given a copy of a
subsequent disclosure form that Detke completed on August 24, 2020 (“August
2020 Disclosure form”. Relevant to this case, the August 2020 Disclosure Form
provides:
C) ROOF: Do you know of any previous or current leaks or other material problem with the roof or rain gutters? □ Yes x No
If “Yes”, please describe and indicate any repairs completed (but not longer than the past 5 years):
_______________________________________________ _______________________________________________
D) WATER INTRUSION: . . . Do you know of any water or moisture related damage to floors, walls, or ceiling as a result of . . . leaking pipes[?] x Yes □ No
If “Yes”, please describe and indicate any repairs completed: Leak was found in main pipe with a large portion of stack replaced and elbow off it.______________________________________________
G) MECHANICAL SYSTEMS: Do you know of any previous or current problems or defects with the following existing mechanical systems? . . . 3) Central heating □ Yes x No
If “Yes”, please describe and indicate any repairs completed (but not longer than the past 5 years):
_______________________________________________ _______________________________________________
(Emphasis in original.) (Aug. 2020 Disclosure Form, p. 2-4.) The leak Detke
referenced in paragraph D of the August 2020 Disclosure Form is the leak from July
2020. Detke did not reference the previous issues with the central heating or roof
from the February 2020 Disclosure Form on this subsequent form.
As part of the agreement between Detke and the Pascoes, the Pascoes
bought the property in its “‘AS IS’ PRESENT PHYSICAL CONDITION.” (Sept. 3,
2020 Agreement, p. 1.) The agreement also contained an “inspection contingency”
clause, which permitted the Pascoes to have the home inspected before the purchase
was completed. The Pascoes signed the August 2020 Disclosure Form and
acknowledged that “it is BUYER’S own duty to exercise reasonable care to inspect
and make diligent inquiry of the SELLER or BUYER’S inspectors regarding the
condition and systems of the property.” (Sept. 3, 2020 Agreement, p. 3.)
On September 15, 2020, the Pascoes had a home inspection
completed on the property. Michael did not attend the home inspection, and Molly
sat outside on the porch during the inspection. The inspection report stated that the
house was 108 years old. The inspector noted that the plumbing system had copper
piping for the water supply. The inspection was of the visible piping and did not note any leaks in the water supply piping, which was rated “satisfactory.” The
drain/waste piping was rated “fair” and the report noted that most of the piping was
in the walls or floors and was not visible. There was some older cast iron and copper
drain piping visible in the basement that required monitoring.
With regard to the heating system, the report noted that it was a
Dunkirk natural gas/hot water system estimated to be 10-15 years old with a design
life of 30-40 years. The report noted that the heating system was entirely
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[Cite as Pascoe v. Detke, 2026-Ohio-1971.]
COURT OF APPEALS OF OHIO
EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA
MOLLY PASCOE, ET AL., :
Plaintiffs-Appellants, : No. 115577 v. :
ELEANOR DETKE, ET AL., :
Defendants-Appellees. :
JOURNAL ENTRY AND OPINION
JUDGMENT: AFFIRMED RELEASED AND JOURNALIZED: May 28, 2026
Civil Appeal from the Cuyahoga County Court of Common Pleas Case No. CV-23-989136
Appearances:
Ice Miller LLP, Michael B. Pascoe, Robert Port, and Ally Petrillo, for appellants.
Susan M. Gray; Thomas C. Loepp, Law Office, Co., LPA, and Thomas C. Loepp; and Anxhela Dalipi, for appellee Eleanor Detke.
Marshall Dennehey P.C., and Jillian L. Dinehart, for appellees Carolyn Bentley and Howard Hanna Real Estate. MARY J. BOYLE, J.:
This appeal involves a dispute arising out of a residential real estate
transaction between plaintiffs-appellants Michael Pascoe (“Michael”) and Molly
Pascoe (“Molly”) (collectively the “Pascoes”), and defendants-appellees, Eleanor
Detke (“Detke”), Carolyn Bentley (“Bentley”), and Howard Hanna Real Estate
(“Howard Hanna”). The Pascoes appeal the trial court’s decision granting Detke’s
and Bentley and Howard Hanna’s motions for summary judgment. The Pascoes
raise the following three assignments of error for review:
Assignment of Error I: The trial court erred as a matter of law in granting summary judgment in favor of [Detke] based on (i) the doctrine of caveat emptor and (ii) the “as-is” clause in the residential purchase agreement between [the Pascoes] and Detke to preempt [the Pascoes’] fraud claims for which there was substantial evidence to defeat summary judgment.
Assignment of Error II: The trial court erred as a matter of law in apply[ing] the doctrine of caveat emptor because of the existence of fraud and the issues complained of are not open and obvious.
Assignment of Error III: The trial court erred as a matter of law in finding that there was no evidence to support [the Pascoes’] claims for fraud, concealment, conspiracy, or negligence against Detke, [Bentley,] and [Howard Hanna].
Because the conditions that the Pascoes complain of were either open
and able to be discovered upon reasonable inspection or were otherwise not
actionable as a basis for a fraudulent-misrepresentation or inducement claim, we
affirm the trial court’s decision. I. Facts and Procedural History
On September 3, 2020, the Pascoes entered into an agreement
(“agreement”) with Detke to purchase a then 108-year-old home located on Lake
Avenue in Lakewood, Ohio (“property”) for $408,000. Bentley represented Detke
with the sale and is an independent contractor of Howard Hanna, the broker. The
Pascoes were not represented by a realtor. The property was first listed for sale on
February 13, 2020. Detke completed the Residential Property Disclosure Form
(“February 2020 Disclosure Form”) on February 14, 2020. The February 2020
Disclosure Form states, in pertinent part:
C) ROOF: Do you know of any previous or current leaks or other material problem with the roof or rain gutters? x Yes □ No
If “Yes”, please describe and indicate any repairs completed (but not longer than the past 5 years): Limb from neighbor[’s] tree (to west) fell on roof and needed repair. (2019)_________________________
D) WATER INTRUSION: . . . Do you know of any water or moisture related damage to floors, walls, or ceiling as a result of . . . leaking pipes[?] □ Yes x No
...
G) MECHANICAL SYSTEMS: Do you know of any previous or current problems or defects with the following existing mechanical systems? . . .
3) Central heating x Yes □ No
If the answer . . . is “Yes”, please describe and indicate any repairs to the mechanical system (but not longer than the past 5 years): 3rd floor units never been used in years being updated now______________ (Emphasis in original.) (February 2020 Disclosure Form, p. 2-4.) At the time this
Disclosure Form was completed, Detke indicated she was in the process of repairing
the third-floor heating units. Detke also indicated that the roof was repaired in 2019
because of damage from the neighbor’s tree.
In July 2020, which was prior to the sale of the property to the
Pascoes, Detke had a water leak. Detke hired Parkway Plumbing (“Parkway”) to
complete the repair, which was covered by Detke’s homeowner insurance. Prior to
entering into the agreement with Detke, the Pascoes were given a copy of a
subsequent disclosure form that Detke completed on August 24, 2020 (“August
2020 Disclosure form”. Relevant to this case, the August 2020 Disclosure Form
provides:
C) ROOF: Do you know of any previous or current leaks or other material problem with the roof or rain gutters? □ Yes x No
If “Yes”, please describe and indicate any repairs completed (but not longer than the past 5 years):
_______________________________________________ _______________________________________________
D) WATER INTRUSION: . . . Do you know of any water or moisture related damage to floors, walls, or ceiling as a result of . . . leaking pipes[?] x Yes □ No
If “Yes”, please describe and indicate any repairs completed: Leak was found in main pipe with a large portion of stack replaced and elbow off it.______________________________________________
G) MECHANICAL SYSTEMS: Do you know of any previous or current problems or defects with the following existing mechanical systems? . . . 3) Central heating □ Yes x No
If “Yes”, please describe and indicate any repairs completed (but not longer than the past 5 years):
_______________________________________________ _______________________________________________
(Emphasis in original.) (Aug. 2020 Disclosure Form, p. 2-4.) The leak Detke
referenced in paragraph D of the August 2020 Disclosure Form is the leak from July
2020. Detke did not reference the previous issues with the central heating or roof
from the February 2020 Disclosure Form on this subsequent form.
As part of the agreement between Detke and the Pascoes, the Pascoes
bought the property in its “‘AS IS’ PRESENT PHYSICAL CONDITION.” (Sept. 3,
2020 Agreement, p. 1.) The agreement also contained an “inspection contingency”
clause, which permitted the Pascoes to have the home inspected before the purchase
was completed. The Pascoes signed the August 2020 Disclosure Form and
acknowledged that “it is BUYER’S own duty to exercise reasonable care to inspect
and make diligent inquiry of the SELLER or BUYER’S inspectors regarding the
condition and systems of the property.” (Sept. 3, 2020 Agreement, p. 3.)
On September 15, 2020, the Pascoes had a home inspection
completed on the property. Michael did not attend the home inspection, and Molly
sat outside on the porch during the inspection. The inspection report stated that the
house was 108 years old. The inspector noted that the plumbing system had copper
piping for the water supply. The inspection was of the visible piping and did not note any leaks in the water supply piping, which was rated “satisfactory.” The
drain/waste piping was rated “fair” and the report noted that most of the piping was
in the walls or floors and was not visible. There was some older cast iron and copper
drain piping visible in the basement that required monitoring.
With regard to the heating system, the report noted that it was a
Dunkirk natural gas/hot water system estimated to be 10-15 years old with a design
life of 30-40 years. The report noted that the heating system was entirely
satisfactory. Additionally, the hot water heater was estimated to be over 25 years
old and required monitoring. As to the roof, the report states that the shingles are
“very worn” and at the end of “useful service life.” The inspector recommended a
roofing company review and quote the cost of replacement. After the inspection was
completed, Bentley and the Pascoes discussed the roof. The roof was replaced with
a complete tear off and replacement of shingles as part of the sale.
Sometime around January 2022, which was approximately 14
months after the Pascoes took possession of the property, the Pascoes experienced
a water leak. According to Michael, after he drained the bathtub on the second floor,
water leaked down into the first floor foyer. The Pascoes hired a plumber, who
determined that there were leaks in the main stack, which had to be replaced. The
stack is the pipe that runs from the basement to the third floor and carries away all
water from the home. During this repair, the Pascoes discovered that the central
heating system piping was improperly assembled and the installed zone valves were
not functioning, which they also repaired. In November 2023, the Pascoes filed a lawsuit against Detke,
asserting claims for fraudulent inducement, fraudulent misrepresentation,
negligent misrepresentation, and breach of contract.1 The Pascoes sought damages
for the cost of the repairs. The complaint was later amended in October 2024, and
included Bentley and Howard Hanna as defendants. The Pascoes brought the
following nine causes of action: Count One — fraudulent inducement against Detke;
Count Two — fraudulent misrepresentation against Detke; Count Three — negligent
misrepresentation against Detke; Count Four — breach of contract against Detke;
Count Five — civil conspiracy against Detke, Bentley, and Howard Hanna; Count Six
— breach of R.C. 4735.67(A) against Bentley and Howard Hanna; Count Seven —
fraud against Bentley and Howard Hanna; Count Eight — negligent
misrepresentation against Bentley and Howard Hanna; Count Nine — respondeat
superior against Howard Hanna.
In the amended complaint, the Pascoes alleged Detke falsely
represented that a large portion of the main stack was replaced. Acknowledging that
the word “large” is subjective, the Pascoes contend that of the entire stack, which
runs from the basement through the third floor, “only approximately three to four
feet of the stack had been replaced.” (Amended complaint, Oct. 16, 2024.)
According to the Pascoes, Detke also falsely represented that there was one leak on
a single occasion. Rather, they alleged that there were multiple leaks on three
1 We note that throughout the proceedings in the trial court and on appeal,
Michael, an attorney, was one of the attorneys representing himself and Molly. separate floors over a period of several days. The Pascoes claimed that while they
had the property inspected, the inspection report did not discover and could not
have discovered the material, latent defects with the stack.
As a result of the January 2022 water leak, the Pascoes alleged that
they had to undertake investigative demolition into the wall where the stack was
located. This investigation revealed water damage inside the walls. The
investigative demolition also revealed a crack in part of the stack that had been
caulked over with silicon, which the Pascoes contended demonstrated that Detke:
(1) was aware of a defect in the pipe; (2) had engaged in “slipshod repairs” in
violation of the relevant codes; and (3) had not disclosed the defect in the pipe.
According to the Pascoes, they engaged in further work and found numerous code
violations related to wiring and plumbing. Ultimately, the Pascoes replaced the
entire stack and drain lines. The Pascoes allege that the cost of the replacement and
attendant work was in excess of $12,000.
The Pascoes further alleged that during this repair work, they became
aware of an issue with the central heating system. Specifically, the central heating
system would improperly call for heat across the system when any one location that
was wired into the system was activated. According to the Pascoes, they were
required to install regulators into the heating system to address the improper wiring
and individual smart thermostats to address the issue for a cost in excess of $5,000
and were required to repipe the boiler and hot water heater at a cost in excess of $4,000. The Pascoes maintained that they were also required to replace the boiler
at only half of its expected life because of the improper piping and zone-valve issues.
The Pascoes additionally alleged that Detke failed to disclose the
fallen-branch issue with the roof on the August 2020 Disclosure Form even though
she disclosed it on the February 2020 Disclosure Form. The Pascoes claimed that
they relied upon and believed Detke’s representations in the August 2020 Disclosure
Form when purchasing the property. And as a result of Detke’s representations,
they have been damaged in an amount not less than $115,000.
With regard to Bentley, the Pascoes alleged that they discovered the
February 2020 Disclosure Form, which disclosed material defects that were not
listed on the disclosure form provided to them in August 2020. According to the
Pascoes, Bentley was aware of the February 2020 Disclosure Form, was aware of the
defects disclosed on that form that listed material defects in the central heating
system and the structural integrity of the roof of the property, and did not provide a
copy of that form to them at any time prior to the sale of the property. Specifically,
the Pascoes alleged that a February 14, 2020 text-exchange between Detke and
Bentley reveals that Detke stated to Bentley it was cold that day and “the heat was
not sufficient” for the house. (Amended complaint, Oct. 16, 2024.) Detke inquired
about rescheduling “the showings until Monday when it would be 40 degrees, and
the issue would be ‘less noticeable.’” (Amended complaint, Oct. 16, 2024.) “Bentley
responded that the rescheduling for Monday was fine as long as Sunday would also
be reasonably comfortable so there were two days of reasonably comfortable temperature, and the house could adjust.” (Amended complaint, Oct. 16, 2024.)
The Pascoes alleged that Bentley conspired with Detke to conceal the defects from
potential purchasers.
The Pascoes further alleged that they were aware of a prior failed sale
and when they asked Bentley about the cause of the failed sale, Bentley concealed
that a failed property inspection was the true cause of the failed sale and that the
leak in the stack was extensive. According to the Pascoes, Bentley replied that “the
husband was out of town and that after he saw the [p]roperty he did not find it
suitable and so he intentionally cratered the sale.” (Amended complaint, Oct. 16,
2024.) As an employee and agent of Howard Hanna, the Pascoes alleged that
Howard Hanna is liable for all of Bentley’s acts and omissions. Additionally, the
Pascoes alleged that in the furtherance of Detke’s fraud, Bentley and Howard Hanna
violated their statutory duties under R.C. 4735.67(A) to disclose any material defects
in the property.2 According to the Pascoes, Bentley was entitled to the full
commission of $18,125 for the sale because they did not have a real estate agent.
The Pascoes sought a recission of the agreement; full refund of all
amounts invested in improvement of the property, interest on mortgage loans,
property taxes, and all other recission damages they are entitled to under law, as
well as compensatory damages in excess of $25,000; noneconomic damages up to
the statutory threshold of $500,000; punitive damages against Detke for the lesser
2 R.C. 4735.67(A) governs a licensee’s duty to disclose to purchasers. of 10% of her net worth or the two times compensatory damages cap; punitive
damages against Bentley for the lesser of 10 percent of her net worth or the two times
compensatory damages cap; punitive damages against Howard Hanna for an
amount to be proven at trial; attorney fees, costs, and expenses; and disgorgement
of all profit.
The matter proceeded with extensive discovery, culminating with the
filings of respective motions for summary judgment by the Pascoes, Detke, and
Bentley and Howard Hanna.3 In September 2025, the trial court, considering all the
evidence and construing it in a light most favorable to the nonmoving party, found
that Detke and Bentley and Howard Hanna are entitled to judgment as a matter of
law and denied the Pascoes’ motion for partial summary judgment. In reaching its
decision, the court stated:
The doctrine of caveat emptor precludes recovery in an action by the purchaser for a structural defect in real estate where (1) the condition complained of is open to observation or discoverable upon reasonable inspection, (2) the purchaser had the unimpeded opportunity to examine the premises, and (3) there is no fraud on the part of the vendor. Layman v. Binns, 35 Ohio St.3d 176, 519 N.E.2d 642 (1988). In general, the caveat emptor doctrine governs the obligation of sellers to disclose information in real estate transactions and precludes any reliance on certain misrepresentations made by a seller or seller’s agent concerning the condition of that property. Schmiedebusch v. Rako Realty, Inc., 2005-Ohio-4884, ¶ 19 (5th Dist.).
In Ohio, the seller has no duty to disclose latent defects if a purchase agreement states that the buyer purchases real property in its “as is” physical condition. Neiberding v. Barrant, 2021-Ohio-2593, ¶ 44 (8th
3 We note that in October 2024, Detke filed a third-party complaint against
Parkway for indemnification and contribution. Detke hired Parkway to fix the July 2020 leak before she sold the property to the Pascoes. Parkway filed its own motion for summary judgment, which the court denied as moot. Parkway is not a part of this appeal. Dist.), citing Eiland v. Coldwell Banker Hunter Realty, 122 Ohio App.3d. 446, 457, 702 N.E.2d 116(1997).
The purchase agreement in this matter contained an “as is” clause. [The Pascoes] agreed to purchase the property after having opportunities to inspect the property, having a home inspection completed, agreeing to a roof replacement, and negotiating the price of the property. The court finds that [the Pascoes] have failed to present evidence that [Detke, Bentley, and Howard Hanna] knew of and/or concealed any of the alleged defects. The court further finds no evidence of fraud, concealment, conspiracy, or negligence against any of the named defendants in this matter. As such, [Detke, Bentley, and Howard Hanna] are entitled to judgment as a matter of law on all of [the Pascoes]’ claims and summary judgment is proper under Civ.R. 56(C).
(Journal entry, Sept. 12, 2025.)
It is from this order that the Pascoes appeal, raising three
assignments of error for review.
II. Law and Analysis
Within their assigned errors, the Pascoes challenge the trial court’s
grant of defendants’ respective motions for summary judgment on the following
three bases: (1) the trial court erred by applying the “as is” clause because this clause
does not apply to fraud claims; (2) the trial court erred in its application of the
doctrine of caveat emptor because this doctrine also does not apply to fraud claims;
and (3) the trial court erred in finding there was “no evidence” to support the
Pascoes’ claims. We note that with the first two bases, the Pascoes only challenge
the trial court’s ruling on their fraudulent-inducement and fraudulent-
misrepresentation claims against Detke. And for their third basis, the Pascoes
challenge the trial court’s ruling on their breach-of-contract and civil-conspiracy claims against Detke, their fraud, civil-conspiracy, and R.C. 4735.67(A) claims
against Bentley, and their respondeat superior claims against Howard Hanna.
A. Summary Judgment Standard of Review
An appellate court reviews the grant or denial of summary judgment
de novo. Grafton v. Ohio Edison Co., 77 Ohio St.3d 102, 105 (1996). In a de novo
review, this court affords no deference to the trial court’s decision and
independently reviews the record to determine whether the denial of summary
judgment is appropriate. Hollins v. Shaffer, 2009-Ohio-2136, ¶ 12 (8th Dist.).
Summary judgment is appropriate if (1) no genuine issue of any
material fact remains; (2) the moving party is entitled to judgment as a matter of
law; and (3) it appears from the evidence that reasonable minds can come to but one
conclusion, and construing the evidence most strongly in favor of the nonmoving
party, that conclusion is adverse to the party against whom the motion for summary
judgment is made. Id., citing State ex rel. Cassels v. Dayton City School Dist. Bd. of
Edn., 69 Ohio St.3d 217 (1994).
The party moving for summary judgment bears the burden of
demonstrating that no material issues of fact exist for trial. Dresher v. Burt, 75 Ohio
St.3d 280, 292-293 (1996). If the moving party fails to meet this burden, summary
judgment is not appropriate; if the moving party meets this burden, the nonmoving
party must then point to evidence of specific facts in the record demonstrating the
existence of a genuine issue of material fact for trial. Id. at 293. Trial courts should
award summary judgment only after resolving all doubts in favor of the nonmoving party and finding that “‘reasonable minds can reach only an adverse conclusion’”
against the nonmoving party. Murphy v. Reynoldsburg, 65 Ohio St.3d 356, 358-
359 (1992), quoting Norris v. Ohio Std. Oil Co., 70 Ohio St.2d 1, 2 (1982).
B. Fraudulent Misrepresentation and Fraudulent Inducement
Here, the Pascoes claimed fraudulent misrepresentation and
fraudulent inducement against Detke. The elements of fraudulent
misrepresentation are:
“(1) a representation, or where there is a duty to disclose, concealment of a fact, (2) which is material to the transaction at hand, (3) made falsely, with knowledge of its falsity, or with such utter disregard and recklessness as to whether it is true or false that knowledge may be inferred, (4) with the intent of misleading another into relying on it, (5) justifiable reliance upon the representation or concealment, and (6) a resulting injury proximately caused by the reliance.” Cardi v. Gump (1997), 121 Ohio App.3d 16, 22, 698 N.E.2d 1018, citing Schlecht v. Helton (Jan. 16, 1997), 8th Dist. No. 70582, 1997 Ohio App. LEXIS 114.
Pedone v. DeMarchi, 2007-Ohio-6809, ¶ 28 (8th Dist.).
This court has stated that “[t]he elements of fraudulent inducement
are essentially the same as those for fraudulent misrepresentation, fraudulent
concealment, and fraudulent nondisclosure.” Id. at ¶ 29, citing Information Leasing
Corp. v. Chambers, 2003-Ohio-2670, ¶ 84 (1st Dist.) Therefore, the Pascoes’
fraudulent-inducement and fraudulent-misrepresentation claims as treated as one.
Cantlin v. Smythe Cramer Co., 2018-Ohio-4607, ¶ 37 (8th Dist.) (where this court
relied on Pedone and treated plaintiffs fraud and fraudulent inducement claims as
one). We note that “[a]n action for fraud may be grounded upon failure to
fully disclose facts of a material nature where there exists a duty to speak.” Layman,
35 Ohio St.3d 176, 178 (1988). “Buyers are protected by law against ‘being misled
by others into making unwise decisions which result in financial loss’ when sellers
fail to ‘fully disclose’ material facts.” Avila v. Hughes, 2021-Ohio-2463, ¶ 36 (12th
Dist.), quoting Miles v. McSwegin, 58 Ohio St.2d 97, 99-100 (1979). Furthermore,
“a party is under a duty to speak, and therefore liable for nondisclosure if the party
fails to exercise reasonable care to disclose a material fact which may justifiably
induce another party to act or refrain from acting, and the non-disclosing party
knows that the failure to disclose such information to the other party will render a
prior statement or representation untrue or misleading.” Miles at 100, citing 3
Restatement of the Law 2d, Torts, 119, § 551, Subsections (1 and 2); see also
Armbruster v. Mason, 1982 Ohio App. LEXIS 14819, *11-12 (5th Dist. July 20,
1982); Avila at ¶ 37; and Shannon v. Fischer, 2020-Ohio-5567, ¶ 17 (12th Dist.).
C. R.C. 5302.30
R.C. 5302.30 establishes a circumstance in which a seller of
residential real estate has a duty to speak. In Ashmus v. Coughlin, 2025-Ohio-2412,
the Ohio Supreme Court recently analyzed the disclosure requirement of
R.C. 5302.30. The Ashmus Court stated that Ohio’s residential property disclosure
“form is designed to allow sellers ‘to disclose material matters relating to the
physical condition of the property to be transferred.’” Id. at ¶ 15, quoting
R.C. 5302.30(D)(1). These include “the condition of the structure of the property, including the roof, foundation, walls, and floors,” and “any material defects in the
property that are within the actual knowledge of the transferor.”
R.C. 5302.30(D)(1). This court has stated that “material defects” are those that are
“dangerous to anyone occupying the property and that inhibited the occupant’s use
of the property.” Nieberding v. Barrante, 2021-Ohio-2593, ¶ 35 (8th Dist.).
The statute further requires that “[e]ach disclosure of an item of
information that is required to be made in the property disclosure form . . . and each
act that may be performed in making any disclosure of an item of information shall
be made or performed in good faith.” R.C. 5302.30(E)(1). R.C. 5302.30(A)(1)
defines “good faith” as “honesty in fact in a transaction involving the transfer of
residential real property.” If the seller fails to disclose a material fact on the form
with the intent to mislead the buyer, and the buyer relies on the form, the seller may
be liable for any resulting injury. Nieberding at ¶ 23, citing Pedone, 2007-Ohio-
6809, ¶ 31 (8th Dist.). But where the buyer “has had the opportunity to inspect the
property, he is charged with knowledge of the conditions that a reasonable
inspection would have disclosed.” Id., quoting Nunez v. J.L. Sims Co., Inc., 2003-
Ohio-3386, ¶ 17 (1st Dist.).
“Sellers of residential real property have no duty to inspect their
property or to otherwise acquire additional knowledge regarding defects on their
property.” Kess v. Khan, 2023-Ohio-2773, ¶ 31 (8th Dist.), citing Roberts v. McCoy,
2017-Ohio-1329, ¶ 17 (12th Dist.). “‘[T]he duty to conduct a full inspection falls on the purchasers[,] and the disclosure form does not function as a substitute for such
careful inspection.’” Nieberding at ¶ 23, quoting Roberts at ¶ 17.
The Ashmus Court further stated that while R.C. 5302.30 “modifies
the common-law duty of disclosure in certain respects,” this statute “does not create
an independent cause of action[.]” Id., 2025-Ohio-2412 at ¶ 17. For this reason, “a
buyer’s remedy for nondisclosure is limited to common-law claims for fraud.” Id.,
citing Majoy v. Hord, 2004-Ohio-2049, ¶ 17 (6th Dist.).
Historically, unless a purchase agreement contained an “as is” clause, sellers of real property were required to disclose latent defects, i.e., hidden defects, of which they were aware. See, e.g., Layman v. Binns, 35 Ohio St.3d 176, 178, 519 N.E.2d 642 (1988). But under the doctrine of caveat emptor, they were not required to disclose patent defects, that is, defects that would be readily observable through a reasonable inspection. Id. at 177-178.
Ashmus at ¶ 18. Thus, the “enactment of R.C. 5302.30 modified the seller’s duty by
requiring disclosure of not only known latent defects but also known patent defects”
within their actual knowledge. Id. at ¶ 19, citing R.C. 5302.30(D)(1); see also
Williams v. D&J House Doctors., LLC, 2025-Ohio-4716, ¶ 23 (3d Dist.).
Finally, “R.C. 5302.30(D)(1) provides that the disclosure form is ‘not
a warranty of any kind by the transferor,’ nor is it ‘a substitute for any inspections.’”
Id. Thus, “[t]he duty under the statute to conduct a full inspection falls upon the
buyer, not the seller.” Pedone, 2007-Ohio-6809, at ¶ 32 (8th Dist.), citing Clark v.
Allen, 2003-Ohio-4617 (12th Dist.). “[W]here the buyer ‘has had the opportunity to
inspect the property, he is charged with knowledge of the conditions that a
reasonable inspection would have disclosed.’” Nieberding, 2021-Ohio-2593, at ¶ 23 (8th Dist.), quoting Nunez, 2003-Ohio-3386, at ¶ 17 (1st Dist.). Here, the August
2020 Disclosure Form that the Pascoes completed specifically provides in
capitalized lettering:
THIS FORM IS NOT A WARRANTY OF ANY KIND BY THE OWNER OR BY ANY AGENT OR SUBAGENT REPRESENTING THE OWNER. THIS FORM IS NOT A SUBSTITUTE FOR ANY INSPECTIONS. POTENTIAL PURCHASERS ARE ENCOURAGED TO OBTAIN THEIR OWN PROFESSIONAL INSPECTION(S).
(Emphasis in original.) (August 2020 Disclosure Form.)
D. Caveat Emptor and the “As is” Clause
As stated above, the doctrine of caveat emptor limits the potential
liability of sellers of residential property. Under this doctrine, a purchaser is
precluded from recovering for a structural defect where:
(1) the condition complained of is open to observation or discoverable upon reasonable inspection, (2) the purchaser had the unimpeded opportunity to examine the premises, and (3) there is no fraud on the part of the vendor.
Layman, 35 Ohio St.3d 176 (1988), syllabus, approving and following Traverse v.
Long, 165 Ohio St. 249 (1956). “‘A defect is observable or discoverable if an
ordinarily prudent person would discover it upon reasonable inspection.”’ Roberts,
2017-Ohio-1329 at ¶ 12 (12th Dist.), quoting Moravek v. Hornsby, 1997 Ohio App.
LEXIS 3032, *6 (12th Dist. July 14, 1997). As the Ashmus Court stated, “[U]nder
the doctrine of caveat emptor, a seller of residential property has a duty to disclose
latent (or hidden) defects but not patent (or readily discoverable) defects.” Id.,
2025-Ohio-2412, at ¶ 31. A latent defect has been defined as “‘[o]ne which could
not be discovered by reasonable or customary observation.’ Black’s Law Dictionary (6th Ed.1991) 611.” Lone Star Steakhouse Saloon of Ohio v. Quaranta, 2002-Ohio-
1540, ¶ 18 (7th Dist.). “The nature of the defect and the ability of the parties to
determine through a reasonable inspection that a defect exists are key to
determining whether or not the defect is latent.” Siebert v. Lalich, 2006-Ohio-6274,
¶ 34 (8th Dist.), citing Miles, 58 Ohio St.2d 97, 101 (1979).
Furthermore, the doctrine of caveat emptor “is designed to finalize
real estate transactions by the preventing disappointed real estate buyers from
litigating every imperfection existing in residential property.” Nieberding, 2021-
Ohio-2593, at ¶ 30 (8th Dist.), quoting Thaler v. Zovko, 2008-Ohio-6881, ¶ 31 (11th
Dist.). But “a seller may still be liable to a buyer if the seller fails to disclose known
latent conditions.” Morgan v. Cohen, 2019-Ohio-3662, ¶ 35 (8th Dist.).
In this case, the agreement provided that the property was being sold
in its “‘as is’ present physical condition,” subject to a general home inspection. When
a purchase agreement states that the property is being sold “as is,” the buyer “agrees
to make his or her own appraisal of the bargain and accept the risk that he or she
may be wrong.” McDonald v. JP Dev. Group, L.L.C., 2013-Ohio-3914, ¶ 15 (8th
Dist.), citing Kern v. Buehrer, 2012-Ohio-4057 (8th Dist.), citing Tipton v. Nuzum,
84 Ohio App.3d 33 (9th 1992); see also Nieberding, 2021-Ohio-2593, at ¶ 33 (8th
Dist.). “An ‘as is’ clause in a real estate purchase agreement bars suit for passive
non-disclosure, but does not protect a seller from action alleging positive
misrepresentation or concealment.” Pedone, 2007-Ohio-6809, at ¶ 34 (8th Dist.),
citing Vecchio v. Kehn, 1994 Ohio App. LEXIS 3622, *8-9 (8th Dist. Aug. 18, 1994). “However, neither the doctrine of caveat emptor nor the presence of
an ‘as is’ clause forecloses a buyer from recovery when the seller has perpetrated a
fraud.” Jones v. Gilbert, 2023-Ohio-754, ¶ 13 (3d Dist.), citing Buchanan v.
Improved Properties, 2014-Ohio-263, ¶ 14 (3d Dist.); Lapos Constr. Co. v. Leslie,
2006-Ohio-5812, ¶ 14 (9th Dist.); Donnelly v. Taylor, 2003-Ohio-729, ¶ 16 (9th
Dist.). The seller is not protected “from liability for ‘positive’ acts of fraud, i.e., “‘a
fraud of commission rather than omission,’” such as fraudulent misrepresentation
or fraudulent concealment, including fraudulent misrepresentations in [a
residential property disclosure form].” Morgan at ¶ 39, quoting Brown at ¶ 20,
quoting Majoy, 2004-Ohio-2049, ¶ 18 (6th Dist.).
E. No Latent Defects in the 108-Year Old Home
Keeping these legal principles in mind, we now turn to the Pascoes’
arguments. The crux of Pascoes’ fraud claims is the difference in information
between the February 2020 Disclosure Form and the August 2020 Disclosure Form.
The Pascoes acknowledge that the agreement contains an “as is” clause and the
application of caveat emptor. They contend, however, that neither caveat emptor or
the “as is” clause shield Detke from fraud because they established that a genuine
issue of material fact exists as to whether Detke knew about or concealed the
conditions at issue in this case. In support of their argument, they allege three
instances of affirmative misrepresentations by Detke on the August 2020 Disclosure
Form regarding the extent of the damage to the stack (plumbing), the failure to disclose the structural damage to the roof from 2019, and the issue with the third-
floor heat. We discuss the alleged defects in turn.
1. Third-Floor Heat
With regard to the heat, the Pascoes note that on the February 2020
Disclosure Form, Detke checked the “yes” box indicating a problem or defect in the
heating system. Detke explained, “3rd floor units never been used in years being
updated now[.]” (February 2020 Disclosure Form.) Whereas on the August 2020
Disclosure Form, Detke checked the “no” box, which the Pascoes contend is evidence
that Detke affirmatively misrepresented that there was no defect in the heating
system.
In support of their fraudulent misrepresentation and inducement
claims against Detke, the Pascoes rely on the February 2020 text exchange where
Detke stated to Bentley that the heat was “definitely not up to par” and “[s]hould I
tell them to come tomorrow or can it wait till Monday. It will be 40 and less
noticeable.” Bentley replied, “Monday is fine as long as it will be reasonably
comfortable Sunday.” The Pascoes argue that this text exchange is evidence that
Detke concealed or otherwise failed to disclose the problems in the subsequent
August 2020 Disclosure Form.
According to Detke, the third floor has two bedrooms that have “in-
wall units that provide heat[.]” (Detke depo., p. 19.) In addition, Detke did not
experience any overheating issues with the third floor because “[she did not] ever go
up there. At this point [her] children were out of the house. [She is] living in a five- bedroom house by [her]self.” (Detke depo., p. 32.) And although there was a text
exchange stating that the heat was “not up to par,” both Detke and Bentley explained
the context of the exchange. Bentley stated that texts occurred on the day she got
the February 2020 Disclosure Form from Detke and based on Detke’s statement in
this disclosure form that repairs were pending, Bentley believed that the heat issue
was only with the third-floor space heaters and that issue was repaired. At her
deposition, Bentley testified, “My understanding at the time was that we were
discussing the third floor unit, space heater . . . what I did not believe was part of the
central heating system to the home, and that that was in the process of being
repaired.” (Bentley depo., p. 99-100.) Their text exchange revealed that showings
continued throughout the week, regardless of the heat being “not up to par,” with an
open house and a broker’s open.
At Detke’s deposition, she testified that the text exchange with
Bentley was not a conspiracy to avoid scheduling showings because it was too cold
and “the heating system wasn’t up to par.” Detke explained that she and Bentley
“told those people that those items are being worked on, and when [the Pascoes]
purchased the house, the work was totally finished.” (Detke depo., p. 25-26.) When
asked if she would intentionally mislead buyers about issues with the heating system
in the house, Detke replied, “[n]o.” (Detke depo., p. 22.) According to Detke, if
something was wrong with the house, she would have definitely told the prospective
buyer and would have had it fixed before the buyer moved in. Detke acknowledged that she did not disclose that “the heat was not
up to par” on the August 2020 Disclosure Form, stating that she “was very laxed in
filling out all the little particulars” and “didn’t think” she “needed to.” (Detke depo,
p. 127-128.) Detke stated, “I’m bad for not doing that. That I do agree with.” (Detke
depo., p. 129.) She explained, “The reason I didn’t check it is because everything was
okay then, and I guess when I filled this out, you know, I . . . filled out what I thought
were the most important things, and I guess . . . current or previous problems, it
didn’t seem like a big previous problem since it was fixed.” (Detke, depo., p. 128-
129.)
We find that the Pascoes’ argument is unpersuasive because any issue
with the third-floor heat was an open-and-observable condition. Even if Detke and
Bentley knew the heat was not working, there was no evidence that the Pascoes’
inspector was prevented from inspecting the heat and therefore the defect was open
or discoverable upon reasonable inspection. Indeed, it is undisputed that the
Pascoes had the home inspected by an inspector of their choosing and that the
inspector had an unimpeded opportunity to examine the premises, including the
third-floor. The inspection report indicated that the heating system was entirely
satisfactory after calling for heat. The report noted that it was a Dunkirk natural
gas/hot water system estimated to be 10-15 years old with a design life of 30-40
years. When Michael was asked at his deposition how he knew that the third-floor
heaters were not working at the time they purchased the home, Michael replied, “I
don’t.” (Michael depo., p. 226.) Additionally, the record is clear that the Pascoes lived in the house for approximately 14 months without incident. The Pascoes lived
in the house through four seasons without an issue with the heat. It was not until
after the demolition work started for the water leak from the bathroom that the
Pascoes discovered the issue with the heat on the third floor.
The Pascoes opposed Detke’s summary judgment, relying on
Michael’s declarations that this was not an open-or-obvious defect that could be
discovered merely by turning on the heat when they purchased the home in
September and the defect in the heating system was because of improper piping and
zone valve malfunctions. Michael’s declarations, however, are insufficient to create
a genuine issue of material fact. We agree with Detke in that there is no admissible
evidence of “improper piping and zone valve malfunctions” because the declarations
were based on hearsay, were not made on personal knowledge, and are not
permitted under Civ.R. 56(E). In further support of their argument, the Pascoes also
contend that Detke’s previous contractor informed her in 2010 that the zone valves
were not functioning properly at that time and needed to be repaired, but Detke
never did. We likewise cannot consider this evidence because this is hearsay and
was not properly authenticated by the Pascoes.
Because it is undisputed that the Pascoes and their inspector had the
unimpeded opportunity to inspect the heat, including on the third floor, any alleged
defect with the heat would have been open and discoverable. It is also undisputed
that the Pascoes lived in the home for 14 months, including the winter months in
2020 and 2021, before any alleged issue with the heat was discovered in January 2022. There is no evidence establishing that the alleged issue with the heat from ten
years prior was latent or could not be found in a reasonably diligent inspection.
Furthermore, the Pascoes cannot not prove fraud in these circumstances because
there is no evidence in the record suggesting that Detke was aware of the alleged
“malfunctioning zone valves” or that her omission of the third-floor heat not being
“up to par” on the August 2020 Disclosure Form was made with disregard or
recklessness as to its truth or falsity. Therefore, caveat emptor bars the Pascoes’
fraud claims regarding the third-floor heat.
2. Roof
Second, the Pascoes contend Detke made an affirmative
misrepresentation regarding the condition of the roof. On the February 2020
Disclosure Form, Detke indicated there was a problem with the roof, explaining that
a “[l]imb from neighbor[’s] tree (to west) fell on roof and needed repair. (2019)[.]”
But on the August 2020 Disclosure Form, Detke checked the “no” box. According
to Michael, there was leak in the bedroom where the branch fell on the roof, which
was not discovered by the home inspection.
Detke testified that in 2019, the neighbor’s “tree limb fell on the roof
above the bathroom upstairs.” (Detke depo., p. 173.) Detke disclosed this on the
February 2020 Disclosure Form and acknowledged that she omitted the 2019 roof
damage on the August 2020 Disclosure Form. According to Detke, she “forgot to
bring some things over” from the February form to the August Form. (Detke depo.,
p. 222.) Here, the undisputed facts demonstrate that the Pascoes’ home
inspector stated that the shingles were “very worn” and at the end of “useful service
life.” The inspector recommended a roofing company review and quote the cost of
replacement. The report further noted that “[a]ny roof defect can result in
leakage[.]” (Inspection report, p. 6.) Ultimately, Detke replaced the roof with a
complete tear off and replacement of shingles as part of the sale. (Michael’s depo.
p. 211.) Additionally, according to the Pascoes, they first noticed the leak sometime
around March 2024, which was more than three years after they purchased the
home. Michael testified that the only reason he believed that there was structural
damage to the roof was because “roofs and ceilings that don’t have a problem with
them don’t leak.” (Michael’s depo., p. 217.) When asked if it the problem could be
from the shingles, Michael replied, “I guess. I don’t know. They are brand new.
There’s a warranty.” (Michael’s depo., p. 217-218.) He further agreed that
construction defects do happen. Michael submitted a warranty claim for the roof
but he had not heard anything from them for “at least a year” and only followed up
with the company once. (Michael depo., p. 218.)
While Detke knew about the 2019 roof damage and omitted it from
the August 2020 Disclosure Form, there was no evidence that the inspector was
prevented from inspecting the roof and thus the defect was open or discoverable
upon reasonable inspection. At the time of inspection, no leaks were observed, but
the inspector discovered an issue with the age of the roof and condition of the
shingles. As part of the negotiations to finalize, Detke installed new roof installed prior to the Pascoes moving into the home. Because the Pascoes were alerted of the
roof’s condition and a tear off and replacement was completed before they moved
into the home, their claim in this regard is barred by caveat emptor. The Pascoes
cannot not prove fraud in these circumstances because they cannot claim to have
justifiably relied on the August 2020 Disclosure Form when they were actually
aware of the roof’s condition. Other than assumptions, the Pascoes have failed to
demonstrate that the March 2024 leak in the bedroom was associated with the 2019
roof damage Detke disclosed in February 2020, which was prior to the installation
of the new roof.
3. The Stack
Lastly, the Pascoes contend Detke only partially disclosed the extent
of the water leak on the August 2020 Disclosure Form. Relying on an invoice by the
plumbing company Detke hired to repair the leak, they contend that there were three
leaks relating to the main stack on three different floors, not just the replacement of
a large portion of the stack as Detke disclosed. The plumbing company’s invoice
indicated that the lead boot under the second-floor toilet was rotted out and was
repaired, the third-floor toilet was leaking at the flange and was repaired, and they
repaired a four-inch “crack” in the main stack.
In this case, the Pascoes first noticed a water leak in January 2022,
which was over 14 months after they purchased the home. According to Michael,
after he drained the bathtub on the second floor, water leaked down into the first-
floor foyer. Michael contacted his insurance agent, plumber Ken Sapp (“Sapp”), and general contractor to investigate in assess the issue. Sapp testified that he has done
plumbing work for Michael for a number of years. When he received a call from
Michael, it was about water damage and a bad smell in the home. Sapp stated that
sewer gas smells were not unusual from stacks in 100 year old houses and
determined that the smell was sewer gas emanating from cracks in the stack. He
recommended replacing the entire stack. Demolition work had to be completed in
order to expose the stack. Once the stack was exposed, he noticed that there were
cracks in the stack and part of the stack had been repaired with caulk, but he could
not tell when that repair occurred or how long the stack had been cracked. He
further testified regarding the July 2020 plumbing work by Detke’s plumber, stating
that he did not observe any issues with that work or any leaks from the area of those
repairs.
Detke testified that she had a leak in a storage room that she turned
into a wine cellar in the basement in July 2020. She was still under contract with
the previous potential buyers at this time. She described it as “water coming down
the wall[.]” (Detke depo., p. 51.) She claimed the leak on her insurance and hired
Parkway to complete the repairs. When asked what was her understanding of how
much of the stack was replaced, Detke responded, “A large portion in the bathroom
from the floor to the ceiling was open, so to me, that was a large area, and that’s the
amount that was replaced in there.” (Detke depo. p. 136.) According to Detke, a
new flange and elbow were installed and tied back into main stack. Detke did not
remember the plumber telling her to leave the walls open for several weeks to make sure the repair worked, but she did leave the area for a few weeks because that was
“how long it took for people come out and do it.” (Detke depo., p. 154.) As to the
other leaks on the invoice, Detke did not “remember that there were three separate
incidents. [She] just remember[ed the plumber] was coming and going and it was
getting done[.]” (Detke depo., p. 192.) Detke was not aware of any silicon or caulk
repairs completed on the stack.
Here, there is no dispute that the house was over 100 years old, at the
time of purchase, and contained the kind of plumbing that one would expect to see
in a home of its age. It is also undisputed that the age and condition of the stack had
been disclosed in the home inspection. The Pascoes’ inspector warned them that
there was some older cast iron and copper drain piping visible in the basement that
required monitoring. Even Michael acknowledged that “stacks are a significant
issue[ ] in houses that are older than 100 years” stating, “I think that that is a true
statement[.]” (Michael depo., p. 246.) After reading the August 2020 Disclosure
Form and the inspection report, Michael did not ask Detke any questions about the
repair, despite understanding that at 100 years old, the stack was “near the end” of
its useful life. (Michael depo., p. 221.) Furthermore, there is no evidence that
Detke’s July 2020 repairs to the stack were unsuccessful or the source of the alleged
leak. Nor is there any evidence that Detke hid the extent of the repair from the
Pascoes. The Pascoes complain about a leak that occurred 14 months after they
moved into the home. This was not a latent defect. Rather, it was discovered upon
reasonable inspection when the inspector alerted the Pascoes to monitor the stack, which was near the end of its useful life. Caveat emptor bars the Pascoes’ claim with
respect to the stack. The Pascoes’ fraud claims fail because there is no evidence
suggesting that Detke’s disclosure regarding the stack was false or made with
disregard or recklessness as to its truth or falsity.
Under these facts, we find that Detke met her burden of
demonstrating that no material issues of fact exist for trial. We agree with the trial
court in that the doctrine of caveat emptor precludes recovery. The alleged defects
with the roof, heat, and stack were either open and able to be discovered upon
reasonable inspection or were otherwise not actionable as a basis for their fraud
claims. The home inspection report actually alerted the Pascoes to monitor the stack
and obtain a quote on a roof replacement. Additionally, we agree with the trial court
in that the “as is” clause bars recovery. The Pascoes agreed to purchase the property
after having the opportunity to personally inspect the property, having a home
inspection completed, agreeing to a roof replacement, and negotiating the price of
the property.
As the nonmoving party, the Pascoes failed to present evidence
demonstrating the existence of a genuine issue of material fact. There is no evidence
that the alleged defects were latent, Detke knew of these latent defects, and
concealed them with such utter disregard and recklessness as to whether it is true
or false, or that they justifiably relied on Detke’s representations. Therefore, we find
that Detke is entitled to judgment as a matter of law on the Pascoes’ fraud claims, and even when construing the evidence most strongly in favor of the Pascoes,
reasonable minds can come to but one conclusion in favor of Detke.
The first and second assignments of error are overruled.
F. No Evidence to Support Breach of Contract, R.C. 4735.67(A), Civil Conspiracy, Fraud, and Respondeat Superior Claims
Within their third basis, the Pascoes argue that the trial court erred
in granting summary judgment because they provided sufficient evidence to raise
questions of material fact on the following claims: breach of contract against Detke,
civil conspiracy against Detke and Bentley, R.C. 4735.67(A) violations and fraud
against Bentley, and respondeat superior against Howard Hanna. We discuss each
claim in turn
1. Breach of Contract
We note that while the Pascoes raise error with the trial court’s grant
of summary judgment on breach-of-contract claim, the Pascoes fail to cite to any
authority in support of their contention. App.R. 16(A)(7) requires an appellant to
include within his brief “[a]n argument containing the contentions of the appellant
with respect to each assignment of error presented for review and the reasons in
support of the contentions, with citations to the authorities, statutes, and parts of
the record on which appellant relies.” And under App.R. 12(A)(2), an appellate court
may decline to address an assignment of error if an appellant fails to cite any legal
authority to support his argument. Because the appellant, rather than the appellate
court, bears the burden to construct the necessary legal arguments that support the designated assignments of error, we decline to address this argument. Walsh v.
Walsh, 2023-Ohio-1675, ¶ 10, citing Doe v. Cuyahoga Cty. Community College,
2022-Ohio-527, ¶ 26 (8th Dist.), citing Taylor-Stephens v. Rite Aid of Ohio, 2018-
Ohio-4714, ¶ 121 (8th Dist.).
2. R.C. 4735.67(A)
Next, the Pascoes argue the court erred in granting summary
judgment on their R.C. 4735.67(A) claim against Bentley. The Pascoes contend that
Bentley knew the heat was not working properly and thus violated her statutory
obligation not disclosing this to them. R.C. 4735.67(A) provides:
A licensee shall disclose to any purchaser all material facts of which the licensee has actual knowledge pertaining to the physical condition of the property that the purchaser would not discover by a reasonably diligent inspection, including material defects in the property, environmental contamination, and information that any statute or rule requires be disclosed. For purposes of this division, actual knowledge of such material facts shall be inferred to the licensee if the licensee acts with reckless disregard for the truth.
In conjunction with subsection (A), R.C. 4735.67(B) provides:
A licensee is not required to discover latent defects in the property or to advise on matters outside of the scope of the knowledge required for real estate licensure, or to verify the accuracy or completeness of statements made by the seller, unless the licensee is aware of information that should reasonably cause the licensee to question the accuracy or completeness of such statements.
Thus, to prevail on this claim, the Pascoes must prove that the alleged
heating issue was material, Bentley had actual knowledge of the heating issue, and
that the issue could not be discovered by a reasonably diligent inspection. We note
that under R.C. 4735.67(B), Bentley was not required to verify the accuracy of Detke’s statements, unless she was aware of information causing Bentley to question
the accuracy of such statements.
Here, the only evidence that Bentley was aware that there was a
heating issue in the home was from Bentley’s text exchange with Detke, who stated
that the heat was not “up to par” and come back when it would be 40 degrees paired
with the February 2020 Disclosure Form that referenced third-floor units as not
having been used in years with repairs pending. However, based on Detke’s
statement in the February 2020 Disclosure Form that repairs were pending, Bentley
believed that the heat issue was only with the third-floor space heaters and that the
issue was repaired. Bentley testified, “My understanding at the time was that we
were discussing the third floor unit, space heater . . . what I did not believe was part
of the central heating system to the home, and that that was in the process of being
repaired.” (Bentley depo., p. 99-100.) Bentley was “operating under the assumption
it was repaired. And it was a space heater and I just didn’t think it was important.
And . . . I think if the seller tells me something’s been repaired, I take them at their
word. I’m not . . . a contractor.” (Bentley depo., p. 147.)
As discussed above, the Pascoes and their inspector had the
unimpeded opportunity to inspect the heat and observe any alleged defect with the
heat. Additionally, the Pascoes lived in the house for approximately 14 months
without any issue with the heat. Because the alleged issue with the heat could have
been found in a reasonably diligent inspection, we find that there is no genuine issue
of material fact on the Pascoes’ R.C. 4735.67(A) claim. Additionally, the record is devoid of any indication that Bentley made any representations or assisted Detke
with the disclosure forms. Indeed, both disclosure forms provide that “[t]he
statements contained in this form are made by the owner and are not the statements
of the owner’s agent or subagent[.]” Therefore, Bentley was entitled to summary
judgment on this claim.
3. Civil Conspiracy
Third, the Pascoes attack the grant of summary judgment on their
civil-conspiracy claim. The Pascoes claim that Detke and Bentley have been friends
for over twenty five years and their conduct was “classic civil conspiracy under Ohio
law.” (Pascoes’ brief, p. 20.) Civil conspiracy is defined as “‘a malicious combination
of two or more persons to injure another in person or property, in a way not
competent for one alone, resulting in actual damages.’” Kenty v. Transamerica
Premium Ins. Co., 72 Ohio St.3d 415, 419 (1995), quoting LeFort v. Century 21–
Maitland Realty Co., 32 Ohio St.3d 121, 126 (1987), citing Minarik v. Nagy, 8 Ohio
App.2d 194, 196 (8th Dist. 1963).
In the matter before us, the Pascoes argue that Detke and Bentley
both knew of the issue with the heat and agreed to conceal it and conceal that the
previous sale failed because of water leaking from the stack. The issue of the failed
sale stems from Michael’s deposition testimony that when he spoke with the
previous prospective purchasers, he learned that the sale failed at inspection in part
because of a water leak that occurred while the prospective purchasers were in the
home, as well as electrical issues that caused them concern and possibly issues with the roof. The Pascoes maintain that Bentley should have disclosed these defects to
them but instead hid the real reason and told the Pascoes the husband had not seen
the home and when he did see it, he did not like it.
Civil conspiracy, however, is a derivative claim that cannot be
maintained without an underlying tort that is actionable without the conspiracy.
Arnoff v. PAJ Ents., 2022-Ohio-1759, ¶ 18 (8th Dist.), citing Adams v. Margarum,
2017-Ohio-2741, ¶ 21 (10th Dist.) (“[A] civil conspiracy claim is derivative and
cannot be maintained absent an underlying tort that is actionable without the
conspiracy.”). In this case, because the Pascoes failed, as a matter of law, on their
other claims, including the fraud claims, their civil-conspiracy claim fails as well.
4. Fraud
In their amended complaint, the Pascoes alleged fraud against
Bentley. Bentley, however, argues that the Pascoes abandoned and waived any
argument on appeal regarding their fraud claim against them. We agree.
In their reply brief, the Pascoes contend that they did not abandon
their fraud claim against Bentley because in their appellate brief they noted evidence
of “three specific acts in furtherance of the fraud against the Pascoes: (1) not
disclosing the heating defect, (2) misrepresenting the cause of the failed sale, and
(3) airing out the sewer gas smell.” (Pascoes’ brief, p. 20-21.) Their only reference
to this, however, is structured within their discussion regarding the trial court’s
dismissal of their civil-conspiracy claim and without any citation to the record in
support of their claim. The Pascoes do not separately argue their fraud claim against Bentley, nor do they support their contention with citations to the authorities,
statutes, and parts of the record on which they rely. Therefore, we decline to address
any argument relating to their fraud claim against Bentley. App.R. 16(A)(7) and
App.R. 12(A)(2).
5. Respondeat Superior
Lastly, the Pascoes argue the trial court erred in dismissing their
claims against Howard Hanna. Relying on Auer v. Paliath, 2014-Ohio-3632, ¶ 16,
they contend that Howard Hanna, as the real estate broker, is vicariously liable for
Bentley’s actions, as the real estate agent, if that agent is acting in the course and
scope of their employment. Similar to civil conspiracy, respondeat superior is a
derivative claim. Orac v. Montefiore Found., 2024-Ohio-4904, ¶ 22 (8th Dist.),
quoting Albain v. Flower Hosp., 50 Ohio St.3d 251, 255 (1990) (“In the
employment-law context, ‘the most common form of derivative or vicarious liability
is that imposed by the law of agency, through the doctrine of respondeat superior.’”)
Therefore, “‘a principal is vicariously liable only when an agent could be held directly
liable.’” Id., quoting Natl. Union Fire Ins. Co. v. Wuerth, 2009-Ohio-3601, ¶ 22.
Having found that the Pascoes’ claims against Bentley fail as a matter of law, their
respondeat superior claim against Howard Hanna likewise fails as a derivative
claim.
Thus, based on the foregoing, we find that the trial court properly
granted summary judgment in favor of Bentley and Howard Hanna. Even when
construing the evidence in most strongly in favor of the Pascoes, the Pascoes have failed to demonstrate a genuine issue of material fact. Bentley and Howard Hanna
are entitled to judgment as a matter of law.
Therefore, the third assignment of error is overruled.
Accordingly, judgment is affirmed.
It is ordered that appellees recover from appellants costs herein taxed.
The court finds there were reasonable grounds for this appeal.
It is ordered that a special mandate be sent to said court to carry this judgment
into execution.
A certified copy of this entry shall constitute the mandate pursuant to Rule 27
of the Rules of Appellate Procedure.
___________________________ MARY J. BOYLE, JUDGE
EMANUELLA D. GROVES, P.J., and SEAN C. GALLAGHER, J., CONCUR
Related
Cite This Page — Counsel Stack
Pascoe v. Detke, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pascoe-v-detke-ohioctapp-2026.