ReMax North Atlanta v. Clark

537 S.E.2d 138, 244 Ga. App. 890, 2000 Fulton County D. Rep. 3077, 2000 Ga. App. LEXIS 886
CourtCourt of Appeals of Georgia
DecidedJuly 10, 2000
DocketA00A0624
StatusPublished
Cited by45 cases

This text of 537 S.E.2d 138 (ReMax North Atlanta v. Clark) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ReMax North Atlanta v. Clark, 537 S.E.2d 138, 244 Ga. App. 890, 2000 Fulton County D. Rep. 3077, 2000 Ga. App. LEXIS 886 (Ga. Ct. App. 2000).

Opinion

Ellington, Judge.

Regina Clark sued Rebecca and Dean C. Bryant and their real estate sales agents, ReMax North Atlanta, Inc. (“ReMax”) and Scheri Caldwell, for fraudulently misrepresenting the condition of and con *891 cealing material defects regarding the Cherokee County home she purchased in August 1994. The jury returned a verdict in Clark’s favor and awarded $40,000 in compensatory damages. 1 Appellants ReMax and Caldwell contend the trial court erred in denying their motion for a directed verdict, their motion for new trial, or their motion for judgment notwithstanding the verdict because the evidence adduced against them was insufficient as a matter of law to establish the elements of fraud. We agree and reverse the judgment.

In reviewing a jury verdict after the denial of a motion for judgment n.o.v. or for new trial, we follow these well-established principles:

Where a jury returns a verdict and it has the approval of the trial judge, the same must be affirmed on appeal if there is any evidence to support it as the jurors are the sole and exclusive judges of the weight and credit given the evidence. The appellate court must construe the evidence with every inference and presumption in favor of upholding the verdict, and after judgment, the evidence must be construed to uphold the verdict even where the evidence is in conflict. As long as there is some evidence to support the verdict, the denial of defendant’s motion for directed verdict and new trial will not be disturbed.

(Citation and punctuation omitted.) Brown v. Mann, 237 Ga. App. 247-248 (1) (514 SE2d 922) (1999). Viewed in this light, the record reveals the following:

In late July 1994, Clark began looking for a home to buy. Because she had to vacate her old home within 30 days, she needed to find something quickly. Clark enlisted the aid of Denise McDonald, a real estate sales agent with ReMax Suburban Atlanta, Inc. McDonald told Clark about the Bryants’ home, which had just been listed with the Multiple Listing Service by Caldwell, a sales agent affiliated with ReMax North Atlanta. Caldwell had been retained by the Bryants on July 29, 1994, the same day the house was listed. Clark and her son immediately went to the house and knocked on the Bryants’ door. Mrs. Bryant admitted Clark into the house and allowed her to walk through it for about 15 minutes.

The next day, Clark returned to the house with her agent, McDonald. Clark testified that during this second visit, Caldwell was *892 present and said the following to her: (1) the Bryants’ home was a “good buy” and was in “good condition”; (2) Mr. Bryant, who had added a room in the basement, was “real good at handy work and he did a lot of work for himself”; (3) Mr. Bryant “was good at fixing things”; and (4) Caldwell said she was “friends” with the Bryants and they were “really good people,” “nice people,” “honest,” and “she liked them.” Clark said she was not able to adequately inspect the house on this occasion because it was full of furniture and boxes and playing children.

On August 2, 1994, shortly after her second visit, Clark made an offer on the house, which was accepted on August 3, 1994. The contract set the closing for August 15, 1994. The real estate sales agreement contained a disclaimer in which the seller and buyer acknowledged they have not relied on the broker’s representations including, but not limited to, the structural condition of the home, the operating condition of the plumbing, and the resale value of the home.

After Clark made her offer, she received a copy of the Bryants’ disclosure statement, which the Bryants had filled out previously on July 29, 1994. There is no evidence from which the jury could infer that Caldwell counseled or assisted the Bryants in filling out the form. The form expressly states that it contains a disclosure of the “Seller’s knowledge of the condition of the property” and is not “a warranty or representation by the listing broker, the selling broker, or their affiliated licensees.” The Bryants disclosed no defects or problems with their home.

About a week after her second visit, Clark again walked through the house, this time accompanied by her parents. Caldwell was also present. Clark said it was difficult to assess the condition of the house because it was full of boxes and furniture and because the shades were drawn, making the home dark. She noticed the strong smell of air freshener. Clark also noted water damage on the ceiling next to the fireplace. Clark testified she was told, although not by whom, that the damage occurred when the Bryants put out a fire that started on their Christmas tree. Clark did not inspect the attic because Mrs. Bryant asked her not to since it was “a mess.” Finally, Clark noticed that the Bryants were in the process of painting the master bedroom, the hall, and the stairwell walls. Clark did not hire a professional to inspect the house before buying it, even though her agent wrote an inspection clause into the real estate sales agreement.

Within a few weeks after she bought the house, Clark discovered that the plumbing connection to her washing machine was inadequate. She also began to smell a foul odor coming from beneath the basement’s raised bathroom. And, when it rained, she found that the roof leaked. When she went into the attic, Clark saw that the wood *893 was bowed and rotten and that water was flowing down the flashing the entire length of the house.

In September 1994, Clark hired a home inspector. The inspector testified that the house had the following problems: (1) an overflowing septic tank, (2) water damage and rotten wood in the ceiling and exterior siding of the house, (3) rotten lumber in the deck flooring, (4) water damage in the kitchen, and (5) inadequate plumbing in the laundry and bathrooms. The inspector opined that the ceiling had been leaking for a long time, well over a year, and that the residents would have known of it. He noted that the fresh paint in the house covered old water spots that were beginning to bleed through. And, several rotted deck boards had been turned over so that the rot was concealed. A home builder testified that the absence of gypsum sheathing throughout the house left it exposed to moisture damage. He believed the home was not sellable in its current condition and required between $13,000 and $15,000 in repairs. A former neighbor of the Bryants testified that the house had a history of water problems.

Caldwell testified that she did not know the Bryants before listing their home on July 29, 1994. Caldwell said she was in the home only three times. She testified that she was not trained to do home inspections, that she did not inspect the house, that she was unaware of the defects the Bryants concealed, and that she did not advise the Bryants to paint, use air fresheners, or conceal anything about the condition of the house.

The tort of fraud has five elements: (1) a false representation or omission of a material fact; (2) scienter; (3) intention to induce the party claiming fraud to act or refrain from acting; (4) justifiable reliance; and (5) damages. Klusack v. Ward, 234 Ga. App.

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Bluebook (online)
537 S.E.2d 138, 244 Ga. App. 890, 2000 Fulton County D. Rep. 3077, 2000 Ga. App. LEXIS 886, Counsel Stack Legal Research, https://law.counselstack.com/opinion/remax-north-atlanta-v-clark-gactapp-2000.