Rodgers v. Sipes

2012 Ohio 3070
CourtOhio Court of Appeals
DecidedJuly 2, 2012
Docket3-11-19
StatusPublished
Cited by6 cases

This text of 2012 Ohio 3070 (Rodgers v. Sipes) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rodgers v. Sipes, 2012 Ohio 3070 (Ohio Ct. App. 2012).

Opinion

[Cite as Rodgers v. Sipes, 2012-Ohio-3070.]

IN THE COURT OF APPEALS OF OHIO THIRD APPELLATE DISTRICT CRAWFORD COUNTY

GRANT RODGERS, ET AL.

PLAINTIFFS-APPELLANTS, CASE NO. 3-11-19

v.

DAVID M. SIPES, OPINION

DEFENDANT-APPELLEE.

Appeal from Crawford County Common Pleas Court Trial Court No. 10-CV-0041

Judgment Affirmed

Date of Decision: July 2, 2012

APPEARANCES:

Shane M. Leuthold for Appellants

Clifford J. Murphy for Appellee Case No. 3-11-19

SHAW, P.J.

{¶1} Plaintiff-appellants Grant Rodgers and Deidre M. Rodgers

(collectively “the Rodgers”) appeal the October 18, 2011 judgment of the

Common Pleas Court of Crawford County, Ohio in favor of defendant-appellee

David M. Sipes (“Sipes”) following a bench trial on claims of fraudulent

misrepresentation, fraudulent concealment and breach of contract.

{¶2} In 2001 Sipes and his wife signed a contract with Nigh Builders for

the construction of a residence at 5651 Lincoln Highway in Bucyrus, Ohio. In the

years after the home was completed, Sipes and his wife spent part of the year

living at the property in Ohio and the other part of the year living in Florida.

While they stayed in Florida, various friends, relatives and neighbors would check

on the residence in their absence.

{¶3} When Sipes’ wife died in 2006, he decided to sell the property in

Bucyrus. In preparing to sell the house, Sipes retained the services of a realtor,

Jerry Holden of Haring Realty, Inc. As part of the process of selling a home,

pursuant to R.C. 5302.30, Sipes filled out a Residential Property Disclosure Form

(“disclosure form”). On the disclosure form, Sipes checked that he did not know

of any current problems with the basement.

{¶4} The Rodgers, who were residing in California, heard that Sipes’

property was for sale through some friends that lived in the area. The Rodgers had

-2- Case No. 3-11-19

planned to relocate to Ohio for Grant Rodgers’ work. While Deidre Rodgers was

in Ohio, she made an appointment to look at Sipes’ property.

{¶5} On September 6, 2006, Deidre Rodgers toured Sipes’ property. At

that time, Deidre, the realtor and Sipes were the only people present. After touring

the property, Deidre called her husband Grant and the Rodgers decided to

purchase Sipes’ property. The same day that Deidre Rodgers toured the home, she

signed a real estate purchase agreement (hereinafter “purchase agreement”) which

included, inter alia, a contingency that the Rodgers be able to sell their home. The

purchase agreement also contained language that the property was “being

purchased in its present physical condition after examination and inspection by

[the Rodgers],” and that the Rodgers would take the property “as is” should the

Rodgers not notify Sipes within 5 days after the expiration of a repair period for

defects.1 (Pl.’s Ex. 1); (Def.’s Ex. D).

1 The clause containing this information reads as follows:

15. Right to Cancel: If Seller is unwilling or unable to repair any defect or to provide the assurances described above during the repair period, Purchaser shall have the right at the Purchaser’s sole option, to cancel this contract, in which event the earnest money shall be handled as provided in Section 3 of this contract, and the parties shall be released from all other obligations. This right of cancellation shall be exercised, if at all, by giving written notice to Seller within 5 days after the expiration of the repair period. Failure by Purchaser to cancel this contract within such 5-day period shall constitute a waiver by Purchaser of any uncured defects, and Purchaser shall take the property “as is” with respect to such defects. (Emphasis added) (Pl.’s Ex. 1); (Def.’s Ex. D).

-3- Case No. 3-11-19

{¶6} Attached and incorporated into the purchase agreement was the

disclosure form that had been filled out by Sipes stating, among other things, that

Sipes knew of no problems with the basement. The disclosure form also stated in

capital letters that it was not a warranty or a substitute for an inspection, and

encouraged the Rodgers to obtain a home inspection.

{¶7} Prior to closing, the Rodgers had the realtor, who was acting in a dual-

agency capacity, recommend a home inspector. The realtor recommended F.

Michael Demeter (“Demeter”), dba of National Property Inspections. On October

19, 2006 Demeter conducted a pre-purchase home inspection with Grant Rodgers

and Sipes both present. Although Demeter did not inspect the roof as it was

raining that day, neither Demeter nor Grant Rodgers was in any way restricted by

Sipes from examining any part of the home or property.

{¶8} During Demeter’s inspection, Sipes informed Grant Rodgers that the

sump pump had failed in 2004 causing the basement to flood. Sipes told Grant

Rodgers that was the only time Sipes had experienced any water in the basement.

Both Grant and Deidre said the basement was important to them because Grant

intended to make it his home office.

{¶9} Demeter spent approximately 2-2.5 hours on the property. After

Demeter finished the inspection he produced a 22 page report and issued a limited

-4- Case No. 3-11-19

home warranty to the Rodgers.2 In the report, under Grading/Drainage, Demeter

mentioned having observed various positive degrees of slope running toward the

home. (Def.’s Ex. B). He suggested “building up level of earth at any low spots”

and “monitor[ing] ground water runoff.”3 Id. Demeter also noted that there was a

battery backup for the sump pump, saying “[i]t is this inspector’s experience that,

when battery back-up (sic) is present, it is because of the owner’s past

experiencing a flooded basement due to a power outage.” Id. at 13. In Demeter’s

report, he further marked that the sump pump in the basement was in “acceptable”

condition.4 Id. at 12.

{¶10} Ultimately the Rodgers purchased Sipes’ property for a total of

$305,000. On or around November 16, 2006, the Rodgers took possession of the

property, and on November 17, 2006 the deed was transferred by Sipes. After

purchasing the property, the Rodgers had a 40’ by 50’ pole barn built

approximately thirty feet away from the home. The Rodgers also added an

overhang to the porch of the home in which six inch by six inch support posts

were sunk into the ground to support the overlay. The construction of these

structures was completed in December of 2006.

2 The warranty only covered an enumerated list of issues, only up to the amount of $2500, and only after a deductible was paid. Issuing the limited home warranty appears to be standard practice for this company for anyone that has an inspection done. 3 In the report, Demeter checked the boxes for both “Monitor Condition” and “Recommend Repairs.” 4 The report defines acceptable as “[t]he item/system was performing its intended function at the time of inspection.” (Def.’s Ex. B at 5).

-5- Case No. 3-11-19

{¶11} On January 5, 2007, for the first time the Rodgers noticed water in

the basement, leaking through the walls, draining into a floor drain located in the

middle of the basement floor. According to Grant Rodgers, this problem

continued whenever there was a heavy rain. Grant Rodgers said there was water

in the basement 10-12 times per year and that it remained in the basement for 3-4

days each time. (Tr. at 138). The Rodgers testified that the water created a “rotten

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2012 Ohio 3070, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rodgers-v-sipes-ohioctapp-2012.