Sheehan v. Adams

320 S.W.3d 890, 2010 Tex. App. LEXIS 6602, 2010 WL 3212061
CourtCourt of Appeals of Texas
DecidedAugust 16, 2010
Docket05-08-01340-CV
StatusPublished
Cited by8 cases

This text of 320 S.W.3d 890 (Sheehan v. Adams) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sheehan v. Adams, 320 S.W.3d 890, 2010 Tex. App. LEXIS 6602, 2010 WL 3212061 (Tex. Ct. App. 2010).

Opinion

OPINION

Opinion By

Justice MURPHY.

We must determine in this appeal whether legally sufficient evidence supports a jury’s statutory fraud and DTPA verdict in favor of Mary Lou Sheehan, the purchaser of a twenty-year old house located in Mesquite, Texas. Applying well-established law that a vital fact may not be established by piling inference upon inference, we conclude the evidence was legally insufficient to support the verdict. Accordingly, the trial court did not err when it granted a judgment notwithstanding the verdict. The trial court also did not abuse its discretion in failing to award appellate attorney’s fees to cross-appellant Lori Arnold d/b/a Coldwell Banker Apex Realtors. We affirm the trial court’s judgment.

I. BACKGROUND

In April 2002, Sheehan contacted Bethe-na Smith, a real estate agent associated with Coldwell Banker, to represent her in the purchase of her first house. Coldwell Banker is a real estate services firm. Around that same time, Bruce and Sammi Adams listed their house with Walter Cole, a real estate agent who was also associated with Coldwell Banker.

After twice visiting the Adamses’ house in May 2002, Sheehan signed a purchase contract. Pursuant to the contract, the Adamses delivered the “Seller’s Disclosure Notice” as required by section 5.008 of the Texas Property Code. See Tex. Prop.Code Ann. § 5.008 (Vernon Supp. 2009). Bruce filled out the seller’s disclosure, checking the box indicating he and Sammi were unaware of any defects or malfunctions in the foundation, walls, floors, ceilings, or roof. He further indicated that the only condition of which they were aware was “Settling.” Next to the box where he checked “Yes” for settling, Bruce inserted a handwritten comment in which he characterized the settling as “NORMAL.”

After he filled out the seller’s disclosure but before the house was inspected, Bruce called Cole about a “hairline crack” in the brick on the west side of the exterior of the house (the west-side crack). Pursuant to their discussion, Bruce made no changes to the disclosure.

Sheehan hired Randal Duncan, a licensed house inspector with All Pro Inspections, to perform the inspection. Sheehan’s primary concern for Duncan *894 was the foundation because of the disclosure that the house had “normal” settlement. Duncan inspected the Adamses’ house on May 9, 2002 and, after a three-hour inspection, delivered a report to Sheehan. The Adamses, Sheehan, and Smith were present for the inspection, during which Duncan noticed some exteri- or cracks in the brick of the house. He did not note them on his report because he considered them normal for a house of that age. Duncan told Sheehan he found no problems with the foundation. His report specifically included the notation that the foundation was inspected and “[t]here were no signs of significant cracks or movement noted in the foundation at this time.” He did note roof and termite issues and recommended that Sheehan consult with a roofer. Sheehan signed the inspection agreement and termite report. Based on the inspection report, the parties amended the contract to require the Adamses to pay the roof repair cost.

Sheehan, with Smith present, conducted a final walk-through on May 15, 2002, the day before closing. Sheehan then signed the “Buyer’s ‘Walk Thru’ and Acceptance Form,” acknowledging her inspection of the property and noting the specific repairs, such as the roof replacement, to be completed before closing. She saw no cracks in the house’s interior and admitted she never looked at the exterior. The acceptance form included a notice that the “real estate brokers and the Seller have no knowledge of any defects in the Property other than what has been disclosed in the Seller’s Disclosure Notice or other written information.”

Closing was finalized May 16, 2002, and Sheehan moved in on May 29, 2002. In August 2002, Sheehan discovered cracks in the interior and exterior walls of the house. In an e-mail to Smith dated August 12, 2002, Sheehan wrote:

I just discovered some huge cracks in the walls in my bedroom and ceiling of the living room. I went outside and there is about a 3 foot vertical crack in the brick outside my bedroom wall. I’m pretty sure that it just happened. But isn’t this something that Randall Duncan should have been able to check out?

Sheehan wrote she was “very upset” and asked Smith what she should do. Smith responded that a “brick crack” in this “dry, hot weather” is not uncommon and recommended Sheehan hire a foundation expert. Smith also recommended that Sheehan follow a watering program “to keep the foundation stable.”

Two weeks later, on August 25, 2002, Sheehan received a proposal from Power Lift Foundation Repair, Inc. to perform foundation work. Power Lift estimated it would cost Sheehan $10,475 to “Halt settlement” and “Regain elevation as practical.” Power Lift also noted a recommendation: “Implement watering system to maintain consistent moisture level around perimeter of foundation.”

Sheehan also hired a geotechnical engineer, Edward Scoular, to assess the condition of the foundation. Scoular was a principal with Independent Foundation Engineers, Inc., a firm that specialized in evaluating foundations. Scoular prepared a report dated September 20, 2002, noting cracks in the mortar and brick, wall and ceiling sheetrock, and the foundation. Scoular did not offer an opinion as to when the foundation actually failed. Thereafter, Sheehan received a second proposal to fix the foundation, prepared by Ram Jack of Texas, Inc. On November 20, 2002, Power Lift also provided Sheehan with a revised proposal, which incorporated Scoular’s recommendations.

Sheehan originally made written demand on the Adamses and Duncan seeking payment for foundation repairs. After fil *895 ing suit, she settled her claims against Duncan and All Pro, and those claims were dismissed.

Sheehan sued the Adamses and Arnold, alleging violations of the Texas Deceptive Trade Practices and Consumer Protection Act, fraud, breach of contract, and breach of fiduciary duty. All allegations were premised on a claim the house had a foundation problem that was both misrepresented and not disclosed. After the jury returned a verdict in favor of Sheehan, the trial court granted motions for JNOV by the Adamses and Arnold and rendered judgment that Sheehan take nothing on her claims. The judgment also included an award of attorney’s fees in favor of Arnold and against Sheehan through trial. The trial court made no findings of fact, however, regarding appellate fees and concluded Arnold was not entitled to such recovery.

Both Sheehan and Arnold appeal the trial court’s judgment. In Sheehan’s first issue, she contends the trial court erred in granting the motions for JNOV because the record contains legally sufficient evidence to support the jury’s findings that the Adamses violated the DTPA and the Adamses and Arnold committed statutory fraud.

II. STANDARD OF REVIEW AND APPLICABLE LAW

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320 S.W.3d 890, 2010 Tex. App. LEXIS 6602, 2010 WL 3212061, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sheehan-v-adams-texapp-2010.