Shiozawa v. Duke

2015 UT App 40, 344 P.3d 1174, 780 Utah Adv. Rep. 37, 2015 Utah App. LEXIS 39, 2015 WL 737121
CourtCourt of Appeals of Utah
DecidedFebruary 20, 2015
Docket20130253-CA
StatusPublished
Cited by12 cases

This text of 2015 UT App 40 (Shiozawa v. Duke) is published on Counsel Stack Legal Research, covering Court of Appeals of Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shiozawa v. Duke, 2015 UT App 40, 344 P.3d 1174, 780 Utah Adv. Rep. 37, 2015 Utah App. LEXIS 39, 2015 WL 737121 (Utah Ct. App. 2015).

Opinion

Opinion

CHRISTIANSEN, Judge:

T1 Natalie Shiozawa and Ulrike Dann-hauer (collectively, Plaintiffs) appeal from the district court's order granting summary judgment in favor of Marci Duke, James Duke, Christopher Duke, and Rebecca Duke (collectively, the Dukes), 1 and in favor of Pine Valley Realty, LLC, on Plaintiffs' claims of breach of contract and fraud in connection with the sale of real property. We affirm in part, reverse in part, and remand the matter to the district court.

BACKGROUND

T2 This dispute concerns the sale of a house built in Salt Lake County in 1928. 2 The Dukes never lived in the house, which had been previously owned and occupied by James and Christopher's grandparents. 3 Before offering it for sale, the Dukes made certain repairs and improvements to the house. The Dukes performed some of this work themselves but contracted to have other aspects of the work done by licensed contractors. Christopher, a licensed plumber, installed plumbing improvements in the house. The Dukes also finished the basement. As part of this project, Christopher and James patched some of the cracks on the interior walls of the foundation. When that task was completed, a contractor installed drywall, which concealed the basement foundation from view. In addition, James and Marci patched and painted the exterior of the foundation above the ground, thereby covering some exterior foundation cracks. The Dukes also installed landscaping along portions of the exterior foundation. After completing the repairs and improvements, the Dukes offered the house for sale through real estate agent and part-owner, Marci. Pine Valley Realty acted as the broker for the house. Neither Marci nor Pine Valley Realty received any commission or compensation from the sale of the house.

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(b) the ... plumbing [and other] systems . will be in working order and fit for their intended purposes;
(c) the ... foundation shall be free of leaks known to Seller....

On April 11, 2007, the Dukes delivered "Seller's Property Condition Disclosure" to Plaintiffs. Pursuant to this document, the Dukes agreed that they were "obligated under law to disclose to Plaintiffs defects in the Property known to Seller that materially and adversely affect the value of the Property that cannot be discovered by a reasonable inspection by an ordinary prudent buyer." Relevant to this appeal, the Dukes' completed disclosure contained the following questions and answers:

Q: With the exception of an occasional clogged drain or toilet, are you aware of any past or present problems with the sewer or septic service or components, for example, broken sewer lines, consistently slow or clogged drains, etc.?

€ 3 On April 10, 2007, Plaintiffs executed a Real Estate Purchase Contract (the REPC), agreeing to purchase the house, subject to their approval of the seller disclosures and after physical inspection of the home. The REPC included the following warranty obligations:

10.2 Condition of Property. Seller warrants that the Property will be in the following condition ON THE DATE SELLER DELIVERS PHYSICAL POSSESSION TO BUYER:
*1177 A: No.
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Q: Are you aware of any past or present problems with termites, dry rot, rodents, or pests on or affecting the Property?
A: No.
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Q : With the exception of cosmetic upgrades to the Property (such as carpet, paint, wallpaper, etc.), have you remodeled, made any room additions, made structural modifications or other alterations or improvements to the Property? If "Yes," please describe, to your knowledge, the nature of any such remodel/alteration work:
A: Yes. [All new electrical, windows, furnace, a/c unit, sprinkling system], new water heater, new duct work, newer plumbing, drywall, cabinets, fixtures/hardware, added motion lights southside outside, new garage door, new garage roof, ete.
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Q: Are you aware of any past or present movement, shifting, deterioration, or other problems with the walls or foundation?
A: No.
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Q: In reference to the basement and/or crawlspace, are you aware of any past or present water leakage, water accumulation or dampness?
A: No.
Q: Are you aware of any past or present water or moisture-related damage caused by: flooding; lot drainage; moisture seepage or condensation; sewer overflow/backup; leaking or broken pipes, pipe fittings, or plumbing fixtures; or leaking appliances, fixtures, or equipment? ~
A: No. *
Q: Please describe, to your knowledge, any attempts to repair any moisture: related damage and/or to prevent any recurrence of water and moisture-related damage on the Property.

A: None.

{4 In connection with their right to inspect the house as part of the sale, Plaintiffs and their home inspector walked through the house to assess its condition. Before closing, the inspector provided a written inspection report to Plaintiffs. The report noted that "Iwlater will inevitably flow towards the foundation due to the grade; such conditions can promote undermining of the structural foundation and subsequent damage." In addition, the report contained a section specifically related to the condition of the foundation of the house:

FOUNDATION:

The foundation was constructed of - poured concrete. A single inspection cannot determine whether movement of a foundation has ceased. Any eracks should be monitored regularly. There were no major visual defects observed on the visible portions of the foundation. There were several minor, vertical cracks observed on the foundation. The cracks were 1/16-inch or less in width,. These cracks did not appear to have any structural significance at the time of the inspection. Vertical cracks can be found in most foundation materials, which would include poured concrete, hollow masonry block, brick and stone. We have seen such crack patterns in all of the above noted materials. It is not uncommon to find such cracks in poured concrete foundation walls. These vertical cracks in concrete are typically very narrow, hairline to 1/16 of an inch, and usually pose no significant structural problem for a building. This type of crack is generally the result of curing and moisture shrinkage of newly poured concrete and it will commonly develop between the first several months after construction right up to two years. Parging, the stue-co-sand mixture applied to foundation walls, may be added (it exists but is deteriorating in some sections) to help assuage moisture intrusion [into] such cracks.

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Bluebook (online)
2015 UT App 40, 344 P.3d 1174, 780 Utah Adv. Rep. 37, 2015 Utah App. LEXIS 39, 2015 WL 737121, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shiozawa-v-duke-utahctapp-2015.