Skrupky v. Elbert

526 N.W.2d 264, 189 Wis. 2d 31, 1994 Wisc. App. LEXIS 1339
CourtCourt of Appeals of Wisconsin
DecidedNovember 1, 1994
Docket93-3414
StatusPublished
Cited by20 cases

This text of 526 N.W.2d 264 (Skrupky v. Elbert) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Skrupky v. Elbert, 526 N.W.2d 264, 189 Wis. 2d 31, 1994 Wisc. App. LEXIS 1339 (Wis. Ct. App. 1994).

Opinion

LaROCQUE, J.

Elaine Skrupky, the seller in a land contract foreclosure action, appeals a money judgment awarded on the counterclaims of Stephen Elbert and Lynn Marsh-Elbert (the buyers). Following a bench trial, the circuit court awarded the buyers tort damages of $81,849.30, including $17,830 in attorney fees, less $58,127.21 awarded Mrs. Skrupky as the principal balance due under the land contract. Although a number of issues are raised, the following are dispositive: (1) whether the evidence supports the finding that Mrs. Skrupky's son, Lynn Skrupky, was acting as her agent when he misrepresented the condition of the property; (2) whether the evidence supports the damage award; (3) whether the award of attorney fees under the deceptive advertising statute, § 100.18, Stats., was beyond the three-year statute of limitations; and (4) whether the trial court erroneously exercised its discretion by refusing to award interest on the unpaid principal balance of the land contract.

We conclude: (1) The evidence supports a factual inference that Lynn had implied actual authority under the laws of agency, the trial court's finding of *39 agency was not clearly erroneous and his misrepresentations impose liability upon Mrs. Skrupky as a principal; (2) the evidence is sufficient to sustain only specified parts of the damage award; (3) the deceptive advertising claim was not filed within the statute of limitations; and (4) the trial court did not erroneously exercise its discretion under its equitable powers to deny interest on the unpaid land contract principal. We therefore affirm the imposition of liability for misrepresentation, but reverse and remand for recalculation of the damages consistent with this decision.

BACKGROUND

Mrs. Skrupky inherited the subject parcel of commercial real estate in the City of Rice Lake from her late husband, Hartford Skrupky, who had operated a used car sales business on the site until his death in 1982. At an earlier time, others had used the site as a gasoline station, and the property housed three underground gasoline storage tanks and a waste oil tank. 1 Upon Hartford's death, the Skrupkys' son, Lynn, took over operation of the business for his mother. He managed all aspects of it, turning the profits over to his mother after paying his salary and the operating expenses.

*40 For a number of years, the city had sought compliance with a municipal ordinance relating to abandonment of underground gas tanks. After Hartford's death in 1982, a city fire department inspector served Lynn with orders, one addressed to "Skrupky Auto Row" and another directed to the "Hartford Skrupky Estate," to either remove or empty and fill the underground gas tanks as required by law. 2 Lynn provided his mother with the written directive detailing the specific requirements of the law. They also discussed "the ramifications and the legalities of what we are forced to do." 3 Mrs. Skrupky casually noticed but did not participate in the filling operation. Lynn poured a sand and water mixture into only one of the three fill pipes until he decided it would take no more. He then reported to the inspector that he had complied with the order. The inspector accepted Lynn's verbal assurance "at faith" and deemed the requirements satisfied. The *41 order was stamped completed and dated July 25,1983. Lynn then showed this document to his mother.

In 1985, Mrs. Skrupky placed the property for sale with a listing broker, and the broker's "For Sale" sign appeared on the property. The buyers were long-time former neighbors of the Skrupkys. One of the buyers, himself an environmental compliance specialist, stopped at the property and spoke to Lynn, who was on the premises. At the time, the concrete islands upon which the gas pumps formerly stood, as well as several brass covers over several fill pipes, were plainly visible. The buyer explained to Lynn the plans for his wife and him to operate a feed and seed business on the property, and inquired whether the underground tanks had been filled. Lynn told him that the tanks had been filled with sand. Lynn reported to his mother that the buyers had approached him about purchasing the property, and told her of their intent to operate a seed business on "our property." 4

Mrs. Skrupky later accepted a written offer to purchase from the buyers, the relevant terms of which are set forth later. Mrs. Skrupky and the buyers then entered into a land contract. Several years later, when the buyers discovered ground contamination, the tanks were dug up and removed. The tanks were neither drained nor filled, with the exception of one tank about one-third filled, and the vents and pipes were not properly disconnected or capped. The city inspector who had approved the abandonment later acknowledged that a subsequent inspection and other trial evidence demonstrated that Lynn had not met the requirements of the law.

*42 The buyers stopped making contract payments, and Mrs. Skrupky brought this action for foreclosure. The buyers counterclaimed under a number of theories for damages for cleanup costs and business losses. The trial court granted the counterclaim on each of the theories pleaded and awarded damages after a setoff for outstanding principal due. It denied Mrs. Skrupky's demand for interest on the unpaid sum.

DISCUSSION

A. MISREPRESENTATION IN THE OFFER TO PURCHASE CONTRACT

We concur with Mrs. Skrupky's contention that there was no misrepresentation by virtue of the language in the initial offer to purchase agreement, which reads:

Seller warrants and represents to Buyer that Seller has no notice or knowledge of any:
(b) government agency or court order requiring repair, alteration or correction of any existing condition.
EXCEPTIONS TO WARRANTIES AND REPRESENTATIONS [ABOVE]:
Understandably, seller cannot warrant continued operation of mechanical systems nor guarantee condition of premises. Buyers have inspected the property and accept "as is".

While the parties debate the scope and validity of the "as is" language in the exception clause, the dispos- *43 itive factor is the indisputable evidence that the representation made in paragraph (b) was true.

There simply was no "government agency or court order requiring repair, alteration or correction of any existing condition" at the time this representation was made. To the contrary, the city had declared in writing in 1983 that its order was "completed." Thus, Mrs. Skrupky had no notice or knowledge of any agency or order requiring correction of an existing condition.

B. MISREPRESENTATION BY A PRINCIPAL'S AGENT

We turn to the question of whether the trial court erred by attributing to Mrs. Skrupky her son's untrue statement to the buyers.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Randall, Stacy v. Widen, Reed
W.D. Wisconsin, 2023
Ziegler Landscaping Inc. v. RPM Property Service
Court of Appeals of Wisconsin, 2021
Robert Parks v. Robert Wucherer
Court of Appeals of Wisconsin, 2020
Benjamin Jossund v. Heim Plumbing, Inc.
Court of Appeals of Wisconsin, 2019
Burkett & Associates, Inc. Century 21 v. Teymer
2009 WI App 67 (Court of Appeals of Wisconsin, 2009)
Mared Industries, Inc. v. Mansfield
2005 WI 5 (Wisconsin Supreme Court, 2005)
Morters v. Aiken & Scoptur, SC
679 N.W.2d 926 (Court of Appeals of Wisconsin, 2004)
Betterman v. Fleming Companies
2004 WI App 44 (Court of Appeals of Wisconsin, 2004)
In Re Harnischfeger Industries, Inc.
294 B.R. 47 (D. Delaware, 2003)
MBI Acquisition Partners, L.P. v. Chronicle Publishing Co.
301 F. Supp. 2d 873 (W.D. Wisconsin, 2002)
Schurmann v. Neau
2001 WI App 4 (Court of Appeals of Wisconsin, 2000)
Sta-Rite Industries, Inc. v. Zurich Re (u.k.) Ltd.
178 F.3d 883 (Seventh Circuit, 1999)
Staudt v. Artifex Ltd.
16 F. Supp. 2d 1023 (E.D. Wisconsin, 1998)
Tomczak v. Bailey
578 N.W.2d 166 (Wisconsin Supreme Court, 1998)
State Ex Rel. Angela M.W. v. Kruzicki
561 N.W.2d 729 (Wisconsin Supreme Court, 1997)
Tomczak v. Bailey
557 N.W.2d 840 (Court of Appeals of Wisconsin, 1996)
Delta Group, Inc. v. DBI, INC.
555 N.W.2d 162 (Court of Appeals of Wisconsin, 1996)
Frank v. Wisconsin Mutual Insurance
543 N.W.2d 535 (Court of Appeals of Wisconsin, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
526 N.W.2d 264, 189 Wis. 2d 31, 1994 Wisc. App. LEXIS 1339, Counsel Stack Legal Research, https://law.counselstack.com/opinion/skrupky-v-elbert-wisctapp-1994.