Starks v. Albemarle County

716 F. Supp. 934, 1989 U.S. Dist. LEXIS 9280, 1989 WL 90332
CourtDistrict Court, W.D. Virginia
DecidedAugust 9, 1989
DocketCiv. A. 88-0042-C
StatusPublished
Cited by5 cases

This text of 716 F. Supp. 934 (Starks v. Albemarle County) is published on Counsel Stack Legal Research, covering District Court, W.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Starks v. Albemarle County, 716 F. Supp. 934, 1989 U.S. Dist. LEXIS 9280, 1989 WL 90332 (W.D. Va. 1989).

Opinion

MEMORANDUM OPINION

MICHAEL, District Judge.

Defendant Albemarle County brings its motion for summary judgment pursuant to *936 Rule 56 of the Federal Rules of Civil Procedure. Defendant Charles William Hurt brings his motion to dismiss plaintiffs claims against him pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure. For the reasons stated infra, the motions of both defendants are granted.

I. Background

The facts in this case are undisputed by the parties. The plaintiffs, George and Jacqueline Starks, brought this action in order to recover for damages suffered as a result of the flooding of their home on May 28,1982. The Starks allege that both Albe-marle County and Hurt, a real estate developer, were aware that the specific lot which Hurt sold to the Starks was at the lowest point of a drainage basin and was located in a flood-prone area. Because statutes of limitation are involved in defendant Hurt’s motion to dismiss, the following chronology of the events relating to this claim is appropriate.

On June 21, 1976, the Starks purchased the lot in question, located in the Berkeley subdivision, from defendant Charles Hurt. A house was later built on this property. On June 1, 1979, the plaintiffs experienced serious flooding problems for the first time. In the fall of 1980, the County built a larger culvert in the area to help alleviate the flooding problem in the vicinity of the Starks’ home and lot. On May 28, 1982, the Starks’ house was destroyed as a result of severe flood damage. On June 8, 1983, the Albemarle County Board of Supervisors disallowed the plaintiffs’ claim, allowing the Starks to proceed in a civil suit against the County pursuant to Va.Code § 15.1-552. On September 20, 1983, the plaintiffs filed their complaint in the Circuit Court for Albemarle County. In 1988, the state action was non-suited and the action in this court was filed. This court has jurisdiction over this action based on the amount in controversy and diversity of citizenship, pursuant to 28 U.S.C. § 1332(a)(1), since the Starks are now citizens and residents of the State of Pennsylvania. As this court has jurisdiction on the basis of diversity of citizenship and amount in controversy, Virginia law governs the outcome of this case. See Erie Railroad Co. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938).

II. The Court Grants Defendant Charles William Hurt’s Motion to Dismiss.

The plaintiffs’ complaint predicates defendant Hurt’s liability strictly upon his failure to reveal to the Starks that the lot in question was located in a flood prone area. See Complaint, para. 32. The plaintiffs allege that Hurt’s failure to reveal this material fact was intended to deceive and defraud the Starks in order to induce them to enter into the contract of sale.

Hurt counters that the plaintiffs’ complaint against him fails for three reasons: first of all, Hurt argues that all of the plaintiffs’ causes of action against him, even the one based on fraud, have been extinguished by Virginia’s five-year statute of repose. Secondly, Hurt contends that the plaintiffs’ fraud claim against him is not actionable since it was not brought within the applicable one-year limitation period. The court notes here that the plaintiffs’ complaint clearly alleges the discovery of the fraud in 1979. Finally, Hurt maintains that pursuant to the doctrine of caveat emptor, Hurt’s mere silence regarding the flooding potential of the land was lawful and cannot support a cause of action for fraudulent concealment.

The court is not convinced that Virginia’s five-year statute of repose on actions for damages “arising out of the defective and unsafe condition of an improvement to real property” should apply in this situation. See Va.Code § 8.01-250. However, this court holds that since the plaintiffs have not demonstrated why the statute of limitations for a fraud action should have been tolled in this case, their suit against Hurt is time-barred. In House v. Kirby, 233 Va. 197, 355 S.E.2d 303 (1987), the Virginia Supreme Court affirmed its position that the one-year limitation period of Va.Code § 8.01-248 is applicable to actions for fraud. The Kirby court noted that fraud is purely a tort, involving a misrepresentation which is de *937 trimentally relied upon and subsequently causes a loss. The court held that the character of fraud is not changed from tort to contract merely because the parties are also engaged in a contractual relationship, and that the fraud one-year period of limitations, and not the oral contract three-year period, is applicable.

In addition, the court is persuaded by Hurt’s caveat emptor argument. The only allegations the Starks make against Hurt in the complaint involve his failure to reveal the flood-prone nature of the plot prior to its sale. The Starks have not alleged that Hurt did anything to divert them from making inquiries or from inspecting the premises. Only such diversions would suspend the usual rules of caveat emptor. See Armentrout v. French, 220 Va. 458, 258 S.E.2d 519 (1979). The parties agree that Hurt did not make any fraudulent statements in an effort to divert the Starks from making inquiries or from inspecting the premises. In such situations, the Virginia Supreme Court adheres to the doctrine of caveat emptor. See, e.g., Kuczmanski v. Gill, 225 Va. 367, 302 S.E.2d 48 (1983). Since, in this court’s judgment, the plaintiffs have not satisfied one of the exceptions to the doctrine of caveat emptor, and since their other cause of action against Hurt is time-barred, this court finds that the Starks have not stated a claim upon which relief can be granted.

The United States Supreme Court articulated, and the Fourth Circuit reaffirmed, standards governing Rule 12(b)(6) motions as follows: a motion to dismiss should be granted when “it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.” Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 102, 2 L.Ed.2d 80 (1957); Byrd v. Gate Petroleum Co., 845 F.2d 86, 87 (4th Cir.1988). This court is satisfied that no set of facts the Starks could plead against Hurt under the current state of statute of limitations and caveat emptor law could allow them to prevail against Hurt.

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Cite This Page — Counsel Stack

Bluebook (online)
716 F. Supp. 934, 1989 U.S. Dist. LEXIS 9280, 1989 WL 90332, Counsel Stack Legal Research, https://law.counselstack.com/opinion/starks-v-albemarle-county-vawd-1989.