Thomas Duncan and Lisa Duncan v. Savannah, LLC d/b/a Berkshire Hathaway Home Services

CourtMissouri Court of Appeals
DecidedNovember 23, 2021
DocketED109582
StatusPublished

This text of Thomas Duncan and Lisa Duncan v. Savannah, LLC d/b/a Berkshire Hathaway Home Services (Thomas Duncan and Lisa Duncan v. Savannah, LLC d/b/a Berkshire Hathaway Home Services) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas Duncan and Lisa Duncan v. Savannah, LLC d/b/a Berkshire Hathaway Home Services, (Mo. Ct. App. 2021).

Opinion

In the Missouri Court of Appeals Eastern District DIVISION TWO

THOMAS DUNCAN AND LISA ) No. ED109582 DUNCAN, ) ) Appellants, ) Appeal from the Circuit Court ) of St. Charles County v. ) Cause No. 1711-CC01148 ) SAVANNAH, LLC D/B/A BERKSHIRE ) Honorable Michael J. Fargas HATHAWAY HOME SERVICES, et al., ) ) Respondents. ) Filed: November 23, 2021

Introduction

Thomas Duncan and Lisa Duncan (Buyers) appeal the trial court’s summary

judgment in favor of Savannah, LLC d/b/a Berkshire Hathaway Home Services (Berkshire

Hathaway) and Teresa Wernimont (Wernimont) (collectively, Respondents) on their

claims for a violation of the Missouri Merchandising Practice Act (MMPA) and negligent

misrepresentation regarding statements Wernimont made and alleged omissions of

material fact during the purchase of Buyers’ home (the Property). Because we find genuine

issues of material fact exist regarding whether Wernimont omitted material facts or is liable

for false information provided by Sellers regarding water drainage issues on the Property,

we reverse. Background

Buyers purchased the Property, a residential home in St. Peters, Missouri, from

Craig Nute (Nute) and Cathleen Nute (collectively, Sellers) on April 7, 2017. Wernimont

acted as the listing agent for Sellers and as an agent of Berkshire Hathaway, Wernimont’s

real estate broker. 1 Prior to the sale, in her role as Sellers’ agent, Wernimont created a

listing for the Property on the Multiple Listing Service for real estate agents (MLS), which

stated that “every detail ha[d] been addressed” and that the Property was “meticulously

maintained.” Additionally, Sellers prepared a seller’s disclosure statement regarding the

Property, which Wernimont reviewed and then forwarded to Buyers. As relevant here,

Sellers answered “no” to the following questions in the sellers’ disclosure statement:

Are you aware of any soil, earth movement, flood, drainage or grading problems on the property or that may affect the property?

Are you aware of any leaks in the pool or pool components?

Are you aware of any defects relating to the pool or to any of the pool components?

After Buyers took possession of the Property, Buyers alleged they immediately

experienced several problems including water in the basement, sump pump backups,

foundation problems, mold, grading and water drainage problems, and leaking from the

pool. In November of 2017, Buyers filed suit against Sellers and Respondents, alleging

that all parties made misrepresentations or omitted material facts regarding several aspects

of the Property. Buyers filed an amended petition in March of 2020, asserting claims of

breach of contract against Sellers, and claims of negligent misrepresentation and violations

1 All alleged liability of Berkshire Hathaway in the petition flows from Wernimont’s actions as agent of Berkshire Hathaway.

2 of the MMPA against both Sellers and Respondents. Respondents moved for summary

judgment, arguing that Respondents were unaware of any alleged problems with the

Property and could not be held liable for misrepresentations or omissions in the seller’s

disclosure statement. As relevant here, the parties submitted the following evidence to the

trial court during summary judgment proceedings.

Prior to the sale of the Property, Kenny Etling (Etling), who had previously

performed maintenance on the pool at the Property, performed an inspection of the pool in

March of 2017, at which Buyers and Sellers were both present. Buyers had requested their

own inspector, who appeared at the Property the day before Etling’s inspection, but Nute

would not allow Buyers’ inspector to perform an inspection because Nute did not want

someone he was not familiar with to open the pool during the colder months and potentially

cause damage to the pool. Buyers eventually agreed that Etling could perform the

inspection. Buyers inquired about the liner of the pool, which was nine or ten years old at

that point, and Etling said that it would be good for another two or three years. Etling also

verified that the pump, heater, fountains, slide, and skimmer were all in good working

order. Etling concluded, “There’s nothing wrong with this pool at all.”

On April 1, 2017, six days before the sale of the Property, Joseph Denness

(Denness), who owns a house next to the Property, contacted Wernimont by telephone.

Denness memorialized this conversation in a letter dated April 3, 2017. 2 Denness noted

2 The full text of this letter is as follows:

Dear MS Wernimont

I spoke with you on April 1, 2017 about the Property at #2 Greenfield owner, Craig Nute about the water runoff. Craig has always been a [g]reat neighbor, and we have lived next to him for many years. I live next door at #10 Country Creek Dr. In the past several years I have had water coming down from his yard into my back yard and side of my home. Last summer it [was] running over my driveway and was a constant run of water. I brought this to Mr. Nute’s attention and he apologized and immediately dug a trench and installed

3 he had spoken to Wernimont about water runoff that had occurred “over the past several

years” from Nute’s yard into Denness’ back yard and onto the side of Denness’ home, as

well as “a constant run of water” over Denness’ driveway that had occurred the previous

summer. Denness added that when he brought the issue of water running over his driveway

to Nute’s attention, Nute dug a trench and installed a drainage pipe to the street. Denness

further stated that water ran out of the pipe “most of the summer and ceased when the pool

was shut down.” Denness stated Nute told him the water was coming from Nute’s sump

pump and was not associated with the pool, but Denness did not observe water running

through the winter or during rainy weather. Denness added that he had not experienced

any groundwater issues at his home, which was below the Property. Denness wanted to

ensure that the new owners of the Property would address any ongoing issues.

Wernimont testified by deposition that after she spoke with Denness, she went to

the Property and discussed Denness’ concerns with Nute. Nute pulled up the cover of the

pool, and Wernimont observed water in the pool, which led Wernimont to conclude the

pool was not leaking. Nute also told Wernimont there were no issues with the pool and

drainage pipe to the street. Water ran out of this pipe most of the summer and ceased when the pool was shut down.

I know you talked with Mr. Nute about this issue as he came over and talked to me about it on Saturday[,] April 1, 2017 and was assuring me that this was water running from his sump pump and was not associated with his in[-]ground pool. I would like to believe this but as I think about it there has been no evidence of water running this past winter and with all the rain we have had I have not seen any evidence of water running. Furthermore[,] I live below him and I have never had any groundwater issues and I don’t have a sump pump and never have had any water in my basement.

I am writing all this as I still have concerns that this runoff could be associated with the pool and when it is operational during the summer. Mr. Nute has always taken care of issues and my concern is if this problem continues[,] will the new owners address this issue if it is not caused from groundwater or sump pump?

Thank You.

Joseph Denness

4 that the issue was drainage from Nute’s sump pump. Wernimont took Denness’ letter to

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Thomas Duncan and Lisa Duncan v. Savannah, LLC d/b/a Berkshire Hathaway Home Services, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-duncan-and-lisa-duncan-v-savannah-llc-dba-berkshire-hathaway-moctapp-2021.