Tindell v. Murphy

CourtCalifornia Court of Appeal
DecidedMay 7, 2018
DocketC081424
StatusPublished

This text of Tindell v. Murphy (Tindell v. Murphy) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tindell v. Murphy, (Cal. Ct. App. 2018).

Opinion

Filed 4/6/18; Certified for Publication 5/7/18 (order attached)

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA THIRD APPELLATE DISTRICT (Lassen) ----

RANDY TINDELL et al., C081424

Plaintiffs and Appellants, (Super. Ct. No. 50512)

v.

LINDA MURPHY et al.,

Defendants and Respondents.

Plaintiffs Randy and Linda Tindell bought a single family manufactured home from defendant Linda Murphy in 2005 for $320,000. Defendant Christine Bradley provided the appraisal. In 2009 the Tindells were unable to refinance the mortgage because it is a manufactured home, not a modular home. The Tindells filed a fourth amended complaint alleging Murphy and Bradley failed to disclose defects in the property and acted in concert with others in order to conceal these defects and profit from the sale of the property. The trial court sustained Murphy’s demurrer without leave to amend. Subsequently, the court granted Bradley’s motion for summary judgment. The

1 Tindells appeal, challenging the court’s sustaining of Murphy’s demurrer and the granting of Bradley’s summary judgment. We shall affirm both judgments. FACTUAL AND PROCEDURAL BACKGROUND Susanville Real Estate, agent Kari Moore, and real estate broker John Shaw listed a property owned by Murphy for sale in December 2004.1 The listing stated the approximate age of the property was 26 years and described the construction as “Manufactured.” The Tindells made arrangements to see the property and subsequently made an offer to purchase the property for $320,000; the offer was accepted. In the process of purchasing the property, the Tindells hired loan broker Kim Keith. Keith told the Tindells she believed the property was a manufactured home and that they might not be able to obtain financing. The Tindells also hired appraiser Bradley to appraise the property. When Bradley appraised the home, she designated it a modular home constructed around 1972. Following the appraisal, Keith told the Tindells she could finance the property. In 2009 the Tindells sought to refinance their mortgage. In connection with the refinancing, an appraiser inspected the property. According to the appraisal for the refinancing, the property was a manufactured home and not a modular home. The Tindells were unable to refinance their mortgage. Original Complaint In their original complaint, the Tindells sued Susanville Real Estate, real estate agent Moore, real estate broker Shaw (collectively the Susanville defendants), loan broker Keith, and appraiser Bradley, alleging causes of action for (1) declaratory relief, (2) violation of Civil Code section 1102 et seq., (3) fraud, and (4) breach of fiduciary duty. The Tindells alleged that the Susanville defendants, Keith, and Bradley failed to

1 These facts are taken from our previous nonpublished opinion in Tindell et al. v. Shaw et al. (June 13, 2013, C068453).

2 disclose the property was a manufactured home, preventing a refinancing of the mortgage. According to the Tindells, the Susanville defendants, Keith, and Bradley fraudulently misrepresented the property as “modular.” In addition, the Tindells argued, they “failed to undertake an inquiry an inquiry as to the condition of Subject Property to determine whether the Subject Property was ‘manufactured’ or ‘modular.’ ” Keith filed a demurrer to the Tindells’ complaint. The trial court sustained the demurrer without leave to amend. As they acknowledge, the Tindells did not file a timely appeal of that order. The Susanville defendants filed a demurrer, arguing the allegations in the complaint were contradicted by exhibits attached to the complaint. The agent’s inspection disclosure, signed by the Tindells, described the house as a “manufactured home.” The trial court sustained the demurrer to the first and second causes of action without leave to amend. The court sustained the demurrer to the fraud and breach of fiduciary duty causes of action with leave to amend, those causes of action were not pleaded with particularity and were uncertain. First Amended Complaint Subsequently, the Tindells filed a verified first amended complaint alleging causes of action for fraud, negligent misrepresentation, and constructive fraud. The amended complaint alleged the MLS (Multiple Listing Service) listing declared the property to be 26 years old and manufactured in 1979, but the Tindells later discovered the property was manufactured in 1976. According to the Tindells, homes manufactured prior to June 1976 are “practically worthless” because of lack of building standards, and cannot be financed. The first amended complaint alleged the Susanville defendants and Bradley failed to disclose that the property was a 1972 manufactured home that could not be financed.

3 Instead, they represented that the property was manufactured in 1979. According to the Tindells, although the Susanville defendants “initially did state the Subject Property was a manufactured home, they did not question Bradley’s appraisal designating [it] as [a] modular home.” The Susanville defendants filed a demurrer to the first amended complaint, asserting that, in light of documents attached to the complaint, the Tindells could not show they misrepresented the age of the home and could not allege justifiable reliance. The listing, attached to the first amended complaint, stated the approximate age of the house was 26 years. In addition, the Susanville defendants argued the handwritten year “1979” on the listing was not part of the original listing, but must have been added by the Tindells. In opposing the demurrer, the Tindells conceded the handwritten “1979” was not part of the original listing. The trial court sustained the demurrer to the first amended complaint with leave to amend. Second Amended Complaint The Tindells filed a second amended complaint alleging fraud, negligent misrepresentation, and constructive fraud. Again, the Tindells alleged the MLS listing stated the property was 26 years old and manufactured in 1979, but the Tindells discovered the property was manufactured in 1976. According to the Tindells, the Susanville defendants and Bradley failed to disclose during the negotiation process that the property was manufactured in 1972 and could not be financed. The second amended complaint added new allegations. The complaint alleged the Susanville defendants had special knowledge of the property and intentionally concealed the property’s true age. The Tindells also claimed that although the Susanville defendants stated in February 2005 that the property was a manufactured home, they concealed the known fact that the property was built prior to 1976. In addition, the

4 Tindells alleged that if appraiser Bradley had disclosed the true age of the property, it would have enabled them to make an informed decision about the purchase. The Susanville defendants again demurred, asserting the Tindells were bound by the allegations contained in their original complaint. They also argued the Tindells failed to establish the elements of fraud, and they had no duty to inspect public records to establish the age of the property. The Tindells did not file a written opposition to the demurrer and did not oppose the demurrer in oral argument. In its tentative ruling sustaining the demurrer without leave to amend, the trial court noted the lack of opposition. In considering the fraud cause of action, the court determined the listing did not state the home was manufactured in 1979, but stated the approximate age was 26 years. The court also noted the Tindells admitted they added the handwritten “1979” date to the listing. The court found the Tindells were bound by the allegations in their original complaint that they were not informed the house was manufactured.

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Tindell v. Murphy, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tindell-v-murphy-calctapp-2018.