Williams v. Dardenne

345 S.W.3d 118, 2011 Tex. App. LEXIS 3849, 2011 WL 1935889
CourtCourt of Appeals of Texas
DecidedMay 19, 2011
Docket01-10-00492-CV
StatusPublished
Cited by33 cases

This text of 345 S.W.3d 118 (Williams v. Dardenne) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williams v. Dardenne, 345 S.W.3d 118, 2011 Tex. App. LEXIS 3849, 2011 WL 1935889 (Tex. Ct. App. 2011).

Opinion

OPINION

HARVEY BROWN, Justice.

Roger and Michelle Williams appeal from a judgment based on a jury verdict in favor of Richard and Marilyn Dardenne, awarding the Dardennes damages for foundation repairs to a house the Dard-ennes purchased from the Williamses. In two issues, the Williamses argue that (1) the Dardennes’ claims fail as a matter of law on the basis of an “as is” provision in the parties’ sale contract and the Dard-ennes’ independent inspection of the home before the sale and (2) the award of attorney’s fees is not supported by sufficient evidence. We reverse and render a take-nothing judgment on the basis of the parties’ contract and therefore do not reach the second issue.

*120 Background

The Dardennes purchased a home from the Williamses in November 2007. They used the standard form residential resale contract promulgated by the Texas Real Estate Commission (the “TREC”). It contains a provision entitled, “Acceptance of Property Condition,” which states:

Buyer accepts Property in its present condition; provided that Seller, at Seller’s expense, shall complete the following specific repairs and treatments:

In the blank space provided, the parties typed in “Termite if necessary.” The contract does not contain a merger clause or disclaimer of reliance on oral representations. The Dardennes also signed an “as is” agreement with their lender, in which they represented that they had inspected the property and accepted it in its “as is” condition, without any reservation.

The sale contract contains a checked box indicating the Dardennes received a “Seller’s Disclosure of Property Condition” from the Williamses, pursuant to Section 5.008 of the Texas Property Code. See Tex. Prop.Code Ann. § 5.008 (West Supp.2010). The seller’s disclosure contains a section that asks if the seller is aware of any defects in the foundation. The Williamses checked the “no” box but also wrote in a note: “repaired.” In the section permitting an explanation, the Williamses wrote: “Foundation has been repaired prior to our ownership.” This reference is to foundation underpinning performed by previous owners in 1990, and these repairs were disclosed to the Dardennes.

The disclosure also asks the seller to list “any written inspection reports” the seller received within the last four years. 1 The Williamses identified three inspection reports: one performed by “R. Michael Gray, PE” in 2005, one performed by “Sherlock Spec” in 2006, and one performed by “AU Around Pest Control” also in 2006. The Williamses did not list a document prepared by Knight Engineering Services in 2006, which they received and reviewed but did not keep.

Two of the reports that the Williamses listed, the 2005 Gary report and the 2006 Sherlock report, address the home’s foundation. The 2005 Gary report is a fifty-eight-page document reflecting a home inspection performed by registered structural engineer Richard Michael Gray for a previous prospective buyer. The form of the report includes a checklist for various inspections. Gray checked the box on the form showing he had inspected the foundation, but he did not check the box indicating that the foundation was not functioning or needed repairs. With respect to the foundation, Gray concluded that the house “does exhibit damage due to foundation” but the damage was “cosmetic” and the foundation was performing “serviceably ... [within] an acceptable range of structural performance given the apparent age, construction and location of the structure.” Gray further stated that the “Finish Floor Elevation Profiles ... are consistent with normal foundation surface geometry” but that the “tilt has created a floor that is much less level than what we normally find. I cannot determine the cause of the levelness issue but it is likely to be due to a combination of initial as-constructed out-of-levelness, tilt due to expansive soil movement and possibly tilt due to expansive soil movement and possibly tilt due to the previous foundation underpinning.” Gray determined that neither further foun *121 dation underpinning nor concrete repairs were necessary at that time. The Dard-ennes received and reviewed the Gray report before closing on the property. The tilt of the floor was plainly visible to the Dardennes during their multiple visits to the home before the closing.

The 2006 Sherlock report is a twenty-page home inspection performed by Chris Brode of the TREC, who is not a structural engineer. Brode used portions of the same form used by Gray. Unlike Gray’s report in 2005, Brode checked the box on the report form stating that the home’s foundation was not functioning or needed repairs. Brode stated that the slab had experienced “signs of settlement as evidenced by cracks in the grade beam, garage floor, brick veneer and sheetrock” and that “[foundation cracking” was observed, which implied that “structural movement of the building has occurred.” Brode also noted the previous foundation repairs. Marilyn Dardennes gave conflicting testimony on whether she and her husband received a copy of the Sherlock report, testifying at one point that she could not remember and at another point that they did not receive it. But she admitted that they had access to the Sherlock report before the closing and had not reviewed it. It was listed on the seller’s disclosure.

The document that the Williamses did not list, prepared by Knight Engineering in 2006, is a two-page letter accompanied by two “plates” that showed repairs the Williamses could hire Knight Engineering to perform. The Williamses consider this letter to be a bid to perform foundation work on the property; the Dardennes consider this letter to be an inspection report. The Williamses neither retained Knight Engineering nor authorized them to do an inspection of the property. Before the sale to the Dardennes, the Williamses had discussions with their former real estate agent, John Sellner, about whether to fix various items in the home, including the tilt in the home’s floors. The Williamses ultimately told Sellner that they would sell the house in its current condition rather than incur the cost of fixing the floors. After their contract with Sellner expired, Sellner obtained the 2006 letter from Knight Engineering. The Williamses reiterated to Sellner, who was no longer their agent, that they were not interested in bids on fixing the floor, but Sellner left the letter on their back doorstep, along with a bill for the inspection. The Williamses returned the letter and the bill to Sellner’s office and refused to pay it. But the Williamses read the letter before they returned it.

The letter is signed by Tony Knight, who was not a licensed engineer, but also bears the stamp and signature of registered engineer Dennis Spencer.

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Cite This Page — Counsel Stack

Bluebook (online)
345 S.W.3d 118, 2011 Tex. App. LEXIS 3849, 2011 WL 1935889, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-dardenne-texapp-2011.