Facts

Defendants Underdahl, Gill and Re/Max represented Co-Defendants Ronald & Nevadean Clay in their purchase of the Subject Property in 1999. During the Clays' ownership period, they changed the configuration of the sunken living room floor such that it was level with all other portions of the house. This work was done without a building permit.

Subsequently, in late 2001, the Clays sold the house to Co-Defendants, Ballenger and Mary McKinley (who settled with Plaintiff before Trial). Defendants Re/Max, Underdahl and Gill represented the Clays in the sale of the property to the McKinleys as well. Co-Defendants Keith Kerr and Coldwell Banker represented the McKinleys in the 2001 purchase of the property.

The McKinelys sold the property to Plaintiff in early 2003.

The existence of the raised wood floor was not disclosed by the Clays, Re/Max, Gill or Underdahl to the McKinleys during the 2001 Clay to McKinley sale. Subsequently, the raised wood floor was not disclosed to Plaintiff when she purchased the property in 2003.

Shortly after the close of escrow and taking of possession of the property, Plaintiff first discovered a leaking hot water pipe beneath the concrete slab floor within a sunken living room area. The leak allegedly not discovered in a timely manner as the prior sunken living room floor had been concealed by the non-permitted installation of a raised wood floor such that water ponded in the sunken area and/or migrated into the wall cavities resulting in the formation of toxic mold, property damage, physical injury and shortened life expectancy.

All defendants other than the Clays, Re/Max, Underdahl and Gill settled with Plaintiff before Trial.

PLAINTIFF'S CONTENTIONS:
Non-Disclosure by Seller and Real Estate Licensees of non-permitted raised wood floor that concealed a subsequent concrete slab leak and mold causing property and personal injuries in excess of $1.2 million. Concealment; negligent misrepresentation; intentional misrepresentation; and negligence.

DEFENDANT'S CONTENTIONS:
Legal duty of disclosure from Listing Agent to Buyer's Agent and/or Buyer of real property is limited to a particular transaction and does not extend to unknown, later purchasers in subsequent transactions. Further, said condition as allegedly known by Real Estate Agent/Defendants was not of a material nature, thus triggering a legal duty of disclosure to the Buyer in the first transaction.

Settlement Discussions

Per C.C.P. 998 offer of $33,732 by defendants Underdahl, Re/Max & Gill.

Injuries

Plaintiff claimed in excess of $1.2 million.

Result

Defense verdict.

Other Information

This case was mediated by Doug Glass.

Length

11 days