Utah HOA Case Law
Non-exhaustive Compilation
Steve and
Catherine SMITH,
Plaintiffs
and Appellants,
v.
Mel FRANDSEN dba Mary Mel Construction
Co.,
Defendant and Appellee.
94 P.3d 919 (Utah 2004)
Supreme Court of Utah.
July 2, 2004
Stephen
Quesenberry, J. Bryan Quesenberry, Provo, for plaintiffs. Michael W. Homer, Jesse C. Trentadue, Bret S.
Hayman, Thomas B. Price, Salt Lake City, for defendant.
DURHAM,
Chief Justice:
INTRODUCTION
¶
1 Appellants, Steve and Catherine Smith (the Smiths), filed suit against
appellee, Mel Frandsen dba Mary Mel Construction Company (Mary Mel), seeking
compensatory and punitive damages for negligent misrepresentation, negligence,
and fraudulent concealment after the footings, foundation, and structure of
their home settled, allegedly due to improper soil compaction and a general
lack of lateral support.
¶
2 The trial court granted Mary Mel's motion for summary judgment, and the
Smiths filed a timely notice of appeal. We affirm.
FACTS
¶
3 In the early 1990s, Mary Mel purchased land in Lehi City with the intention
of developing the property for residential use. In the period up to 1995, Mary
Mel obtained approval from local government agencies and constructed and
installed the roads, curbs, gutters, sidewalk, and utilities in what is now the
Summer Crest Subdivision. On October 10, 1995, Mary Mel conveyed the
properties, divided and improved, to Patterson Construction (Patterson), a
residential developer with whom Mary Mel had an ongoing business relationship.
Patterson, in turn, conveyed a portion of the property, lot 223, on the same
day to GT Investments (GT).
¶
4 GT is a licensed general contractor. GT, acting through one of its employees,
Page 922 Joseph Sharp (Sharp),
constructed a home on lot 223. During construction, Sharp "personally
inspected the ... lot and viewed the condition of the lot before purchase and
before building commenced." As the Smiths assert in their complaint,
despite the fact that "the soil [on lot 223] was so soft that anyone
walking on it would leave an imprint," Sharp, allegedly as a result of his
lack of experience in contracting, ignored this "red flag" and failed
to order any soils testing or other measures that would have revealed that the
soil on lot 223 was inadequately compacted. After completing construction, GT
delivered a warranty deed to the Smiths on August 26, 1996.
¶
5 Since occupying the home, the Smiths have experienced "significant
settlement of the house, its footings, foundations and structure." In
seeking recovery for damage caused by the subsidence, the Smiths argue that GT
"knew, should have known, or negligently failed to determine that the
House was built on inadequate soil material and/or inadequately compacted
soil." They additionally claim that in subdividing and developing the
property prior to its conveyance to Patterson, Mary Mel performed "certain
excavation work ... including filling in a low area or ravine" running
through lot 223. As a result, the Smiths allege, Mary Mel "knew that the
lot [included] unconsolidated fill, and failed to take proper steps to compact
[the] lot, and in fact concealed and/or failed to disclose these facts to
appropriate government entities and prospective purchasers." It is upon
these facts that the Smiths assert claims against GT, Sharp, Mary Mel, and
Patterson.
STANDARD OF REVIEW
¶
6 In reviewing a grant of summary judgment, we give no deference to the trial
court with respect to its legal conclusions. Armed Forces Ins. Exch. v. Harrison, 2003 UT 14, ¶ 13, 70 P.3d 35.
Rather, we make our own determination as to whether the record shows "that
there is no genuine issue as to any material fact and that the moving party is
entitled to a judgment as a matter of law." Utah R. Civ. P. 56(c). Nevertheless,
we may affirm the result reached by the trial court " 'if it is
sustainable on any legal ground or theory apparent on the record,' even though
that ground or theory was not identified by the lower court as the basis of its
ruling." Boud v. SDNCO, Inc.,
2002 UT 83, ¶ 10, 54 P.3d 1131, (quoting Orton
v. Carter, 970 P.2d 1254, 1260 (Utah 1998)).
¶
7 Mary Mel, pursuant to Utah Rule Appellate Procedure 11(e)(2), urges this
court to uphold summary judgment, asserting that since the appellants have
failed to provide a copy of the summary judgment hearing transcript, "the
district court's decisions are presumed to be valid." However, Mary Mel
misconstrues the meaning of rule 11(e)(2).
¶
8 The rule simply requires appellants to include "a transcript of all
evidence" relevant to a challenged finding or conclusion. Utah R.App. P.
11(e)(2). In this case, neither party claims that the missing transcript
contains evidence bearing on the determination of the case. SeeHarper v. Summit County, 963 P.2d
768, 775 n. 4 (Utah Ct.App.1998), rev'd
in part and vacated in part on other grounds byHarper v. Summit County,
2001 UT 10, 26 P.3d 193. Thus, appellants had no obligation to include the
transcript in the record on appeal.
ANALYSIS
I. THEORIES OF LIABILITY
¶
9 Appellants seek compensatory and punitive damages against Mary Mel under
three different theories of liability: negligent misrepresentation, negligence,
and fraudulent concealment. In order to prevail under any of these causes of
action, a plaintiff must demonstrate the existence of a duty running between
the parties. For example, with respect to negligent misrepresentation, we
stated in Jardine v. Brunswick
Corporation, 18 Utah 2d 378, 423 P.2d 659, 662 (1967), that "[w]here
one ... carelessly or negligently makes a false representation ..., expecting
the other party to rely and act thereon, and the other party reasonably does so
and suffers loss in that transaction, the representor Page 923 can be held responsible if the other elements of fraud are
also present." [1]
FN1. We clarified this test in Price-Orem Inv. Co. v. Rollins, Brown & Gunnell, Inc., 713 P.2d
55, 59 n. 2 (Utah 1986), wherein we indicated that the suggestion in Jardine
that “all of the elements of fraud must also be proven is dictum. Although the
cause of action for negligent misrepresentation grew out of common law fraud,
the elements of fraud need not be independently established.”
¶
10 Ordinarily, in order to prevail in an action for negligent
misrepresentation, plaintiffs must identify a "representor [who] makes an
affirmative assertion which is false." Ellis
v. Hale, 13 Utah 2d 279, 373 P.2d 382, 385 (1962); see alsoBaskin v. Mortgage & Trust, Inc., 837 S.W.2d 743, 748
(Tex.App.1992) (upholding summary judgment in favor of a third-party lender who
made no representations to plaintiffs in connection with the purchase of their
homes). Indeed, Mary Mel makes a point of claiming that it made no
representations, false or true, to the Smiths. The Smiths, however, contend
that by conveying the property (jointly with Patterson) without indicating that
the lot was unsuitable for construction, Mary Mel effected a representation to
GT, which in turn made the same representation to them.
¶
11 In the past, Utah cases have acknowledged that "negligent
misrepresentation is a form of fraud." Atkinson
v. IHC Hosps., Inc., 798 P.2d 733, 737 (Utah 1990); see alsoChristenson v. Commonwealth Land Title Co., 666 P.2d 302,
305 (Utah 1983) ("Negligent misrepresentation is a tort which grew out of
common-law fraud."); Robinson v.
Tripco Inv., Inc., 2000 UT App 200, ¶ 31, 21 P.3d 219 (Billings, J.,
dissenting) (identifying negligent misrepresentation as a "species"
of fraud). Thus, interpreting the elements of the tort in a manner consistent
with principles of common-law fraud, we have found that in addition to
affirmative misstatements, an omission may be actionable as a negligent
misrepresentation where the defendant has a duty to disclose. Sugarhouse Fin. Co. v. Anderson, 610
P.2d 1369, 1373 (Utah 1980) ("Misrepresentation may be made either by
affirmative statement or by material omission, where there exists a duty to speak.");
DeBry v. Valley Mortgage Co., 835
P.2d 1000, 1008 (Utah Ct.App.1992) (denying liability for an
"implied" misrepresentation where the defendant mortgage company owed
no duty to disclose information to purchasers of real property). Thus, a duty
to disclose is a necessary element of the tort of negligent misrepresentation.
¶
12 In addition, it is well-established in our law that "without a duty,
there can be no negligence as a matter of law, and summary judgment is
appropriate." Tallman v. City of
Hurricane, 1999 UT 55, ¶ 5, 985 P.2d 892 (quoting Rocky Mountain Thrift Stores Inc. v. Salt Lake City Corp., 887 P.2d
848, 852 (Utah 1994)). Finally, in order to establish fraudulent concealment,
"a plaintiff must prove the following three elements: (1) the nondisclosed
information is material, (2) the nondisclosed information is known to the party
failing to disclose, and (3) there is a legal duty to communicate." Hermansen v. Tasulis, 2002 UT 52, ¶ 24,
48 P.3d 235; see alsoFennell v. Green,
2003 UT App. 291, ¶ 10, 77 P.3d 339; McDougal
v. Weed, 945 P.2d 175, 179 (Utah Ct.App.1997) ("Fraudulent concealment
requires that one with a legal duty or obligation to communicate certain facts
remain silent or otherwise act to conceal material facts known to him").
Therefore, a duty to disclose is material to each of the alleged causes of
action.
¶
13 The pivotal question in this case is thus whether Mary Mel owed a duty to
disclose the nature and existence of any subsurface defects, not only to its
immediate successors in title, Patterson and GT, but also to the subsequent and
more remote purchasers, the Smiths. [2]
FN2. Because we
find the resolution of this issue dispositive of the case, we decline to
address the merits of Mary Mel's alternative argument that the Smith's
allegation of negligent misrepresentation is barred by the economic loss rule.
II. DUTY OF RESIDENTIAL REAL ESTATE
DEVELOPERS TO REMOTE PURCHASERS
A. Defining the Limits of a Developer's Duty
¶
14 "The issue of whether a duty exists is entirely a question of law to be
Page 924 determined by the
court." Ferree v. State, 784
P.2d 149, 151 (Utah 1989). Courts consider many factors, none of which is
dispositive, in determining when a duty runs between parties. DeBry v. Valley Mortgage Co., 835 P.2d,
1000, 1007 ("A duty to speak will be found from 'all the circumstances of
the case and by comparing the facts not disclosed with the object and end in
view by the contracting parties.' " (quoting Elder v. Clawson, 14 Utah 2d 379, 384 P.2d 802, 804 (1963)
(citation omitted))). [3]
FN3. See e.g., Price-Orem Inv. Co., 713 P.2d at 60 (foreseeability); Christenson v. Commonwealth Land Title Ins.
Co., 666 P.2d 302, 305 (Utah 1983) (privity of contract); Ellis v. Hale, 13 Utah 2d 279, 373 P.2d
382, 384-85 (1962) (statutory obligations); House
v. Armour of Am., Inc., 886 P.2d 542, 549-50 (Utah Ct.App.1994) (whether
user possesses special knowledge, sophistication, or expertise).
¶
15 Particularly in the realm of tort law, "[t]he duty concept ... is a
policy determination." DeBry,
835 P.2d at 1003-04 ("Duty is not sacrosanct in itself, but only an
expression of the sum total of those considerations of policy which lead the
law to say that the particular plaintiff is entitled to protection.")
(citations omitted). For example, policy was one factor motivating our decision
in Loveland v. Orem City Corp., 746
P.2d 763, 769 (Utah 1987), adopting the position of the Wyoming Supreme Court
extending the duty of disclosure to developers engaged in subdividing and
improving lots for residential purposes. In Anderson
v. Bauer, upon which Loveland
relies, the Wyoming Supreme Court observed that "[a]s we developed from a
rural to an urban society, ... [b]uilders constructing great numbers of houses
acquired considerable knowledge and expertise in the area and used engineering
services and studies to determine soil conditions ... and other questions
concerning suitability for construction." 681 P.2d 1316, 1322 (Wyo.1984).
[4]
FN4. See also Moxley v. Laramie Builders, Inc.,
600 P.2d 733, 735 (Wyo.1979) (“The average purchaser is without adequate
knowledge or opportunity to make a meaningful inspection of the component parts
of a residential structure.”).
¶
16 Therefore, in order to protect unsophisticated purchasers, under Loveland, a developer, subdivider or
person performing similar tasks has
a duty to
exercise reasonable care to insure that the subdivided lots are suitable for
construction of some type of ordinary, average dwelling house, and he must
disclose to his purchaser any condition which he knows or reasonably ought to
know makes the subdivided lots unsuitable for such residential building. He has
a further duty to disclose, upon inquiry, information he has developed in the
course of the subdivision process which is relevant to the suitability of the
land for its expected use.
Loveland, 746 P.2d at
769. [5]
FN5 See also
Moxley v. Laramie Builders, Inc., 600 P.2d 733, 735 (Wyo.1979) ("The
average purchaser is without adequate knowledge or opportunity to make a
meaningful inspection of the component parts of a residential structure.")
¶
17 Notwithstanding our holding in Loveland,
the duties owed by contractors and developers are not without limitation. Even
where a duty is found to exist, it does not continue indefinitely. Absent intentional
fraud, "it continues only until the vendee, or his successor, have had
adequate time and opportunity, through occupation of the land or otherwise, to
discover the existence of the condition, and to take effective precautions
against it by repair or other means." Restatement (Second) of Torts § 353
cmt. g (1965). [6] Thus, the duties running from vendor to vendee and subvendee
persist only Page 925 until a
subsequent purchaser knows or should know of the defect in the property.
FN6 See also
House v. Armour of Am., Inc., 886 P.2d 542, 550 (Utah Ct.App.1994)
(recognizing the "sophisticated user doctrine" whereby the
manufacturer of a product is relieved of a duty to warn of the inherent dangers
associated with a product if the purchaser is a sophisticated user and is charged
with knowledge of the product); see
generally Uniform Land Sales Practices Act, Utah Code Ann. § 57-11-17
(2000) (relieving real estate vendors of liability where "it is proved
that the purchaser knew of the [vendor's] untruth or omission.");
Restatement (Second) of Torts § 388 (1965); id.
§ 353 (a vendor of real property is only liable for failing to disclose
conditions on real property if the "the vendee does not know or have
reason to know of the condition or the risk involved, and the vendor ... has reason
to believe that the vendee will not discover the condition or realize the
risk").
B. Application to the Facts
¶
18 In this case, there is no dispute that Mary Mel conveyed the property to
Patterson and then to GT. GT is a licensed general contractor in the state of
Utah, and like developers, the law imputes to builders and contractors a high
degree of specialized knowledge and expertise with regard to residential
construction. McDonald v. Mianecki,
79 N.J. 275, 398 A.2d 1283, 1292 (1979) ("Whether the builder be large or
small, the purchaser relies upon his superior knowledge and skill, and he
impliedly represents that he is qualified to erect a habitable dwelling. He is
also in a better position to prevent the existence of major defects."); Groff v. Pete Kingsley Bldg., Inc., 374
Pa.Super. 377, 543 A.2d 128, 133 (1988) ("The professional builder is
expected to have the skill and expertise to know how to guard against potential
structural problems. Moreover, the builder is in the best position to prevent
structural defects."); Moxley v.
Laramie Builders, Inc., 600 P.2d 733, 735 (Wyo.1979) ("Consumer
protection demands that those who buy homes are entitled to rely on the skill
of the builder and that the house is constructed so as to be reasonably fit for
its intended use.").
¶
19 In particular, builder-contractors are expected to be familiar with
conditions in the subsurface of the ground. SeeSabella
v. Wisler, 59 Cal.2d 21, 27 Cal.Rptr. 689, 377 P.2d 889, 891 (1963)
(holding a residential contractor negligent where "a reasonably prudent
person under like or similar circumstances and as a result of making said
excavations for foundation footings would have discovered the insufficient
compaction of the underlying earth material, and would have caused soil tests
and investigations to be made before proceeding with the building"); Conolley v. Bull, 258 Cal.App.2d 183, 65
Cal.Rptr. 689, 697 (1968) (finding a contractor was negligent for
"constructing [a] house upon unstable and filled ground, containing an
underground spring, without taking protective steps for providing adequate
drainage"); ABC Builders, Inc. v.
Phillips, 632 P.2d 925, 938 (Wyo.1981) ("We hold this to be the duty
of ABC as builders to appellees: To furnish a safe location for a residential
structure, and it may be negligence to not do so"). See generally Annotation, Duty
of Contractor to Warn Owner of Defects in Subsurface Conditions, 73
A.L.R.3d 1213 (1976) (collecting cases from various jurisdictions in which
"it was held that a contractor who knows, or should know, of a defect in a
particular subsoil does not perform his contractual obligations in a
workmanlike manner if he fails to notify the owner of the existence of the
condition").
¶
20 The facts indicate that Sharp, the GT employee supervising the excavation
and placement of the Smith's foundation, had "no prior construction
experience." Nevertheless, GT is deemed to possess the knowledge of a
reasonably prudent builder-contractor under similar circumstances, and, as a
matter of law, a builder of ordinary prudence would have discovered the
insufficient compaction on lot 223. See Coburn
v. Lenox Homes, Inc., 186 Conn. 370, 441 A.2d 620, 624 (1982); Foust v. McKnight, 675 So.2d 1147, 1149
(La.Ct.App.1996) ("[A] vendor-builder of a residence is considered to be a
manufacturer, and as such he cannot avoid the conclusively presumptive
knowledge of the defects in the thing he manufactures.") (citations
omitted); Schamens v. Crow, 326 So.2d
621, 626 (La.Ct.App.1975) (same); George
B. Gilmore Co. v. Garrett, 582 So.2d 387, 393 (Miss.1991); March v. Thiery, 729 S.W.2d 889, 894-95
(Tex.Ct.App.1987) (imputing knowledge of faulty construction to residential
builder). In addition, the Smiths themselves allege in their complaint that GT
"knew, should have known, or negligently failed to determine that [their]
house was built on inadequate soil material and/or uncompacted fill."
¶
21 The parties agree that Mary Mel conveyed the property to Patterson and GT,
both parties who, as a matter of law, possessed superior knowledge and
expertise regarding the subsurface conditions on lot 223. Where a developer
conveys property to a residential contractor, the knowledge and expertise of
the builder, and the independent duties owed thereby, interrupt certain
obligations running from the initial developer to subsequent purchasers. In
other words, Page 926 borrowing from
the language of the Restatement, we find that by conveying to one having
"adequate time and opportunity" to discover the subsurface defects in
lot 223, Mary Mel incurred no liability to remote purchasers of the property as
a matter of law. See Restatement
(Second) of Torts § 353 cmt. g (1965). Mary Mel had no duty extending beyond
its conveyance to Patterson and GT, to both of which the law imputes a high
degree of knowledge and expertise. [7]
FN7. In doing so we do not address the merits of
any suit involving Patterson, GT and the Smiths or between Mary Mel and GT.
¶
22 The present case is distinguishable from those relied upon by the Smiths.
For example, in Lawson v. Citizens &
Southern National Bank of South Carolina, 255 S.C. 517, 180 S.E.2d 206
(1971), the South Carolina Supreme Court found a developer had a duty to
disclose to a subsequent purchaser that "in developing and subdividing its
land into lots to be sold for residential use only, [it] filled an enormous
gully with stumps and other rubble to a depth of twenty to twenty-five feet and
concealed this fill by covering it with soil." Id. at 208. However, when that case was decided in 1971,
builder-contractors were not universally held to the same high standards that
they are today. As the cases cited above indicate, the adoption of
builder-contractor liability is a fairly recent phenomenon. [8] SeeConklin v. Hurley, 428 So.2d 654, 657
n. 2 (Fla.1983) (documenting a trend beginning in the late 1960s and extending
through the early 1980s whereby builder-vendors were held liable to immediate
purchasers under an implied warranty of habitability).
FN8. Stepanov v. Gavrilovich, 594 P.2d 30
(Alaska 1979), also relied on by the Smiths, is inapposite because it involves
a suit brought by residential contractors, rather than homeowners, against a
developer.
¶
23 Appellants also point to Anderson v.
Bauer, 681 P.2d 1316 (Wyo.1984). In that case, the court placed primary
responsibility on builders and contractors to ensure the suitability of the
land for construction of residences. There, the lots at issue were suitable for
some form of dwelling house, although some of the lots were admittedly unfit
for homes with basements. Id. at
1323. But, as the court observed, "whether the particular house to be
built was a house with no basement, a half basement, a tri-level house, or a
full basement was a decision not involving the developer." Id. Therefore, the court relied on the
knowledge and judgment of the builder in finding that the developer had
satisfied his duty and was not liable to homeowners. Likewise, our decision
today requires contractors to be accountable, either directly or through
explicit warranties from their predecessors in title, for the suitability of
the land upon which they build.
¶
24 Those cases that do find developers liable to remote purchasers involve
factual settings in which the developer was also the builder-contractor or
otherwise include a chain of title with no intermediate sophisticated
purchaser. SeeBarnhouse v. City of
Pinole, 133 Cal.App.3d 171, 183 Cal.Rptr. 881 (1982); Washington Rd. Developers, LLC v. Weeks, 249 Ga.App. 582, 549
S.E.2d 416 (2001); Moxley v. Laramie
Builders, Inc., 600 P.2d 733 (Wyo.1979).
C. Policy Implications
¶
25 Our holding today furthers the purposes and policies underlying the
recognized exceptions to the doctrine of caveat emptor, and is not inconsistent
with our prior caselaw on duty issues generally, or Utah statutes. As a result
of their superior knowledge, residential home-builders in other jurisdictions
have consistently been held liable to subsequent as well as immediate
purchasers. Cosmopolitan Homes, Inc. v.
Weller, 663 P.2d 1041, 1044-45 (Colo.1983) (citing cases from eight
different states in which subsequent purchasers were held able to state a claim
for negligence against a builder); see
also Timothy E. Travers, American Law of Products Liability § 38:19 (3d
ed.1987); Michael A. DeSabatino, Liability
of Builder of Residence for Latent Defects Therein as Running to Subsequent
Purchasers from Original Vendee, 10 A.L.R.4th 385 (1981). Just as the lack
of purchaser sophistication motivated the initial exceptions to the doctrine of
caveat emptor, the expansion of builder-contractor liability to encompass even
remote purchasers Page 927 is
similarly driven. Like initial consumers of residential construction, subsequent
homeowners typically possess no greater sophistication that would enable them
to discover latent defects in the property. Tusch
Enters. v. Coffin, 113 Idaho 37, 740 P.2d 1022, 1034 (1987) (" 'The
same policy considerations that lead to [our adoption of the implied warranty
of habitability for sales of new homes] ... are equally applicable to
subsequent homebuyers.' " (quoting Richards
v. Powercraft Homes, Inc., 139 Ariz. 242, 678 P.2d 427, 430 (1984))); see also Dwight F. Hopewell, C. Oates v. Jag: Let the Buyer Beware--A
Remedy for Subsequent Purchasers of Homes in North Carolina, 64 N.C. L.Rev.
1485, 1493 (1986) ("[A] subsequent purchaser of real estate is in a very
similar position to that of the initial purchaser. Both are innocent purchasers
who lack the expertise and knowledge necessary to uncover every latent
defect.... Thus, both classes of purchasers deserve equal protection").
¶
26 By implication, where a subsequent purchaser is not similarly situated but
rather possesses some unique insight or information with respect to the
property, liability may not be extended to subsequent purchasers. See Tusch Enters., 740 P.2d at 1038
(Shepard, J., dissenting) (arguing that liability should be denied where
"[t]he plaintiffs ... are not unknowing buyers of a residence built by an
unscrupulous builder/developer[.] Rather, plaintiffs are a sophisticated and
knowledgeable group of investors in real estate"). As the cases cited
above indicate, residential builders and contractors are not innocent transferees
occupying the same position as the ultimate residential consumer. Extending the
liability of developers beyond builder-contractors to encompass remote
purchasers is inconsistent with the rationale upon which recovery by subsequent
purchasers was initially based.
¶
27 As a policy matter, we believe that our holding will encourage builders and
contractors to exercise that level of care consistent with the expertise
legally imputed to them. In addition, our decision preserves the contractual expectations
of developers and builder-contractors. If unstable soil conditions are known to
both the developer and the builder-transferee, the price of the land may be
discounted to reflect the added cost involved in correcting the defect. See Transamerica Ins. Servs. v. Kopko,
570 N.E.2d 1283, 1284 (Ind.1991) (dealing with a property transaction in which
a buyer "was given a credit against the purchase price of [a] new lot to
compensate [the buyer] for the expense they incurred in correcting the soil
conditions on the previous lot"). By requiring plaintiffs generally to sue
up the chain of title, the allocation of risk and expectations embodied in land
sale contracts will be preserved. [9]
FN9. It is, of
course, likely that increases in costs incurred by builders will be passed on
to purchasers, but presumably those increases will be outweighed by losses
avoided because of higher standards in the building process.
CONCLUSION
¶
28 We hold that Mary Mel's duty of care and disclosure extended only to its
immediate transferees, Patterson and GT, who "knew or should have
known" of defects in the property, and not to the appellants. The order
granting summary judgment is affirmed.
¶
29 Justice PARRISH and Justice NEHRING concur in Chief Justice DURHAM's
opinion.
WILKINS,
Associate Chief Justice, concurring in the result:
¶
30 I concur with the conclusion reached by the majority opinion that Mary Mel
owed no duty to the Smiths, and that as such a summary judgment in Mary Mel's
favor was proper. Mary Mel conveyed the lot to Patterson Construction, who
conveyed to GT Investments, who conveyed to the Smiths. No theory advanced by
the Smiths supports extension of a duty to disclose that far. The remaining
analysis regarding the duty of home builders to disclose subsurface conditions
to buyers is dicta at best.
¶
31 We need not, nor are we asked to consider the duty, if any, running from a
home builder to a home buyer to disclose non-obvious defects in the land that
may or Page 928 may not be known by
the builder. To do so in this case simply extends our analysis not only beyond
the facts and law considered by the trial court, but also beyond the facts and
law necessary to resolve the case. There is no need for us to rely on the law
of numerous other jurisdictions to fashion a new duty under Utah law to be
imposed on home builders.
¶
32 As a result, I would affirm the trial court on the sole basis that the law
imposed no duty on Mary Mel to disclose anything regarding the condition of the
property to the Smiths, and that as a direct result the causes of action
advanced by the Smiths against Mary Mel fail as a matter of law.
¶
33 Justice DURRANT concurs in Associate Chief Justice WILKINS' concurring
opinion.