ILNews

Court upholds home developer's liability

Jennifer Nelson
January 1, 2007
Keywords
Back to TopCommentsE-mailPrintBookmark and Share
The Court of Appeals upheld the trial court judgment in favor of homeowners against the developer of their neighborhood, affirming the developer is liable for misleading the homeowners as to what type of homes would be built in the new neighborhood.

In Robert K. Yeager, et al. v. David A. McManama, et al., 49A02-0607-CV-614, the Yeagers, sole members and owners of Yeager Realty, the developer, planned to build Emerald Highlands in the residential neighborhood Murphy's Landing. The developer executed and recorded the Declaration of Covenants and Restrictions of the Murphy's Landing Ownership, and included specific language applying to Emerald Highlands and a site plan for the area.

The McManamas and Cotteys agreed to purchase lots and build homes in the new neighborhood, relying on information from the developer and its exclusive builder, Steven Morse, that the neighborhood would be a high-quality, exclusive, upscale neighborhood. Once the plaintiffs built their more than 5,000-square-foot homes in the neighborhood, they noticed that the other homes being built were less than half the size of their homes, causing their home values to decrease.

The plaintiffs filed a complaint alleging fraud, constructive fraud, or fraudulent concealment, and breach of fiduciary duty. The developers were sole members of the Architectural Review Board, which was to regulate the design, appearance, use and location of homes in the neighborhood to maintain and enhance values and appearance.

The Yeagers filed a motion for summary judgment, arguing that because the doctrines of fraud and constructive fraud do not apply, there is no fiduciary duty between the parties; and fraudulent concealment is not procedurally applicable in this case.

The trial court ruled the defendants owed the plaintiffs "a duty of fair dealing and honesty" and "a duty of good faith and fair dealing, as well as 'contractual obligations,' pursuant to the Declaration" and concluded the evidence showed the fraud and a failure to meet contractual and fiduciary duties.

The Court of Appeals upheld the trial court's decision. The Yeagers were the sole owners and developers of the project and had drafted, executed, and recorded the neighborhood's declaration. The Yeagers were also sole members of the Architectural Review Board and were responsible for enforcing the standards of the homes constructed in Emerald Highlands.
ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Can I get this form on line,if not where can I obtain one. I am eligible.

  2. What a fine example of the best of the Hoosier tradition! How sad that the AP has to include partisan snark in the obit for this great American patriot and adventurer.

  3. Why are all these lawyers yakking to the media about pending matters? Trial by media? What the devil happened to not making extrajudicial statements? The system is falling apart.

  4. It is a sad story indeed as this couple has been only in survival mode, NOT found guilty with Ponzi, shaken down for 5 years and pursued by prosecution that has been ignited by a civil suit with very deep pockets wrenched in their bitterness...It has been said that many of us are breaking an average of 300 federal laws a day without even knowing it. Structuring laws, & civilForfeiture laws are among the scariest that need to be restructured or repealed . These laws were initially created for drug Lords and laundering money and now reach over that line. Here you have a couple that took out their own money, not drug money, not laundering. Yes...Many upset that they lost money...but how much did they make before it all fell apart? No one ask that question? A civil suit against Williams was awarded because he has no more money to fight...they pushed for a break in order...they took all his belongings...even underwear, shoes and clothes? who does that? What allows that? Maybe if you had the picture of him purchasing a jacket at the Goodwill just to go to court the next day...his enemy may be satisfied? But not likely...bitterness is a master. For happy ending lovers, you will be happy to know they have a faith that has changed their world and a solid love that many of us can only dream about. They will spend their time in federal jail for taking their money from their account, but at the end of the day they have loyal friends, a true love and a hope of a new life in time...and none of that can be bought or taken That is the real story.

  5. Could be his email did something especially heinous, really over the top like questioning Ind S.Ct. officials or accusing JLAP of being the political correctness police.

ADVERTISEMENT