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Court affirms judgment for developer, real estate company in suit over sinking home

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A couple who sued a subdivision developer and real estate company after the builder went out of business to recover damages because their home was sinking could not convince the Indiana Court of Appeals to reverse summary judgment for the companies.

James and Gayle Corry’s home was built by Woodland Homes of Ft. Wayne, which has filed for bankruptcy and gone out of business. The Corrys purchased a lot from Woodland that it had obtained from Oakmont, the subdivision developer. Testing of the soil showed that the Corrys’ lot would require the home be built on pilings because the soil was unstable. The Corrys and their realtor, Steve Jahn, who was also president of Woodland, discussed the need for pilings, but Jahn told the couple that the house didn’t need pilings and they would “beef up” the concrete slab.

Almost immediately after moving into the home in 2002, the Corrys discovered structural problems. Jahn said the issues were cosmetic and corrected them, but in 2007, after learning that Woodland had gone bankrupt, the Corry’s sought to meet with Mike Thomas Associates, where Jahn had also worked. No solutions were agreed to, so later that year, the Corrys sued Jahn, Woodland, Oakmont and MTA for breach of contract, breach of fiduciary duty, breach of warranty, negligence and fraud. The trial court granted Oakmont and MTA’s motion for summary judgment on the claims.

The Court of Appeals held that Oakmont and MTA weren’t parties to the construction contract at issue, so summary judgment was appropriate on the breach of contract claim. There is no cause of action arising from belated provision of a limited agency disclosure form, so summary judgment was proper on the breach of fiduciary duty claim.

The trial court properly declined to impose an implied warranty of habitability on Oakmont and MTA where Woodland, as the builder, was the entity best positioned to prevent the home from sinking. The trial court also properly granted summary judgment on the negligence claim because the Corrys’ claim is for economic loss and they are relegated to recovery in contract as opposed to negligence law.

The designated materials show Oakmont and MTA didn’t make fraudulent misrepresentations to the Corrys, and Jahn did not act as an agent of Oakmont or MTA when representing that his building methodology was superior and would produce a long-standing product, the appellate court ruled. Thus summary judgment on the fraud claim was appropriate.

 

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  1. Indianapolis employers harassment among minorities AFRICAN Americans needs to be discussed the metro Indianapolis area is horrible when it comes to harassing African American employees especially in the local healthcare facilities. Racially profiling in the workplace is an major issue. Please make it better because I'm many civil rights leaders would come here and justify that Indiana is a state the WORKS only applies to Caucasian Americans especially in Hamilton county. Indiana targets African Americans in the workplace so when governor pence is trying to convince people to vote for him this would be awesome publicity for the Presidency Elections.

  2. Wishing Mary Willis only God's best, and superhuman strength, as she attempts to right a ship that too often strays far off course. May she never suffer this personal affect, as some do who attempt to change a broken system: https://www.youtube.com/watch?v=QojajMsd2nE

  3. Indiana's seatbelt law is not punishable as a crime. It is an infraction. Apparently some of our Circuit judges have deemed settled law inapplicable if it fails to fit their litmus test of political correctness. Extrapolating to redefine terms of behavior in a violation of immigration law to the entire body of criminal law leaves a smorgasbord of opportunity for judicial mischief.

  4. I wonder if $10 diversions for failure to wear seat belts are considered moral turpitude in federal immigration law like they are under Indiana law? Anyone know?

  5. What a fine article, thank you! I can testify firsthand and by detailed legal reports (at end of this note) as to the dire consequences of rejecting this truth from the fine article above: "The inclusion and expansion of this right [to jury] in Indiana’s Constitution is a clear reflection of our state’s intention to emphasize the importance of every Hoosier’s right to make their case in front of a jury of their peers." Over $20? Every Hoosier? Well then how about when your very vocation is on the line? How about instead of a jury of peers, one faces a bevy of political appointees, mini-czars, who care less about due process of the law than the real czars did? Instead of trial by jury, trial by ideological ordeal run by Orwellian agents? Well that is built into more than a few administrative law committees of the Ind S.Ct., and it is now being weaponized, as is revealed in articles posted at this ezine, to root out post moderns heresies like refusal to stand and pledge allegiance to all things politically correct. My career was burned at the stake for not so saluting, but I think I was just one of the early logs. Due, at least in part, to the removal of the jury from bar admission and bar discipline cases, many more fires will soon be lit. Perhaps one awaits you, dear heretic? Oh, at that Ind. article 12 plank about a remedy at law for every damage done ... ah, well, the founders evidently meant only for those damages done not by the government itself, rabid statists that they were. (Yes, that was sarcasm.) My written reports available here: Denied petition for cert (this time around): http://tinyurl.com/zdmawmw Denied petition for cert (from the 2009 denial and five year banishment): http://tinyurl.com/zcypybh Related, not written by me: Amicus brief: http://tinyurl.com/hvh7qgp

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