ILNews

Court upholds home developer's liability

Jennifer Nelson
January 1, 2007
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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.
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  1. Please I need help with my class action lawsuits, im currently in pro-se and im having hard time findiNG A LAWYER TO ASSIST ME

  2. Access to the court (judiciary branch of government) is the REAL problem, NOT necessarily lack of access to an attorney. Unfortunately, I've lived in a legal and financial hell for the past six years due to a divorce (where I was, supposedly, represented by an attorney) in which I was defrauded of settlement and the other party (and helpers) enriched through the fraud. When I attempted to introduce evidence and testify (pro se) in a foreclosure/eviction, I was silenced (apparently on procedural grounds, as research I've done since indicates). I was thrown out of a residence which was to be sold, by a judge who refused to allow me to speak in (the supposedly "informal") small claims court where the eviction proceeding (by ex-brother-in-law) was held. Six years and I can't even get back on solid or stable ground ... having bank account seized twice, unlawfully ... and now, for the past year, being dragged into court - again, contrary to law and appellate decisions - by former attorney, who is trying to force payment from exempt funds. Friday will mark fifth appearance. Hopefully, I'll be allowed to speak. The situation I find myself in shouldn't even be possible, much less dragging out with no end in sight, for years. I've done nothing wrong, but am watching a lot of wrong being accomplished under court jurisdiction; only because I was married to someone who wanted and was granted a divorce (but was not willing to assume the responsibilities that come with granting the divorce). In fact, the recalcitrant party was enriched by well over $100k, although it was necessarily split with other actors. Pro bono help? It's a nice dream ... but that's all it is, for too many. Meanwhile, injustice marches on.

  3. Both sites mentioned in the article appear to be nonfunctional to date (March 28, 2017). http://indianalegalanswers.org/ returns a message stating the "server is taking too long to respond" and http://www.abafreelegalasnswers.org/ "can't find the server". Although this does not surprise me, it is disheartening to know that access to the judicial branch of government remains out of reach for too many citizens (for procedural rather than meritorious reasons) of Indiana. Any updates regarding this story?

  4. I've been denied I appeal court date took a year my court date was Nov 9,2016 and have not received a answer yet

  5. Warsaw indiana dcs lying on our case. We already proved that in our first and most recent court appearance i need people to contact me who have evidence of dcs malpractice please email or facebook nathaniel hollett thank you

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