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Judges affirm judgment for real estate agent on negligence claim

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The Indiana Court of Appeals affirmed that a real estate agent representing buyers did not breach the duty he had to the sellers when he communicated with them personally about accepting his clients’ offer.

Jack Stump represented Zachary and Holli Gredy, who wanted to buy Terry and Marti Likens’ home. The Likenses had their own real estate agent, who advised the couple to accept another offer instead of the Gredys’. Stump contacted the Likenses directly by phone and e-mail encouraging them to accept the Gredys’ offer.

They executed a purchase agreement, in which the Gredys were to close before Sept. 30, 2008, and have $10,000 held in escrow. Closing didn’t happen on time, and the bank letter guaranteeing the funds was fraudulent. The Likenses sued the Gredys, Stump and his employer, Prickett’s Properties. At issue in the instant case is the grant of summary judgment in favor of Stump and his employer on the Likenses’ negligence/breach of agency duty claim.

The Likenses argued Prickett’s Properties was liable under the doctrine of respondeat superior. They also claimed that Stump owed them a common law duty because he went beyond acting as an agent for the Gredys and undertook to advise and coerce the Likenses into a course of action.

But statutory law supersedes any common law to the contrary, the Court of Appeals concluded in Terry Likens, et al. v. Prickett's Properties, Inc., et al., No. 43A03-1008-PL-455. The judges cited Indiana Code Chapter 25-34.1-10, which governs real estate agency relationships, to define the duty Stump owed the Likenses. Section 11 of the chapter says a licensee representing a buyer owes no duties or obligations to the seller, except that a licensee shall treat all prospective sellers honestly and not knowingly give them false information, wrote Judge Nancy Vaidik. The section also says that the licensee owes no duty to conduct an independent investigation of the buyer’s financial ability to purchase or verify the accuracy of any statement made by the buyer or a third party.

“Indeed, Stump had a duty to treat the Likenses honestly and not knowingly give them false information. But the negligence count against Stump does not allege any violation of this clearly-articulated statutory duty,” she wrote, noting the Likenses didn’t appeal the summary judgment ruling pertaining to their fraud claim against Stump. “Finally, while Stump’s actions in directly contacting the Likenses to encourage them to accept the Gredys’ offer may seem inappropriate, Stump, as the buyers’ agent, is allowed to provide the Likenses services in the ordinary course of a real estate transaction and any similar services that do not violate the terms of his agency relationship with the Gredys.”

Judge Vaidik also referenced section 15, which says the “duties and obligations of a licensee set forth in this chapter supersede any fiduciary duties of a license to a party based on common law principles of agency to the extent that those common law fiduciary duties are inconsistent with the duties and obligations set forth in this chapter.”

Also, there’s no evidence of a writing that the Gredys and the Likenses consented to Stump acting as a limited agent for both of them.

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  1. Good riddance to this dangerous activist judge

  2. What is the one thing the Hoosier legal status quo hates more than a whistleblower? A lawyer whistleblower taking on the system man to man. That must never be rewarded, must always, always, always be punished, lest the whole rotten tree be felled.

  3. I want to post this to keep this tread alive and hope more of David's former clients might come forward. In my case, this coward of a man represented me from June 2014 for a couple of months before I fired him. I knew something was wrong when he blatantly lied about what he had advised me in my contentious and unfortunate divorce trial. His impact on the proceedings cast a very long shadow and continues to impact me after a lengthy 19 month divorce. I would join a class action suit.

  4. The dispute in LB Indiana regarding lake front property rights is typical of most beach communities along our Great Lakes. Simply put, communication to non owners when visiting the lakefront would be beneficial. The Great Lakes are designated navigational waters (including shorelines). The high-water mark signifies the area one is able to navigate. This means you can walk, run, skip, etc. along the shores. You can't however loiter, camp, sunbath in front of someones property. Informational signs may be helpful to owners and visitors. Our Great Lakes are a treasure that should be enjoyed by all. PS We should all be concerned that the Long Beach, Indiana community is on septic systems.

  5. Dear Fan, let me help you correct the title to your post. "ACLU is [Left] most of the time" will render it accurate. Just google it if you doubt that I am, err, "right" about this: "By the mid-1930s, Roger Nash Baldwin had carved out a well-established reputation as America’s foremost civil libertarian. He was, at the same time, one of the nation’s leading figures in left-of-center circles. Founder and long time director of the American Civil Liberties Union, Baldwin was a firm Popular Fronter who believed that forces on the left side of the political spectrum should unite to ward off the threat posed by right-wing aggressors and to advance progressive causes. Baldwin’s expansive civil liberties perspective, coupled with his determined belief in the need for sweeping socioeconomic change, sometimes resulted in contradictory and controversial pronouncements. That made him something of a lightning rod for those who painted the ACLU with a red brush." http://www.harvardsquarelibrary.org/biographies/roger-baldwin-2/ "[George Soros underwrites the ACLU' which It supports open borders, has rushed to the defense of suspected terrorists and their abettors, and appointed former New Left terrorist Bernardine Dohrn to its Advisory Board." http://www.discoverthenetworks.org/viewSubCategory.asp?id=1237 "The creation of non-profit law firms ushered in an era of progressive public interest firms modeled after already established like the National Association for the Advancement of Colored People ("NAACP") and the American Civil Liberties Union ("ACLU") to advance progressive causes from the environmental protection to consumer advocacy." https://en.wikipedia.org/wiki/Cause_lawyering

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