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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. A traditional parade of attorneys? Really Evansville? Y'all need to get out more. When is the traditional parade of notaries? Nurses? Sanitation workers? Pole dancers? I gotta wonder, do throngs of admiring citizens gather to laud these marching servants of the constitution? "Show us your billing records!!!" Hoping some video gets posted. Ours is not a narcissistic profession by any chance, is it? Nah .....

  2. My previous comment not an aside at court. I agree with smith. Good call. Just thought posting here a bit on the if it bleeds it leads side. Most attorneys need to think of last lines of story above.

  3. Hello everyone I'm Gina and I'm here for the exact same thing you are. I have the wonderful joy of waking up every morning to my heart being pulled out and sheer terror of what DCS is going to Throw at me and my family today.Let me start from the !bebeginning.My daughter lost all rights to her 3beautiful children due to Severe mental issues she no longer lives in our state and has cut all ties.DCS led her to belive that once she done signed over her right the babies would be with their family. We have faught screamed begged and anything else we could possibly due I hired a lawyer five grand down the drain.You know all I want is my babies home.I've done everything they have even asked me to do.Now their saying I can't see my grandchildren cause I'M on a prescription for paipain.I have a very rare blood disease it causes cellulitis a form of blood poisoning to stay dormant in my tissues and nervous system it also causes a ,blood clotting disorder.even with the two blood thinners I'm on I still Continue to develop them them also.DCS knows about my illness and still they refuse to let me see my grandchildren. I Love and miss them so much Please can anyone help Us my grandchildren and I they should be worrying about what toy there going to play with but instead there worrying about if there ever coming home again.THANK YOU DCS FOR ALL YOU'VE DONE. ( And if anyone at all has any ideals or knows who can help. Please contact (765)960~5096.only serious callers

  4. He must be a Rethuglican, for if from the other side of the aisle such acts would be merely personal and thus not something that attaches to his professional life. AND ... gotta love this ... oh, and on top of talking dirty on the phone, he also, as an aside, guess we should mention, might be important, not sure, but .... "In addition to these allegations, Keaton was accused of failing to file an appeal after he collected advance payment from a client seeking to challenge a ruling that the client repay benefits because of unreported income." rimshot

  5. I am not a fan of some of the 8.4 discipline we have seen for private conduct-- but this was so egregious and abusive and had so many points of bad conduct relates to the law and the lawyer's status as a lawyer that it is clearly a proper and just disbarment. A truly despicable account of bad acts showing unfit character to practice law. I applaud the outcome.

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