U.S. HOME CORPORATION, RUTENBERG HOMES DIVISION, A FLORIDA CORPORATION, APPELLANT,
v.
METROPOLITAN PROPERTY AND LIABILITY INSURANCE COMPANY, AND SHELDON AND KAREN DANTO, APPELLEES

Fla. 2d DCA | 1987-10-02
No. 86-2329
CAMPBELL, A.C.J., and THREADGILL, J., concur.
516 So. 2d 3 Florida District Court of Appeal, Second District (1987) Caution
Cited by 7 cases

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Synopsis

U.S. Home Corporation appealed a jury verdict awarding damages to homeowners for construction defects and sinkhole damage. The appellate court affirmed liability for the first incident based on nondisclosure of known material defects but reversed damages for a second pool damage incident that resulted from independent causes.


Holding

The court affirmed liability for the first incident, finding U.S. Home had a duty to disclose material defects it knew or should have known about given its superior knowledge as a developer. The court reversed the award for the second incident, finding it resulted from independent causes unrelated to U.S. Home's conduct. The court affirmed the damages award for the first incident as properly instructed by the trial judge.


Headnotes

[1] A seller of a home has a duty to disclose material facts affecting the property's value when the seller knows of such facts.

[2] Superior knowledge can transform a latent defect into a patent defect for the purposes of disclosure obligations.

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Key Quotes

“It is now settled in Florida that where the seller of a home knows of facts which materially affect the value of the property the seller is under a duty to disclose them to the buyer.”

Establishes the legal duty of home sellers to disclose material defects known to them, forming the basis for U.S. Home's liability.

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Facts & Procedural History

In 1980, the Dantos contracted with U.S. Home to build a home in Tampa. During construction, U.S. Home's project manager suggested installing a well f…

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Opinion of the Court
PATTERSON, DAVID F., Associate Judge.

PATTERSON, DAVID F., Associate Judge.

This appeal results from a judgment for money damages rendered against U.S. Home Corporation. We affirm in part and reverse in part.

In 1980 Sheldon and Karen Danto contracted with U.S. Home Corporation for the construction of a single family residence in the Carrollwood area of Tampa. During construction, discussions were held between the Dantos and U.S. Home’s project manager, Cummings, pertaining to a type' of airconditioning system which required the installation of a well. On Cummings’ suggestion the Dantos contracted with Western Drilling, a well digger, to install the well. Upon completion of construction and prior to closing, certain cracks developed in the structure of the home and were repaired by U.S. Home without notice to the Dantos. The day prior to closing U.S. Home’s superintendent, Oertner, and Sheldon Danto observed depressions forming in the yard. Oertner told Danto “it’s just a little washing away.”

The Dantos proceeded to closing, at which time they received a warranty from U.S. Home which contained the disclaimer: “warranty does not cover damage due to subsoil conditions.” Within two days following the closing, a substantial crack occurred in the rear of the residence and the pool shattered with numerous cracks. (First incident.) U.S. Home provided an engineer, Orofino, who determined the damage was caused by sinkhole develop ment. Orofino instructed the Dantos to cease using the well. The Dantos made a claim to Metropolitan under a provision of sinkhole coverage. That company paid $27,406.30 for replacement of the pool and shoring of the footer of the home. During the repair process a layer of debris was found four inches beneath the footer. The Dantos resumed use of the well, and in June 1981 the well began pumping dirty, sandy water. The Dantos contacted Western Drilling who ran the well at high speed until the Dantos requested they discontinue. Within twenty-four hours the second pool cracked. (Second incident.)

In April 1984 the Dantos, joined by Metropolitan, brought suit against U.S. Home and Western Drilling seeking damages on theories of breach of warranty, negligence and fraud. At trial the trial judge excluded evidence relating to subsoil conditions as to all counts except the fraud count. A jury returned a verdict assessing damages in the amount of $104,006.30 against U.S. Home and exonerating Western Drilling. The issues presented in this appeal are whether there is substantial and competent evidence upon which a verdict in any amount could be rendered against U.S. Home and, if so, the correctness of the class and the amount of damages awarded.

Each party presented expert testimony at trial. Although the experts disagreed as to the precise cause of damage, each attributed the incidents to some form of subsoil condition.

It is now settled in Florida that where the seller of a home knows of facts which materially affect the value of the property the seller is under a duty to disclose them to the buyer. Johnson v. David, 480 So. 2d 625 (Fla.1985). U.S. Home asserts that it did not develop the lot and had no knowledge as to the condition of the subsoil. However, what may be a latent defect to the average person may become a patent defect in the eyes of a person possessing superior knowledge. The record of this case reflects facts and circumstances from which the trier of fact could conclude that a developer possessing the knowledge and experience of U.S. Home knew that one or more material defects existed in this home prior to closing and that such defects were concealed from the buyer by nondisclosure. We, therefore, affirm the finding of liability of U.S. Home in regard to the first incident.

U.S. Home did not construct the second pool and, in fact, advised the Dantos to discontinue use of the well. To impose liability upon U.S. Home for the second incident would require a finding that that incident resulted from the same facts and circumstances which caused the first. The record clearly does not support such a conclusion, and we reverse the award against U.S. Home for the second incident.

In regard to the issue of damages for the first incident, the jury award followed the trial judge’s instruction on the law which, in material portion, was that requested by both the Dantos and U.S. Home. We, therefore, affirm such award.

CAMPBELL, A.C.J., and THREADGILL, J., concur.


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Citator

Cited By

  • Futura Realty v. Lone Star Bldg. Ctrs. (Eastern), Inc., 578 So. 2d 363 (Fla. 3d DCA 1991)
    …y the exercise of reasonable care). Likewise, we need not evaluate the experienced nature of Futu-ra’s representative in the sale, as a longtime developer, real estate broker and lawyer. See U.S. Home Corp. v. Metropolitan Property & Liab. Ins. Co., 516 So. 2d 3, 4 (Fla. 2d DCA 1987) (what may be a latent defect to the average person may become a patent defect in the eyes of a person possessing superior knowledge). No questions of fact precluding summary judgment remain. Second, Futura claims reliance on t…
  • Henson v. James M. Barker Co., Inc., 555 So. 2d 901 (Fla. 1st DCA 1990)
    …e seller’s nondisclosure of latent defects in a house. Appellants argue that this duty to disclose applies not only to sellers of real property but also to building contractors, citing U.S. Home Corp. v. Metropolitan Property and Liability Ins. Co., 516 So. 2d 3 (Fla. 2d DCA 1987). They say that Barker breached this duty in concealing the latent defects and making covert efforts to wrongfully cause the construction loan lender to foreclose the loan with them in order that Barker might obtain a better contra…
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  • Blue Cross/Blue Shield OF Fla., Inc. v. Weiner, 543 So. 2d 794 (Fla. 4th DCA 1989)
    …was sufficient evidence in the record, when considering inferences that may be drawn from the proofs, to submit the issue of fraud to the jury. See U.S. Home Corporation, Rutenberg Homes Division v. Metropolitan Property and Liability Insurance Co., 516 So. 2d 3 (Fla. 2d DCA 1987); Needle v. Lowenberg, 421 So. 2d 678 (Fla. 4th DCA 1982), rev. denied, 427 So. 2d 737 (Fla.1983); Nantell v. Lim-Wick Construction Co., 228 So. 2d 634 (Fla. 4th DCA 1969). Cf. Sun Life Assurance Company of Canada v. Land Concepts,…

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