Wasson v. Schubert
| Citation | 964 S.W.2d 520 |
| Decision Date | 10 March 1998 |
| Docket Number | No. WD,WD |
| Parties | William R. and Kathryn E. WASSON, Appellants, v. Noland E. and Cheryl L.A. SCHUBERT, Respondents. 54090. |
| Court | Missouri Court of Appeals |
David A. Vorbeck, Kansas City, for Appellants.
Judith A. Sharp, Liberty, for Respondents.
Before ULRICH, C.J., P.J., and HOWARD and RIEDERER, JJ.
This is an appeal from the trial court's judgment in favor of Respondents Noland and Cheryl Schubert at the close of Appellants' evidence. Appellants William and Kathryn Wasson claim the trial court erred in entering judgment for Respondents as a matter of law on Appellants' breach of contract and fraudulent misrepresentation claims on a contract for the sale of real property. Appellants also claim the trial court erred in finding that they did not present evidence of damages.
Noland and Cheryl Schubert bought the property at 8919 East 56th Terrace in Raytown, Missouri ("the property") in August 1988. In December 1988, the Schuberts discovered a water leak in the basement of the house on the property. In January 1989, the Schuberts determined that the water leak was from a crack in the foundation wall in the basement. The crack in the basement wall and the water leak were behind the stairs leading from the garage of the house to the basement. That same month, the Schuberts attempted to repair the water leak from the crack in the basement foundation wall by applying "UGL Waterproofer" to the wall. They replaced the steps and carpeting covering the crack and leak.
In May or June 1993, the Schuberts discovered another water leak in the basement of the house, near a drainpipe in the basement wall in the furnace room. The Schuberts attempted to fix this leak by applying UGL to the wall in May or June 1993. Their attempts were unsuccessful. The water leak continued at that location until the Schuberts sold the property to William and Kathryn Wasson in 1995.
On June 29, 1995, the Schuberts executed a form of "Sellers' Disclosure--Statement of Condition Addendum," ("sellers' disclosure") by which the Schuberts agreed to disclose to the Wassons all material defects, conditions and facts known to them that might materially affect the value of the property. In the sellers' disclosure, the Schuberts disclosed only two items of defect or conditions that might affect the value of the property, at paragraphs eight and nine, relating to "structural items" and "basements and crawl spaces."
As for the structural items, in response to the question "Are there now or has there ever been any cracks or flaws in the walls or foundation?" the Schuberts marked "No." In response to the question "Is there now or has there even been any water leakage in the house?" the Schuberts marked "Yes." The Schuberts stated that they had attempted repairs to stop the leaks. Although the question required them to explain the repair efforts in detail, including the location, extent, date, and name of the person who did the repair, the Schuberts merely described the efforts as "heavy rains 93 (fill dirt & gutter change)."
As for the basements and crawl spaces, the Schuberts were required to disclose whether there had ever been any water leakage, accumulation, or dampness within the basement. The Schuberts responded that there had been, and described the condition as "from 93 rains." The Schuberts further stated that they had attempted repairs to control the water or dampness problem in the basement themselves, and described the repair as "furnace room--minor--5/93."
On July 21, 1995, the Schuberts and the Wassons executed a Residential Real Estate Sale Contract ("contract") for the Wassons to buy the property for the price of $78,000. Paragraph eight of the contract stated that the contract was not effective until the Schuberts completed and the Wassons signed the attached "Statement of Condition Addendum" for the property.
On July 22, 1995, the Wassons signed the Buyers' Acknowledgment and Agreement portion of the sellers' disclosure. The sellers' disclosure specifically provided that "THIS DISCLOSURE STATEMENT IS AN INTEGRAL PART OF THE AGREEMENT BETWEEN THE SELLER AND THE BUYER."
The Schuberts did not disclose the December 1988 water leak and January 1989 attempted repairs in the basement foundation wall behind the stairs to the Wassons when the Schuberts provided the sellers' disclosure. The Schuberts did not disclose to the Wassons that the water leak at the drainpipe in the basement wall in the furnace room continued to leak from the May 1993 attempted repairs up until the Schuberts sold the property to the Wassons.
The Wassons visually inspected the house and property before signing the contract to buy the property, and they saw no water leaks or cracks in the basement walls. The Wassons closed on the sale of the property in September 1995 and took possession of the property on about October 1, 1995. At no time prior to closing on the sale of the property did the Wassons conduct or have anyone else conduct a structural inspection of the property.
The Wassons have experienced water leaks in the basement of the property periodically since approximately January 1996. The Wassons determined that water leaks through cracks in the basement foundation walls in the furnace room and behind the stairs leading from the garage to the basement. The water leaks that the Wassons have experienced are at the same locations that the Schuberts attempted repairs in January 1989 and May 1993. The leaks occur every time it rains or snow melts.
At the close of plaintiffs' evidence, the trial court ruled, as a matter of law, that the Schuberts' representations about the property condition in the sellers' disclosure could not support the Wassons' claim that the Schuberts breached the contract, because the sellers' disclosure was dated one day after the contract. The trial court also ruled that the Schuberts' representations in the sellers' disclosure did not support the Wassons' claim for fraudulent misrepresentation because the sellers' disclosure was dated after the contract. The trial court also ruled that the Wassons had not presented evidence of damages. The Wassons appealed the trial court's judgment.
In this case, the court entered judgment for the defendants at the close of plaintiffs' case for failure to make a submissible case. The standard of review in a case where the judge has granted judgment for the defendants at the close of plaintiffs' case provides the plaintiffs with all favorable inferences, rejects all unfavorable inferences, and disregards defendants' evidence unless it aids plaintiffs' case. Morris v. Perkins Chevrolet, Inc., 663 S.W.2d 785, 787 (Mo.App. W.D.1984).
The first point on appeal is that the trial court erred in ruling for the Schuberts as a matter of law, on the basis that the sellers' disclosure was dated one day after the contract, because 1) the trial court's ruling was against the weight of the evidence and erroneously declared the law; and 2) the evidence showed, without contradiction, that the contract between the Wassons and the Schuberts incorporated the sellers' disclosure by reference, and that the Schuberts failed to disclose defects in the property and conditions materially affecting the value of the property.
We review the evidence to determine only whether the Schuberts made a submissible case on their breach of contract claim. To make a submissible case, substantial evidence must support every fact essential to liability and establish every element necessary to recovery. Howe v. ALD Services, Inc., 941 S.W.2d 645, 650 (Mo.App. E.D.1997). In order to make a submissible case of breach of contract, the complaining party must establish the existence of a valid contract, the rights of plaintiff and obligations of defendant under the contract, a breach by defendant, and damages resulting from the breach. Howe, id.; Slone v. Purina Mills, Inc., 927 S.W.2d 358, 367 (Mo.App. W.D.1996).
We find that the Wassons made a submissible breach of contract claim. The contract and the sellers' disclosure were admitted in evidence at trial, and the Schuberts do not argue that the contract was not valid or that the disclosure was not a part of the contract. The trial court found that the sellers' disclosure could not be part of the contract because it was dated by the Wassons one day after the contract was signed. We disagree. It is well established that matters incorporated into a contract by reference are as much a part of the contract as if they had been set out in the contract in haec verba. Jim Carlson Const., Inc. v. Bailey, 769 S.W.2d 480, 481 (Mo.App. W.D.1989); Three-O-Three Investments, Inc. v. Moffitt, 622 S.W.2d 736, 738 (Mo.App. W.D.1981). The sellers' disclosure was an addendum to the contract, and paragraph eight of the contract specifically states that the contract would not be effective "until seller completes and buyer signs the attached Statement of Condition Addendum for the property." Therefore, the fact that the Wassons signed the sellers' disclosure one day after the parties signed the contract simply means that the contract was not effective until the date the Wassons signed the sellers' disclosure.
As for the Schuberts' obligations and whether they breached their obligations, the sellers' disclosure states that "[s]eller agrees to disclose to buyer all material defects, conditions and facts known to seller which may materially affect the value of the property." Nowhere on the sellers' disclosure did the Schuberts mention the crack in the basement foundation wall behind the stairs, which they admit caused leaks in the past. The Schuberts claim that they did not disclose the existence of that crack because they did not believe it was material. However, the plain language of the sellers' disclosure clearly required the Schuberts to disclose all cracks that, to their knowledge, had ever existed in...
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