Krutzenacker v. Davis Surveying, Inc.
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Appellees, Kristine Kittleson and James Kurtzenacker, purchased property pursuant to a warranty deed that referenced surveys conducted by Davis Surveying. Appellants, Davis Surveying and Kenneth Davis claimed they had nothing to do with Appellees until after they had purchased their property. Appellees sued Appellants, alleging negligent misrepresentation, negligence, and breach of contract based on a third-party beneficiary theory and claiming that because of Clark's incorrect flagging, they trespassed on neighboring property and needed to remove part of their landscaping and construction work. The district court held that Appellants were liable for breach of contract under a third-party beneficiary theory and for negligent misrepresentation. The Supreme Court affirmed in part and reversed in part, holding (1) the district court erred in determining that Appellees were third-party beneficiaries of a contract for a prior survey, but while the court erred in this reasoning, it reached the right result under Appellees' negligent misrepresentation claim; (2) the court did not err in determining that Appellees were entitled to damages based on negligent misrepresentation; and (3) there was a lack of substantial evidence to support the court's determination that Davis was personally liable to Appellees for work done by Davis Surveying.
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