Estate of Richard Rosenthal v. JRHBW Realty, Inc., d/b/a RealtySouthAnnotate this Case
Mark Rosenthal ("Mark"), as personal representative of the estate of Richard Rosenthal, deceased ("Richard"), appealed the grant of summary judgment entered in favor of JRHBW Realty, Inc., d/b/a RealtySouth ("RealtySouth"), and Charles Valekis on Richard's claims alleging breach of contract and negligence/wantonness. In early June 2013, Richard retained RealtySouth through its agent Valekis to assist him in locating a new house to purchase. Valekis told Richard about an unlisted property that Valekis believed would meet Richard's needs. Richard testified that he told Valekis that he would not buy the home without having a structural engineer examine it. Richard testified that, based on Valekis's representation that he had had a structural engineer inspect the home and on Valekis's representation that Garland Caudle, a home inspector (but not a structural engineer) had not found any structural issues, he placed an offer on the home. Richard closed on the home on July 19, 2013, and he moved into the home soon thereafter. After he had lived in the home for several months, Richard concluded that the home was too small and that he needed a larger home. He again engaged the services of Valekis and RealtySouth to sell the home. After the home was placed on the real-estate market, Richard began to notice problems with it. Valekis subsequently informed Richard that numerous potential buyers were concerned with the condition of the home. Ultimately, Richard had the home inspected by a foundation-repair contractor, and that contractor recommended that Richard hire a structural engineer. The structural engineer determined the home was experiencing significant structural distress and estimated that fixing the issues would cost over $100,000. In 2015, Richard sued RealtySouth, Valekis, Caudle, Foundations Unlimited of Alabama, and the Coopers (the previous owners of the house). The Alabama Supreme Court concluded Mark's allegation of a breach of contract by Valekis apart from the agency agreement was without merit. As the circuit court concluded, the agency agreement "contains language that RealtySouth and Valekis did not assume any responsibility to inspect the property or retain building experts to inspect the property," so the Court concluded the agency agreement did not provide a basis for Richard's breach-of-contract claim. Accordingly, the circuit court correctly entered a summary judgment in favor of RealtySouth and Valekis with respect to any alleged breach of contract.