Wallace v. Heath
Annotate this CaseJanet Heath appealed a district court order and judgment that granted Angela Palmer and Taylor Real Estate’s motion for summary judgment and dismissing her claims for negligence and breach of contract. The events that brought about this case began in the fall of 2017 when Heath began looking to buy a house in Bingham County, Idaho. Heath and Palmer communicated back and forth via emails and text messages, arranging financing through a lender, and discussing property listings. They met to view several listings together, including a property owned by Donald and Shirley Ciccone. With Palmer's help, Heath made a written offer on the Ciccione property. The offer, titled "RE-21 Real Estate Purchase and Sale Agreement," indicated Palmer and Taylor Real Estate were acting as “nonagents” for Heath. Heath also signed an Agency Disclosure Brochure indicating that she was a “customer” of Palmer and Taylor Real Estate. The offer form further stated that Heath would remain a “customer” unless she entered into a written representation agreement. Heath and Palmer never signed such an agreement. The Ciccones made a counter-offer which Heath accepted. The Ciccones gave Palmer a property condition disclosure, which revealed the existence of a shared driveway agreement with a neighboring property owned by Walter and Wilma Wallace. At some point before the closing date, the title company contacted Palmer and informed her that the Driveway Agreement needed to be modified to “run with the land” before it would insure the title. Palmer contacted Mr. Wallace and informed him that Heath was trying to buy the Ciccone property but could not do so without a driveway agreement. The Wallaces and the Ciccones signed a 2018 Driveway Agreement, which was essentially the same as the 1998 Driveway Agreement except that it was “a covenant running with the land” and redefined the shared portion of the driveway. Heath and the Ciccones closed on the property, and the warranty deed and the 2018 Driveway Agreement were recorded with the Bingham County Recorder that afternoon. Heath stated in her declaration that she would not have gone through with the sale if she had known that the driveway easement had been shortened by approximately two-thirds of its original length, effectively cutting off access to the garages on her property and significantly reducing the property’s value. The proceedings in this case began in June 2018 when the Wallaces filed a petition to quiet title against Heath and another individual living in her home. The Wallaces filed their petition after a dispute with Heath regarding the dimensions and use of the shared driveway. Finding that the district court erred in concluding that there was no genuine dispute of material fact regarding whether Palmer and Taylor Real Estate violated the statutory duties owed to Heath as a “customer” under Idaho Code section 54-2086, the Idaho Supreme Court reversed the grant of summary judgment in favor of Palmer and Taylor Real Estate.
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