Title: Smith v. JH BERRY REALTY CO., INC.

State: alabama

Issuer: Alabama Supreme Court

Document:

528 So. 2d 314 (1988)
Harold L. SMITH and Mavis L. Smith
v.
J.H. BERRY REALTY COMPANY, INC.
86-455.

Supreme Court of Alabama.
June 24, 1988.
John F. Kizer, Jr., of Kizer & Bennett, Birmingham, for appellants.
Frank M. Bainbridge, and Bruce F. Rogers of Porterfield, Scholl, Bainbridge, Mims & Harper, Birmingham, for appellee.
ALMON, Justice.
The plaintiffs, Harold and Mavis Smith, appeal from a summary judgment granted for J.H. Berry Realty Company ("Berry Realty") in a fraud action.
The alleged fraud concerns a representation by an agent of Berry Realty that a house purchased by plaintiffs was located on a parcel of land in such a way as to be in compliance with zoning regulations.
*315 This case has a rather long history. See Smith v. City of Gardendale, 508 So. 2d 250 (Ala.1987).
In February 1979, the Smiths were interested in a new home. They were shown the property at 944 Brookridge Drive in Gardendale, Alabama, by an agent of Berry Realty. On February 11, 1979, a sales contract was executed for the purchase of the home.
The fence in the back yard is located approximately one foot from the property line. Due to the angle at which the house is situated on the lot, the fence is approximately eighteen and one-half feet from the rear of the house at one end. The Smiths asked the agent if the position of the house and fence complied with applicable regulations. The agent answered that they did. Prior to closing, Mr. Smith investigated the matter by visiting the building inspector of the City of Gardendale, Mr. George Malone. Mr. Malone accompanied Mr. Smith to the city clerk's office, where Mr. Smith was informed by employees of that office that the home complied with the City of Gardendale building code. Mr. Smith specifically asked about the requirements of a rear lot line. Mr. Smith also obtained a copy of the restrictions promulgated by the Birmingham Regional Planning Commission. The plans for construction had been submitted to the City and approved.[1]
Mr. Smith testified in this regard as follows:
The Smiths purchased the property on April 3, 1979. In the summer of 1979, the Smiths and J.H. Berry, owner of Berry Realty, received a letter from the City informing them that the rear lot set-back line was in violation of the building code of the City of Gardendale. This was the first notice to either of the parties that there was a violation of the zoning law. The Smiths have also received notification from the building inspector that a variance from strict compliance with the zoning regulations is available to correct the violation. The Smiths declined the City's request that they apply for a variance.
The Smiths brought this action, alleging that they were fraudulently induced to purchase the home by misrepresentations by Berry Realty concerning the property's compliance with the building code and alleging that they have suffered damages.
The elements of the tort of fraudulent misrepresentation are (1) a false representation (2) regarding a material existing fact, (3) which the plaintiff relies upon, and (4) damages proximately caused by the misrepresentation. Roney v. Ray, 436 So. 2d 875 (Ala.1983); Earnest v. Pritchett-Moore, Inc., 401 So. 2d 752 (Ala.1981).
Assurances made by the agents of Berry Realty concerning whether the house complied with zoning requirements, although honestly believed to be true, were in fact false. The house was eventually determined to be in violation of the building code of the City of Gardendale. Presumably, the house was never in compliance, despite assurances from the building inspector to the contrary.
After reviewing the evidence, we conclude that there was not sufficient reliance on the misrepresentation of Berry Realty to support an action for fraud. From the outset, Mr. Smith expressed his concern with regard to the positioning of the house relative to the rear lot set-back requirements. In fact, he undertook a rather extensive investigation of his own into the zoning requirements and the compliance or non-compliance of the property. Mr. Smith evidenced his intention not to rely on the assurances given by the agent of Berry Realty.[2]
To claim reliance upon a misrepresentation, the allegedly deceived party must have believed it to be true. If it appears that he was in fact so skeptical as to its truth that he placed no confidence in it, it cannot be viewed as a substantial cause of his conduct. Halbrooks v. Jackson, 495 So. 2d 591 (Ala.1986); Ex Parte Leo, 480 So. 2d 572 (Ala.1985). The reliance must be reasonable under all the circumstances of the case. Halbrooks, supra. Compare Bedwell Lumber Co. v. T & T Corp., 386 So. 2d 413 (Ala.1980). The undisputed fact that Mr. Smith was unwilling to accept the statement of the defendant's agent without verification is evidence that he did not rely on it. Based on his own testimony, it is clear that Mr. Smith was unwilling to accept the statement of the defendant's agent regarding the applicable zoning regulations.
Accordingly, we find no error in the trial court's grant of summary judgment in favor of Berry Realty.
For the foregoing reasons, the decision of the trial court is due to be, and it hereby is, affirmed.
AFFIRMED.
TORBERT, C.J., and MADDOX, BEATTY and HOUSTON, JJ., concur.
[1]  According to his affidavit, Mr. Malone gave his approval at each inspection based on his belief that the house as constructed was in compliance with the zoning ordinances and requirements for the City of Gardendale.
[2]  Mrs. Smith makes no claim separate and apart from that of her husband.