SECOND DI VI SI ON

M I LLER, P. J.

, BROWN and GOSS, JJ.

N O T IC E : M otions for r e c ons i de r a tion m us t be

ph y sic a l ly r e ce iv ed i n our c le r k ’s offic e w ithin te n

da y s of the da te of de c is ion to be de e m ed tim e ly file d.

http://w w w .ga a ppe a l s .us /r ule s

October 17, 2018



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 8 A1 29 5

. GEORGIAN FINE PROPERTIES, L L C v

. LANG, et al

. GS-0 4 7

G O S S , J u d g e.

J as o n an d Kri s ta Lan g p u rch as ed a h o u se ren o v at ed an d so l d b y Geo rg i an Fi n e

Pro p ert i es

, LLC (“ GFP”). Th e Lan g s s u ed GFP fo r b reach o f co n t ract an d n eg l i g en t

co n st ru ct i o n ari s i n g fro m st ru ct u ral defect s p res en t in t h e h o u s e. 1 GFP ap p eal s fro m

t h e ju ry v erd ict i n fav o r o f t he L an g s o n th e n eg l i g en t co n s t ru ct i on cl ai m an d t h e t ri al

co u rt ’ s d en i al o f it s m o t i o n s fo r d i rect ed v e r d i c t a n d ju d g m en t n o t wi t h s t an d i n g t h e

v erd i ct (“ jn o v ”). O n ap p eal

, GFP ar g u e s t h at t h e t ri al co u rt erred in d en y i n g i t s

m o ti o n s b ecau s e t h e co n t ract s i g n ed b y b o th p art i es co n t ai n ed an “ as i s ” p ro v i s i o n.

Fo r t h e fo l lo wi n g reas o n s , we affi rm

.

1 T h e t ri al c o u r t g ran t ed s u m m ary ju d g m en t t o G FP o n t h e Lan g s ’ b reach o f

co n tract cl ai m s . Th at ru l i n g i s n o t at i s s ue i n t h i s ap p eal

.On ap p eal fro m a t ri al co u rt ’ s ru l i n g o n a m o ti o n fo r j u d gm en t n o t wi t h s t an d i n g

t h e v erd i ct

, “ t h e s tan d ard o f rev i ew i s w h e t h er t h ere i s an y ev i d en ce t o s u p p o rt t h e

ju ry ’ s v erd i ct .” (Ci t at i on s an d pu n ct u at i o n o m i t t ed .) Avi o n S ys

., In c. v. Bel l o mo

, 3 3 8

Ga. Ap p

. 1 4 1

, 1 4 4 (2 ) (7 8 9 SE2 d 3 7 4 ) (2 0 16 ). To p rev ai l, GFP m u s t s h o w “ th at t h ere

was n o co n fl i ct i n th e ev id en ce as t o an y m at eri al is s u e an d t h at th e ev i d en ce

i n t ro du ced

, wi t h al l reas o n ab l e d ed u ct i on s t h erefro m

, d em an d ed t h e verd i ct s o u g h t .”

(Ci t at i o n an d p u n ct u at i o n o m i t t ed .) Id . See al so Ha rr o u k v. Fi er ma n , 2 9 1 Ga. Ap p.

8 1 8

, 8 2 0 ( 1 ) ( 6 6 2 SE2 d 8 9 2 ) (2 0 0 8) (s t an d ard s o f rev i ew fo r di rect ed v erd i ct an d

ju d g m en t n o t wi th s tan d i n g t h e v erd i ct are t h e s am e).

Th e fact s at t ri al s h o w th at GFP ren o v at es an d b u i l d s res i d en t i al h o u s es

. In

2 0 1 1

, GFP p u rch as ed a s i n g l e-s t o ry h o m e o n Crav en ri d g e Dri v e i n At l an t a. GFP t h en

ren o v at ed t h e h o u s e by ad di n g a s eco n d -s t ory

, co n s t ru ct i n g a g arag e an d rem o d el i n g

t h e i n t eri o r. GFP t h en m ark et ed t h e h o u se fo r s al e.

On J u n e 1 1

, 2 0 1 3

, GFP an d t h e Lan gs en t ered i n t o a Pu rch as e an d Sal e

Ag reem en t (“ Ag reem en t ”) fo r th e Lan g s t o b u y t h e h o u se. T h e Ag reem en t p res en t ed

t o GFP was p ro v i d ed b y t h e Lan g s ’ real es t at e ag en t

. T h e Ag reem en t i s t h e s t an d ard

h o m e s al e fo rm

co n t ract p ro v i d ed b y

t h e Geo rg i a As s o ci at i o n o f Real t o rs

.

2Th e Ag reem en t pro vi d ed t h at t h e h ou s e w as b ei n g s o l d t o th e Lan g s s u b ject to

a 1 0 -d ay d ue d il ig en ce p eri o d

. Th e d u e di l i g en ce p eri od was t o al l o w t h e Lan g s t i m e

t o i n s p ect t h e ho u s e an d d e t e r m i n e wh et h er t o g o fo rward wi th t h e p u rch as e. Th e

Ag r e em en t al s o al l owed t h e Lan g s t o t erm i n at e t h e co n t ract at an y t i m e d u ri n g t h e

d u e d i li g en ce p h as e. It fu rt h er p ro v i d ed t h at i f t h e Lan gs “ h a[v e] co ncern s wi t h t h e

Pro p ert y

, [t hey ] m ay du ri n g t h e Du e Di l i g en ce Peri o d seek t o n eg o t i at e an

am en d m en t t o t hi s Ag reem en t t o ad d res s s u ch co n cern s .”

Du ri n g t he 1 0 -d ay d ue d i l i g en ce p eri o d

, t h e La n g s h i red Co rn ers t o n e

In s p ect i on Gro u p t o i n s p ect t h e h o u se. On J un e 1 8, 2 0 1 3

, J as o n Lan g acco m p an i ed

t h e i n s p ect or d uri ng t h e i n s p ect i o n an d ev en crawl ed in t o t h e crawl s p ace t o ex am i n e

t h e fo u n d at i o n

. Co rn ers to n e t h en p ro v i d ed t h e Lan g s wi t h a B u i l d i n g In s p ect i o n

Rep ort

, w h ich t h ey rev i ewed

. Th e B uil d i n g In s p ect i o n Rep o rt n ot ed t h at “ u n ev en n es s

was o b s erv ed i n t h e fl o o r s t ru ct u re, es p eci al l y as n o ted al o n g t h e cen t er wal l o f t h e

fi rs t fl o o r. Th i s co n d i t io n i s fai rl y co m m o n in ol d er s t ru ct u res s u ch as t h i s

. . . . Th ere

was n o ev i d en ce o f n eed fo r i m m ed i at e rep ai r; ho wev er t h e fl o o ri n g s y s tem s h o u ld

b e m o n i t o red fo r fu rt h er m o vem en t .” T h e Lan gs tes t i fi ed at t ri a l t h a t t h e Bu i l d i n g

In s p ect i on Rep o rt p l aced t h em o n n o t i ce t h at t h e h ard w o o d fl o o rs w ere un ev en

, t h at

3t h e h o u s e h ad o ri g i n al ly b een bu i l t i n 1 9 5 3

, an d t h at t h e n ew co n s t ru ct i o n was b u i l t

o n an ex i s t i n g fo u n d at i o n an d fl o o ri n g s y s t em

.

A f t e r t h e i n s p ect i on

, G FP an d t he Lan gs en t ered i n to an A m en d m en t t o t h e

Ag reem en t o n J u n e 2 0

, 2 0 1 3. T h e Am en d m en t id en t i fi ed 1 6 i t em s wh ich G FP ag reed

t o rep ai r pri o r t o cl o s i n g

, b u t d i d n o t ad d res s t he h ard wo o d fl oo rs o r fo u n d at i o n

. Th e

Lan gs d i d n o t g et a s tru ct u ral an al y s i s o f t h e fo u nd at i o n o f t h e h om e. Aft er th e i t em s

i d en t i fi ed o n t h e Am en dm en t were ad d res s ed

, th e Lan gs co n d u ct ed a fi n al i n s p ect i o n

b efo re cl os i n g . On J u l y

2 2 , 2 0 1 3 , t h e Lan g s an d GFP cl o s ed o n t h e s al e.

In Au gu s t 2 0 1 3

, t h e Lan g s m o ved i n t o th e ho m e. Bet ween th ree an d fo u r

m o nt h s aft er m o v i n g i n

, t h e Lan g s n ot i ced t h at t h e h ard wo o d fl o o rs b eg an t o d efl ect

,

t h e ki t ch en b ack s p l as h beg an t o s ep ara t e f r o m t h e co u n t ert o p s

, an d t he wi n d o w

m o ld i n g b eg an to crack

. GFP i n s p ect ed t h e p ro p ert y

, b u t d i d n o t o f f e r t o rep ai r t h e

i s su es

.

Sect io n 9 o f t h e Ag reem en t p ro v i d es t h at “ [i ] n t h e ev en t Bu ye r d o e s n ot

t erm i n at e t h i s A g reem en t p ri o r t o t h e en d o f th e Du e Di l i g en ce peri o d

, t h en

. . . Bu y er

s h al l h av e accep t ed t h e Pro p ert y “ as i s ” s u b j ect t o t h e t erm s o f t h i s Ag reem en t [.] ” Th e

Ag reem en t fu rt h er co n t ai n s a Sel l er’ s Pro p ert y Di s cl o su re St at em en t t h at i n s t ru ct ed

t h e L an g s t o carefu l l y i n s p ect t h e h o u s e, p ro v id i n g, in t er al i a: “ If an i n d ep en d en t

4ev al u at i on o f th e Pro p ert y rev eal s p o t en t i al p ro b l em s o r areas o f co n cern t h at wo u ld

cau s e a reas o n ab l e b u y er t o i nv es ti g at e fu rt h er, Bu y er m ay n o t h av e l eg al reco u rs e i f

Bu y er fai l s t o i n v es t i g at e fu rt h er.”

On Ju ly 11

, 2 0 1 4, t h e Lan g s fi l ed th e i n s t an t l aws u i t al l eg i n g n eg l i g en t

co n st ru ct i o n an d b reach o f co n t ract

. Th e Lan g s cl ai m ed t h at GFP was l i ab l e b ecau s e

i t n eg l i g en tl y al t ered t h e fo u n d at io n o f t h e h o u s e “ s u ch t h at t h e fo u n dat i on d i d n ot

s u p p ort p o rt i o ns o f th e fl o o r l ocat ed ab o v e,” t hereb y cau s i n g t h e fl o or t o b u ck l e, an d

b ecau s e i t n eg l i gen t l y

i n s t al l ed h ard wo o d fl oo rs t h ro u g h o u t t he h o u s e.

At t ri al

, t h e Pl ai n ti ffs in t ro d u ced ev i d en ce t h at G FP h i red Al b ert Pal m er, an

en g in eer wi t h Pal m er En g i n eeri n g

, t o p ro d u ce an en g i n eeri n g rep ort ab o ut ad d i n g a

s eco n d s t o ry t o th e h o m e. T h e r e p o r t reco m m en d ed t h at GFP “ s t i ffen ” t h e ex i s t i n g

2 x 8 f l o o r s y s t em b y ad d i n g t wo n ew d o u bl e 2 x1 0 beam s wi th ad di t i o n al s u p p o rt s

u n d er t h e h o u s e i n o rd er t o ad d t h e s eco n d s t o r y t o t h e h o m e. Pal m er p ro d u ced

ad d it i o n al l et t ers co n t ai ni ng lo ad cal cu l at i o ns o n l at er d at es as wel l

. In co ns t ru ct i n g

t h e s eco n d fl oo r, GFP i n s t al led o n e s u p p o rt b eam

.

Aft er th e l aws u i t was fi l ed

, t h e Lan g s h i red To m Zg rag g en of Ari es

E n g i n eeri n g

, In c. t o i n s p ect t h e h o m e. Zg rag g en ’ s rep ort n o t i ced t h e crack i n g an d

ro t at io n o f a s u p p ort p i er an d t hat t h e s u p p o rt b eam i n s t al l ed b y GFP had ro l l ed an d

5was “ p u t i n an o ut o f p l u m b s i tu at i o n

. ” Zg rag g en t es t i fi ed t h at a ro l l ed b eam can n ot

carry as m

u ch l o ad fro m th e res i d en ce ab o ve, an d t hat t h e effect o f a ro l l ed b eam in

t h e fo u n d at i o n wo u l d b e “ ex t ra d efl ect io n i n t h e fl o or s y s t em o r s t ru ct u res ab o v e.” He

o p i n ed t h at t h e s t ru ct u ral p ro b l em s t h e Lan gs ex p eri en ced i n th e h o m e were cau s ed

b y d efect s h e o b serv ed i n t h e fo u n d at i o n

.

At t ri al , GFP m o v ed fo r a d i rect ed v erd ict on t h e Lan g s ’ cl ai m s fo r n eg l i g en t

co n st ru ct i o n an d at t o rn ey fees b o t h at t h e cl os e o f t h e Lan gs ’ cas e an d in a ren ewed

m o ti o n fo l l o wi n g G FP’ s p res en t at i o n o f ev i d en ce. Th e t ri al co u r t den i ed t h es e

m o ti o n s. At t h e co n cl u s i o n of t h e t r i al

, t h e j u ry award ed $1 0

, 8 4 0 .0 0 t o t h e Lan g s

,

wi t h $ 0 award ed fo r t h e Lan gs ’ s cl ai m fo r at t o rn ey fees

. A ft er en try o f ju d g m en t

, G FP

fi led a m ot i o n fo r jn o v

, co n t en di n g t h at t h e “ as i s ” l an g u ag e o f th e Ag reem en t b arred

t h e Lan g s’ n eg l i g en ce cl ai m s . Th e t ri al co u rt d en i ed t h e m o t i o n

.

1

. O n ap p eal

, GFP arg u es t h at t h e Lan g s ’ n eg l i g en ce cl ai m s were b arr e d

b ecau s e o f t h e “ as is ” lan g u ag e i n t h e A g reem en t

. Th e Lan g s arg u e t h at t h e “ as i s ”

cl au s e s h o u l d n o t i ns u lat e G FP fro m l iab i li t y fo r l a t e n t d e fect s

. Fo r t h e fo l l o wi n g

reas on s , we fi n d n o erro r.

“ ‘ [A] s i s ’ pro vi s io n s i n Geo rg ia o n l y rel i ev e t h e s el l er fro m l i ab i l i t y o n b reach

o f warran t y cl ai m s .” S

ou t h f u n d Pa r t n er

s III v. S ea r s

, Ro eb u ck a n d Co

. , 57 FSu p p .2 d

61 3 6 9

, 13 7 4 (II) (A) (N. D. Ga. 1 9 9 9 ) (“ G eo rg i a co u rt s co n s t ru e ‘ as is ’ p ro v i s i o n s as

ag reem en t s b et ween p art i es t h at t h e bu y er t ak es t h e art i cl e i n i t s t h en p res en t s t at e o r

co n di t i o n wi t ho u t an y i m

p l i ed warran t y as t o s ou n dn es s o f co n d i t i o n or s u i t ab i l i t y fo r

u s e o r p u rp o s es i n t en d ed ”) (ci tat i o n s an d p u n ct u at i o n o m i t t ed ). See e. g

., P er r et t v.

Do l la r d

, 1 7 6 Ga. Ap p

. 8 2 9, 8 3 0 (3 3 8 SE2 d 5 6) (1 9 8 5 ) (u p ho l d i n g t h e g ran t o f

s u m m ary ju d g m en t t o s el l er o n a h o m e b u y er’ s breach o f warran t y cl ai m b ecau s e “ as

i s ” p ro v is i o n ex cl u d ed an y i m p l i ed warran ti es ). H o wev er, “ ‘ [a] s i s ’ p ro v i s i o n s d o n ot

. . . rel eas e a s el l er fro m l i ab i l i t y o n n on -warran ty cl ai m s.” S o u t h fu n d Pa r t n er

s

, III

,

5 7 FSu pp .2 d at 1 3 74 (II) (A) (h o l d i n g th at “ as i s ” p ro v i s i o n in a real es t at e s al es

co n tract d i d n o t defeat s t ri ct l i ab i l i t y cl ai m u n d er fed eral CERCLA s t at u t e)

. I n

Per r et t

, 1 7 6 Ga. Ap p

. at 8 3 1 (2 ), t h is Co u rt h el d t h at

, d es pi t e t h e ex i s t en ce o f an ‘ as

i s ’ cl au s e i n th e real es t at e s al es co n t ract wh ich b arred th e warran t y cl ai m s

, an i s s u e

o f m at eri al fact p r e c l u d e d s u m m ary ju d g m en t o n t he b uy ers ’ cl ai m s t h at t h e h o u s e

was d efect i v el y co n s t ru ct ed

. See al s o M u l k ey v. W a g g o n er

, 1 7 7 Ga. Ap p

. 1 6 5

, 1 6 6

(3 3 8 SE2 d 7 5 5 ) (1 9 8 5 ) (p h y si cal preced en t o n l y ) (fi n d i n g t h a t t h e “ as i s ” cl au s e in

t h e real es t at e co n tract h ad n o l eg al effect t o precl ud e p as si v e co n ceal m en t i n v o l v ed

i n t he s al e o f t h e p ro p ert y ).

7W e are n o t p ers u ad ed b y GFP’ s rel i an ce u p o n Be n F a r m er Rea l t

y Co

. v.

W o o d a rd

, 2 1 2 Ga. Ap p

. 7 4 (4 4 1 SE2 d 4 2 1 ) (1 9 9 4 ) fo r t h e as s ert i o n t h at t h e real

es t at e co n t ract ’ s “ as i s ” cl au s e b ars an y n eg li gen ce cl ai m s b y th e Lan g s

. In B e n

Fa r m er

, t h e p lai n t i ff-b uy er p u rch as ed a v acan t res i d en ti al pro p e r t y t h at was in

o b v i o u s d i l ap i d at ed co n d it i on pu rs u an t t o a real es tat e co n tract co n t ai n i n g an “ as i s ”

cl au s e. Id

. at 7 6

. Al t h o u gh t h e b u y er i n s p ect ed t h e h o u s e p r i o r t o p u rch as e an d

u n d ers t o o d t h at m ajo r rep ai rs wo u l d b e req u i red t o m ak e t h e h o u s e h ab i t ab l e, s h e d id

n o t i n s p ect t h e at t i c an d t h u s

, d i d n o t d i sco v er fi re d am ag e t h at was read i ly ap p aren t

.

Id

. T h e b u y er s u ed t h e s el l er an d t h e s el l er’ s real es t at e ag en t fo r pas s i v e co n ceal m en t

fo r t h e c o s t t o r e p a i r t he fi re d am ag e. Id

. Th i s Co u rt h el d t h at a g ran t o f s u m m ary

ju d g m e n t t o t h e d efen dan t s o n t h e p as s i v e co n ceal m en t cl ai m was warran t ed u n d er

t h e fact s o f t hat cas e b ecau s e t here was n o ev id en ce t h at t h e defen d an t s were aware

o f t h e fi re d am ag e an d b ecau se t h e b u y er k n ew s h e was b uy i n g a d i l ap i d at ed h o u s e

i n i t s “ as i s ” co n d i ti o n, an d t h u s was “ o b v i o u s l y o n n ot i ce t o ex erci s e a h ei g h t en ed

d eg ree o f d i l i g en ce i n i n s pect i n g t h e h o u s e u n d er t h es e ci rcu m s t an ces .” Id . at 7 7

.

In t h e i n s t an t cas e, o n t h e o t h er h an d

, t h e Lan g s ’ cl ai m i s fo r n eg l i g en t

co n st ru ct i o n an d n o t frau d u l en t co n ceal m en t

. Th e Lan g s had p u rch as ed a h o m e fro m

GFP t h at h ad b een recen t l y r e n o v a t e d an d was m ark et ed as read y t o m o ve-i n

. Th e

8Lan gs h ad a d u t y t o i n sp ect th e h o u s e, an d t h ey di d s o wi t h t h e as s i s tan ce o f a

co m m erci al i n s p ect i o n co m

p an y

. Ho wev e r

, “ t h e i s su e o f wh et h er a p u rch as er h as

act ed wi t h t h e req u i s i t e d u e d i l i g en ce i s gen eral l y a q ues t i o n fo r t h e ju ry .” (Ci t at i o n

o m i t t e d .) Co n wa

y v. Ro ma r i on

, 2 5 2 G a. A p p

. 5 2 8

, 5 3 3 (3 ) (5 5 7 SE2 d 5 4 ) (2 0 0 1 )

(t ri al co u rt erred i n co n cl u d i n g t h at p l ai n t i ff-b uy er fai l ed t o ex erci s e du e d i l i g en ce as

a m at t er o f l aw t o d i s co v er od o r an d o t h er d am ag ed cau sed b y th e s el ler’ s cat s wh en

t h e s el ler t oo k o v ert s t ep s t o co n ceal t h e d am ag e).

Gen eral ly

, “ [t ] h e l aw i m

p o s es u p o n b u i l d i n g co n t ract o rs an d o t he r s perfo rm i n g

s k i l l ed s erv i ces t h e ob l i g at i o n t o ex erci s e a reas o nab l e d eg ree o f c a r e

, s k i l l

, an d

ab i l i t y

, wh i ch i s g en eral l y t ak en an d co n si d ered t o be s u ch a d eg ree o f care an d s k i l l

as

, u n d er s i m i la

r c o n ditions a nd like sur

r oundi n g ci rcu m s t an ces

, is o rd i n ary em p l o y ed

b y o th ers o f t h e s am e p ro fes s i on .” (Fo o t n ot e om i t t ed .) Fi el d s Br o s

. Gen

. Co n t r a ct o rs

v. Ru ecks t i es

, 2 8 8 Ga. A p p. 6 7 4

, 6 7 6 ( 1 ) (6 5 5 SE2 d 2 8 2 ) (2 0 0 7 ). Th e q u es t i o n

wh et h er t h e co n t ract o r ex erci sed t h e req u i red d eg ree o f s k i l l, l i k e an y o t h er q u es t i o n

o f fact

, i s t o b e d eci d ed b y t h e j u ry

. Ma u l d i n v. S h ef fer

, 11 3 Ga. Ap p

. 8 74

, 88 0 (1 5 0

SE2 d 1 5 0) (1 9 6 6). In t h e in s tan t cas e, t h ere was ev i d en ce at t ri al t h at GFP fai l ed t o

fo l l o w t h e reco m

m en d at i o n o f t h e s t ru ct u ral en g i n eer wh en d eci d i ng t o i n s t al l o n l y

o n e s u pp o rt b eam

. Al t h o u g h GFP p ro v i d ed co n fl i ct i ng ev id en ce at t ri al t h at a s eco n d

9b eam was n o t req u i red

, th e qu es t i o n wh et h er i t was li ab le fo r neg l i g en t co ns t ru ct i o n

u n d er th e fact s o f t h i s cas e was p ro p erl y l eft t o t he ju ry

. “ A d i rect ed v erd i c t s h o u ld

[o n l y ] b e g r a n ted i f t h ere i s n o co nfl i ct i n t h e ev id en ce as t o an y m at eri al i s s u e an d

t h e e v i d e n ce i n tro d u ced

, wi t h al l reas o nab l e d ed u ct i o n s t herefro m

, s h al l d em an d a

p art i cu l ar v erd i ct .” (Ci t at i o n an d p u n ct u at i o n o m it t ed .) W i l s o n v. Br i g h t o n Ho mes

,

In c.

, 2 04 Ga. A p p

. 67 7

, 6 79 (2 ) (4 2 0 SE2 d 3 6 0 ) (1 9 92 ). Bas ed u p o n t h e ab o v e, t h e

t ri al co u rt co rrect l y d en i ed GFP’ s m o t i o n s fo r a d irect ed v erd i ct an d fo r a j n o v

. Avi o n

S ys t ems

, 3 3 8 Ga. Ap p

. at 1 4 4 (2 ).

Ju d g men t a f f i r m ed . Mi l l er

, P.J., a n d Br o wn , J., co n cu r

.

10