Opinion ID: 885879
Heading Depth: 1
Heading Rank: 5

Heading: Did the District Court err in failing to consider the Stroms' contributory negligence?

Text: ¶ 26 The Logans contend that the Stroms, as purchasers of a home sold as is, and in light of the disclosure of fire damage, had an independent obligation to act as a reasonable purchaser and secure an inspection of the property and that their refusal to do so amounts to contributory negligence. Although the District Court did not specifically reference contributory negligence, it did conclude that there was no easy access to the attic area and the Stroms were not obligated to cut holes in the walls or ceilings to determine the extent of the fire damage. The District Court's rejection of the Logans' contentions is tantamount to a conclusion that the Stroms had no affirmative duty to inspect the property for latent defects. We turn then to the question of whether the District Court's conclusion of law is correct. ¶ 27 In Wagner, the LDS church purchased a home in Gallatin County from Cutler. LDS did not occupy the house at any time. LDS then entered into a listing agreement with a realtor who listed the property with Multiple Listing Service (MLS). Based upon representations made by an MLS realtor that the house was well built and to code, Wagner purchased the home. After taking possession, Wagner encountered numerous problems with the house, some of which were observable and some latent. She sued for misrepresentation and violation of the duty to inspect and disclose defects. ¶ 28 LDS contended, as do the Logans, that the as is and independent investigation clauses triggered the purchaser's obligation to thoroughly inspect the property to his own satisfaction and that failure to investigate bars the purchaser from any recovery. Citing Parkhill v. Fuselier (1981), 194 Mont. 415, 419, 632 P.2d 1132, 1135, we held that the independent investigation clause does not preclude justifiable reliance by a buyer upon misrepresentations of the seller and realtor. Wagner, 232 Mont. at 336, 757 P.2d at 782. Since Wagner relied upon the material misrepresentations of LDS as they appeared in the written listing agreement prepared by the realtor, she was under no additional duty to discover the latent defects in the house. We affirmed the court's holding that Wagner was accountable for obvious defects but was not responsible for latent defects. ¶ 29 LDS also argued that Wagner's failure to investigate constituted contributory negligence. As noted above, the district court only allowed recovery for latent defects (hazardous chimney, broken sewage pump, faulty lawn sprinkler) and held Wagner accountable only for the defects that a reasonable buyer would have noticed. With that distinction, the court properly addressed Wagner's contributory conduct in the transaction. Wagner, 232 Mont. at 339, 757 P.2d at 783. ¶ 30 The Logans, like LDS, argue that the buyer has an independent obligation to inspect the property and discover both latent and obvious defects and that failure to do so amounts to contributory negligence. We reject this contention as we did in Wagner. This is not a case where the defects were clearly observable like the unfinished basement, incomplete heating ducts and cracks in the patio. Rather, the defects in the Strom home were concealed behind walls and ceilings. Since the Stroms relied upon the Logans' representations that the repairs had been made, they had no independent obligation to cut holes in the walls or ceiling to ascertain the extent of the damage themselves. Their failure to take affirmative steps to discover latent defects does not amount to contributory negligence.