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Duenas v. Bence

Citations: 329 S.E.2d 260; 174 Ga. App. 80; 1985 Ga. App. LEXIS 1751Docket: 69571

Court: Court of Appeals of Georgia; March 8, 1985; Georgia; State Appellate Court

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Joe and Deborah Duenas filed a lawsuit against James and Barbara Bence, Carolyn Earley, and Showcase Realty, Inc., alleging fraud and breach of contract related to the sale of a residential home. The trial court granted summary judgment for the defendants and denied the Duenases' motion for reconsideration, prompting the appeal. The Bences purchased the home in September 1980 after making significant repairs to the foundation to address structural issues and water leaks, which recurred in 1981 and 1982, leading to further repairs. The Bences listed the property for sale in 1983, and the Duenases moved in shortly before closing. Shortly after, the basement began leaking again during rainstorms.

The court found that the Duenases failed to demonstrate that the Bences had knowledge of any ongoing issues that would constitute fraud. The Duenases argued that the Bences fraudulently concealed prior repairs, but the Bences asserted they believed the repairs were effective and had no knowledge of further problems. The Duenases did not present evidence contradicting the Bences' claims, nor did they inquire about the home's foundation or the history of water leakage despite observing waterproofing measures in the basement. The court emphasized that fraud requires proof of intention to deceive and knowledge of falsehood, which the Duenases did not establish. Thus, the summary judgment in favor of the defendants was upheld.

The case is distinguished from Wilhite v. Mays and Rose Mill Homes, Inc. v. Michel, where sellers knowingly concealed defects or misrepresented issues. In the current case, the appellees lacked actual knowledge of unresolved defects and there was no evidence of constructive knowledge or intentional concealment. The appellants did not inquire about previous repairs, which further weakens their position. For summary judgment, defendants must negate essential elements of the plaintiff's case, which the appellees did by demonstrating a lack of knowledge regarding defects. The court found no merit in the appellants' claims of negligence or breach of contract, as negligence was not adequately alleged and the cited contract provision related to damages occurring before the sale, while the damage here happened afterward. The trial court's decision to grant summary judgment to the appellees was upheld.