Travis Goodman, et al. v. Kathy Jones Kelly

Travis and Stephanie Goodman (“Buyers”) filed a lawsuit for monetary damages or rescission of a residential deed due to defects in a septic system. Buyers sued under the theories of breach of contract, misrepresentation, fraud and violation of the Tennessee Consumer Protection Act. Buyers argue that they did not plead a violation of Tenn. Code Ann. § 66-5-208 (2004) of the Tennessee Residential Property Disclosures Act; however, the trial court treated the case as one under the Act. The jury returned a verdict for Seller. Reviewing the record de novo, we hold that the theories of breach of contract and negligent misrepresentation were pleaded and supported by the proof. These causes of action should have been charged to the jury. We also hold that the parties litigated the issue of intentional misrepresentation and that the trial court charged the jury on this issue. In addition we hold that material evidence supports the jury’s verdict for Seller under theories of intentional or willful misrepresentation of the condition of the subject property under the statute or common law. Accordingly, we affirm in part, vacate in part and remand with instructions.