Maria Angelina Casteneda purchased a home from Michael Behnke. Coldwell
Banker Residential was the listing broker. After Casteneda and her son
Marcos moved into the house, they noticed a moldy smell in the kitchen and
downstairs bathroom.
An environmental test later revealed a dangerous level of mycotoxins
and mold spores. The estimated cost of repairs to remove the moldwas about
$25,000.
The exposure to the mold caused Casteneda and her son Marcosto become
ill, causing Marcos to develop asthma.
Marcos sued the house seller, the seller's listing agent (Coldwell
Banker) and others, alleging breach of duty to disclose home defects. He
alleged negligence, nuisance, fraud, misrepresentation and concealment of
a dangerous condition causing Marcos severe emotional distress.
Real estate broker Coldwell Banker argued it had no legalduty to Marcos
because he was not a party to the sales transaction. But theattorney for
Marcos replied the real estate agent knew Marcos would reside inthe house
with his mother so there was a duty to disclose defects that
mightadversely affect him.
If you were the judge would you rule listing agent Coldwell Banker has
a duty to disclose home defects to the purchaser's child who later
allegedly developed asthma due to mold in the residence?
The judge said no!
For there to be legal liability, either in contract or tort, whether
intentional or negligent, imposed by statute, contract or otherwise, there
must be a legal duty to the injured person, the judge began.
However, in this situation Marcos was a third party to the transaction,
the judge continued.
Although the real estate broker had a legal duty to the buyer to
disclose home defects of which the agent was aware, the judge explained,
Marcos was not involved in the sale, so no legal duty was owed to him.
Because Marcos was not a buyer of the house, he was a third party to
the home sale, so real estate broker Coldwell Banker had no legal duty to
him to disclose home defects of which the listing agent might have been
aware, the judge ruled.
Based on the 2004 California Court of Appeal decision in
ColdwellBanker v. Superior Court (Salazar), 11 Cal.Rptr.3d 564.
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