Claman v. Popp
2012 WY 92
| Wyo. | 2012Background
- Claman bought 517 Walnut St., Rock Springs, WY from Popp in July 2008; area designated subsidence zone with DEQ involvement.
- Popp and DEQ had prior subsidence claims in 1993/1998; DEQ denied coverage as not mine subsidence-related.
- Popp completed a Seller's Property Disclosure indicating subsidence problems but answered “no” to structural problems.
- Contract included an as-is, merger, and non-reliance clause; buyer could obtain inspections but not rely on seller representations.
- Closing occurred June–July 2008; Claman hired engineers after closing and discovered substantial structural concerns.
- Claman sued Sept. 2008 for breach, negligent misrepresentation, and fraudulent inducement; district court granted partial summary judgment and later ruled against fraud claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Breach of contract due to nondisclosure | Claman argues contract omitted material defects. | Popp relies on merger/as-is/no-reliance clauses. | Merger/as-is/disclaimer clauses bar breach claim. |
| Negligent misrepresentation claim viability | Disclosures were incomplete; negligence in disclosure. | Contract bars tort claim when buyer not relying on seller. | Contract clauses bar negligent misrepresentation. |
| Fraudulent inducement proof | Popp intentionally withheld DEQ claims to induce purchase. | No fraudulent intent; disclosures sufficient; non-reliance clause. | No clear and convincing evidence of fraud; verdict upheld. |
Key Cases Cited
- Hulse v. First American Title Co. of Crook Cty., 2001 WY 95 (Wy. 2001) (non-reliance clause allocates risk of nondisclosure)
- Snyder v. Lovercheck, 992 P.2d 1079 (Wy. 1999) (non-reliance and merger clauses bar tort claims in real estate bids)
- Sundown, Inc. v. Pearson Real Estate Co., Inc., 8 P.3d 324 (Wy. 2000) (contractually allocated risk; tort claims barred)
- Richey v. Patrick, 904 P.2d 798 (Wy. 1995) ('as is' clause does not bar fraud, but buyer bears discovery duty)
- Union Pacific Railroad Co. v. Caballo Coal Co., 246 P.3d 867 (Wy. 2011) (contract interpretation of ambiguity and plain meaning)
- Snyder v. Lovercheck, 992 P.2d 1079 (Wy. 1999) (clear non-reliance language bars tort claims in real estate)
- Throckmartin v. Century 21 Top Realty, 226 P.3d 793 (Wy. 2010) (negligent nondisclosure not recognized as independent claim)