Josh Holland v. Edward M. Forester
E2016-02147-COA-R3-CV
| Tenn. Ct. App. | Dec 15, 2017Background
- Buyers Josh and Angie Holland purchased a house from Edward and Alisa Forester in April 2012; sellers completed the Tennessee Residential Property Condition Disclosure Form and answered "No" to defects in floors.
- After removing carpets in May 2012, buyers discovered particle-board subflooring saturated, stained, and smelling of pet urine; a follow-up inspector reported extensive, longstanding urine damage requiring subfloor replacement.
- Buyers sued in general sessions court alleging intentional/negligent misrepresentation and TRPDA violations; general sessions found willful misrepresentation and awarded damages, and the sellers appealed.
- Mr. Forester testified at the general sessions trial that pets had accidents and that the subfloor had stains when carpet was replaced years earlier; Mr. Forester later died before the circuit trial.
- At the circuit trial the buyers proceeded only against Ms. Forester (not an imputation claim). Ms. Forester testified she never saw the subfloor, was not present when carpet was replaced, and first learned of any problem after the sale.
- The trial court credited Ms. Forester’s testimony, found no actual knowledge (required under TRPDA) and dismissed the claims; the Court of Appeals affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Ms. Forester violated the TRPDA or committed intentional/negligent misrepresentation by marking "No" for floor defects | Holland: Forester knew of subfloor urine damage (pets, prior staining) and thus had actual knowledge making the disclosure false | Forester: She lacked actual knowledge—never saw subfloor, not present when carpet replaced, first learned after sale; smoke/freshener masked urine odor | Held: Affirmed for Forester — plaintiffs failed to show Ms. Forester had actual knowledge; credibility finding for defendant not overturned |
| Whether evidence preponderates against trial court’s credibility-based factual findings | Holland: Circumstantial evidence (condition under carpet, Mr. Forester’s statements) shows Forester should have known | Forester: Trial court properly credited her direct testimony and buyer testimony that they did not smell urine | Held: No preponderance of evidence to overturn credibility findings; deference to trial court upheld |
| Whether Ms. Forester’s testimony about Mr. Forester’s mental state at the time of his general sessions testimony was improperly admitted | Holland: Testimony sought to undermine stipulation and prior transcript credibility; admission was error | Forester: Testimony was background; even if erroneous, harmless because it did not affect dispositive issue (her knowledge) | Held: Any error was harmless — it did not affect the outcome |
| Whether plaintiffs could recover from Ms. Forester absent an imputation theory after Mr. Forester’s death | Holland: Imputation should apply or evidence shows joint knowledge | Forester: No estate opened; plaintiffs proceeded only against her individually; must prove her independent knowledge | Held: Plaintiffs were required to show Ms. Forester’s independent knowledge and did not do so |
Key Cases Cited
- C-Wood Lumber Co. v. Wayne Cnty. Bank, 233 S.W.3d 263 (Tenn. Ct. App.) (standard for overturning trial court factual findings: affirm unless aggregate evidence preponderates otherwise)
- Hughes v. Metro. Gov't of Nashville & Davidson Cnty., 340 S.W.3d 352 (Tenn. 2011) (deference to trial court credibility determinations)
- Wells v. Tennessee Bd. of Regents, 9 S.W.3d 779 (Tenn. 1999) (clear-and-convincing standard for overturning credibility-based factual findings)