Phelps, N. v. Caperoon, L.
190 A.3d 1230
Pa. Super. Ct.2018Background
- Buyer (Phelps) leased then agreed to buy an 185‑year‑old single‑family home on ~8 acres from Seller (Caperoon) under an Agreement of Sale containing an "as is" clause and an inspection waiver.
- Buyer inspected the property multiple times, declined a professional inspection, and Seller did not provide the RESDL disclosure form prior to signing.
- After purchase, Buyer discovered multiple defects (septic, roof leaks, cracked furnace exchanger, electrical issues, removal of load‑bearing walls) and sued for: violation of the Real Estate Seller Disclosure Law (RESDL), UTPCPL, and fraudulent misrepresentation.
- Trial court granted partial summary judgment for Buyer on RESDL liability (holding RESDL’s disclosure duty is mandatory despite an "as is" clause), held Seller liable for RESDL damages, but ruled for Seller on UTPCPL and fraud. Damages awarded were $39,065.02 for roof and electrical repairs; Buyer sought recalculation including an admitted roof estimate (~$60k).
- Appeals: Seller cross‑appealed the summary judgment (arguing "as is" clause and advice‑of‑counsel defense), Buyer appealed adverse rulings on UTPCPL/fraud and sought broader damages. The Superior Court affirmed RESDL liability, rejected Seller defenses, defined "actual damages" under RESDL as repair costs capped by market value, and remanded to recalculate damages including the roof estimate.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether an "as is" clause negates RESDL disclosure duty | Phelps: RESDL imposes a mandatory disclosure duty; "as is" cannot eliminate statutory duty | Caperoon: "As is" puts buyer on notice of liabilities and negates disclosure obligation (PBS Coals) | Court: RESDL’s "shall" is mandatory; "as is" does not relieve seller of statutory disclosure duty; summary judgment for Buyer affirmed |
| Whether advice of counsel is a defense to RESDL liability | Caperoon argued reliance on counsel made violation non‑willful and shielded him | Buyer: RESDL contains mandatory language; no statutory advice‑of‑counsel defense | Court: No advice‑of‑counsel defense to negate RESDL’s mandatory disclosure duty; defense rejected |
| Proper measure of "actual damages" under RESDL | Phelps: "Actual damages" include difference‑in‑value and consequential damages | Caperoon: "Actual damages" should be limited (e.g., lesser of difference‑in‑value or repair cost) | Court: "Actual damages" = cost to repair (for repairable harm), capped by market value; remand to recalculate damages including admitted roof estimate |
| Preservation of UTPCPL and fraud claims post‑trial | Phelps: Requests JNOV / entry of judgment on UTPCPL and fraud after verdict | Caperoon: Trial procedures require a directed verdict motion to preserve JNOV requests | Court: Buyer failed to move for directed verdict; cannot raise JNOV for first time in post‑trial motion; UTPCPL and fraud relief denied on preservation grounds |
Key Cases Cited
- PBS Coals, Inc. v. Burnham Coal Co., 558 A.2d 562 (Pa. Super. 1989) ("as is" language puts buyer on notice of potential liabilities in a property sale)
- Skurnowicz v. Lucci, 798 A.2d 788 (Pa. Super. 2002) (measure of damages for fraudulent misrepresentation in real estate: difference‑in‑value and consequential damages where rescission not sought)
- Gadbois v. Leb‑Co. Builders, 458 A.2d 555 (Pa. Super. 1983) (measure of damages for defective construction: market‑value difference or repair cost when practical)
- Pa. Dep’t of Gen. Servs. v. U.S. Mineral Prods. Co., 898 A.2d 590 (Pa. 2006) (repair costs, capped by market value, as general measure for repairable property damages)
- Vallies v. Sky Bank, 591 F.3d 152 (3d Cir. 2010) (statutory "actual damages" for disclosure statutes requires causation/detrimental reliance)
- Bailets v. Pa. Turnpike Comm’n, 181 A.3d 324 (Pa. 2018) (interpretation of "actual damages" as compensatory; use of legislative purpose to resolve ambiguity)