Rodgers v. Sipes, 2012 Ohio 3070

Sipes and spouse contracted with Nigh Builders in 2001 to build a Bucyrus home; after completion, they spent time in Florida with others inspecting the property in their absence.
After wife’s death in 2006, Sipes listed the property for sale and completed a Residential Property Disclosure Form stating no basement problems.
Rodgers, planning to relocate to Ohio, toured the home on Sept. 6, 2006; they signed a purchase agreement the same day, including an as-is/inspection-based condition and a contingency to sell their own home.
Disclosure form and a 22-page home inspection report by Demeter were attached to the purchase agreement; the inspection disclosed drainage concerns and a generally acceptable sump pump condition.
Rodgers purchased for $305,000; possession occurred mid-November 2006; they later built a pole barn and porch overhang near the home.
January 2007: Rodgers noticed basement water leakage; they filed suit in Jan. 2010 alleging fraudulent misrepresentation, fraudulent concealment, and breach of contract.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether caveat emptor bars breach of contract claim	Rodgers contend caveat emptor does not bar latent-defect disclosure failures.	Sipes shows defect was discoverable and disclosure occurred; as-is and disclosure defense applies.	Caveat emptor bar applies; breach claim barred
Whether Rodgers proved fraud by clear and convincing evidence	Disclosures and floor-stain/undisclosed drainage defects show fraud or concealment.	Evidence does not establish knowledge, concealment, intent, or justifiable reliance by clear and convincing standard.	Rodgers failed to prove fraud by clear and convincing evidence
Whether the as-is clause bars breach of contract claim	As-is contract language does not bar breach when fraud is alleged.	As-is clause, alongside caveat emptor, bars breach claims.	As-is clause supports barring breach claim

Layman v. Binns, 35 Ohio St.3d 176 (1988) (caveat emptor and disclosure duties in real property)
Traverse v. Long, 165 Ohio St. 249 (1956) (reliance and discovery standards in disclosure cases)
Cross v. Ledford, 161 Ohio St. 469 (1954) (clear-and-convincing standard for fraud; severest burden of proof)
Melenick v. McManamon, 2010-Ohio-1051 (8th Dist. 2010) (fraud elements and burden; preponderance vs. clear and convincing)
Rogers v. Hill, 124 Ohio App.3d 468 (4th Dist. 1998) (as-is clauses and disclosure duties in real estate contracts)
Pedone v. Demarchi, 2007-Ohio-6809 (8th Dist. 2007) (as-is and caveat emptor interactions with contract claims)
McClintock v. Fluellen, 2004-Ohio-58 (8th Dist. 2004) (latent defects disclosure duties under Ohio law)
Tutolo v. Young, 2012-Ohio-121 (11th Dist. 2012) (as-is and contract-limiting clauses in real property disputes)