Shed v. Johnny Coleman Builders, Inc.
3:16-cv-00171
N.D. Miss.Aug 23, 2017Background
- Clarence Shed rented a Southaven, MS home under a written lease on December 4, 2013; he reported a suspected mold problem to landlord agent Sherry Flynn on March 25, 2014.
- Flynn inspected, observed water stains, wet nail tacks under closet carpet, a musty smell, and arranged a roofer who found a roof leak at a water heater vent.
- A March 28, 2014 mold inspection showed elevated mold spores in the master closet; Shed terminated the lease and moved out April 6, 2014.
- Shed received medical treatment in April 2014 and 2015 for rashes and respiratory symptoms he attributed to mold exposure.
- He sued landlords (Johnny Coleman Builders, Johnny Coleman d/b/a companies, and Flynn) asserting breach of contract, bad-faith breach, negligence (and gross negligence), fraud/negligent misrepresentation, breach of implied warranty of habitability, and negligence per se.
- Defendants moved for summary judgment arguing (inter alia) lack of expert causation evidence, lease disclaimers/"as‑is" and acts‑of‑God clauses, and absence of individual wrongdoing by corporate officers.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether plaintiff produced admissible expert evidence linking mold in the residence to Shed’s physical injuries/property damage (causation) | Shed relied on treating physicians and mold inspection to show exposure and injury; no retained expert disclosed | Without expert proof differentiating other causes and linking defendant negligence to mold, causation cannot be proven for toxic‑mold injuries or property damage | Held for defendants: plaintiff failed to present required expert causation; negligence and related injury/property claims dismissed |
| Whether lease terms ("as‑is," no representations, exclusion for Acts of God, tenant insurance) bar contract/property claims | Shed argued defendants were responsible for the leak and resulting mold damage | Defendants invoked lease disclaimers, exclusion for Acts of God, tenant inspection/waiver clause, and prompt repairs after notice | Held for defendants: lease provisions and undisputed evidence (repair completed) defeat breach and property damage claims |
| Whether fraud/negligent misrepresentation claims survive despite lease disclaimer | Shed alleged misrepresentations about condition and habitability | Defendants pointed to lease clause disclaiming reliance and representations and absence of pre‑notice knowledge of leak/mold | Held for defendants: fraud and negligent misrepresentation fail (lease merger/disclaimer and lack of evidence of false representations or causation) |
| Whether individual defendants (Flynn, Coleman) are individually liable | Shed sought to hold corporate agents/officers personally liable | Defendants argued no individualized wrongful conduct shown beyond corporate roles | Held for defendants: individual liability requires independent wrongdoing; claims against Flynn and Coleman dismissed |
Key Cases Cited
- Celotex Corp. v. Catrett, 477 U.S. 317 (summary judgment burden shifting) (explains movant’s initial burden on summary judgment)
- Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574 (summary judgment standard) (court must find no rational trier of fact could rule for non‑movant)
- Washington v. Armstrong World Indus., Inc., 839 F.2d 1121 (5th Cir.) (expert testimony required to prove toxic substance caused specific physical injury)
- Rosson v. McFarland, 962 So. 2d 1279 (Miss.) (parol evidence rule/merger: written agreement controls parties’ obligations)
- Turner v. Wilson, 620 So. 2d 545 (Miss.) (corporate officers not personally liable absent individual wrongdoing)
- O'Cain v. Harvey Freeman & Sons, 603 So. 2d 824 (Miss.) (recognition of implied warranty of habitability for residential leases)
- Sweatt v. Murphy, 733 So. 2d 207 (Miss.) (implied warranty of habitability can be waived by tenant)