Wingate Land, LLC v. Valuefirst, Inc.
314 Ga. App. 24
| Ga. Ct. App. | 2012Background
- Wingate Land owned two residential properties and contracted to sell them.
- Buyers sought lender financing and lender hired ValueFirst to appraise each property.
- Appraisals valued each property below contract price, leading to reduced sale prices.
- Wingate and buyers closed at reduced prices to qualify for loans.
- Wingate sued ValueFirst and James D. Smith for the price difference and punitive damages.
- Trial court granted summary judgment for ValueFirst and Smith; court affirmed on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Negligence via negligent misrepresentation required? | Wingate relies on Robert & Co. rule. | No privity, no liability for purely economic loss. | No viable negligent misrepresentation claim. |
| Existence of wilful misconduct/punitive damages outside Robert & Co.? | Willful misrepresentation occurred when they refused to modify appraisals. | No wilful misrepresentations; damages barred. | Summary judgment affirmed on wilful misconduct claim. |
Key Cases Cited
- Robert & Co. Assoc. v. Rhodes-Haverty Partnership, 250 Ga. 680 (1983) (negligent misrepresentation liability limited to intended reliance)
- Badische Corp. v. Caylor, 257 Ga. 131 (1987) (liability not extended to unforeseeable economic harm)
- White v. BDO Seidman, LLP, 249 Ga.App. 668 (2001) (limits reliance and privity concerns in misrepresentation)
- Butler v. Turner, 274 Ga. 566 (2001) (wilful misrepresentation independent of privity recognized)
- Lau's Corp. v. Haskins, 261 Ga. 491 (1991) (summary judgment standard for contract/negligence disputes)