ÿWPCÄ q‹¢#®õÝ^5÷ˆz|YúÒGK²VôÈùZÑâÿoŠ_Ew ±8áB_Š¢}–”ŸuÉÕaŽœ“çæÔ³Ú _ü•/[X¨Æg^¹ÿ‡Zõp€mek”òPM÷À7ï3^@åªjSœÑW9ve¯‘G>³«<ÉBŸaIL€–MB«ÁìS8"žÒÚÆÙ©A6­G\L=õ‚ÑZ”EÌîVí§·P÷ˆÄš‡wìfSÏuyŸ(2°!FµQÒx*Ê|œ>²ŠÏ ¹P`“/‚¶˜Ÿ¯GŽ#Á %Ï ^ Õ 0ˆá UNi w· 4» zÏ ÒI  * m, C ÆK ÆÆ×ÆNcccEeeeeeeeeeeeeeeeeeeeeeeeebgggggggggggggggggggggggggggggggggggg 0ëoooo BZZ 0¤w D3 D-N 0K{{ ASÆÆ 0¤ß 0Dƒ A«ÇÇÇÇÇÇÇÇÇÇÇÇÇÇÇÇÇÇÇÇÇÇÇÇÇÇÇÇÇÇ D5r B§˜HP LaserJet 4050 Series PCL 5eÈÈ,,,,ÈÈ0»€)L (`£ª$¡¡Ñ€.ÑÑ8€½­»»d»»d8ÑÑ ý ÑÓ  Ó(í€"  Z6Times New Roman Regularö~ì(ê:i¢Ø+00 ˜C:\PROGRA~1\COREL\WORDPE~1\TEMPLATE\CUSTOM~1\REVISE~1.WPTC:\Program Files\Corel\WordPerfect Office 2000\Template\Custom WP Templates\revised standard opinion.wpt3|xÿU‹ÿÀÀÀ Level 1Level 2Level 3Level 4Level 5‚Level 1Level 2Level 3Level 4Level 5„Level 1Level 2Level 3Level 4Level 5…Level 1Level 2Level 3Level 4Level 5- ù-(|G2/ß$¤¤Ý ƒ£ª!ÝÑ€.ÑÑ8€B »»dd8ÑÑ ý ÑÓ  ÓÝ  Ýà  àòòÚ  Ú0Ú  ÚóóÔ€ôáò»»Ô d(|3Gr$££Ý ƒ£ª!ÝÑ€.ÑÑ8€B »»dd8ÑÑ ý ÑÓ  ÓÝ  ÝVVVV'ÿÿdxd)!ÈÈÈÈdxdx( ±þ$’’ò òFigure€Ú  Ú1Ú  Úó ó^_X`YEþÿ<<CÿÿƒLevel 1Level 2Level 3Level 4Level 5(|3Gr$¢¢Ý ƒ£ª!ÝÑ€.ÑÑ8€B »»dd8ÑÑ ý ÑÓ  ÓÝ  Ý($$””ò òÚ  Ú1Ú  Úó óX[Z&OLE 2.0 Box <=8ÿÿÿÿÿÿÿÿÿÿCÿÿ HKKKK€€€€)ûÿ!dxdxüÿP PdÝ ƒ£ª!ÝÑ€.ÑÑ8€B »»ddÈ8ÑÑ ý ÑÓ  ÓÝ  ÝÔ_ÔÑ  ÑÔ€¼B »»»ÔÑ8€±XXdì»»d8ÑÑ  Ñà@ü ü ìàÔ‡îGìB ÔIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÐ ° Ðà@kk$ìàAT€NASHVILLEÔ#†¼B »îîGì #ԈРÖ& ÐÓ  ÓJuly€2000€SessionÐ üL ÐÔ‡X±X»¼B ÔÌò òÔ#†¼B »XX±î#ÔMARK€STEVEN€ISRAEL,€òòet€al.óó€v.€Ð úJ ÐLARRY€MICHAEL€WILLIAMS,€òòet€alóó.Ô‡X±X»¼B Ôó óÐ  ^ ÐÌà@@½½ìàò ò€Appeal€from€the€Circuit€Court€for€Williamson€CountyÐ  ^ Ðà@@øøìàNo.€I„98121€€€€€€Russ€Heldman,€JudgeÐ ú J ÐÌÌà@@ìì*ìàßA€V) °°` d€÷E<½` AßÐ ¾  ÐÌà@@TTìàNo.€M1999„02400„Ô_ÔCOAÔ_Ô„R3„CV€„€Filed€August€22,€Ô_Ô2000Ô_ÔÐ ¹  ÐÌßA€V) °°` dE<` AßÐ ‘á  Ðó óÌÓ  ÓThis€appeal€presents€the€issue€of€whether€the€trial€court€was€correct€to€grant€summary€judgmentÐ ŒÜ Ðagainst€Plaintiffs€regarding€their€suit€for€damages€resulting€from€alleged€negligent€misrepresentationÐ xÈ Ðby€Defendants.€€Plaintiffs€claim€that€Defendants€made€negligent€misrepresentations€regarding€theÐ d´ Ðcondition€of€their€house€prior€to€the€sale€of€the€house€to€Plaintiffs.€€Summary€judgment€was€grantedÐ P  Ðby€the€trial€court.€€Upon€review€of€this€record,€we€affirm€the€judgment€of€the€trial€court.Ð <Œ ÐÓÐÓÌò òTenn.€R.€App.€3€Appeal€as€of€Right;€Judgment€of€the€Circuit€Court€Affirmedó óÐ d ÐÌòòÓ  ÓÔ#†¼B »àX±‘#ÔÔ‡X±X.¼B ÔWilliam€B.€Cain,óó€J.,€delivered€the€opinion€of€the€court,€in€which€òòBòòENóó€H.€CòòANTRELLóó,€P.J.,€M.S.óó€andÐ ì< ÐòòPòòATRICIAóó€J.€CòòOTTRELLóóóó,€J.,€joined.Ð Ø( ÐÌPhillip€L.€Davidson,€Nashville,€Tennessee,€for€the€appellants,€Mark€Steven€Israel€and€Dawn€ArcherÐ ° ÐIsrael.Ð œì ÐÌMarshall€L.€Hix€and€Keith€C.€Dennen,€Nashville,€Tennessee,€for€the€appellees,€Larry€MichaelÐ t Ä ÐWilliams€and€Nancy€Sloan€Williams.Ð `!°  ÐÓ£ÓÌò òOPINIONó óÔ#†¼B »XX±Ò#ÔÔ‡X±X»¼B ÔÐ 8#ˆ" ÐÌòòóóÔ#†¼B »XX±@ #ÔÔ‡X±X»¼B ÔI.€€FactsÐ %` $ ÐÌÓ  Óà  àOn€23€December€1997,€the€plaintiffs,€Mark€and€Dawn€Israel€(ð ðthe€Israelsðð),€entered€into€aÐ è&8"& Ðcontract€with€the€defendants,€Larry€and€Nancy€Williams€(ð ðthe€Williamsðð),€agreeing€to€purchase€theÐ Ô'$#' ÐWilliamsðð€home€in€Franklin,€Tennessee.€€On€the€same€day,€Defendants€provided€a€TennesseeÐ À($( ÐResidential€Property€Condition€Disclosure€form€(ð ðthe€disclosure€statementðð)€to€Plaintiffs.€€TheÐ ¬)ü$) Ðdisclosure€statement€notified€the€Israels€of€ð ð[s]ome€standing€water€in€gravel€under€the€deck.€€SomeÐ ˜*è%* Ðwater€in€basement€in€back€during€periods€of€excessive€rain.ðð€€The€Israels€made€the€decision€to€haveÐ „+Ô&+ Ðthe€property€inspected€by€a€professional€inspection€service€which€was€accomplished€on€11€JanuaryÐ p,À', Ð1997.€€The€property€was€occupied€by€the€Williams€at€the€time€of€the€inspection.€€Ð \-¬(-ý Їà  àNumerous€problems€with€the€house€and€basement€were€found€by€the€property€inspectorÐ ° Ðincluding€ð ðmoisture/seepage€signs€present,ðð€water€and€moisture€symptoms€of€rotted/decayed€wood,Ð œì Ðð ðstains,ðð€ð ðmildew,ðð€ð ðpoor€drainage,ðð€and€ð ðsigns€of€damp€walls€and€floor.ðð€€The€inspectorÐ ˆØ Ðrecommended€repairs€which€included€putting€clay€soil€around€the€house€and€noted€that€theÐ tÄ Ðprobability€of€water€seepage/dampness€after€the€recommended€changes€was€medium€to€low.€€It€wasÐ `° Ðalso€noted€in€the€inspection€report€that€the€basement€wall€was€bulging€in,€that€there€were€severalÐ L œ Ðother€cracks,€and€that€the€front€wall€was€leaning€in€a€bit.Ð 8 ˆ ÐÌà  àAfter€receiving€the€disclosure€statement€and€the€property€inspection€report,€the€Israels€electedÐ  ` Ðto€proceed€with€purchase€of€the€house€without€further€investigation.€€Closing€of€the€house€wasÐ ü L  Ðaccomplished€on€3€February€1997€and€the€Israels€moved€in€on€5€March€1997.€€Immediately€afterÐ è 8  Ðmoving€in€the€Israels€allegedly€found€the€sewer€drain€not€operating€properly€as€well€as€excessiveÐ Ô$  Ðwater€seepage€into€the€basement€whenever€rain€occurred.€€Some€time€in€April€of€1997€the€IsraelsÐ À  Ðdetermined€that€the€house€suffered€from€sewer€rot,€mildew€from€water€seepage,€and€water€pipesÐ ¬ü  Ðcontaining€excessive€rust.€€Ð ˜è  ÐÌà  àThe€Israels€claim€that€the€extent€of€water€in€the€basement€and€the€sewer€problems€were€notÐ pÀ Ðdisclosed€to€them.€€They€allege€the€Williams€had€prior€knowledge€of€the€sewer€problems€and€failedÐ \¬ Ðto€disclose€these€problems€at€all.€€They€also€allege€that€the€Williams€downplayed€the€water€problemÐ H˜ Ðin€the€basement€as€being€only€in€several€places€and€only€when€it€rained€excessively,€when€in€realityÐ 4„ Ðthe€basement€filled€up€with€water€after€each€rain.Ð  p ÐÌà  àThe€Israels€initially€filed€suit€for€failing€to€disclose€the€sewer€and€drain€problems€and€failingÐ øH Ðto€reveal€the€extent€of€the€water€problems€in€the€basement€in€violation€of€the€Residential€PropertyÐ ä4 ÐDisclosure€Law.€€Tenn.€Code€Ann.€ðð€66„5„201€to€„210€(Supp.€1999).€€The€Williams€have€claimedÐ Ð  Ðno€knowledge€of€prior€sewer€or€drain€problems€nor€any€prior€severe€water€damage€to€the€basement.€Ð ¼  ÐThey€further€maintain€that€the€disclosure€statement€was€accurate€and€that€the€Israels€were€estoppedÐ ¨ø Ðfrom€seeking€relief€due€to€their€having€the€property€inspected€by€a€professional€property€inspector.€Ð ”ä ÐThe€Williams€then€filed€a€Motion€to€Dismiss€claiming€that€Plaintiffs€were€barred€by€the€statute€ofÐ €Ð Ðlimitations€set€forth€in€Tennessee€Code€Annotated€section€66„5„208(a)(1)(Supp.€1997).€€The€trialÐ l¼ Ðcourt€granted€the€Williamsðð€Motion€to€Dismiss€for€failure€to€file€the€action€within€the€statute€ofÐ X ¨ Ðlimitations,€as€an€action€for€violation€of€property€disclosure€laws€must€be€brought€within€one€yearÐ D!” Ðfrom€the€date€of€purchase€or€receipt€of€the€disclosure€statement,€whichever€occurs€first.€€However,Ð 0"€  Ðthe€court€determined€that€Plaintiffs€had€adequately€asserted€a€claim€for€negligent€misrepresentationÐ #l! Ðand€allowed€those€claims€to€continue€forward.Ð $X" ÐÌà  àThe€Williams€then€filed€a€Motion€for€Summary€Judgment€and€corroborating€affidavitsÐ à%0!$ Ðclaiming€that€all€representations€of€material€fact€made€to€Plaintiffs€were€true€and€undisputed€and€thatÐ Ì&"% ÐPlaintiffs€have€not€shown€that€the€representations€were€faulty€or€carelessly€made.€€They€furtherÐ ¸'#& Ðasserted€that€the€Israels€cannot€recover€because€they€had€actual€or€constructive€notice€of€the€waterÐ ¤(ô#' Ðproblems€in€the€basement€and€that€the€Israels€could€not€have€justifiably€relied€on€statements€madeÐ )à$( Ðby€the€Williams€regarding€this€matter.€€The€Israels€responded€to€Defendantsðð€motion€claiming€thereÐ |*Ì%) Ðwere€genuine€issues€of€material€fact€regarding€two€areas€of€claimed€misrepresentation:€€(1)€WhetherÐ h+¸&* Ðor€not€the€Israels€misrepresented€the€seriousness€of€the€water€problem€in€the€basement,€and€(2)Ð ° ÐWhether€or€not€the€Williams€had€knowledge€of€and€failed€to€disclose€the€plumbing/sewer€problemsÐ œì Ðwith€the€house.€€Ð ˆØ ÐÌà  àIn€support€of€their€case,€the€Israels€provided€some€additional€evidence€for€the€courtððs€review.€Ð `° ÐTwo€construction€company€reports€were€submitted€laying€out€problems€found€with€the€basement€andÐ L œ Ðrepairs€completed€to€fix€the€basement€defects.€€The€first€report€appears€to€be€an€estimate€of€repairsÐ 8 ˆ Ðand€costs,€and€it€states:€€Ð $ t ÐÌà8  àExcavate€dirt€around€foundation,€backfill€to€another€location.€€Apply€foundationÐ ü L  Ðdrain€and€backfill€w/€gravel.€€Apply€rubber€membrane€to€wall.€€Seal€edges€andÐ è 8  Ðoverlap€w/€masking.€€Discharge€to€creek€area.€€Backfill€dirt.€€No€landscapingÐ Ô$  Ðincluded.€€Extra€charges€if€hit€rock€to€remove€around€foundation.€€Cost€plus€on€jackÐ À  Ðhammering.€€Not€responsible€for€step€or€concrete€color€and€material.Ьü Ð Ð  Ðà  àTotal€Price€òò€€€€4200.00€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€óóÐ ˜è  ÐÌThe€second€report€appears€to€be€a€recitation€of€work€performed€and€states:Ð pÀ ÐÌà8  àUpon€removing€baseboard€and€reviewing€wood€panel€and€concrete€blocks,Ð H˜ Ðwatermarks€and€stains€prove€the€basement€has€been€leaking€four€or€more€years.€€ThisÐ 4„ Ðestimation€is€due€to€the€rot€bu[il]d„up€and€deterioration€along€floor€and€wall€line€onÐ  p Ðright€and€left€walls€and€some€areas€on€the€front€wall.€€€Ð \Ð Ð  Ðà8  àOn€July€16„17th,€1997€HCS€excavated€dirt€around€foundation,€applied€foundationÐ øH Ðdrain€around€front€and€side€walls,€backfilled€with€gravel,€ap[p]lied€rubber€membraneÐ ä4 Ðto€wall,€sealed€edges€and€overlapped€with€masking,€replaced€window€well€on€oneÐ Ð  Ðside€of€home€and€created€a€gravity€flow€discharge€of€the€drain€system€to€the€creekÐ ¼  Ðarea€at€rear€of€house.ШøÐ Ð  ÐÌà  àIn€addition,€Mr.€Israel€provided€an€affidavit€of€his€own€knowledge€which€stated:Ð €Ð ÐÌà8  àà ` à1.à ¸ àMy€name€is€Mark€Israel.€€Prior€to€purchasing€the€house€my€wife€andÐ X ¨ ÐI€had€been€informed€by€Larry€Williams€that€water€only€appeared€in€one€small€spot€inÐ D!” Ðthe€basement€only€if€it€rained€excessively.Ð0"€ Ð Ð  ÐÌà8  àà ` à2.à ¸ àWilliams€also€told€me€that€if€dirt€was€put€around€the€house,€this€wouldÐ $X" Ðstop€the€problem€of€excessive€water.Ðô$D #Ð Ð  ÐÌà8  àà ` à3.à ¸ àThe€Williams€have€disclaimed€the€severity€of€the€problem€to€me€andÐ Ì&"% Ðmy€wife.и'#&Ð Ð  ÐÌà8  àà ` à4.à ¸ àThe€inspector€inspected€the€house€when€it€was€dry€and€no€rain€hadÐ )à$( Ðfallen.Ð|*Ì%)Ð Ð  ÐÐ h+¸&* Ðà8  àà ` à5.à ¸ àThe€Williams€added€clay€soil€around€the€house€prior€to€our€movingÐ ° Ðin€and€without€our€prior€knowledge.МìÐ Ð  ÐÌà8  àà ` à6.à ¸ àThe€Williams€never€told€us€they€had€a€problem€with€the€plumbingÐ tÄ Ðlines.€Ð`°Ð Ð  ÐÌà8  àà ` à7.à ¸ àWe€relied€upon€the€Disclaimer€Statement,€the€statements€by€LarryÐ 8 ˆ ÐWilliams€to€buy€this€house.Ð$ tÐ Ð  ÐÌà8  àà ` à8.à ¸ àThe€inspectorððs€report€was€also€relied€upon€by€us,€but€the€inspectorÐ ü L  Ðexplained€that€he€could€only€view€things€superficially.€€If€there€was€drainageÐ è 8  Ðproblems,€he€could€not€observe€them€on€his€inspection.ÐÔ$ Ð Ð  ÐÌThe€Israels€further€provided€three€affidavits€of€neighbors.€€These€three€affidavits€were€identicalÐ ¬ü  Ðexcept€for€the€name€of€the€affiant€and€stated€as€follows:Ð ˜è  ÐÌà8  àà ` à1.à ¸ àMy€name€is€[Affiant].€€I€have€lived€near€the€former€home€of€Larry€andÐ pÀ ÐNancy€Williams€since€they€bought€the€house€in€1991.Ð\¬Ð Ð  ÐÌà8  àà ` à2.à ¸ àI€am€personally€aware€that€the€Williams€home€had€water€seepageÐ 4„ Ðproblems€prior€to€the€Israels[ðð]€occupancy€of€the€house.Ð pÐ Ð  ÐÌà8  àà ` à3.à ¸ àI€personally€saw€standing€water€in€the€basement€of€the€Williams[ðð]Ð øH Ðhome,€not€just€during€periods€of€excessive€rain€but€when€it€rained€for€a€short€periodÐ ä4 Ðof€time.€ÐÐ Ð Ð  ÐÌà8  àà ` à4.à ¸ àI€am€also€aware€that€the€Williams€had€plumbing€problems€before€theÐ ¨ø ÐIsraels€occupied€the€home.ДäÐ Ð  ÐÌThe€Plaintiffsðð€property€inspection€report€and€Defendantsðð€disclosure€statement€were€also€providedÐ l¼ Ðto€the€court.€€No€other€additional€evidence€was€provided€by€the€Israels€to€support€their€case.Ð X ¨ ÐÌÓ  ÓII.€€IssuesÐ 0"€  ÐÓ  ÓÌà  àThe€primary€issue€in€this€case€is€whether€or€not€the€trial€court€was€correct€in€grantingÐ $X" ÐDefendantsðð€motion€for€summary€judgment.€€The€Supreme€Court€provides€an€exhaustive€discussionÐ ô$D # Ðof€Tennesseeððs€summary€judgment€law€in€òòByrd€v.€Hallóó,€847€S.W.2d€208€(Tenn.€1993).Ð à%0!$ ÐÌà8  à[S]ummary€judgment€is€to€be€granted€if€the€ð ðpleadings,€depositions,€answers€toÐ ¸'#& Ðinterrogatories,€and€admissions€on€file,€together€with€the€affidavits,€if€any,€show€thatÐ ¤(ô#' Ðthere€is€no€genuine€issue€as€to€any€material€fact€and€that€the€moving€party€is€entitledÐ )à$( Ðto€judgment€as€a€matter€of€law.€[The€Rules€further€state]€that€the€nonmoving€partyÐ |*Ì%) Ðð ðmay€not€rest€upon€the€mere€allegations€or€denials€of€his€pleading,€but€his€response,Ð h+¸&* Ðby€affidavits€or€[otherwise],€must€set€forth€òòspecific€factsóó€showing€that€there€is€aÐ ° Ðgenuine€issue€for€trial.ðð€€òòМìÐ Ð  ÐÌByrd,óó€847€S.W.2d€at€210€(òòcitingóó€Tennessee€Court€Rules€56.03€and€56.05).€€Ð tÄ ÐÌà  àThe€court€goes€on€in€òòByrdóó€to€break€down€the€elements€of€summary€judgment.€òòóóThe€initialÐ L œ Ðburden€is€on€the€party€seeking€summary€judgment.€€That€party€ð ðmust€carry€the€burden€of€persuadingÐ 8 ˆ Ðthe€court€that€no€genuine€and€material€factual€issue€exists;€[then]€the€nonmoving€party€mustÐ $ t Ðaffirmatively€demonstrate€with€òòspecific€factsóó€that€there€is€indeed€a€genuine€issue€and€material€factualÐ  ` Ðdispute.ðð€€òòId.óó€at€214.€(emphasis€added).€€First,€when€the€material€facts€are€undisputed,€the€court€mayÐ ü L  Ðsimply€apply€the€law€and€resolve€the€matter€in€favor€of€one€party€or€the€other€and€summary€judgmentÐ è 8  Ðis€appropriate.€€Second,€to€preclude€summary€judgment€the€nonmoving€party€must€demonstrate€thatÐ Ô$  Ðthe€fact€in€dispute€is€material,€i.e.,€whether€the€resolution€of€that€fact€will€affect€the€disposition€ofÐ À  Ðany€substantive€claims€or€defenses€at€which€the€motion€is€directed.€€Third,€when€the€evidenceÐ ¬ü  ÐÔ_ÔetablishesÔ_Ô€a€disputed€fact€and€it€is€determined€that€the€fact€is€material,€the€court€must€determine€ifÐ ˜è  Ðthe€disputed€material€fact€creates€a€genuine€issue.€€ð ðThe€test€for€a€ð ðgenuine€issueðð€is€whether€aÐ „Ô  Ðreasonable€jury€could€legitimately€resolve€that€fact€in€favor€of€one€side€or€the€other.ðð€€òòId.óó€at€214„15.€Ð pÀ ÐIt€should€also€be€noted€that€ð ðcomplete€failure€of€proof€concerning€an€essential€element€of€theÐ \¬ Ðnonmoving€partyððs€case€necessarily€renders€all€other€facts€immaterial.ðð€€òòId.óó€at€213.Ð H˜ ÐÌà  àThe€Ô_ÔIsraelsÔ_Ô€claim€that€the€Williams€negligently€misrepresented€two€things:€(1)€the€amountÐ  p Ðand€frequency€of€water€in€the€basement€and€resulting€damage,€and€(2)€any€preexistingÐ  \ Ðplumbing/sewer€problems€and€the€resulting€damage.€€Upon€review€of€Defendantsðð€initial€Motion€forÐ øH ÐSummary€Judgment,€we,€like€the€trial€court,€are€persuaded€that€there€was€no€genuine€issue€ofÐ ä4 Ðmaterial€fact€present.€€As€a€result,€Plaintiffs€must€provide€specific€facts€showing€each€element€ofÐ Ð  Ðnegligent€misrepresentation€with€regard€to€the€two€alleged€misrepresentations.Ð ¼  ÐÌÓ  ÓIII.€€DiscussionÐ ”ä ÐÌA.€€Elements€of€Negligent€MisrepresentationÐ l¼ ÐÓ  ÓÌà  àIn€order€to€maintain€a€case€for€negligent€misrepresentation,€a€plaintiff€must€prove€that:Ð D!” ÐÌà8  à1.à ` àthe€defendant€is€acting€in€the€course€of€his€business,€profession,€orÐ #l! Ðemployment€or€is€in€a€transaction€in€which€he€has€a€pecuniary€(as€opposed€toÐ $X" Ðgratuitous)€interest;€òòandóóÐô$D #Ð Ð  ЀÌà8  à2.à ` àthe€defendant€supplies€faulty€information€meant€to€guide€others€in€theirÐ Ì&"% Ðbusiness€transaction;€òòandóóи'#&Ð Ð  ÐÌà8  à3.à ` àthe€defendant€fails€to€exercise€reasonable€care€in€obtaining€or€communicatingÐ )à$( Ðthe€information;€òòandóóÐ|*Ì%)Ð Ð  ÐÐ h+¸&* Ðà8  à4.à ` àthe€plaintiff€justifiably€relies€upon€the€information.аРР ÐÌòòJohn€Martin€Co.,€Inc.€v.€Morse/Diesel,€Inc.,óó€819€S.W.2d€428,€431€(Tenn.€1991).€€It€is€easy€to€see€thatÐ ˆØ Ðelement€number€one€is€met€as€the€defendants€have€a€pecuniary€interest€in€selling€their€house.€Ð tÄ ÐPlaintiffs€must€also€come€forward€with€specific€facts€showing€that€the€alleged€misrepresentationsÐ `° Ðmeet€the€other€three€criteria€for€negligent€misrepresentation.€€Ð L œ ÐÌÓ  ÓB.€€Representations€Regarding€Water€in€the€BasementÐ $ t ÐÌÓ  Óà  àThe€first€representation€regards€the€amount€and€frequency€of€water€in€the€basement.€Ð ü L  ÐPlaintiffs€must€show€that€the€Williams€supplied€faulty€information€with€regard€to€the€amount€andÐ è 8  Ðseverity€of€the€water€which€collected€in€the€basement€and€that€they€failed€to€exercise€reasonable€careÐ Ô$  Ðin€obtaining€or€communicating€this€information.€€The€following€facts€are€on€the€record€to€show€whatÐ À  Ðinformation€was€supplied€by€the€Williams€as€well€as€€the€actual€condition€of€the€basement€asÐ ¬ü  Ðdetermined€by€the€Israels€following€the€purchase.Ð ˜è  ÐÌà  à1.à ` àThe€Williams€informed€the€Israels€prior€to€purchase€of€€ð ðsome€standing€water€inÐ pÀ Ðgravel€under€the€deck.€€Some€water€in€the€basement€in€the€back€during€periods€of€excessive€rain.ððÐ \¬ ÐÌà  à2.à ` àThe€Williams€filed€an€affidavit€stating€that€they€had€no€severe€water€damage€prior€toÐ 4„ Ðthe€sale€of€their€house.€Ð  p ÐÌà  à3.à ` àThe€Israels€and€their€inspector€viewed€the€house€and€found€superficial€evidence€ofÐ øH Ðwater€damage€as€evidenced€by€the€inspection€report€and€consistent€with€the€Williamsðð€assertion€ofÐ ä4 Ðsome€past€water€in€the€basement.Ð Ð  ÐÌà  à4.à ` àThe€Israels€provided€a€statement€from€Hudgins€Construction€Company€regardingÐ ¨ø Ðrepairs€needed€to€waterproof€the€basement€as€well€as€damage€found€in€the€basement€after€removingÐ ”ä Ðbaseboards€and€parts€of€the€basement€walls.Ð €Ð ÐÌà  à5.à ` àMark€Israel€provided€an€affidavit€alleging€that€Mr.€Williams€informed€him€of€waterÐ X ¨ Ðappearing€in€one€small€spot€in€the€basement€only€if€it€rained€excessively;€that€Mr.€Williams€informedÐ D!” Ðhim€that€putting€dirt€around€the€house€would€stop€the€water€problem;€that€Mr.€Williams€disclaimedÐ 0"€  Ðthe€severity€of€the€water€problem;€that€the€inspector€inspected€the€house€when€it€was€dry€and€no€rainÐ #l! Ðhad€fallen;€that€Mr.€Williams€added€clay€soil€around€the€house€prior€to€their€moving€in€and€withoutÐ $X" Ðtheir€knowledge;€that€they€relied€on€the€disclaimer€statements€made€by€Mr.€Williams€to€buy€theÐ ô$D # Ðhouse;€that€they€also€relied€on€the€inspectorððs€reports€(but€the€inspector€was€only€able€to€view€thingsÐ à%0!$ Ðsuperficially.)Ð Ì&"% ÐÌà  à6.à ` àPlaintiff€also€provided€affidavits€of€three€neighbors€who€lived€ð ðnearðð€the€former€homeÐ ¤(ô#' Ðof€Larry€and€Nancy€Williams.€€These€affidavits€stated€that€the€three€neighbors€were€aware€of€waterÐ )à$( Ðâ âseepage€problems€prior€to€the€Israels€occupying€the€house;€that€they€personally€saw€water€standingÐ |*Ì%) Ðin€the€basement,€not€just€during€periods€of€excessive€rain,€but€when€it€rained€for€a€short€period€ofÐ ° Ðtime.Ð œì Ðâ âÌà  àIn€looking€at€the€above€facts€and€viewing€them€in€a€manner€most€favorable€to€the€Ô_ÔIsraelsÔ_Ô,€€weÐ tÄ Ðfind€that€there€is€no€evidence€that€the€defendants€supplied€faulty€information€or€failed€to€exerciseÐ `° Ðreasonable€care€in€obtaining€or€communicating€the€information.€€The€disclosure€statement€clearlyÐ L œ Ðpoints€out€problems€with€water€in€the€basement.€€Further,€the€Williams€also€let€Plaintiffs€know€thatÐ 8 ˆ Ðsome€repairs€might€be€necessary€in€the€form€of€putting€dirt€around€the€house€in€order€to€stop€theÐ $ t Ðwater€in€the€basement.€€There€is€no€evidence€in€the€record€that€the€plaintiffs€had€any€problemsÐ  ` Ðdifferent€from€what€was€described€by€the€Williams.€€They€provide€no€evidence€as€to€how€much€rainÐ ü L  Ðit€took€to€cause€water€flow€in€the€basement€nor€how€much€water€they€actually€had€in€the€basementÐ è 8  Ðnor€how€often€the€water€was€there.€€In€addition,€the€neighborsðð€affidavits€provide€no€additionalÐ Ô$  Ðinformation€regarding€when€they€saw€the€standing€water,€how€much€water€there€was,€or€how€longÐ À  Ðit€rained€prior€to€water€standing€in€the€basement.€€As€such,€this€claim€for€negligent€misrepresentationÐ ¬ü  Ðregarding€the€basement€water€must€fail.Ð ˜è  ÐÌà  àIn€addition,€however,€we€find€that€there€was€no€justifiable€reliance€upon€DefendantððsÐ pÀ Ðstatements€regarding€the€water€in€the€basement.€€ð ðIf€one€who€is€in€possession€of€all€material€facts,Ð \¬ Ðeither€actually€or€constructively,€proceeds€with€a€purchase€of€realty,€notwithstanding€suchÐ H˜ Ðknowledge,€such€a€person€cannot€thereafter€recover€on€the€basis€of€fraud,€misrepresentation,€orÐ 4„ Ðconcealment€of€the€information€to€which€all€parties€had€equal€access.ðð€€òòÔ_ÔWinsteadÔ_Ô€v.€First€Tenn.€BankÐ  p ÐN.A.,€Memphisóó,€709€S.W.2d€627,€633€(Tenn.€Ct.€App.€1986).€€Plaintiffs€were€placed€on€notice€by€theÐ  \ Ðdisclosure€statement€regarding€past€history€of€water€in€the€Williamsðð€basement.€€As€a€result€of€thisÐ øH Ðinformation,€the€Ô_ÔIsraelsÔ_Ô€performed€their€own€home€inspection,€hiring€a€professional€inspector€whoÐ ä4 Ðfound€numerous€problems€with€the€basement€including€mildew,€bulging€and€cracked€walls,€poorÐ Ð  Ðdrainage,€signs€of€damp€walls€and€floors,€seepage€signs,€water€stains,€and€rotted€and€decayed€wood.€Ð ¼  ÐThe€inspectorððs€report€definitely€shows€problems€with€water€in€the€basement€and€indicates€thatÐ ¨ø Ðrepairs€are€necessary.Ð ”ä ÐÌà  àAs€well,€Tennessee€Code€Annotated€section€66„5„201€specifically€states,€ð ðthe€disclosureÐ l¼ Ðstatement€.€.€.€is€not€a€warranty€of€any€kind€by€a€seller€and€is€not€a€substitute€for€inspections€eitherÐ X ¨ Ðby€the€individual€purchaser€or€by€a€professional€home€inspector.ðð€€After€reviewing€the€inspectionÐ D!” Ðreport€the€Israels€had€as€much€knowledge€about€the€condition€of€the€basement€and€the€inside€of€theÐ 0"€  Ðbasementððs€walls€as€the€Williams€could.€€(Mr.€and€Mrs.€Williams€could€no€more€see€through€theÐ #l! Ðwalls€and€know€of€the€interior€damage€than€the€plaintiffs€or€their€inspector.)€€Based€on€theÐ $X" Ðinformation€in€the€record€and€the€residential€inspection€report,€the€Israels€had€as€much€(or€more)Ð ô$D # Ðknowledge€as€the€Williams€regarding€the€actual€condition€of€and€potential€problems€with€theÐ à%0!$ Ðbasement.€€With€this€knowledge,€the€Israels€elected€to€proceed€forward€and€purchase€the€homeÐ Ì&"% Ðwithout€further€investigation.€€Any€reliance€made€on€the€statements€of€Mr.€and€Mrs.€Williams€wasÐ ¸'#& Ðunjustifiable€in€light€of€the€Israelsðð€actual€knowledge€about€the€basement€condition.€€òòSee€also€AtkinsÐ ¤(ô#' Ðv.€Ô_ÔKilpatrickÔ_Ôóó,€823€S.W.2d€547€(Tenn.€Ct.€App.€1991);€òòCoffey€v.€Ô_ÔFoamexÔ_Ôóó€òòL.P.óó,€2€F.3d€157€(6th€Cir.Ð )à$( Ð1993);€òòMetropolitan€Ô_ÔGovððtÔ_Ô€of€Nashville€and€Davidson€County€v.€Ô_ÔMcKinneyÔ_Ôóó,€852€S.W.2d€233€(Tenn.Ð |*Ì%) ÐCt.€App.€1993).Ð h+¸&* ЇÓ  ÓC.à @ à€€€€€Failure€to€Disclose€Plumbing/Sewer€Problems€and€Resulting€DamageÐ ° ÐÌÓ  Óà  àWe€once€again€look€to€see€whether€or€not€facts€show€that€the€Williams€provided€faultyÐ ˆØ Ðinformation€or€failed€to€exercise€reasonable€care€in€obtaining€or€communication€informationÐ tÄ Ðregarding€any€plumbing/sewer€problems€with€the€house€and€any€resulting€damage.€€The€record€itselfÐ `° Ðis€conspicuously€void€of€any€actual€evidence€of€the€Israels€having€plumbing/sewer€problems.€€In€hisÐ L œ Ðaffidavit,€Mark€Israel€states€that€ð ðthe€Williams€never€told€us€they€had€a€problem€with€the€plumbingÐ 8 ˆ Ðlines.ðð€€They€also€state€that€the€inspector€could€only€view€things€superficially€and€any€drainageÐ $ t Ðproblems€could€not€be€observed€on€his€inspection.€€The€affidavits€of€the€neighbors€state€they€are€alsoÐ  ` Ðaware€that€the€Williams€had€plumbing€problems€before€the€Israels€occupied€the€home.€€However,Ð ü L  Ðthere€is€absolutely€no€evidence€of€the€òòIsraelsóó€actually€having€a€plumbing€problem€or€what€theÐ è 8  Ðplumbing€problem€was.€€Therefore,€without€any€evidence€of€an€actual€problem,€it€cannot€be€shownÐ Ô$  Ðthat€the€defendantððs€statements,€or€lack€thereof,€were€in€any€way€faulty€or€lacked€reasonable€care.€Ð À  ÐThus,€the€second€allegation€of€€misrepresentation€must€also€fail.Ð ¬ü  ÐÌÓ  ÓV.à @ àà @ àà @ à€€€€€ConclusionÐ „Ô  ÐÌÓ  Óà  àThis€Court€concludes€that€summary€judgment€was€warranted.€€With€regard€to€the€IsraelsððÐ \¬ Ðallegations€of€misrepresentation€about€the€basementððs€water€situation,€we€find€that€Plaintiffs€failedÐ H˜ Ðto€demonstrate,€through€specific€facts,€any€material€differences€between€what€was€originallyÐ 4„ Ðdisclosed€as€water€problems€in€the€basement€and€what€the€Israels€later€actually€found€to€be€theÐ  p Ðcondition€of€the€basement.€€The€Israels€also€failed€to€demonstrate€any€knowledge€on€the€part€of€theÐ  \ ÐWilliams€that€would€render€the€information€supplied€to€them€by€the€Williams€as€faulty.€€We€furtherÐ øH Ðfind€that€the€Israels€could€not€have€justifiably€relied€on€the€representations€of€the€Williams€regardingÐ ä4 Ðthe€basementððs€water€condition€in€light€of€the€information€provided€to€them€by€their€own€propertyÐ Ð  Ðinspection.€€With€regard€to€the€alleged€failure€to€disclose€plumbing€and€sewer€problems,€we€find€thatÐ ¼  Ðthe€Israels€failed€to€come€forth€with€any€specific€facts€showing€what€plumbing€and€sewer€problemsÐ ¨ø Ðexisted€following€the€purchase€of€their€house,€which€also€existed€during€the€time€of€the€WilliamsððÐ ”ä Ðownership€of€the€house,€or€of€which€the€Williams€had€knowledge.€€Due€to€lack€of€evidence€necessaryÐ €Ð Ðto€maintain€a€claim€for€negligent€misrepresentation,€we€find€that€the€trial€court€properly€dismissedÐ l¼ Ðthis€case€on€summary€judgment€and€affirm€the€trial€courtððs€ruling.Ð X ¨ ÐÌÌÌÌà  àà ` àà ¸ àà  àà h àà À à__________________________________________Ð ô$D # Ðà  àà ` àà ¸ àà  àà h àà À àWILLIAM€B.€CAIN,€JUDGE