ATHERTON CONDO APARTMENT-OWNERS ASS'N BD OF DIRECTORS v. Blume Dev. Co., 799 P.2d 250 (1990)

Citation: ATHERTON CONDO APARTMENT-OWNERS ASS'N BD OF DIRECTORS v. Blume Dev. Co., 799 P.2d 250 (1990)
Parent Document: ATHERTON CONDO APARTMENT-OWNERS ASS'N BD OF DIRECTORS v. Blume Dev. Co., 799 P.2d 250 (1990)
Jurisdiction: Washington (state)
Effective Date: 1990-11-01
Original Source: https://www.courtlistener.com/opinion/2610918/atherton-condo-apartment-owners... ↗

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Review of the evidence before the trial court establishes that there is a factual question as to whether Blume fraudulently concealed construction practices which violated the UBC from Atherton purchasers. The evidence supports a reasonable inference that Blume knew that it deviated from the approved construction plans in ways related to fire resistivity and substitution of Kolor Krete for stucco as the exterior wall covering.[12] The evidence also indicates that the alleged UBC violations are not apparent and would not be revealed through a purchaser's reasonably careful inspection. It is a sharply disputed issue of fact whether the construction deviations create a danger to Atherton purchasers. Finally, as to materiality, we find the evidence sufficient to create a question of fact. Although Owners supply no specific evidence of diminution of value resulting from the construction deviations, it may reasonably be inferred that a condominium constructed in a manner that will not adequately resist the spread of fire is substantially less valuable than one constructed in compliance with fire resistivity standards, and that bringing Atherton into compliance with building code would be a substantial expenditure. Moreover, a jury could reasonably conclude that the construction deviations pose a potential danger to the lives of Owners and that this danger materially impairs or defeats the purpose of the Blume-Owners transaction.

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