Eastwood v. Horse Harbor Foundation, Inc., 241 P.3d 1256 (2010)

Citation: Eastwood v. Horse Harbor Foundation, Inc., 241 P.3d 1256 (2010)
Parent Document: Eastwood v. Horse Harbor Foundation, Inc., 241 P.3d 1256 (2010)
Jurisdiction: Washington (state)
Effective Date: 2010-11-04
Original Source: https://www.courtlistener.com/opinion/2372386/eastwood-v-horse-harbor-foundation-inc/ ↗

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*1263 ¶ 19 In Atherton Condominium Apartment-Owners Ass'n Board of Directors v. Blume Development Co., 115 Wash.2d 506, 799 P.2d 250 (1990), plaintiff condominium owners claimed fraudulent concealment, negligent construction, and negligent design. Fraudulent concealment in a real estate transaction is a cause of action that has long been recognized in Washington. Perkins v. Marsh, 179 Wash. 362, 367-68, 37 P.2d 689 (1934). Independent of the obligations in a lease or a residential real estate sales contract, the vendor or lessor has an affirmative duty to "disclose material facts," of which the vendor or seller has knowledge, and which are "not readily observable upon reasonable inspection by the purchaser" or lessee. Hughes v. Stusser, 68 Wash.2d 707, 711, 415 P.2d 89 (1966); see also Obde, 56 Wash.2d at 452, 353 P.2d 672. Thus, it is a well-rooted tort duty that arises independently of the contract, and we recognized in Atherton that the plaintiffs could pursue their fraud claim. 115 Wash.2d at 525-26, 799 P.2d 250.[2] As for the plaintiffs' claim of negligent construction, however, we held they could not recover, because the defendant builder did not owe an independent tort duty to avoid defects in construction quality. Id. at 526, 799 P.2d 250. Similarly, we rejected the plaintiffs' claim for negligent design against the architect because they failed to show that the architect "breached any duty of care and that such breach was the proximate cause of the alleged damages." Id. at 534 n. 17, 799 P.2d 250.

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