Smith et al. v. Safeguard Properties Management, LLC et al.

Sean Edwards won summary judgment on behalf of a defendant real estate property preservation company in a case pending in Wyandotte County, Kansas, which has been affirmed by the Kansas Court of Appeals.  Plaintiffs asserted negligence and negligent misrepresentation by the property preservation company.  The issues in the case were whether a property preservation company had duties which ran to a purchaser of real estate with whom the property preservation company had no relationship and whether the plaintiffs justifiably relied on the minimal information they obtained before purchasing the real estate.

The plaintiffs purchased real estate which they alleged had substantial mold and water damage issues without undertaking due diligence to first ascertain the condition of the real estate.  Because the property preservation company had no relationship to the plaintiffs, the District Court ruled and the Court of Appeals affirmed that no duties ran from the property preservation company to the plaintiffs, and the minimal information on the real estate obtained by the plaintiffs was insufficient to constitute justifiable reliance necessary for a negligent misrepresentation claim against the property preservation company.