E-Filed 06/25/2010 @ 10:32:42 A M Honorable Robert Esdale

Clerk Of The Court

IN THE SUPREME COURT OF ALABAMA Case Number: 1060570

KEITH A. KUBERT AND BRENDA C. KUBERT,

A p p e l l a n t s ,

v.

ADOBE, INC. A/K/A AMERISPEC HOME INSPECTION SERVICE, INC.

Appellee.

On Appeal from the C i r c u i t Court of Ma r s h a l l County, Alabama

CV-2004-244

BRIEF IN OPPOSITION TO APPLICATION FOR REHEARING OF APPELLEE ADOBE, INC. A/K/A

AMERISPEC HOME INSPECTION SERVICE, INC.

ATTORNEY FOR APPELLEE

Joseph E. S t o t t , Esq. Sco t t , S u l l i v a n , Streetman & Fox, P.C.

2450 V a l l e y d a l e Road Birmingham, AL 35244 (205) 967-9675 Phone

(205) 967-7563 F a c s i m i l e jstott@ssandf.com

TABLE OF CONTENTS

TABLE OF CONTENTS

TABLE OF AUTHORITIES

STATEMENT OF FACTS

BRIEF IN OPPOSITION TO APPLICATION FOR REHEARING

I . A g e n c y

I I . B r e a c h o f C o n t r a c t and B r e a c h o f F i d u c i a r y D u ty

I I I . V a l i d i t y o f t h e R e l e a s e

CONCLUSION

CERTIFICATE OF SERVICE

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TABLE OF AUTHORITIES

Case Law Page

B o l l e s v. B l a c k s t o c k , 494 So.2d 1077 ( A l a . 1986) 10

C l e g h o r n v. S c r i e b n e r , 597 So.2d 693 ( A l a . 1 9 9 2 ) . . . . 6,10

M i l e s v. B a r r e t t , 134 So. 661 ( A l a . 1931) 10

T r i o B r o a d c a s t e r s , I n c . v. Ward, 595 So.2d 621 ( A l a . 1 98 6) 6

- i i -

STATEMENT OF FACTS

I . The A p p e l l e e h e r e b y a d o p t s t h e S t a t e m e n t o f F a c t s as p r o v i d e d i n t h e A p p e l l e e ' s o r i g i n a l B r i e f .

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BRIEF IN OPPOSITION TO APPLICATION FOR REHEARING

P l a i n t i f f s / A p p e l l a n t s K e i t h K u b e r t and B r e n d a K u b e r t

have a s k e d t h i s C o u r t t o r e c o n s i d e r i t s p r i o r a f f i r m a n c e o f

t h e judgment e n t e r e d by t h e t r i a l c o u r t i n t h e above-

r e f e r e n c e d c a s e . As a p p l i c a b l e t o t h i s A p p e l l e e , Adobe,

I n c . a/k/a A m e r i s p e c Home I n s p e c t i o n S e r v i c e , I n c .

( h e r e i n a f t e r " A m e r i s p e c " ) , i n t h e i r A p p l i c a t i o n f o r

R e h e a r i n g , t h e A p p e l l a n t s a l l e g e t h a t t h i s C o u r t ' s

a f f i r m a n c e o f t h e t r i a l c o u r t ' s O r d e r was i n e r r o r (1)

b e c a u s e A m e r i s p e c " d i d n o t d i s p u t e t h e e x i s t e n c e o f t h e

s p e c i a l r e l a t i o n s h i p " b e t ween i t s e l f and t h e K u b e r t s ; (2)

t h a t A m e r i s p e c " f a i l e d t o e s t a b l i s h t h e a b s e n c e o f an i s s u e

o f m a t e r i a l f a c t as t o t h e [ A p p e l l a n t s ' ] c l a i m s f o r b r e a c h

o f c o n t r a c t and b r e a c h o f f i d u c i a r y d u t y " ; and (3) t h a t t h e

R e l e a s e e x e c u t e d by t h e A p p e l l a n t s i s i n v a l i d due t o a l a c k

o f a m e e t i n g o f t h e minds o r " b e c a u s e o f l a c k o f

c o n s i d e r a t i o n and b e c a u s e t h e K u b e r t s were f r a u d u l e n t l y

i n d u c e d i n t o s i g n i n g . " (See A p p e l l a n t s ' A p p l i c a t i o n f o r

R e h e a r i n g a t pp. 2 - 3 ) .

W i t h o n l y v e r y m i n o r e x c e p t i o n s , t h i s i s s i m p l y a

r e s t a t e m e n t o f t h e e n t i r e argument w h i c h t h e A p p e l l a n t s

o r i g i n a l l y made on t h e a p p e a l o f t h i s c a s e , and c o n t r a r y t o

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R u l e 40 o f t h e Alabama R u l e s o f A p p e l l a t e P r o c e d u r e , t h e

A p p e l l a n t s have n o t p r o v i d e d r e f e r e n c e t o a s i n g l e s p e c i f i c

p o i n t o f l a w w h i c h b e l i e v e s t h i s C o u r t i n c o r r e c t l y

u n d e r s t o o d o r a p p l i e d . I n s t e a d , t h e A p p e l l a n t s m e r e l y

removed some o f t h e i r p r i o r a r g u m e n t s . N o n e t h e l e s s , t o t h e

e x t e n t a p p l i c a b l e t o t h i s D e f e n d a n t / A p p e l l e e , e a c h o f t h o s e

a r g u m e n t s w i l l be a d d r e s s e d b e l o w , and i t w i l l be

d e m o n s t r a t e d t h a t e a c h o f t h e A p p e l l a n t s ' a r g u m e n t s a r e

w i t h o u t m e r i t and c a n n o t f o r m t h e b a s i s o f a r e v e r s a l o f

e i t h e r o f t h i s C o u r t ' s a f f i r m a n c e o r t h e t r i a l c o u r t ' s

j u d g m e n t .

I. Agency.

As shown above, t h e A p p e l l a n t s f i r s t a r g u e t h a t t h e

A p p e l l e e s , i n c l u d i n g A m e r i s p e c , do n o t d i s p u t e t h e c l a i m e d

e x i s t e n c e o f a " s p e c i a l r e l a t i o n s h i p " g i v i n g r i s e t o a d u t y

t o d i s c l o s e . However, t h a t i s s i m p l y n o t t h e c a s e , as t h e s e

i s s u e s were b r i e f e d e x t e n s i v e l y by t h i s A p p e l l e e i n i t s

o r i g i n a l B r i e f .

As d e m o n s t r a t e d i n t h e o r i g i n a l B r i e f f i l e d by t h i s

A p p e l l e e , t h e c l a i m s a g a i n s t t h i s A p p e l l e e a r e b a s e d on

a l l e g e d d e f i c i e n c i e s i n a home i n s p e c t i o n . The agreement

b e t w e e n t h e K u b e r t s and A m e r i s p e c was f o r a l i m i t e d v i s u a l

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i n s p e c t i o n o f t h e p r o p e r t y . (C. 4 7 1 - 4 7 2 ) . Though t h e

A p p e l l a n t s r e c e i v e d a 31 page r e p o r t w h i c h d e t a i l e d numerous

p r o b l e m s w i t h t h e home, t h e P l a i n t i f f / A p p e l l a n t K e i t h K u b e r t

l a t e r d e c i d e d t h a t he was d i s s a t i s f i e d w i t h t h e r e p o r t . (C.

259-260, 4 2 7 - 4 5 8 ) . As a r e s u l t , K u b e r t i n i t i a t e d c o n t a c t

w i t h A m e r i s p e c r e p r e s e n t a t i v e P h i l l i p F r a l e y b o t h by phone

and e - m a i l . K u b e r t made t h e u n i l a t e r a l d e c i s i o n t o a s k f o r

h i s money b a c k . When he r e q u e s t e d a r e f u n d , Mr. F r a l e y , on

b e h a l f o f A m e r i s p e c , c o m p l i e d , and K u b e r t e x e c u t e d a

R e l e a s e . (C. 259-2 6 2 ) .

W i t h r e s p e c t t o t h i s A p p e l l e e , t h e P l a i n t i f f s /

A p p e l l a n t s have made a s i n g l e s t a t e m e n t i n t h e i r b r i e f as t o

t h e c l a i m e d " c o n f i d e n t i a l r e l a t i o n s h i p " g i v i n g r i s e t o a

d u t y t o d i s c l o s e . On page 7 o f t h e B r i e f i n S u p p o r t o f

M o t i o n f o r R e h e a r i n g , t h e P l a i n t i f f s s t a t e t h a t " A m e r i s p e c ^

had a d u t y t o d i s c l o s e t o t h e K u b e r t s b e c a u s e o f t h e

c o n f i d e n t i a l r e l a t i o n s h i p b e t w e e n S c h e e r and h e r

' p r i n c i p a l s ' and a l s o b e c a u s e A m e r i s p e c s e n t an u n l i c e n s e d

i n d i v i d u a l t o i n s p e c t t h e p r o p e r t y c r e a t i n g a s p e c i a l

c i r c u m s t a n c e r e q u i r i n g d i s c l o s u r e . " ( A p p e l l a n t s ' B r i e f a t

p. 7 ) . The P l a i n t i f f s / A p p e l l a n t s i s n o t s p e c i f i c as t o what

e x a c t l y A m e r i s p e c was s u p p o s e d t o d i s c l o s e , o r what i t

-4-

f a i l e d t o d i s c l o s e . However, e v e r y argument made by t h e

A p p e l l a n t was a d d r e s s e d i n t h e A p p e l l e e ' s o r i g i n a l B r i e f .

As p o i n t e d o u t i n t h a t o r i g i n a l B r i e f , t h e r e was no

c o n f i d e n t i a l r e l a t i o n s h i p b e t w e e n A m e r i s p e c and t h e K u b e r t s

w h i c h w o u l d g i v e t o a d u t y u n d e r a s u p p r e s s i o n a n a l y s i s .

T h e r e was a b s o l u t e l y no a g e n c y r e l a t i o n s h i p b e t w e e n

A m e r i s p e c and t h e K u b e r t s . T h e r e i s no l e g a l s t a n d a r d w h i c h

w o u l d t u r n a home i n s p e c t o r , h i r e d t o p e r f o r m a l i m i t e d

v i s u a l i n s p e c t i o n , i n t o an a c t u a l a g e n t o f t h e home b u y e r .

I n s t e a d , t h e r e l a t i o n s h i p i s m e r e l y one o f c u s t o m e r and home

i n s p e c t o r . T h i s i s e s p e c i a l l y t r u e i n t h i s i n s t a n c e , where

t h e P l a i n t i f f s a r e a c o n t r a c t s p e c i a l i s t who d e a l s i n

c o n t r a c t s on an e v e r y day b a s i s and h i s w i f e , a f o r m e r r e a l

e s t a t e a g e n t w i t h e x t e n s i v e k n o w ledge o f t h e i n n e r w o r k i n g s

o f r e a l e s t a t e . (See A p p e l l e e ' s o r i g i n a l B r i e f a t p. 30 and

C. 566, 6 0 8 - 6 0 9 ) .

P e r h a p s more i m p o r t a n t l y , i n t h i s c i r c u m s t a n c e , t h e r e

c a n be no s u c h c o n f i d e n t i a l r e l a t i o n s h i p . I t i s u n d i s p u t e d

t h a t Mr. K u b e r t made t h e u n i l a t e r a l d e t e r m i n a t i o n t h a t he

w o u l d s e e k a r e f u n d o f t h e amounts p a i d f o r h i s home

i n s p e c t i o n . I t i s u n d i s p u t e d t h a t he a p p r o a c h e d Mr. F r a l e y ,

t h e A m e r i s p e c r e p r e s e n t a t i v e , and i n i t i a t e d s e t t l e m e n t

-5-

n e g o t i a t i o n s . F i n a l l y , i t i s u n d i s p u t e d t h a t , ( a t l e a s t a t

t h e t r i a l c o u r t l e v e l and d u r i n g t h e i n i t i a l a p p e a l ) t h e

P l a i n t i f f s ' o n l y c l a i m o f s u p p r e s s i o n a g a i n s t A m e r i s p e c i s

t h a t i n f o r m a t i o n was a l l e g e d l y s u p p r e s s e d d u r i n g s e t t l e m e n t

n e g o t i a t i o n s , namely t h e P l a i n t i f f s ' a s s e r t i o n t h a t t h e

i n d i v i d u a l p e r f o r m i n g t h e i n s p e c t i o n d i d n o t r e c e i v e h i s

l i c e n s e u n t i l a few days a f t e r t h e i n s p e c t i o n was c o m p l e t e d .

However, t h i s C o u r t has p r e v i o u s l y h e l d t h a t even i f a d u t y

t o d i s c l o s e e x i s t e d , no s u c h d u t y e x i s t s d u r i n g s e t t l e m e n t

n e g o t i a t i o n s b e tween t h e p a r t i e s . C l e g h o r n v. S c r i e b n e r ,

597 So.2d 693 ( A l a . 1 9 9 2 ) . See also, T r i o B r o a d c a s t e r s ,

I n c . v. Ward, 595 So.2d 621 ( A l a . 1 9 8 6 ) .

M o r e o v e r , e v e n i f t h e P l a i n t i f f s c o u l d e s t a b l i s h t h e

e x i s t e n c e o f a c o n f i d e n t i a l r e l a t i o n s h i p and t h u s a d u t y t o

d i s c l o s e , t h e P l a i n t i f f s ' f a i l u r e t o d e m o n s t r a t e e a c h o f t h e

o t h e r e l e m e n t s n e c e s s a r y t o make ou t a c l a i m o f s u p p r e s s i o n

a r i s i n g o u t o f s e t t l e m e n t n e g o t i a t i o n s i s f a t a l t o t h e i r

c l a i m s a g a i n s t t h i s D e f e n d a n t and t o t h e i r a p p e a l . I n t h e i r

A p p l i c a t i o n f o r R e h e a r i n g , t h e K u b e r t s f a i l e d t o a d d r e s s

t h o s e o t h e r d e f i c i e n c i e s , namely t h e i r f a i l u r e t o p r o d u c e

a d m i s s i b l e e v i d e n c e o f t h e a l l e g e d l y s u p p r e s s e d f a c t s ,

f a i l u r e t o o f f e r e v i d e n c e o f t h i s D e f e n d a n t / A p p e l l e e ' s

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knowledge o f t h e a l l e g e d l y s u p p r e s s e d f a c t s and t h e i r

f a i l u r e t o r e t u r n t h e c o n s i d e r a t i o n r e c e i v e d d u r i n g

s e t t l e m e n t n e g o t i a t i o n s , w h i c h was f a t a l n o t o n l y t o t h e

c l a i m o f f r a u d u l e n t i n d u c e m e n t , b u t l i k e w i s e t o any l e g a l l y

c o g n i z a b l e c l a i m o f f r a u d u l e n t s u p p r e s s i o n a r i s i n g o u t o f

s e t t l e m e n t n e g o t i a t i o n s . E a c h o f t h e s e i s s u e s was b r i e f e d

e x t e n s i v e l y by t h i s A p p e l l e e i n i t s o r i g i n a l B r i e f a t pp.

22-30, and t h e r e f o r e w i l l n o t be r e p e a t e d i n t h i s B r i e f ,

e x c e p t t o p o i n t o u t t h a t t h e P l a i n t i f f s ' a r g u m e n t s s t i l l

f a i l e v en i f a c o n f i d e n t i a l r e l a t i o n s h i p c o u l d be p r e sumed

f r o m t h e s e f a c t s .

As s u c h , t h e r e i s no b a s i s upon w h i c h t o r e c o n s i d e r

t h i s C o u r t ' s a f f i r m a n c e p r e s e n t e d i n P l a i n t i f f s / A p p e l l a n t s '

f i r s t argument on r e h e a r i n g . As s u c h , t h e d e c i s i o n o f t h e

t r i a l c o u r t t o g r a n t summary judgment was a p p r o p r i a t e , and

t h i s C o u r t ' s d e c i s i o n u p h o l d i n g t h a t r u l i n g must n o t be

d i s t u r b e d on t h e b a s i s o f t h i s a r gument.

I I . Breach of C ontract and Breach of F i d u c i a r y Duty.

As shown above, t h e P l a i n t i f f s ' s e c o n d argument l i s t e d

i n t h e i r s t a t e m e n t o f g r o u n d s upon w h i c h t h e y w i s h t o

o v e r t u r n t h i s C o u r t ' s p r i o r O r d e r s t a t e s t h a t " t h e

D e f e n d a n t s / A p p e l l e e s f a i l e d t o e s t a b l i s h t h e a b s e n c e o f an

-7-

i s s u e o f m a t e r i a l f a c t as t o t h e b u y e r ' s c l a i m s f o r b r e a c h

o f c o n t r a c t and b r e a c h o f f i d u c i a r y d u t y a g a i n s t t h e i r

a g e n t s , S c h e e r , S t e e l & A s s o c i a t e s , and A m e r i s p e c . "

( A p p l i c a t i o n f o r R e h e a r i n g a t p. 2 ) . However, i n t h e i r

B r i e f , t h e P l a i n t i f f s make a b s o l u t e l y no a r g u m e n t s

a p p l i c a b l e t o t h i s D e f e n d a n t / A p p e l l e e on t h i s i s s u e . As

s u c h , t h e A p p e l l e e has p r o v i d e d no b a s i s upon w h i c h t h i s

C o u r t can e v e n c o n s i d e r r e v e r s i n g i t s own p r i o r o p i n i o n .

M o r e o v e r , t h e judgment i n f a v o r o f t h e D e f e n d a n t / A p p e l l e e

A m e r i s p e c was n o t b a s e d upon t h e P l a i n t i f f s ' f a i l u r e t o

p r o v e t h e e l e m e n t s o f b r e a c h o f c o n t r a c t and f i d u c i a r y d u t y .

I n s t e a d , t h e judgment i n f a v o r o f A m e r i s p e c was b a s e d upon

t h e f a c t t h a t t h e e x i s t e n c e o f a v a l i d , s i g n e d r e l e a s e w o u l d

p r e c l u d e any c l a i m s a g a i n s t A m e r i s p e c . 1

Thus, t h i s argument p r o v i d e s no b a s i s upon w h i c h t o

g r a n t an A p p l i c a t i o n f o r R e h e a r i n g , and p r o v i d e s no b a s i s

upon w h i c h t o o v e r t u r n t h e t r i a l c o u r t ' s p r o p e r l y g r a n t e d

summary j u d g m e n t .

1The t r i a l c o u r t d i d f i n d t h a t P l a i n t i f f B r e n d a K u b e r t was n o t a p a r t y b e t w e e n t h e c o n t r a c t b e t w e e n K e i t h K u b e r t and A m e r i s p e c . However, t h i s i s s u e was n o t r a i s e d i n t h e P l a i n t i f f s ' A p p l i c a t i o n f o r R e h e a r i n g . M o r e o v e r , t h e t r i a l c o u r t a l s o f o u n d t h a t e v e n h a d she been a p a r t y , she was b o u n d by t e r m s o f t h e R e l e a s e . A g a i n , t h i s i s s u e was n o t r a i s e d i n t h e A p p l i c a t i o n f o r R e h e a r i n g , and was b r i e f e d e x t e n s i v e l y b y t h i s A p p e l l e e i n i t s o r i g i n a l B r i e f .

-8-

I I I . V a l i d i t y of the Release.

The P l a i n t i f f s / A p p e l l a n t s f i n a l l y a r g u e t h a t t h e

R e l e a s e upon w h i c h t h e u n d e r l y i n g judgment was b a s e d was

i n v a l i d b e c a u s e o f l a c k o f c o n s i d e r a t i o n a n d / o r as a r e s u l t

o f t h e l a c k o f a " m e e t i n g o f t h e m i n d s . " W i t h r e g a r d t o t h e

" m e e t i n g o f t h e m i n d s " argument, t h e P l a i n t i f f s , i n t h e i r

A p p l i c a t i o n f o r R e h e a r i n g , do n o t a c t u a l l y m e n t i o n t h e

R e l e a s e , b u t i n s t e a d s i m p l y a r g u e d t h a t t h e P l a i n t i f f

e n t e r e d i n t o an agreement t o p u r c h a s e a home w i t h o u t f u l l

k n o w l e dge o f c e r t a i n a l l e g e d d e f i c i e n c i e s i n t h e home.

However, w h e t h e r t h e r e was a m e e t i n g o f t h e minds b e t w e e n

t h e m s e l v e s and t h e s e l l e r s o f t h e home i s i r r e l e v a n t t o a

c l a i m a g a i n s t A m e r i s p e c . I n s t e a d , i t was t h a t v e r y c l a i m -

i . e . , t h a t A m e r i s p e c s h o u l d have l o c a t e d and r e p o r t e d

a d d i t i o n a l d e f e c t s i n t h e home - t h a t l e d t o Mr. K u b e r t

m a k i n g a c l a i m a g a i n s t A m e r i s p e c , demanding a r e f u n d , and

e x e c u t i n g a R e l e a s e . Thus, a g a i n , i t i s t h e e f f e c t o f t h e

R e l e a s e , and n o t p r e - r e l e a s e d e a l i n g s w i t h t h e s e l l e r t h a t

f o r m e d t h e b a s i s o f t h e d e f e n s e s a s s e r t e d a t t h e t r i a l l e v e l

and i n t h e a p p e a l . 2

2 M o r e o v e r , as p o i n t e d i n t h e o r i g i n a l B r i e f f i l e d b y t h i s A p p e l l e e , t h e i s s u e o f w h e t h e r o r n o t t h e r e was a " m e e t i n g o f t h e m i n d s " was n e v e r r a i s e d a t t h e t r i a l c o u r t

-9-

Thus, w i t h r e s p e c t t o t h i s D e f e n d a n t / A p p e l l e e , t h a t

l e a v e s on a q u e s t i o n o f w h e t h e r t h e r e was v a l i d

c o n s i d e r a t i o n f o r t h e R e l e a s e . 3 I n s u p p o r t o f t h e " l a c k o f

c o n s i d e r a t i o n " a rgument, t h e P l a i n t i f f s / A p p e l l e e s seem t o

a r g u e t h a t b e c a u s e A m e r i s p e c was n o t e n t i t l e d t o r e c e i v e a

f e e f o r i t s i n s p e c t i o n , t h e n a r e t u r n o f t h a t f e e , g i v e n i n

ex c h a n g e f o r t h e e x e c u t i o n o f R e l e a s e , does n o t c o n s t i t u t e

c o n s i d e r a t i o n . T h i s argument makes a b s o l u t e l y no s e n s e

e i t h e r f r o m a l e g a l o r f a c t u a l b a s i s . I f t h e P l a i n t i f f s '

a rgument i s c o r r e c t , t h e r e c o u l d n e v e r be a v a l i d r e l e a s e i n

a b r e a c h o f c o n t r a c t c a s e . I n s t e a d , i f t h e P l a i n t i f f c l a i m s

t h a t t h e D e f e n d a n t d i d n o t p r o p e r l y p e r f o r m t h e c o n t r a c t ,

and t h e D e f e n d a n t t h e r e f o r e r e t u r n s some o r a l l o f t h e money

p a i d u n d e r t h e c o n t r a c t , any R e l e a s e w o u l d be i n v a l i d

b e c a u s e t h e D e f e n d a n t was n e v e r e n t i t l e d t o t h e money i n t h e

l e v e l a nd t h u s c a n n o t be made f o r t h e f i r s t t i m e on a p p e a l . M o r e o v e r , t o t h e e x t e n t t h a t t h e " m e e t i n g o f t h e m i n d s " argument i s i n t e n d e d t o a p p l y t o t h e e x e c u t i o n o f t h e R e l e a s e , p a r o l e v i d e n c e c a n n o t be u t i l i z e d t o i n v a l i d a t e a r e l e a s e on t h e b a s i s o f a l a c k o f m e e t i n g o f t h e m i n d s / m u t u a l m i s t a k e . C l e g h o r n v. S c r i e b n e r , s u p r a , a t 696 ( c i t i n g B o l l e s v. B l a c k s t o c k , 494 So.2d 1077 ( A l a . 1986) and M i l e s v. B a r r e t t , 134 So. 661 ( A l a . 1 9 3 1 ) ) .

3As shown on page 2 a b o v e , t h e A p p e l l a n t s a l s o m e n t i o n " f r a u d u l e n t i n d u c e m e n t " b u t have n o t b r i e f e d t h i s i s s u e , w h i c h was e x t e n s i v e l y b r i e f e d b y t h i s A p p e l l e e d u r i n g t h e o r i g i n a l a p p e a l .

-10-

f i r s t p l a c e . Such a p o s i t i o n i s c o m p l e t e l y c o n t r a r y t o t h e

law o f t h i s S t a t e . I f t h a t were t h e l a w , t h e n any p a r t y

r e l y i n g on a r e l e a s e w o u l d n e c e s s a r i l y have t o p r o v e i t s

i n n o c e n c e ( i . e . , t h a t i t n e v e r s h o u l d have p a i d money i n

ex c h a n g e f o r t h e R e l e a s e b e c a u s e i t w o u l d have won i n t h e

e v e n t o f a d i s p u t e ) i n o r d e r t o e n f o r c e t h e R e l e a s e . T h i s

w o u l d n e c e s s a r i l y be t r u e , b e c a u s e , u n d e r t h e P l a i n t i f f s '

a r g ument, a g u i l t y p a r t y a c t u a l l y owed t h e money p a i d i n

ex c h a n g e f o r t h e R e l e a s e and t h e r e f o r e payment o f t h e money

was n o t l e g a l c o n s i d e r a t i o n . S t a t e d d i f f e r e n t l y , t h e

P l a i n t i f f s a l l e g e t h a t , b e c a u s e t h e K u b e r t s had a r i g h t t o

g e t t h e i r money b a c k , t a k i n g t h e i r money b a c k i s n o t p r o p e r

c o n s i d e r a t i o n f o r t h e R e l e a s e . Thus, any p l a i n t i f f w i t h a

r i g h t t o r e c o v e r r e c e i v e s no c o n s i d e r a t i o n i f t h e y s e t t l e

t h e i r c a s e , b e c a u s e t h e y had a r i g h t t o t h o s e s e t t l e m e n t

p r o c e e d s r e g a r d l e s s o f t h e e x e c u t i o n o f a r e l e a s e .

T h e r e i s a b s o l u t e l y no s u p p o r t f o r s u c h a p o s i t i o n and

t h e r e f o r e i t c a n n o t p o s s i b l y f o r m t h e b a s i s f o r a R e q u e s t

f o r R e h e a r i n g . As s u c h , t h e t r i a l c o u r t ' s judgment i s due

t o be a f f i r m e d , and t h e A p p e l l a n t s ' R e q u e s t f o r R e h e a r i n g i s

due t o be d e n i e d .

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CONCLUSION

As a g a i n s t t h i s D e f e n d a n t , t h e f a c t s and t h e a p p l i c a b l e

l a w s u p p o r t i n g t h e t r i a l c o u r t ' s judgment a r e c l e a r and

s t r a i g h t f o r w a r d . The P l a i n t i f f s c l a i m , a f t e r p u r c h a s i n g a

home, t h a t A m e r i s p e c , a home i n s p e c t i o n company h i r e d t o

p e r f o r m a l i m i t e d v i s u a l i n s p e c t i o n , s h o u l d have n o t e d

a d d i t i o n a l d e f e c t s i n t h e p r e m i s e s b e y o n d t h o s e w h i c h were

r e p o r t e d i n a more t h a n t h i r t y page r e p o r t . Thus, P l a i n t i f f

K e i t h K u b e r t c o n t a c t e d A m e r i s p e c and a s k e d f o r a r e f u n d o f

t h e f e e p a i d f o r t h e i n s p e c t i o n s e r v i c e , and t h e D e f e n d a n t

c o m p l i e d w i t h h i s r e q u e s t i n e x c h a n g e f o r an e x e c u t e d

R e l e a s e .

The b a s i s o f t h e judgment e n t e r e d i n f a v o r o f A m e r i s p e c

was t h e f a c t t h a t t h e R e l e a s e p r e c l u d e d t h e P l a i n t i f f f r o m

m a k i n g a d d i t i o n a l c l a i m s . Thus, u n l e s s t h e R e l e a s e i s

i n v a l i d , t h e judgment i s due t o be a f f i r m e d and t h i s C o u r t ' s

p r i o r a f f i r m a n c e i s due t o be u p h e l d .

I n t h e i r P e t i t i o n f o r R e h e a r i n g , t h e P l a i n t i f f s a r g u e

o n l y t h a t m a t e r i a l f a c t s were s u p p r e s s e d d u r i n g t h e

n e g o t i a t i o n p r o c e s s , b u t c a n n o t l e g a l l y e s t a b l i s h t h a t t h e r e

was any d u t y t o d i s c l o s e , and have n o t even u n d e r t a k e n t o

a t t e m p t t o e s t a b l i s h t h a t t h e D e f e n d a n t / A p p e l l e e had

-12-

knowledge o f t h e f a c t s a l l e g e d l y s u p p r e s s e d , and f a i l e d t o

e v e n o f f e r any e v i d e n c e o f t h e t r u t h o f t h e a l l e g e d l y

s u p p r e s s e d f a c t s a t t h e t r i a l c o u r t l e v e l . M o r e o v e r , t h e

P l a i n t i f f s / A p p e l l a n t s have f a i l e d t o o f f e r any l e g a l s u p p o r t

f o r t h e p o s i t i o n t h a t a n e g o t i a t e d R e l e a s e c a n be

i n v a l i d a t e d on s u p p r e s s i o n t h e o r y . To t h e c o n t r a r y , t h i s

D e f e n d a n t / A p p e l l e e has c i t e d p r e c e d e n t f o r t h e f a c t t h a t

t h e r e i s no d u t y t o d i s c l o s e d u r i n g t h e a d v e r s a r i a l

s e t t l e m e n t n e g o t i a t i o n s , e ven where a p r i o r c o n f i d e n t i a l o r

a g e n c y r e l a t i o n s h i p e x i s t e d .

M o r e o v e r , t h e P l a i n t i f f s / A p p e l l a n t s have f a i l e d t o

o f f e r any l e g a l l y c o g n i z a b l e argument t o s u p p o r t a c l a i m f o r

f a i l u r e o f c o n s i d e r a t i o n . The f a c t o f t h e m a t t e r i s t h a t i t

i s u n d i s p u t e d t h a t t h e D e f e n d a n t / A p p e l l e e w r o t e a c h e c k

w h i c h was a c c e p t e d by t h e P l a i n t i f f / A p p e l l a n t K e i t h K u b e r t .

The c u r r e n t a r g u m e n t s o f l a c k o f c o n s i d e r a t i o n a r e b a s e d

s t r i c t l y on t h e P l a i n t i f f s ' t h e o r y t h a t b e c a u s e t h e money

was owed, t h e r e was no c o n s i d e r a t i o n f o r t h a t e x c h a n g e o f

f u n d s . T h i s argument i s u n s u p p o r t a b l e b o t h l e g a l l y and

f a c t u a l l y and t h e r e f o r e c a n n o t f o r m t h e b a s i s o f a P e t i t i o n

f o r R e h e a r i n g .

-13-

WHEREFORE, f o r t h e r e a s o n s p r e s e n t e d above, t h i s

C o u r t ' s judgment i s due t o be a f f i r m e d , as i s t h e t r i a l

c o u r t ' s j udgment g r a n t i n g summary j u d g m e n t .

R e s p e c t f u l l y s u b m i t t e d ,

s/Joseph E. S t o t t JOSEPH E. STOTT (ASB-4163-t71j and STO041) A t t o r n e y f o r A p p e l l e e Adobe, I n c . a/k/a A m e r i s p e c Home I n s p e c t i o n S e r v i c e , I n c .

OF COUNSEL:

SCOTT, SULLIVAN, STREETMAN & FOX, P.C. 2450 V a l l e y d a l e Road B i r m i n g h a m , AL 35244 (205) 967-9675 phone (205) 967-7563 f a c s i m i l e j s t o t t @ s s s a n d f . c o m

-14-

CERTIFICATE OF SERVICE

I h e r e b y c e r t i f y t h a t I have on June 25, 2010 s e r v e d a c o p y o f t h e f o r e g o i n g on t h e f o l l o w i n g a t t o r n e y s o f r e c o r d v i a A p p e l l a t e C o u r t E - f i l e a n d / o r by p l a c i n g a copy o f same i n t h e U.S. M a i l :

Attorney for Appellees E l i s a S m i t h R i v e s , E s q . E l i s a S. R i v e s , L L C P.O. Box 920 G u n t e r s v i l l e , A labama 35976

Attorney for Appellee Joann Smith N i c o l e S c h r o e r , E s q . W i l m e r & L e e , P.A. P.O. Box 2168 H u n t s v i l l e , A labama 35801

Attorneys for Appellees Toby Scheer and Steele & Associates- Century 21 Realty P. S c o t t A r n s t o n , E s q . J e f f r e y T. K e l l y , E s q . L a n i e r , F o r d , S h a v e r & Payne, P.C. 200 West S i d e S q u a r e , S u i t e 5000 P.O. Box 2087 H u n t s v i l l e , A labama 35801

s/Joseph E. S t o t t OF COUNSEL

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