Terry Pritchett v. Comas Montgomery Realty & Auction Company, Inc. et al

Plaintiff purchased a commercial building at auction. After determining that the building was smaller than represented in the auction advertisements, Plaintiff filed suit asserting a claim against the auction company for negligently misrepresenting the square footage of the building. Defendant admits the advertisement incorrectly stated the square footage but insists it is not liable because, prior to the auction, Plaintiff signed a “Terms of Sale” agreement stating that Plaintiff “shall rely entirely on [his] own inspection and information,” and that “[e]verything will be sold ‘AS IS, WHERE IS’, with no guarantee of any kind, regardless of statement or condition made from the auctioneer,” and the same terms were restated immediately prior to the commencement of bidding. Defendant further relies on the contract of sale, which included the “as is” clause and did not contain a representation concerning the square footage of the building. After engaging in discovery, Defendant filed a motion for summary judgment, arguing that Plaintiff could not have justifiably relied on the representations in light of the “as is” disclaimers he signed and heard, and that Plaintiff failed to establish the applicable standard of care. The trial court granted summary judgment for Defendant, which Plaintiff contends was error. We have determined that Plaintiff’s agreement to rely entirely on his own inspection and information and to purchase the property on an “as is” basis negates any reliance on Defendant’s representation, which is an essential element of a claim for negligent misrepresentation. Therefore, we affirm the grant of summary judgment in favor of Defendant.