Ralph Hall, et al. v. Jimmy D. Tabb, et al.

Appellants, purchasers of a residential property, filed an action against Appellees, sellers and owners of the residential construction company that built the subject property, for violations of the Tennessee Consumer Protection Act (the “TCPA”) and intentional misrepresentation for failure to disclose water damage and substandard repairs to the property. Appellants also sued a termite inspection company for negligently failing to disclose termite damage to the property. Appellants settled with the termite company for $45,000.00 but proceeded to trial against Appellees. Although the trial court found that Appellees intentionally misrepresented the condition of the property to Appellants, it found that Appellants were not “consumers” under the TCPA, and that the Act did not apply to this real estate transaction. The trial court awarded Appellants a $43,811.00 judgment against Appellees, for intentionally failing to disclose the water damage to the property, but found that Appellants had been fully compensated for their loss from the settlement with the termite company. As such, Appellants were not entitled to further compensatory damages from Appellees. We conclude the trial court erred in finding that Appellants were not consumers under the Act and that the TCPA was not applicable to this real estate transaction. We remand for a determination of whether Appellees violated the Act, and, if so, whether Appellants are entitled to an award of attorney’s fees and treble damages. The trial court’s order is otherwise affirmed.