Michael J. Boeh et al. v. Arthur M. Dial et al.

This case pertains to the purchase of real property in a residential subdivision. The dispute arises from the fact that, at the time of sale, the lot was incorrectly listed as not being in a flood plain. Upon learning of the flood plain issue, the seller filled and graded the lot and abutting property, after which the regulatory authorities removed the lot from the flood plain zone. Despite the fact the lot was removed from the flood plain, the buyers commenced this action against the seller and its engineering firm, asserting claims for negligent misrepresentation, breach of contract, and violation of the Tennessee Consumer Protection Act (“TCPA”). Following discovery, the defendants filed separate motions for summary judgment, and the motions were set for hearing on the same day. When the buyers did not file a response in opposition to either of the motions and did not appear at the summary judgment hearing, the seller voluntarily continued the hearing on its motion. The engineering defendants, however, proceeded with the hearing, and the trial court granted summary judgment in their favor. The buyers, claiming they did not receive proper notice of the hearing, filed a Tennessee Rule of Civil Procedure 59 motion to set aside the order granting summary judgment to the engineering defendants. Following a hearing on the remaining motions, the trial court denied the buyers’ Rule 59 motion on the finding the buyers had constructive notice of the hearing. The court also granted summary judgment in favor of the seller on the claims of breach of contract and the TCPA. The trial court determined that the contract permitted the defendants to “grade” the land and rectify the flood plain issue even after closing. As such, the trial court found that the buyers did not have a claim for breach of contract. As to the claim that the seller violated the TCPA, the trial court explained that the TCPA requires some degree of fault, which was not present. Having determined that the buyers had constructive notice of the hearing on the engineering defendants’ motion for summary judgment, we conclude that the trial court did not abuse its discretion in denying the buyers’ Rule 59.04 motion. We also affirm the trial court’s decision to grant summary judgment in favor of the seller concerning the claims for breach of contract and TCPA. Thus, we affirm the trial court in all respects.