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Brief Fact Summary. Axline, (Appellant) appeals a judgment by the trial court granting a motion for partial summary judgment brought by Kutner’s, (Appellee).
Synopsis of Rule of Law. In order to disclaim a warranty of habitability, the language of the disclaimer must be clear and give adequate notice to the buyer of the protections the buyer is disclaiming.
When a complaint is tested by a Rule 12.02(6) motion to dismiss, we must take all the well-pleaded, material factual allegations as true, and we must construe the complaint liberally in the plaintiff's favor.
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Issue. Whether the contract terms that limited the warranties included in the real estate transaction to one year are valid.
Held. No. The warranty was not properly disclaimed because the one-year builder’s warranty did not indicate what the builder was warranting.
Discussion. A builder makes implied representations that the builder has used reasonable skill and judgment . A buyer cannot fully examine a complete house without disturbing the product and does not have the opportunity to see how a new house withstands the passage of time. Therefore disclaimers must be clear and unambiguous, adequately notifying buyers of the protections they are disclaiming.