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Chase and Ashley recently purchased and moved into a new home.  While Ashley is unpacking from their new move into their new house, numerous leaks occur in the roof as a result of thunderstorms.  Although they have homeowners insurance to cover the cost of repairing their house and replacing some possessions, it will not be enough to cover all of their replacement costs. The Real Estate Company that hired the Agent who sold the house to the Adams is headquartered in another state (Alaska). An inspector came in (someone recommended by Real Estate company) and said that there were no problems with the new roof/ceiling. Previous homeowners were already renting somewhere else/gone so got no information from them.  They called real estate agent and inspector but went to voicemail.

1. Assuming the Adams can identify a responsible party, do they have standing to file a civil lawsuit for the damages caused by the storms? Explain why or why not

2. Who might be considered a responsible party for the damage to the Adams' house and possessions caused by the leaky roof on their house?

3. The Real Estate Company that hired the agent who sold the house to the Adams in headquartered in another state (Alaska) If the Adams decide to file a civil lawsuit against the Real Estate Company, where can they file it?

4. Would the Adams be able to file a civil lawsuit against the Real Estate Company in Federal Court?

5.  If the Adams believed that the previous owners of the house misrepresented facts about repairs made to the roof and past problems with water getting into the house during storms, they may decide to file a civil lawsuit against the previous home owners.  In this case, would the previous owners, who are currently renting a home in another state have to defend themselves in the state that the Adams are currently living?

6. Assuming that the Adams can identify a responsible party and decided to file a lawsuit against that party, what type of court would decide the lawsuit?

7.  Assume you are the realtor in this particular case. What specific type of business organization would give you the most protection from personal liability if the homeowners sued your business for negligence? Please explain your answer.

 

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