Day on Torts

Fraudulent misrepresentation by homebuilder affirmed.

A finding of fraudulent misrepresentation against a homebuilder was affirmed based on the builder’s misrepresentations about his qualifications.

In Ferguson v. M. Brown Construction, Inc., No. M2022-01637-COA-R3-CV (Tenn. Ct. App. Dec. 27, 2024) the plaintiff hired defendant Timothy Brown to build a custom home. The defendant assured the plaintiff he had considerable experience and was qualified to do the job. The parties agreed that the house would be built for a specific price.

According to the plaintiff, he and his wife made payments and purchases at the direction of the defendant. The defendant unilaterally made changes to the building plan that altered the quality of the home. At some point, the defendant requested $30,000, which the plaintiff refused because he had paid/spent the full contract amount. The defendant then stopped working on the home.

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