Whatley v. Reese

Summary

The Supreme Court of Alabama held that the doctrine of caveat emptor did not apply to the original purchaser's claims against the builder for breach of contract, negligence, wantonness, and fraud. The purchaser's temporary transfer of legal title to his mother did not eliminate his contractual privity with the builder, and he continuously occupied the newly constructed home. The court affirmed the denial of summary judgment for the defendants.

Holdings

1. The doctrine of caveat emptor does not apply to Reese's claims because he was the first purchaser and occupant of the newly constructed home, remained in privity of contract with the Whatley defendants, and continuously maintained exclusive occupancy despite temporarily transferring legal title to his mother.
2. The denial of summary judgment on Reese's breach-of-contract, negligence, wantonness, and fraud claims was properly affirmed because caveat emptor did not defeat those claims as a matter of law.

Questions Presented

1. Whether the doctrine of caveat emptor applied to Reese's claims against the builder-vendors because Reese temporarily transferred legal title to the home to his mother.

Disposition

affirmed