Beavers v. Lamplighters Realty

Larry Beavers (plaintiff) contacted Lamplighters Realty, Inc. (Lamplighters) (defendant) about buying a house that Lamplighters had listed for sale. Beavers toured the house with agent Norma Ray and offered to buy it for $34,500. This offer was rejected. A few days later, Beavers called Lamplighters again and talked to a different agent, Jim Taylor. Taylor told Beavers that if Beavers wanted to buy the house, he needed to act quickly because the house’s builder was on his way to the realty office to buy the house for $37,000. Beavers asked Taylor to confirm that Taylor was referring to Paul Good, the house’s builder. Taylor confirmed that he was talking about Good and told Beavers that he had only one hour before Good came in with a check. Beavers then panicked and agreed to pay $37,250 for the house, believing it must be worth that much if the builder was willing to pay $37,000. The house was sold to Beavers for $37,250. After the sale, Beavers met Paul Good at a neighbor’s house. Beavers learned that Good had considered putting in an offer on the house Beavers purchased. However, Good had believed the house was worth only in the low thirties and had never actually made any offer. Beavers sued Lamplighters for the tort of fraudulent inducement, arguing that Taylor’s misrepresentation about the higher offer from Good had caused Beavers to pay more for the house than he would have without the false information. The trial court dismissed Beavers’s claim. Beavers appealed.