Doran v. Milland Development Co

In Doran v. Milland Development Co. (1958) 159 Cal. App. 2d 322, the court held that a contractor/seller's positive representation that " 'the foundation was properly built' " was sufficient to support a cause of action for negligent misrepresentation, when, unbeknownst to the seller, the foundation was out of compliance with the applicable building codes. (Id. at p. 323.) The evidence most favorable to the judgment showed that 1) the seller built the house with only eight vents instead of the seventeen required by Mill Valley's building ordinance; 2) the insufficient ventilation caused a portion of the bedroom floor to collapse; 3) the seller was not familiar with the city's ordinances or with its regulations as to ventilation, although the seller knew that there were such ordinances; 4) the seller relied on the city's building inspector to call the seller's attention to any deviation in the plans from the requirements of the ordinance; and 4) the inadequacy of the vents was not called to the seller's attention and the seller honestly believed that, because of this, the house was constructed in compliance with the law. (Id. at pp. 323-324.)