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• � i <br /> FREDRIKSON&BYRON,EA. <br /> Attorneys and Advisor <br /> Thomas J.Barrett,Esq. <br /> 10 December 1998 <br /> Page 2 <br /> agreed with Mr. Olson and indicated in a October 8, 1997 letter to Mike Arne(attached as <br /> Exhibit A),that the crack was"probably"cosmetic. At the same time, the City represented that <br /> the stoop met the requirements of the Building Code, and on that basis the Ames closed on the <br /> purchase of their home. As will be discussed below, the City's representation that the stoop met <br /> the requirements of the Building Code was blatantly false. <br /> After closing, the crack in the stoop reappeared and worsened. The Ames again complained to <br /> the City and to RKO Homebuilders. In a letter to Mr. Olson dated September 15, 1998 (attached <br /> as Exhibit B),Lyle Oman admitted that the crack was structural in nature and that the stoop <br /> needed to be removed and reinstalled. As referenced in this letter,the stoop also failed to meet <br /> the Building Code requirements because of its negative pitch towards the house. Further,the <br /> stoop fails to meet the Building Code requirement of an eight inch maximum rise. The negative <br /> pitch of the stoop is an obvious Code violation which was present at the time of the City's <br /> inspection before the Acnes closed on their home. As discussed above,the City represented at <br /> that time that the stoop met the requirements of the Building Code, and on that basis the Ames <br /> closed on the purchase of their home. <br /> The City's representation that the Ames' stoop met Code despite its negative pitch, an obvious <br /> Building Code violation,constitutes a fraudulent misrepresentation under Minnesota law. The <br /> City misrepresented the condition of the stoop with malice and willfulness. See Burns v. State, <br /> 570 N.W.2d 17,20(Minn. Ct. App. 1997)(a public official acts with malice when he commits an <br /> act which he has reason to believe is prohibited). As a result of their reliance on the City's <br /> misrepresentation concerning their stoop,the Ames closed on the purchase of a home that was <br /> significantly devalued by the necessity of replacing the stoop and connected brick work at an <br /> approximate cost of$5,000.00. <br /> In addition to the City's misrepresentation concerning the stoop's condition,the City has also <br /> failed to take adequate steps to assist the Acnes in requiring RKO Homebuilders and/or its <br /> subcontractors to remove and replace the stoop. In a letter to Mr. Olson dated October 12, 1998 <br /> (attached as Exhibit C),Lyle Oman,requested that RKO Homebuilders correct the stoop by <br /> October 26, 1998 or face legal action. Despite RKO Homebuilders' continued failure to repair <br /> the stoop,the City has failed to take any legal action against Olson or RKO Homebuilders. The <br /> City's failure to follow through with promised legal action is especially disturbing in light of the <br /> two previous instances in which the City also threatened legal action and refused to follow <br /> through. Additionally,the City has failed to contact the subcontractor that installed the stoop, <br /> even though the City indicated it would do so. <br />