This week, a trial court dismissed a real estate agency represented by Heidelberg, Steinberger, which had been sued for an alleged failure to disclose the location and impact of flood zones on real property damaged as a result of Hurricane Katrina.

In June 2004 the Plaintiffs purchased certain property in Jackson County, approximately 1 mile from the Gulf of Mexico.  For that transaction, the agency-defendant acted as a dual agent for the Plaintiffs and the property sellers.  The Plaintiffs allege in their Complaint the agent never told about the various flood zones and how they impacted the property and the type of home they could build upon it.  After the plaintiffs purchased the property, they built a home which was heavily damaged in August 2005 by Hurricane Katrina's storm surge.

After three days of trial, the Circuit Court of Jackson County granted the agency's motion for a directed verdict, finding the Plaintiffs failed to put forward sufficient evidence to show the agency had a duty (or breached any such duty) to disclose to the Plaintiffs the location of flood zones and how they impacted future construction on the property.

The real estate agency was represented at trial by Stephen Burrow.