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McClung Surveying Inc. v. Worl

The buyers were merely incidental beneficiaries of the closing attorney's contract with defendant to survey the seller's property.

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James L. and Desiree Worl filed suit against McClung Surveying, Inc. and Perry E. McClung1 asserting claims for fraud, breach of contract and intentional infliction of emotional distress in connection with a survey McClung prepared on their property. McClung moved for summary judgment, but the motion was denied. Following the trial court’s certification of the matter for immediate review, we granted McClung’s application for interlocutory appeal.

On or about July 30, 1991, the Worls entered into a contract to purchase a house bordering the Yellow River in Gwinnett County from J. H. and Ann Ledbetter for a purchase price of $147,500. The contract provided that the sale would close on or before August 29, 1991. The Worls applied for a Veterans Administration loan. In response to their application, the Worls received a Certificate of Reasonable Value from the VA that valued the property at only $132,000. The certificate also noted that the property was in a flood hazard zone and that flood insurance would be required. The Worls became concerned about the purchase and consulted their real estate agent. According to the Worls, the real estate agent told them that the VA often overstated the extent of a flood hazard zone and will often undervalue the property. The realtor then obtained a copy of a survey on the property.

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