Alenco, Inc. v. Warrington

CourtCourt of Appeals of Kansas
DecidedOctober 25, 2024
Docket125721
StatusPublished

This text of Alenco, Inc. v. Warrington (Alenco, Inc. v. Warrington) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alenco, Inc. v. Warrington, (kanctapp 2024).

Opinion

Nos. 125,721 126,184

IN THE COURT OF APPEALS OF THE STATE OF KANSAS

ALENCO, INC., Appellee,

v.

WILLIAM WARRINGTON and TRINA LEMASTER, Appellants.

SYLLABUS BY THE COURT

1. Not every breach of an agreement justifies rescinding the entire contract. When a person fails to precisely meet every contract term, their performance may still be considered complete if the essential purpose of the contract is accomplished and they have made a good-faith attempt to comply with the terms of the agreement.

2. Substantial performance of a contractual obligation is performance that, despite deviation or omission, provides the important and essential benefits of the contract.

3. A material breach of contract is so substantial as to defeat the object of the parties in making the agreement. When a party materially breaches a contract, they are precluded from enforcing the contract against the nonbreaching party until the material breach has been cured.

1 4. When a contractor has substantially performed their obligations under a construction contract, they are entitled to be paid the contract price, less damages for any minor deficiencies.

5. Whether a party has substantially performed their contractual obligations or has materially breached the agreement is a factual determination resolved by the jury. Only when all the relevant facts are undisputed does this inquiry become a legal decision for the court.

6. The Kansas Consumer Protection Act (KCPA), K.S.A. 50-623 et seq., was enacted to discourage suppliers from engaging in deceptive or unconscionable acts or practices when doing business with consumers.

7. Whether a supplier has engaged in deceptive practices penalized by the KCPA is a factual question for the jury. A supplier engages in deceptive acts or practices when it makes false or misleading statements or insinuations to consumers that it knew or should have known were untrue. The KCPA penalizes deceptive acts or practices in consumer transactions, regardless of whether the targeted consumer was ever actually misled.

8. Whether a supplier engaged in unconscionable practices penalized by the KCPA is a mixed question of law and fact to be resolved by a court. Unconscionable practices typically involve conduct by which a supplier seeks to induce or to require a consumer to assume risks which materially exceed the benefits of a related consumer transaction.

2 9. A party seeking to impeach a verdict based on juror misconduct must demonstrate both that misconduct occurred and that the misconduct substantially prejudiced that party's right to a fair trial.

10. An appellant has the burden to designate a record that affirmatively establishes the claimed error. Without such a record, an appellate court presumes the action of the district court was proper.

Appeal from Johnson District Court; JAMES F. VANO, judge. Oral arguments held May 21, 2024. Opinion filed October 25, 2024. Affirmed in part, reversed in part, vacated in part, and remanded with directions.

Stanley B. Bachman and Sue L. Becker, of Morefield Speicher Bachman, LC, of Overland Park, for appellants.

Michelle M. Suter, of Commercial Law Group, P.A., of Leawood, for appellee.

Before PICKERING, P.J., MALONE and WARNER, JJ.

WARNER, J.: This consolidated appeal arises from a contract for exterior renovation work between Alenco, Inc., and the owners of a home in Olathe. Alenco sued the homeowners for breach of contract after they refused to pay $27,000 due under the contract, claiming the siding Alenco installed on their home had a lesser insulation rating than the contract called for. After a trial, the jury found for Alenco, concluding that the homeowners had breached the contract by not satisfying their bill. The jury rejected the homeowners' claims that Alenco had violated the Kansas Consumer Protection Act (KCPA) and that it breached the contract first by providing the wrong siding.

3 The homeowners requested a new trial, asserting that the jury's verdict on their KCPA counterclaim was against the weight of the evidence. The district court disagreed and denied the motion. But the court then essentially reweighed the evidence and, despite the jury's earlier assessments, found that Alenco had made several misrepresentations during the course of the transaction in violation of the KCPA. The court imposed a $10,000 civil penalty against Alenco and ordered the company to pay $40,000 of the homeowners' attorney fees.

The homeowners and Alenco each challenge aspects of that trial and the district court's posttrial rulings. After carefully reviewing the record and the parties' arguments, we find that the district court erred by effectively substituting its factual findings for the jury verdict on the KCPA claim. We also vacate the attorney-fees award that was based on that same finding, but we affirm the district court's discovery sanction for certain pretrial conduct. We thus affirm in part, reverse in part, vacate in part, and remand for entry of judgment in Alenco's favor on the consumer-protection claim.

FACTUAL AND PROCEDURAL BACKGROUND

Trina LeMaster and Bill Warrington own a home in Olathe. Alenco is a Kansas corporation that supplies and installs home improvement products. In 2019, LeMaster and Warrington (the homeowners) hired Alenco to perform construction work on their home, including installing new siding.

Before hiring Alenco, the homeowners met with one of Alenco's sales representatives. The representative inspected the homeowners' existing siding and identified it as hollow vinyl. After discussing Alenco's products and services and the work the homeowners sought, the representative prepared a proposal for the work. The homeowners later went to Alenco's showroom to view siding options and chose a siding

4 product called "Cedar Ridge," manufactured by Westlake Royal Building Products. Alenco purchases this siding product through a distributer.

The homeowners entered into a contract with Alenco to replace their siding and perform other construction work, including installing custom shutters and new guttering. This contract included several handwritten specifications about various aspects of the work to be completed and the products to be used. For example, the contract stated Alenco would install a siding product with "R-value 4" insulation—that is, siding with a particular thickness of pre-attached insulation. The contract also stated that Alenco would use "Cedar Ridge" solid core siding, type "Triple 6" with a "horizontal" style in a "slate" color. The total cost of the job was $30,000. The homeowners made a $3,000 downpayment upon execution of the contract, and construction began a few months later.

The parties' disagreement over the siding product and insulation rating

When the project was nearly complete, the homeowners were observing the worksite and noticed a few pieces of scrap siding. They thought these pieces of siding looked different from the siding they previewed at the showroom; the box in their yard contained siding labeled as "CraneBoard 6" with an R-value of 2.2. The homeowners contacted an Alenco representative and told him that they believed the wrong siding was being installed on their home. In the meantime, Alenco placed an invoice on the homeowners' door for $27,000 due under the contract. The homeowners refused to pay.

The homeowners and Alenco exchanged texts, phone calls, and emails about the siding that had been installed.

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Alenco, Inc. v. Warrington, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alenco-inc-v-warrington-kanctapp-2024.