Alpine Industries, Inc. v. Gohl

637 P.2d 998, 30 Wash. App. 750, 1981 Wash. App. LEXIS 2855
CourtCourt of Appeals of Washington
DecidedDecember 21, 1981
DocketNo. 8382-1-I
StatusPublished
Cited by32 cases

This text of 637 P.2d 998 (Alpine Industries, Inc. v. Gohl) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alpine Industries, Inc. v. Gohl, 637 P.2d 998, 30 Wash. App. 750, 1981 Wash. App. LEXIS 2855 (Wash. Ct. App. 1981).

Opinion

James, C.J.

— Plaintiff Alpine Industries (Alpine) appeals the grant of motions by defendant Myron C. Gohl, d/b/a M. C. Construction (Gohl) for a judgment n.o.v. or, in the alternative, a new trial, following a jury verdict awarding Alpine lost profits in a breach of contract action. Gohl cross-appeals the trial judge's denial of its motion for judgment n.o.v. or a new trial, as to that portion of the jury's verdict awarding Alpine damages for construction defects. We reverse the grant of Gohl's motions as to lost profits and affirm the denial of Gohl's motions as to construction [753]*753defects.

Alpine is a manufacturer of aluminum windows, patio doors, and insulated glass. By 1976, Alpine determined that its existing manufacturing plant was becoming inadequate to meet the demand for its products. In July 1977, Alpine contracted with Gohl for the construction of a new and larger plant.

Anticipating completion of the new plant by early February, Alpine actively solicited new accounts. But because of construction delays, the new building was not ready for occupancy until late May. During this period, Alpine operated at full capacity. Alpine's employees testified, however, that the manufacturing, storage, and shipping facilities in the existing plant were inadequate to supply Alpine's new and former customers. Because of these problems, Alpine also ceased its efforts to contact additional customers.

At trial, Alpine employees and customers testified that orders were canceled and switched to other suppliers because Alpine could neither meet its delivery schedules nor provide consistent quality. Alpine's manager testified that very few orders had been canceled before 1978.

Alpine did not keep records of canceled orders, but presented the testimony of two expert witnesses concerning lost profits due to the construction delay. One expert, Bunting, who was a CPA familiar with the construction industry and cash flow forecasting, calculated lost profits between January 1978 and May 1979 at $329,499 by comparing Alpine's market share in 1977 with Alpine's diminished market share in January 1978 through May 1979. The jury awarded $164,749.50 in lost profits, one-half of Bunting's estimate. The jury also awarded Alpine $88,500 damages for plant construction defects. Alpine's expert, Tracey, testified to a total repair cost of $88,000.

Gohl then moved for judgment n.o.v. The trial judge denied the motion as to the verdict for construction defects. He granted the motion as to the award for lost profits, concluding Alpine had failed to establish damage caused by the construction delay and also failed to establish the amount [754]*754of its damages with reasonable certainty. The trial judge also foreclosed Gold's mechanic's lien for the undisputed balance due Gohl on the contract ($132,680), less damages awarded Alpine. Gohl, as the prevailing party, was also awarded costs and attorney's fees pursuant to the construction contract.

Alpine first contends the trial judge erred in granting Gohl's motions for judgment n.o.v. or a new trial. We agree.

A party is entitled to recover lost profits in a breach of contract action when "(1) they are within the contemplation of the parties at the time the contract was made, (2) they are the proximate result of defendant's breach, and (3) they are proven with reasonable certainty." Larsen v. Walton Plywood Co., 65 Wn.2d 1, 15, 390 P.2d 677 (1964).

[TJhe doctrine respecting the matter of certainty, properly applied, is concerned more with the fact of damage than with the extent or amount of damage. . . .
Since the basic function of the rule of certainty is to assure that one will not recover where it is highly doubtful that he has been damaged in the first instance (as where he claims loss of profits in a business which is not shown to have any established record of earnings), the jury does not commit forbidden speculation when, once the fact of damage is established, it is permitted to make reasonable inferences based upon reasonably convincing evidence indicating the amount of damage.

Gaasland Co. v. Hyak Lumber & Millwork, Inc., 42 Wn.2d 705, 712-13, 257 P.2d 784 (1953). "[Wjhere the fact of damage is firmly established, the wrongdoer is not free of liability because of difficulty in establishing the dollar amount of damages." Reefer Queen Co. v. Marine Constr. & Design Co., 73 Wn.2d 774, 781, 440 P.2d 448 (1968).

Expert testimony as to the amount of lost profits is admissible and may be sufficient to support a jury verdict. Larsen v. Walton Plywood Co., supra. A trier of fact confronted with conflicting expert testimony may accept the testimony of one expert and reject the testimony of [755]*755another. Thornton v. Annest, 19 Wn. App. 174, 574 P.2d 1199 (1978); Ventoza v. Anderson, 14 Wn. App. 882, 545 P.2d 1219 (1976). If the plaintiff proves that the defendant's fault was a cause of lost profits, the plaintiff is not required to prove the entire loss was due to the defendant's fault.

[W]here the amount of damage is not susceptible of exact apportionment between the defendant's fault and other factors contributing to the loss, absolute certainty is not required. The trier of fact must exercise a large measure of responsible and informed discretion where the fact of damage is proved.

Long v. T-H Trucking Co., 4 Wn. App. 922, 927, 486 P.2d 300 (1971). See also Larsen v. Walton Plywood Co., supra. That no evidence sustained the exact amount awarded by the jury is immaterial. Larsen v. Walton Plywood Co., supra.

Alpine presented substantial evidence, through the testimony of its employees and selected customers, sufficient to prove the fact of damage and the causation of those damages. For this reason, we consider the cases relied upon by Gohl, e.g., Prentice Packing & Storage Co. v. United Pac. Ins. Co., 5 Wn.2d 144, 106 P.2d 314 (1940), to be inapposite. In Prentice, at 146, respondent packing and storage company had the burden of proving that an accident was "caused by pressure of the refrigerant" in order to recover against the appellant insurer. Respondent presented no evidence affirmatively supporting its theory of causation, but merely presented expert testimony assuming causation was as respondent alleged. Here, Alpine's experts testified to the amount of lost profits after adequate evidence of the fact and causation of damages had been presented.

The alleged deficiencies in the expert testimony identified by Gohl relate to the weight and credibility of that testimony. Bunting's failure to consider any disparity between window usage in single-family and multi-family housing is no exception. The testimony on neither side conclusively established the existence and extent of the [756]*756alleged disparity.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Jpmorgan Chase Bank, V. David Arthur Morton
Court of Appeals of Washington, 2025
Zhi H. Feng, V. Jen Turner
Court of Appeals of Washington, 2023
United Statesi Ins. Servs. Nat'l, Inc. v. Ogden
371 F. Supp. 3d 886 (W.D. Washington, 2019)
Altanatural Corp. v. New Invs. Inc.
587 B.R. 119 (W.D. Washington, 2018)
Idalie Munoz Munoz v. Matthew J. Bean
Court of Appeals of Washington, 2016
Diane Christian, et ux v. Antoine Tohmeh, MD, et ux
366 P.3d 16 (Court of Appeals of Washington, 2015)
Chiste v. Hotels.com L.P.
756 F. Supp. 2d 382 (S.D. New York, 2010)
Seabed Harvesting, Inc. v. Department of Natural Resources
60 P.3d 658 (Court of Appeals of Washington, 2002)
Labor Ready, Inc. v. Abis
767 A.2d 936 (Court of Special Appeals of Maryland, 2001)
Litho Color, Inc. v. Pacific Employers Ins.
991 P.2d 638 (Court of Appeals of Washington, 1999)
Litho Color, Inc. v. Pacific Employers Insurance
991 P.2d 638 (Court of Appeals of Washington, 1999)
Burnet v. Spokane Ambulance
933 P.2d 1036 (Washington Supreme Court, 1997)
Ducolon Mechanical, Inc. v. Shinstine/Forness, Inc.
893 P.2d 1127 (Court of Appeals of Washington, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
637 P.2d 998, 30 Wash. App. 750, 1981 Wash. App. LEXIS 2855, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alpine-industries-inc-v-gohl-washctapp-1981.