BA Mortg. Co., Inc. v. McCullough

590 S.W.2d 955, 1979 Tex. App. LEXIS 4368
CourtCourt of Appeals of Texas
DecidedNovember 15, 1979
Docket18143
StatusPublished
Cited by25 cases

This text of 590 S.W.2d 955 (BA Mortg. Co., Inc. v. McCullough) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BA Mortg. Co., Inc. v. McCullough, 590 S.W.2d 955, 1979 Tex. App. LEXIS 4368 (Tex. Ct. App. 1979).

Opinion

OPINION

HUGHES, Justice.

McCullough, an adjoining landowner of B. A. Mortgage Co., Inc., sued for damages for loss of lateral support arising out of the entry onto his land by Metro Development, Inc., B. A.’s agent. Metro graded McCullough’s lot down to the level of a private street which ran along the side of B. A.’s lot. McCullough alleged damages for loss of lateral support and sought the amount it would cost to build a retaining wall to re-, store his land to its original condition. B. A. and Metro appeal from a judgment in favor of McCullough. The only contested issues here are the measure of damages and the sufficiency of the evidence supporting the damage finding.

We reverse and remand for a determination of damages sustained by McCullough.

Before 1974, Don Loftis borrowed the purchase money from B. A. to acquire a tract of land where he proposed to build an apartment complex called the Appian Way. The land was situated alongside McCullough’s land. Loftis entered upon McCullough’s land and graded it down to a level where it matched the contour of a private street being built in the Appian Way complex. Loftis’ entry extended for a distance of about thirty feet along the property line at the eastern most end. The grading resulted in a ten foot reduction in the vertical height. This tapered down along the property line to the western end where the vertical drop was approximately three feet.

During 1974 Loftis defaulted on his loan payments. B. A. foreclosed and took over completion of the apartment project. During completion, Metro, working as contractor for B. A., reentered McCullough’s property and performed some more grading. This second entry caused an additional two foot drop in vertical height at the eastern end of the affected area and a one foot vertical drop at the western end. On April 9, 1975, McCullough filed suit against B. A. and Metro praying for damages in the sums of $12,500.00 for construction of a concrete wall to shore up his property; $2,500.00 for grading; $1,250.00 for replacement of top soil; and $20,000.00 as exemplary damages, for a total of $36,250.00. By supplemental petition plaintiff also prayed for the additional sum of $15,000.00 for lateral support loss, making a new total of $51,250.00.

Neither B. A. nor Metro are contesting the finding of their liability. They complain that the trial court used an incorrect measure of damages. They assert that in a case of damage to realty resulting from the removal of lateral support, the correct measure of damages is the diminution in the fair market value of the property affected, taken immediately before and after the removal of the lateral support, unless the cost of repairs is a lesser amount. In such case the cost of repair is the correct measure of damage. B. A. and Metro contend that there was no change in the fair market value of the land, and accordingly, McCullough should take nothing by his lawsuit.

*957 We do not agree. B. A. and Metro correctly state the general rule used to determine the measure of damages where a permanent injury to land has occurred, which is that the measure of damage is the diminution of value of the land, unless the injury can be repaired at less cost, in which case, the measure becomes that lesser figure. Atlas Chemical Industries, Inc. v. Anderson, 514 S.W.2d 309, 318 (Tex.Civ.App.— Texarkana 1974, aff’d at 524 S.W.2d 681 (1975)); 2 C.J.S. Adjoining Landowners § 35 (1972); 25 C.J.S. Damages § 84 (1966); 1 Tex.Jur.2d Adjoining Landowners § 10 (1959); 1 Am.Jur.2d Adjoining Landowners § 75 (1962), and Annot., 36 A.L.R.2d 1253, 1255 (1954).

As with most general rules, however, there is an exception. The secondary sources cited above note that the general rule should be varied so as to obtain a just and equitable result when the strict adherence to the general rule would result in an outcome which would be unfair or unjust. See Annot., 36 A.L.R.2d 1253, 1255, 1265-78 (1954); 1 Am.Jur.2d Adjoining Landowners § 75 (1962). The rationale behind this exception is that the purpose of the general rule is to make the injured plaintiff whole where the general rule will not do so. If an unjust result will follow from the application of the general rule; the most reasonable measure of damages under the circumstances is to be used as an alternative. As noted by one commentator, “the reasonableness of applying a given measure of damages in a given case unavoidably hinges on the peculiarities of the case.” Annot., 36 A.L.R.2d 1253, 1255 (1954).

We hold that the circumstances of this case are such that the facts warrant a deviation from the general rule as expressed above. If we were to uphold the contentions of B. A. and Metro, we would allow them to escape liability after causing a radical change in the land which belonged to McCullough. It would clearly result in an unjust, unfair and inequitable outcome to allow B. A. and Metro to grade McCullough’s land and cause change he did not desire; then hold that B. A. and Metro escape any liability simply because the unwanted changes effected did not bring about a diminution in the value of the land involved. The appellants first point of error is overruled.

However, as to the determination of McCullough’s damages we hold the evidence insufficient to support the judgment. The findings of fact made by the trial court conflict with the evidence. For this reason, the finding is so against the greater weight and preponderance of the evidence as to be clearly erroneous, which places it in a category where it is insufficient to support the judgment. Mr. Roy Christ, the expert witness presented by McCullough, testified that the cost of construction of a retaining wall would be some $27,500.00. It is very clear from the context that this figure was a 1978 cost estimate. Later, during cross examination of Christ, opposing counsel clarified that the $27,500.00 figure was based on 1978 costs. Cross examination also shows that the figure would have been much lower if it were based on costs as they existed three years before the suit was tried.

This evidence is at a complete variance with the findings of fact. The findings of fact state that the court found that the cost to construct a retaining wall was $27,500.00 in 1975. This finding is against the great weight and preponderance of the evidence, and is properly attacked by a point of error complaining of insufficient evidence. Calvert, “No Evidence” and “Insufficient Evidence” Points of Error, 38 Tex.L.Rev. 361, 366 (1960). Accordingly, we sustain the third point of error. Since the judgment is against the great weight and preponderance of the evidence, we are left with no alternative, in light of explicit instructions from the Supreme Court, except to remand for a new trial on the issue of damages, as liability is not an issue in this appeal. Woods v. Townsend, 144 Tex. 594, 192 S.W.2d 884 (1946). It would not be within our power to attempt to render a judgment *958

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Bluebook (online)
590 S.W.2d 955, 1979 Tex. App. LEXIS 4368, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ba-mortg-co-inc-v-mccullough-texapp-1979.