Elchlepp v. Hatfield

294 S.W.3d 146, 2008 Tenn. App. LEXIS 437, 2008 WL 2925712
CourtCourt of Appeals of Tennessee
DecidedJuly 30, 2008
DocketE2007-01154-COA-R3-CV
StatusPublished
Cited by14 cases

This text of 294 S.W.3d 146 (Elchlepp v. Hatfield) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Elchlepp v. Hatfield, 294 S.W.3d 146, 2008 Tenn. App. LEXIS 437, 2008 WL 2925712 (Tenn. Ct. App. 2008).

Opinion

OPINION

SHARON G. LEE, J„

delivered the opinion of the court,

in which HERSCHEL P. FRANKS, P.J., and D. MICHAEL SWINEY, J„ joined.

The buyers of a house and real property brought this action against the sellers and a termite control company, alleging that the house was completely infested with termites to the extent that it was worthless and unsalvageable. The buyers charged the sellers with fraudulent and negligent misrepresentation, fraudulent concealment of the extent of termite damage, and breach of contract. The buyers alleged that the termite control company was negligent in its inspection of the house. Following a six-day jury trial, the jury found in favor of the buyers, holding the sellers 70% at fault and the termite control company 30% at fault and awarding the buyers $55,000 in damages. The trial court also awarded the buyers $25,000 in attorney’s fees pursuant to the real estate sales contract. We find that the jury verdict is supported by material evidence and that the trial court committed no reversible error in its jury instructions and evidentiary rulings, and consequently affirm the trial court’s judgment.

*148 I. Background

In 2001, Steve L. Elchlepp and his wife Jams A. Bloome-Elchlepp (“the El-chlepps”) began discussions and negotiations to purchase a house and approximately 4.6 acres of lakefront property from Emol Hatfield and Wilma Hatfield. Mr. Hatfield had personally constructed and remodeled the house. The parties agreed on a purchase price of $280,000 for the property. During a walk-through inspection of the house, Mr. Elchlepp discovered termite-damaged areas in the flooring and a support beam in the crawlspace area of the basement. When he asked Mr. Hatfield about it, Mr. Hatfield responded that he was unaware of any termite problem with the house and that it had to be a localized problem because he had never had any termite or pest problems in the rest of the house. Mr. Hatfield told Mr. Elchlepp that he would take $5,000 off the purchase price to cover the expense of remedying the termite damage they had found.

The parties executed the real estate sale contract on July 15, 2001. In August of 2001, prior to the closing of the sale, the Elchlepps received a copy of an inspection report of White Termite and Pest Control Company dated July 17, 2001, that did not reveal any further termite damage beyond what had been discovered in the walk-through inspection. The report stated that the house was treated for the termite infestation by White on July 17, 2001. The sale closed on October 31, 2001, at which time the Hatfields provided a Tennessee residential property condition disclosure statement that stated “moisture and termites in floor area,” but indicated that they were unaware of any defects in the interior and exterior walls, ceilings, windows, and doors of the house.

After they moved in, the Elchlepps quickly discovered that the termite infestation and damage to the house was much greater than the localized area they had observed before the closing. Nearly all the areas of the house, including the walls, door and window frames, support posts, and floors, were actively infested with termites. The Elchlepps discovered areas of floors that had been covered with several layers of additional flooring; termite tubes on the walls that had been spackled and wallpapered over; and termite damage to the wood siding of the house that Mr. Hatfield and a helper had covered with vinyl siding. Mr. Elchlepp accidentally put his hand through one of the interior walls, and put his foot through the floor in a place in the bedroom where the Hatfields had previously placed a bed. Dayton Hyl-ton, an entomologist and owner of Dayton’s Pest Control, attested in his affidavit that he had inspected the house and that “the termite infestation was pervasive from one end of the house to the other.” Paul Tucker, a licensed home inspector with a master’s degree in structural engineering, testified at trial that his recommendation was to demolish the house because the cost of repairing the house would be significantly higher than the cost of building a new one.

The Elchlepps brought this action against the Hatfields alleging intentional misrepresentation, fraudulent concealment, negligent misrepresentation, breach of contract, and violation of the Tennessee Consumer Protection Act. The Elchlepps further alleged that White Termite and Pest Control Company was liable for damages resulting from its negligent inspection of the house prior to closing. After a six-day jury trial, the jury found the Hat-fields liable for intentional misrepresentation, misrepresentation by concealment, negligent misrepresentation, and breach of contract. The jury found White Termite and Pest Control liable for negligent mis *149 representation. The verdict assessed the Hatfields to be 70% at fault, White Termite to be 80% at fault, and no fault was assessed to the Elchlepps.

The verdict form instructed the jury to “[l]imit your damage consideration specifically to termite damage. Value of the land is not a consideration in determining the amount of damages.” The jury awarded the Elchlepps $55,000 in compensatory damages and declined to award any punitive damages. Upon a properly supported motion by the Elchlepps for discretionary costs and attorney’s fees pursuant to the contract, the trial court awarded them $25,000 in attorney’s fees in addition to discretionary costs. White Termite and Pest Control Company paid its portion of the judgment and has not appealed the trial court’s decision incorporating the jury verdict.

II. Issues Presented

The Hatfields appeal, raising the following issues, as restated:

1. Did the trial court err in applying the preponderance of the evidence standard rather than the clear and convincing evidence standard to the claims of fraudulent or intentional misrepresentation?

2. Did the trial court err in instructing the jury that it should consider only the termite damage to the house as the measure of damages and that the value of the land was not a consideration in measuring damages?

3. Is there material evidence supporting the jury verdict?

4. Did the trial court err in instructing the jury on the “missing witness” rule, allowing the Elchlepps’ attorney to argue that the inference raised by the missing witness rule should be applied regarding an unnamed person who helped Mr. Hatfield put vinyl siding on the house, and in refusing to allow White Termite and Pest Control’s attorney to argue that the missing witness rule should be applied to a termite expert that did not testify at trial?

5.Did the trial court err in awarding the Elchlepps $25,000 in attorney’s fees pursuant to the real estate sale contract?

III. Analysis

A. Standard of Review

Our standard of review of a jury verdict is well settled, as recently restated by our Supreme Court:

The applicable standard of review is set out in Tennessee Rule of Appellate Procedure 13(d), which provides, “[findings of fact by a jury in civil actions shall be set aside only if there is no material evidence to support the verdict.”

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

Related

Chattanooga Mercantile, LLC
E.D. Tennessee, 2021
Regina Smith v. Benihana National Corp.
Court of Appeals of Tennessee, 2019
In Re Estate of Gertrude Bible Link
542 S.W.3d 438 (Court of Appeals of Tennessee, 2017)
Charles Walker v. Bank of America, N. A.
Court of Appeals of Tennessee, 2015
Grant v. Tucker
57 F. Supp. 3d 852 (M.D. Tennessee, 2014)
Michael J. D'Alessandro v. Lake Developers, II, LLC
Court of Appeals of Tennessee, 2012
Garrett Rittenberry v. Kevin Pennell
Court of Appeals of Tennessee, 2011
Edmond Cato v. D. L. Batts
Court of Appeals of Tennessee, 2011
Angela Brandenburg v. James Steven Hayes
Court of Appeals of Tennessee, 2010
Joyann E. Butler v. James Michael Butler
Court of Appeals of Tennessee, 2008

Cite This Page — Counsel Stack

Bluebook (online)
294 S.W.3d 146, 2008 Tenn. App. LEXIS 437, 2008 WL 2925712, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elchlepp-v-hatfield-tennctapp-2008.