Ferguson v. Alfred Schroeder Development Co.

658 S.W.2d 62, 1983 Mo. App. LEXIS 3554
CourtMissouri Court of Appeals
DecidedSeptember 6, 1983
DocketNo. 46232
StatusPublished
Cited by4 cases

This text of 658 S.W.2d 62 (Ferguson v. Alfred Schroeder Development Co.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ferguson v. Alfred Schroeder Development Co., 658 S.W.2d 62, 1983 Mo. App. LEXIS 3554 (Mo. Ct. App. 1983).

Opinion

GEORGE M. FLANIGAN, Special Judge.

Plaintiffs James S. Ferguson and Shirley M. Ferguson, husband and wife, brought this action against defendant Alfred [63]*63Schroeder Development Company, based on structural defects in a new house which plaintiffs purchased from defendant, the builder-seller. A jury awarded plaintiffs $9,000 and defendant appeals from the ensuing judgment.

Defendant’s first point is that the petition is insufficient to state a claim upon which relief can be granted. Defendant’s second point is that the trial court erred in giving Instruction 5, plaintiffs’ verdict-directing instruction. Defendant advances the same argument in support of both points. That argument is that “the implied warranty of fitness for a particular purpose is not applicable to a cause of action arising out of the sale of a house.” For the reasons which follow, this court holds that the petition was sufficient and that there was no prejudicial error, on any ground assigned by defendant, in giving the instruction.

In its landmark opinion in Smith v. Old Warson Development Company, 479 S.W.2d 795 (Mo. banc 1972), the supreme court held that “implied warranties of merchantable quality and fitness exist in the purchase of a new home by the first purchaser from a vendor-builder.” The case involved latent structural defects. The court also held: Implied warranties of “merchantable quality” and “reasonable fitness for use” are derived from the common law; the doctrine of implied warranty may be utilized to recover the difference between the value of the product as warranted and its actual value; reasonableness of quality or fitness is essentially a fact issue for the jury although, of course, there must be sufficient evidence to justify a finding of lack of reasonable quality and fitness; the builder-vendor is not required to construct a perfect house; the test is one of reasonableness of quality; the duration of liability is also premised on a standard of reasonableness.

When a challenge to the sufficiency of a petition is made for the first time on appeal, “the pleading will be held good unless it wholly fails to state a claim.... In this determination, the petition will be liberally construed. .. . ” Fallert Tool & Engineering Co. v. McClain, 579 S.W.2d 751, 756[8] (Mo.App.1979). Under Missouri practice, no technical forms of pleadings are required and the averments must be simple, concise and direct. A petition must contain a short and plain statement of the facts showing that the pleader is entitled to relief, together with a demand for judgment. See Rules 55.04 and 55.05.1

The allegations of the petition included those set forth in the next three paragraphs.

Defendant is engaged in the development and building of subdivisions and residences. On July 23, 1975, plaintiffs, as buyers, and defendant, as seller, entered into a written contract for the sale of a “single family residence.” The contract, entitled “Construction Contract” and incorporated in the petition, described defendant as “builder.” It provided for the sale of “certain real estate and property” situated on a certain lot in a subdivision in St. Charles, Missouri, “being a three-bedroom brick veneer dwelling with an attached two-car brick veneer garage, being or to be erected on said lot....”

On September 5, 1975, plaintiffs paid defendant the purchase price and received the deed. Defendant knew that plaintiffs would use the premises as a family residence and defendant impliedly warranted that the residence was constructed in a skillful and workmanlike manner and was free from defects in workmanship and materials. Plaintiffs relied upon defendant’s skill and judgment and on the implied warranty. The residence was not suitable or fit for such purpose in that the foundation was so constructed as to allow water to enter the basement and accumulate on the basement floor, two doors were improperly installed so as to allow water to enter the residence, the garage floor cracked and settled and allowed water to collect and interfered with plaintiffs use of the garage, and [64]*64the driveway and front walk cracked and settled.

Plaintiffs on numerous occasions, within a reasonable time after discovery of the breach of warranty, notified defendant of the defects. The conditions have worsened and the residence is unfit to live in. The value of the residence in its defective condition was $25,000 less than its value as impliedly warranted. The prayer was for judgment in the amount of $25,000.

Defendant, in its argument in support of its first point, does not specify any factual allegation which should have been included. Defendant merely says, “Plaintiff sued defendant on a theory of breach of implied warranty of fitness for a particular use.... The appropriate cause of action should have been one for breach of the implied warranty of habitability.”

The facts pleaded in the petition were sufficient to support a claim for relief under the Old Warson doctrine. Defendant’s first point has no merit. Indeed this court surmises, from the overall tenor of defendant’s brief, that defendant places its primary reliance upon its second point and advances its first point subsidiarily.

Defendant’s second point challenges plaintiffs’ verdict-directing instruction, Instruction 5, which reads:

“INSTRUCTION NO. 5

Your verdict must be for plaintiffs if you believe:

First, defendant sold the single family residence having a mailing address of 3117 Fox Hill Road, St. Charles, Missouri, and

Second, defendant then knew or should have known of the use for which the single family residence was purchased, and

Third, plaintiffs reasonably relied upon defendant’s judgment that the single family residence was fit for such use, and

Fourth, when sold by defendant, the single family residence was not fit for such use, and

Fifth, within a reasonable time after plaintiffs knew or should have known the product was not fit for such use, plaintiffs gave defendant notice thereof, and

Sixth, as a direct result of such single family residence being unfit for such use, plaintiffs were damaged.”

Instruction 5 was based on MAI 25.03 [1980 revision] — “Breach of Implied Warranty of Fitness for a Particular Purpose Under Uniform Commercial Code.” Defendant’s criticism of the instruction is that “the appropriate instruction model” is MAI 25.08 [1980 new] — “Breach of Implied Warranty of Merchantability Under Uniform Commercial Code.”

MAT 25.03 stems from § 400.2-315 and MAI 25.08 stems from § 400.2-314. Those two statutes are of course a part of the Uniform Commercial Code. Sec. 400.2-314 deals with an implied warranty of merchantability and, as applicable here, goods to be merchantable “must be at least such as are fit for the ordinary purposes for which such goods are used.” Sec. 400.2-315 provides: “Where the seller at the time of contracting has reason to know any particular purpose for which the goods are required and that the buyer is relying on the seller’s skill or judgment to select or furnish suitable goods there is unless excluded or modified under section 400.2-316 an implied warranty that the goods shall be fit for such purpose.”

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Bluebook (online)
658 S.W.2d 62, 1983 Mo. App. LEXIS 3554, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ferguson-v-alfred-schroeder-development-co-moctapp-1983.