Hanneman v. Downer

871 P.2d 279, 110 Nev. 167, 1994 Nev. LEXIS 33
CourtNevada Supreme Court
DecidedMarch 30, 1994
Docket23434
StatusPublished
Cited by14 cases

This text of 871 P.2d 279 (Hanneman v. Downer) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hanneman v. Downer, 871 P.2d 279, 110 Nev. 167, 1994 Nev. LEXIS 33 (Neb. 1994).

Opinion

*169 OPINION

Per Curiam:

FACTS

This action results from a negligently performed survey and subsequent conveyance of the inaccurately described real property. The subject property is part of a tract of land located in the Pinenut Range of Douglas County. Respondent Stoddard Jacob-sen acquired the tract in 1950. In 1965, Jacobsen retained respondent Robert Downer to prepare a survey map and record it in the official records of Douglas County. Downer prepared the survey with the understanding that the tract would be subdivided *170 into several parcels. Prior to commencing the survey, Downer obtained plats, notes, and prior surveys from the Bureau of Land Management (“BLM”)- When surveying the property, Downer found and rejected the monuments, accessories, and corners because they did not comport to the field notes of the original survey and because he believed them to be fraudulent. 1 Thus, Downer relied almost exclusively on the calls and distances in the field notes and upon plats in determining the northern boundary of Jacobsen’s property.

The property at issue (“the property”) is shown on the Downer map as consisting of 5.88 acres; it is one of the parcels created by Jacobsen’s subdivision. In late 1966 or early 1967, Jacobsen conveyed the property to Frank Frazier, a well driller, in exchange for services rendered by Frazier. However, the conveyance from Jacobsen to Frazier was never officially memorialized because Frazier was illiterate. In 1971, Frazier sold the property to respondent Maxine Swenson for $9,500.00. At Frazier’s request, Jacobsen deeded the property directly to Swenson by a grant, bargain and sale deed.

In 1976, Swenson sold the property to the appellants, Eldon and Patricia Hanneman, for $35,000.00. 2 The Hannemans gave Swenson $7,500.00 and executed a promissory note for $27,500.00, to be paid in monthly installments of $200.00. Both Swenson and the Hannemans believed that the property consisted of 5.88 acres, upon which was situated a dilapidated and uninhabitable house. The well on the property was inoperative, the water pipes were broken, the access road was nearly inaccessible, the flat roof on the old house leaked, and the kitchen and bathroom were in shambles.

Hanneman, a carpenter by trade, repaired the well, water pipes, and road, constructed a gable roof, installed custom-built *171 kitchen cabinets, and made sundry repairs to the kitchen and bathroom. He also installed new siding, two windows, a sliding window door, a wood stove, light fixtures, and a concrete patio.

In 1981, Hanneman learned that a private survey performed by Veta Grande Mines revealed that over four acres of the property (including the house and well) belonged to the federal government. Hanneman contacted Swenson and informed her of the defective survey performed by Downer. Swenson defended Downer’s survey but rejected Hanneman’s offer to continue paying for the property on condition that Swenson agree to reimburse him if Downer’s survey proved to be incorrect. Hanneman stopped making payments in April of 1982. 3 At that time, the unpaid balance on the note held by Swenson was $26,019.48. Shortly thereafter, the BLM confirmed the accuracy of the Veta Grande survey. Ultimately, the Interior Board of Land Appeals (“IBLA”) affirmed the accuracy of both the Veta Grande Mines survey and BLM resurvey.

Hanneman continued to occupy the premises on a sporadic basis until the autumn of 1985, when he abandoned the property entirely. In a effort to mitigate his damages, Hanneman removed the kitchen cabinets, bathroom vanity, light fixtures, wood stove, washer and dryer, and other items of personal property. In leaving the premises, Hanneman made no provision for protecting the property against vandalism or the elements. During trial, Odd Kjell “Kelly” Larson, a carpenter called by Swenson, testified that it would cost over $12,000.00 to repair the damage caused by Hanneman’s mitigation. Swenson eventually foreclosed upon the property and now owns the remaining 1.5 acres, which are narrow, steep, and valued at $1,000.00.

The Hannemans filed the underlying action on July 31, 1984, in which they asserted claims against Swenson for misrepresentation, breach of the sales agreement, and breach of warranty of title. The Hannemans also complained against Jacobsen for negligence and breach of warranty of title, and alleged negligence against Downer. The action sought $120,000.00 in damages, consisting of the market value of the property on the date of the complaint, and attorney’s fees.

Swenson counterclaimed against the Hannemans for breach of the promissory note. Swenson also filed cross-claims against Jacobsen and Downer seeking indemnification for breach of warranty of title and a negligent property survey, respectively. Finally, Jacobsen cross-claimed against Downer for indemnification based upon the negligent survey.

*172 At the close of the Hannemans’ case-in-chief, Jacobsen moved for an NRCP 41(b) dismissal on grounds that: (1) no privity existed between the Hannemans and Jacobsen or between Swen-son and Jacobsen to support a breach of warranty of title claim; (2) Hannemans had failed to present evidence of Jacobsen’s negligence; and (3) Jacobsen was not liable for Downer’s negligence, if any, because Downer was an independent contractor. The district court granted the motion and dismissed Jacobsen from the case.

At the conclusion of the bench trial, the district court found that Swenson had contracted to sell the Hannemans 5.88 acres, and that Swenson’s “inability to convey 5.88 acres was a breach of that contract due to a failure of consideration.” Accordingly, the district court ordered Swenson to pay the Hannemans’ out-of-pocket costs of $7,500.00. Swenson’s liability to the Hannemans, however, was offset by her judgment against Downer for $7,500.00, with interest, which the district court specifically designated as the amount of “Swenson’s liability to the Hanne-mans.” The court found that Downer negligently performed the survey and ordered him to pay Swenson the unpaid balance of the promissory note from the Hannemans ($26,019.48 minus the $1,000 value of the remaining land). Finally, the district court ordered Downer to pay attorney’s fees to the Hannemans and to Swenson in the amount of $10,000.00 each, together with taxable costs.

DISCUSSION

The parties have raised several issues on appeal, only the following of which need resolution. The Hannemans impute error to the district court’s calculation of damages and its decision to dismiss Jacobsen from the action. Swenson contends on cross-appeal that the court erred when it awarded damages to the Hannemans and failed to award Swenson damages for breach of contract. Finally, Downer insists that the district court erred in finding that he negligently performed the property survey and that his liability extends to subsequent purchasers of the affected property.

1. The Hannemans ’ damages

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Bluebook (online)
871 P.2d 279, 110 Nev. 167, 1994 Nev. LEXIS 33, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hanneman-v-downer-nev-1994.