Hiway 20 Terminal, Inc. v. Tri-County Agri-Supply, Inc.

443 N.W.2d 872, 232 Neb. 763, 1989 Neb. LEXIS 307
CourtNebraska Supreme Court
DecidedJuly 7, 1989
Docket87-681
StatusPublished
Cited by24 cases

This text of 443 N.W.2d 872 (Hiway 20 Terminal, Inc. v. Tri-County Agri-Supply, Inc.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hiway 20 Terminal, Inc. v. Tri-County Agri-Supply, Inc., 443 N.W.2d 872, 232 Neb. 763, 1989 Neb. LEXIS 307 (Neb. 1989).

Opinions

White, J.

Appellant Tri-County Agri-Supply, Inc. (Tri-County), as general contractor, entered into a written contract to construct a grain storage building, known as the north building, for the appellee, Hiway 20 Terminal, Inc. (Hiway 20). The appellant Tri-County subcontracted with the appellant Abild, Inc. (Abild), generally providing that Abild would provide the labor for erection of the north building. Materials for the north building were manufactured and furnished by Chief Industries, Inc., not a party to this action.

The north building was completed in November 1982 and filled with approximately 600,000 bushels of grain, shortly thereafter. In January 1983, representatives of the appellee Hiway 20 noticed that the north building was beginning to bulge and sag. During 1983, the building was emptied of grain, and it was discovered that certain turnbuckles were not properly installed, thereby causing damage to the building. The fact of improper installation is not disputed on appeal.

Although various theories of recovery were alleged by Hiway 20, this action was tried and submitted to the jury as a negligence action against the appellant Abild as subcontractor and the appellant Tri-County as general contractor. The appellee alleged that Abild was negligent in failing to adequately assemble the tie rods supporting the walls and roof of the north building. The appellant Tri-County was charged with negligence in failing to inspect the work of the subcontractor Abild.

Both appellants defended, stating that they used due care at all times and were not negligent. Tri-County filed a cross-claim against Abild for indemnity, in the event a judgment was entered against the contractor, on the grounds that Abild’s [765]*765negligence was active and primary while Tri-County’s was merely passive, and, further, by virtue of a written indemnity clause in favor of Tri-County contained within the subcontract agreement.

A jury returned a verdict against both appellants in the amount of $325,653.10. Judgments were entered on the verdicts, and the district court, as a matter of law, entered judgment in favor of Tri-County on its indemnity cross-claim.

Both Abild and Tri-County appeal, alleging various errors. Tri-County contends the district court erred in permitting the appellee’s expert witness to testify on the diminution in value of the grain storage facility when the witness was not a licensed appraiser, contrary to Neb. Rev. Stat. § 81-8,286(1) (Reissue 1987). Abild alleges that the district court erred in barring the defendants from cross-examining Chief Industries’ witness and in entering judgment for Tri-County on its cross-petition against Abild for $325,653.10. We will address these contentions in order.

Hiway 20 requested damages of $154,293.10 in actual damages, $171,360 in diminution in value, and $116,865.37 in lost profits. The jury awarded $325,653.10 — the amount of actual damages plus diminution in value. In determining the diminution in value, Hiway 20 called Harry Ahrenholtz to give his opinion on the amount of diminution in value. Tri-County objected to this testimony at trial on the basis of lack of qualifications, as Ahrenholtz was not a licensed appraiser. The district court overruled the objection and admitted the testimony. It is with this ruling that the appellant Tri-County finds error, basing the objection on § 81-8,286. This assignment of error is without merit.

Section 81-8,286 is a regulatory, not an evidentiary, statute. Section 81-8,286(1) provides, in relevant part, “No person shall testify as an appraiser before any tribunal, court, judge, referee, or judicial committee without being licensed____” This statute is contained under the headings “Real Estate Appraisers,” “State Administrative Departments,” and “Independent Boards and Commissions.” The real estate appraisers act was enacted to regulate the occupation of real estate appraisers, not to limit the admissibility of evidence in [766]*766court. Instead, to determine the admissibility of Ahrenholtz’s opinion, the statutory scheme governing expert witnesses must be examined.

Neb. Rev. Stat. § 27-601 (Reissue 1985) provides that “ [e]very person is competent to be a witness except as otherwise provided in these rules.” “If scientific, technical, or other specialized knowledge will assist the trier of fact to understand the evidence or to determine a fact in issue, a witness qualified as an expert by knowledge, skill, experience, training, or education, may testify thereto in the form of an opinion or otherwise.” Neb. Rev. Stat. § 27-702 (Reissue 1985). It is this statutory scheme which governs the admissibility of Ahrenholtz’ opinion, not the statute governing the licensing of real estate appraisers. We were presented with a similar question in Lincoln Tel. & Tel. Co. v. County Board of Equalization, 209 Neb. 465, 308 N.W.2d 515 (1981).

In Lincoln Tel. & Tel. Co., supra, we were concerned with the testimony of a witness conducting a critique of the appraisal method of a public utility property. We allowed testimony by one other than a licensed appraiser, stating, “The record establishes that the valuation of public utilities, including telephone companies, calls for specialized knowledge that a person holding a real estate appraiser’s license would not necessarily have.” Id. at 474, 308 N.W.2d at 521. Likewise, as found by the trial judge in his order overruling posttrial motions, “In the court’s opinion, very few licensed real estate appraisers would be really qualified to testify as to the value of grain handling facilities.” We agree, and hold that the testimony of the appellee’s expert witness was properly admitted by the district court.

Next, Abild argues that the district court erred in barring the cross-examination of Chief Industries’ witness to establish possible bias and personal interest in the lawsuit. The purpose of introducing this evidence was to inquire into the fact that Chief Industries emptied the grain bin and did not demand immediate payment from Hiway 20. Any inquiry into this area was properly refused.

The collateral source rule is well established in the law of damages and long recognized in this jurisdiction. Tetherow v. [767]*767Wolfe, 223 Neb. 631, 392 N.W.2d 374 (1986); Huenink v. Collins, 181 Neb. 195, 147 N.W.2d 508 (1966). This rule provides that benefits received by the plaintiff from a source wholly independent of and collateral to the wrongdoer will not diminish the damages otherwise recoverable from the wrongdoer. The theory underlying the adoption of this rule by a majority of jurisdictions is to prevent a tort-feasor from escaping liability because of the act of a third party, even if a possibility exists that the plaintiff may be compensated twice.

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Bluebook (online)
443 N.W.2d 872, 232 Neb. 763, 1989 Neb. LEXIS 307, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hiway-20-terminal-inc-v-tri-county-agri-supply-inc-neb-1989.