Ian And Keri Schumacher, V T. Garrett Construction Inc.

Court of Appeals of Washington·Decided May 22, 2017·No. 76022-0·Unpublished

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON IAN AND KERI SCHUMACHER, )

) No. 76022-0-I

Respondents, )

) DIVISION ONE

v. )

) UNPUBLISHED OPINION T. GARRETT CONSTRUCTION, )

INC., a Washington corporation, )

)

Appellant, )

)

and )

)

TODD G. and JESSICA YOST, )

husband and wife, and the marital )

community composed thereof, )

)

Defendants. ) FILED: May 22, 2017

TRICKEY, A.C.J. — T. Garrett Construction, Inc. (TGC) appeals the trial court's damages award to Ian and Keni Schumacher. TGC argues that the

construction defects at issue and its failure to construct a cedar fence did not breach the agreement between the parties or any implied warranties. TGC requests that, if it prevails on appeal,this court award it the attorney fees it incurred below. The agreement's terms did not contain any express warranty against construction defects and did not require TGC to construct a cedar fence. The construction defects were not serious enough to violate the implied warranty of , habitability. Therefore, we reverse and remand for an award of attorney fees below to TGC.

No. 76022-0-1 / 2 FACTS

TGC is a construction contractor in the business of remodeling homes and speculative building. In 2013, TGC began construction of a new house in Edgewood, Washington.

While the home was under construction, TGC listed it for sale through its real estate agent, Laura Petkov. Petkov prepared a real estate sales flyer and placed a listing on the local Multiple Listing Service (MLS). The MLS listing contained information about the home, including mentioning a cedar fence.

In October 2013, the Schumachers toured the home with their real estate agent, Doug Walker. The home had been framed, the roof and windows had been installed, and a partial cedar fence separated the back yard from the neighboring property.

On October 20, the Schumachers submitted a signed real estate purchase and sale agreement(REPSA)to TGC offering to purchase the home for $496,900. The REPSA listed an earnest money amount of $2,500, incorporated by reference a building specification sheet detailing the components of the property, and contained an integration clause, an attorney fee clause, and an inspection addendum. It also included a counteroffer addendum, which added several terms to the REPSA and included a copy of the sales flyer to illustrate where the additions would be located.

The inspection addendum provided in part that the REPSA was conditional on the Schumachers' subjective satisfaction with the property after inspecting it. If the Schumachers were not satisfied with the property for any reason, they could

No. 76022-0-1/ 3 give TGC notice and terminate the REPSA. The Schumachers would waive their right to terminate the REPSA if they failed to give timely notice or failed to act during the reply period. The inspection addendum's reply period was set at 10 days after mutual acceptance of the REPSA. If the Schumachers waived their rights under the inspection addendum,TGC was not obligated to make any repairs or modifications. The REPSA did not incorporate the sales flyer or MLS listing.

On October 21, Petkov sent Walker an e-mail with an updated builder specification sheet, which was the final version exchanged by the parties.

TGC signed the REPSA on October 22, and TGC and the Schumachers initialed each page of the specification sheet on October 23.1 TGC continued construction of the home, including building a prestained, non-cedar wood fence along the front and side of the home.

Between October 22, 2013 and closing on January 31, 2014, TGC and the Schumachers communicated regularly and met at the home several times to discuss the Schumachers' selections of finishes and other items in the home. A formal walk-though took place on January 22, 2014. Neither party made notes during the walk-through. The Schumachers made certain requests to TGC during and immediately after the walk-through, which TGC responded to and satisfied.

The Schumachers did not request to cancel the sale or have their earnest money returned to them, and did not hire a third, party to inspect the home or the surrounding land. The home passed all inspections by the building authorities, and the building department issued it a certificate of occupancy.

1 The parties also signed a limited builder's warranty, but later stipulated that it was unenforceable and inapplicable to the present case.

No. 76022-0-1 /4 After closing, the Schumachers complained to TGC about a number of problems, including issues with the kitchen cabinets and trim, and the exterior stone veneer of the garage. TGC had improperly installed the stone on the exterior garage. The Schumachers obtained a bid from Reliable Masonry Service to remove and replace the exterior garage wall stone for $5,500 plus sales tax.

A year after closing, TGC notified the Schumachers in writing that either it or its subcontractors would repair some of the alleged defects at no cost. This included repairing the kitchen cabinetry and trim problems and entirely removing and replacing the stone on the exterior garage wall. The Schumachers rejected TGC's offer.

The defects were aesthetic in nature and did not present a significant safety risk to the Schumachers. The Schumachers did not move out of the home.

In February 2015,the Schumachers filed a complaint against TGC,alleging breach of contract, breach of the implied warranties of habitability and fitness for a particular purpose, breach of limited warranty, and violations of the Consumer Protection Act, chapter 19.86 RCW. The trial court awarded the Schumachers damages for their breach of contract claim in the amount of $9,772.50. The trial court based its damages award on the defective stone on the garage exterior ($5,500 plus $522.50 in sales tax), defective cabinets and trim in the kitchen ($350), and TGC's failure to build a cedar fence ($3,400). The trial court dismissed the Schumachers' other claims. The trial court found that the Schumachers were the substantially prevailing party and awarded attorney fees and costs totaling $13,021.31.

No. 76022-0-1/ 5 TGC appeals.

ANALYSIS

TGC Assignments of Error

The Schumachers argue that TGC improperly assigns error in its opening brief by failing to include a specific assignment of error to the trial court's judgment. The Schumachers claim that this precludes this court from considering any claim of error in the trial court's judgment. We disagree.

An appellant's brief should include a separate concise statement of each error it contends was made by the trial court, together with issues pertaining to

those assignments of error and argument in support. RAP 10.3(a)(4), (6). A party's failure to assign error or to provide argument and citation to authority in

support of an assignment of error precludes appellate consideration of an alleged error. Escude ex rel. Escude v. King County Pub. Hosp. Dist. No. 2, 117 Wn. App. 183, 190 n.4,69 P.3d 895(2003). But this court will not determine cases or issues on the basis of compliance or noncompliance of the Rules of Appellate Procedure except in compelling circumstances where justice demands. RAP 1.2(a); State v. Olson, 126 Wn.2d 315, 318-19, 323, 893 P.2d 629(1995).

Here, TGC's assignments of error were not defective. TGC's notice of appeal designated the trial court's judgment. TGC's opening brief assigned error to the three conclusions of law reached by the trial court that form the basis for its final judgment. TGC's assignments of error are sufficient to satisfy RAP 10.3(a).

No. 76022-0-1/6 Stone Garage Exterior and Kitchen Cabinetry TGC argues that the trial court erred in awarding the Schumachers damages for its improper installation of the stone garage exterior and kitchen cabinetry. TGC primarily argues that the implied warranty of habitability was the only basis on which the Schumachers could have recovered, and that warranty was not breached. It also argues that the trial court applied the wrong legal standard to arrive at its damages award. We agree with TGC.

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