Matich v. Gerdes

550 N.E.2d 622, 193 Ill. App. 3d 859, 140 Ill. Dec. 737, 1990 Ill. App. LEXIS 126
CourtAppellate Court of Illinois
DecidedFebruary 1, 1990
Docket4-89-0405
StatusPublished
Cited by18 cases

This text of 550 N.E.2d 622 (Matich v. Gerdes) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matich v. Gerdes, 550 N.E.2d 622, 193 Ill. App. 3d 859, 140 Ill. Dec. 737, 1990 Ill. App. LEXIS 126 (Ill. Ct. App. 1990).

Opinions

JUSTICE GREEN

delivered the opinion of the court:

This appeal turns upon the proper measure of damages for the owners of a barn destroyed by a fire negligently caused by a tortfeasor. The bam lay on a 1.6-acre tract. It was very old but had been restored and decorated by the plaintiff owners after they purchased the tract in 1972. The predominate use of the barn was for the personal pleasure of the owners and their family and it had some but not great agricultural use. The precise question to be decided is whether the measure of damages is the cost of restoration minus depreciation, or the diminution in the actual fair cash market value of the tract re-suiting from the destruction of the building. We conclude that under the facts here, the cost of rebuilding minus depreciation is the correct measure of damages.

The plaintiffs in this case are Christ Matich and Joyce Matich, owners of the described 1.6-acre tract. The defendant is Robert Gerdes. On June 9, 1986, plaintiffs brought suit in the circuit court of Livingston County to recover damages for the destruction of their barn and contents resulting from a fire on September 19, 1985. The defendant was charged with negligence, and he does not dispute the sufficiency of the evidence to prove that negligence and to prove it was a proximate cause of plaintiffs’ loss. Upon petition, Economy Fire and Casualty Company, a corporation (Economy), was permitted to intervene as a plaintiff subrogee of the Matiches to the extent of $51,843.06. Economy had paid that amount to the Matiches pursuant to a policy of fire and extended coverage insurance Economy had issued to Matiches. On February 2, 1989, after a bench trial, the court found in favor of plaintiffs and entered a judgment in favor of the Matiches in the sum of $74,464.53, with Economy being subrogated to the extent of $51,843.06.

After the foregoing judgment was entered, a series of post-trial motions were filed by the parties. On March 6, 1989, defendant filed a post-trial motion attacking the judgment against him for damages. On March 8, 1989, Economy filed a motion for attorney fees and costs. Then, on March 21, 1989, the Matiches filed a similar motion. On April 6, 1989, Economy filed a motion for prejudgment interest. The circuit court denied all of these motions by an order entered on April 18, 1989. Defendant has appealed, contending the circuit court applied an improper measure of damages in making its award and erred in ruling upon evidence. Economy and the Matiches have cross-appealed the denial of their requests for attorney fees, costs and prejudgment interest. Taken with the case is a motion by defendant to dismiss the cross-appeals for lack of jurisdiction. We deny that motion and affirm the circuit court in all respects.

We consider first the propriety of the judgment against the defendant for damages. The award included not only the loss of the barn, but also the loss of the contents, other items damaged in the fire, and services reasonably required as a result of the fire. The award for damage to the bam was in the amount of $38,858. Little dispute exists as to the $35,606.53 awarded for other losses, which resulted from services reasonably required as a result of the fire and loss of and damages to personal property. Other than challenging some evidentiary rulings, defendant makes no challenges of substance as to the award of these damages.

At trial, both the Matiehes testified the barn was in excellent condition at the time of the fire. Joyce Matich described the barn as being “like new.” Christ Matich estimated the barn would last for 40 or 50 years. The evidence concerning the restoration of the barn accomplished by the Matiehes after purchasing the property included rewiring, restoring outside fixtures, replacing wood siding, replacing broken windows, painting, reroofing, adding a layer of concrete to the floor, new support beams and posts, and building new animal stalls. The Matiehes’ son testified he was able to play basketball in a 30- foot by 20-foot area of the loft where the ceiling was at least 25 feet high. He also testified to using the barn for his Future Farmers of America hog project and his projects for a nearby local fair. A defense witness described the prefire condition of the barn as fair to good.

While the trial court indicated, at the time of rendering its decision, it took virtually all of the evidence received into consideration in making its decision, the result indicated it relied heavily on the testimony of plaintiffs’ expert, Andrew Brorsen. Brorsen considered the life-style of the plaintiffs, photographs of the barn, the quality of work they had done in repairing their home, and the cost of the building replacing the barn. He rejected use of the income approach and the comparable-sales approach in valuing the barn. He indicated he was unable to find suitable comparable-sale values. Rather, he based his determination upon the cost of reproduction less depreciation. He based the reproduction cost largely upon the cost of a replacement building, adjusted because the replacement did not have all of the features of the destroyed barn. He determined the depreciation to be 15% and stated his opinion the barn had a value of $43,108.60 at the time of the fire.

Defendant relies primarily upon the testimony of his expert, Arthur Korte, who testified to an opinion of damages based in part upon the diminution in the actual fair market value of the 1.6-acre tract because of the loss of the barn. Based upon sales of two tracts he deemed comparable in the Bloomington area, and considering the higher price there than near Chatsworth, he concluded the Matich tract had an actual fair cash market value of $45,000 to $60,000 prior to the fire and that the loss of the barn reduced the value by less than $5,000. Nevertheless, he testified to an actual fair cash market value of $10,000 for the barn.

The supervisor of assessments of Livingston County was called by the Matiehes. On direct examination, he testified concerning the characteristics of the Matiehes’ 1.6-acre tract. On cross-examination and redirect examination, he testified (1) the tract had been classified as residential, and the barn had been given an assessed valuation which, when multiplied by three to give full value would be $840; and (2) he would estimate the new structure replacing the barn on the premises could be built for $8,200. Whatever improprieties resulted from this testimony were not prejudicial to defendant. The claims adjuster for Economy was called as an “adverse witness” by defendant and testified that Economy had paid the policy limit of $25,000 for the barn.

A good summary of Illinois cases in regard to the measure of damages for injury to real property is contained in Williams-Bowman Rubber Co. v. Industrial Maintenance, Welding & Machining Co. (N.D. Ill. 1987), 677 E Supp. 539. That court related an uncertain history on that issue. However, that court concluded the later cases followed a rule that the measure is the diminution in market value of the real estate, except when the damages are only partial and repairs are reasonably priced. The court concluded that under those circumstances, the cost of repairs was deemed to be the appropriate remedy. The diminution in value of the real estate was held to be the measure of damages where a barn was totally destroyed in Johnson v. Pagel Clikeman Co. (1951), 343 Ill. App. 346, 99 N.E.2d 148.

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Matich v. Gerdes
550 N.E.2d 622 (Appellate Court of Illinois, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
550 N.E.2d 622, 193 Ill. App. 3d 859, 140 Ill. Dec. 737, 1990 Ill. App. LEXIS 126, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matich-v-gerdes-illappct-1990.