Michael E Ingle v. Aaron Lilly Construction, LLC

CourtCourt of Appeals of Tennessee
DecidedAugust 26, 2005
DocketE2004-02756-COA-R3-CV
StatusPublished

This text of Michael E Ingle v. Aaron Lilly Construction, LLC (Michael E Ingle v. Aaron Lilly Construction, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Michael E Ingle v. Aaron Lilly Construction, LLC, (Tenn. Ct. App. 2005).

Opinion

IN THE COURT OF APPEALS OF TENNESSEE AT KNOXVILLE July 12, 2005 Session

MICHAEL E. INGLE, ET AL. v. AARON LILLY CONSTRUCTION, LLC

Appeal from the Circuit Court for Sullivan County No. C11410 (M) John S. McLellan, III, Judge

Filed August 26, 2005

No. E2004-02756-COA-R3-CV

Michael E. Ingle and his wife, Melissa R. Ingle (“the plaintiffs”), purchased a house from Aaron Lilly Construction, LLC (“the defendant”). The defendant had constructed the residence and the plaintiffs were the initial purchasers. The plaintiffs began to experience problems with their home and filed suit against the defendant on several theories, including a violation of the Tennessee Consumer Protection Act (“the TCPA”). The trial court, following a bench trial, found that the plaintiffs were entitled to recover, but not under the TCPA. The defendant appeals, arguing that the trial court erred in admitting the testimony of one of the plaintiffs’ expert witnesses. They also claim that the evidence preponderates against the amount of damages found by the trial court. The plaintiffs, on the other hand, challenge the trial court’s ruling with respect to their claim under the TCPA. We affirm.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Circuit Court Affirmed; Case Remanded

CHARLES D. SUSANO , JR., J., delivered the opinion of the court, in which HERSCHEL P. FRANKS, P.J., and SHARON G. LEE, J., joined.

J. Wesley Edens, Bristol, Tennessee, for the appellant, Aaron Lilly Construction, LLC.

Timothy W. Hudson, Bristol, Tennessee, for the appellees, Michael E. Ingle and wife, Melissa R. Ingle.

OPINION

I.

In 1999, the defendant finished the construction of a single-family residence located at 125 Boardwalk in Bristol. The house was constructed on a hillside. On May 15, 2000, the defendant conveyed the property to the plaintiffs. The cost of the house, including closing costs, was $104,210.79. The defendant, by way of its managing partner, Aaron Lilly, informed the plaintiffs that it would fix any problems that surfaced in the first year.

Soon after the plaintiffs moved into the residence, they noticed a number of problems such as cracking in the walls, bowing in and water saturation of the basement foundation block wall, cracking in the basement retaining wall, inadequate drainage on the lot, water in the basement during heavy rains, and various cosmetic defects. The plaintiffs were dissatisfied with the defendant’s response to their complaints. When they continued to experience problems, they filed suit on May 23, 2001.

By their amended complaint, the plaintiffs averred that the defendant “negligently, recklessly or intentionally designed and constructed the home” in a way that caused the following defects, among others: (1) insufficiently reinforced basement walls that crack, move and become wet; (2) a poorly constructed driveway and retaining wall that caused cracking, flooding and wall movement; and (3) poor grading which resulted in inadequate drainage. They further alleged that at the time of the sale, the defendant was aware of, and concealed, these defects. They sought damages for violation of the TCPA, intentional misrepresentation, negligent misrepresentation, negligent construction, and breach of the implied warranty of habitability. They asked for compensatory damages, or, in the alternative, rescission for fraud. In its defense, the defendant stated that the complaint failed to state a claim upon which relief can be granted, and that the plaintiffs failed to file their cause of action in a timely manner because, according to the defendant, their claim for defective material and workmanship expired one year from the date of purchase, i.e. May 15, 2000.

The bench trial commenced on March 29, 2004. Prior to trial, the parties stipulated that the residence was not built in accordance with the building code in effect at that time, i.e. the Southern Building Code. In particular, the parties stipulated that at the time the residence was constructed, the building code required that grout and rebar reinforcement be placed every 48 inches for a wall with more than eight feet of backfill. The residence had more than eight feet of backfill, yet the grout and rebar was not positioned every 48 inches.

Both plaintiffs testified regarding the difficulties they experienced stemming from the flooding that occurred in the basement and their losses. Subsequently, they proffered the testimony of two “experts,” George Cross and Bruce Martin. Mr. Cross is a licensed engineer who does geotechnical, soil and foundation engineering; he testified as to the standard of care for building residences. The defendant agreed that Mr. Cross was qualified to testify as to the workmanship and quality of construction, and to make recommendations regarding repairs. Mr. Cross made two visits to the house, at which time he examined the foundation, the drainage around the home, and the retaining wall between the driveway and the fill in the front yard. He concluded that the home was not built in accordance with the standards expected of licensed home builders in the area. Mr. Cross recommended that several repairs be made, which repairs included changes to the foundation wall, the retaining wall, and the driveway.

-2- The plaintiffs then called Bruce Martin to testify regarding the standard of care and the estimated cost of the repairs recommended by Mr. Cross. Mr. Martin is a licensed building contractor who operates a home construction business. The projects undertaken by Mr. Martin involve both new home construction and the rehabilitation of older homes; the majority of the work, however, was funded by the government, in which case he relied primarily on specifications established by engineers. The defendant challenged Mr. Martin’s qualifications to testify on the ground that he was not familiar with the conduct of other general contractors in the area. Because of this challenge, counsel conducted a voir dire of the witness. Following voir dire, the trial court ruled that Mr. Martin was competent to testify, but that the court would consider the defendant’s arguments with respect to his competency in weighing his testimony.

At the close of the plaintiffs’ proof, the defendant moved to dismiss because of the plaintiffs’ failure to establish the elements of any of their causes of action, including the failure to offer adequate evidence of damages. The court instructed the parties to file briefs on the defendant’s motion, which they did. Court reconvened on June 8, 2004, at which time the court reserved ruling on the motion until the close of all the evidence.

During the second phase of the trial1, the defendant proffered the testimony of two expert witnesses, Wayne Rader and Alan Rommes, both of whom opined as to the necessary repairs. They provided some base estimates for the cost of those repairs. For example, Mr. Rader estimated that the cost of reinforcing the foundation wall with concrete and regrading it would amount to approximately $3,124. Mr. Rommes, a licensed professional engineer, opined that the total cost to address the problems should not exceed $12,000.

The trial court, by memorandum opinion filed July 12, 2004, found that the plaintiffs had carried their burden of proof, by a preponderance of the evidence, that they were damaged as a result of the house not being constructed in a workmanlike manner. With respect to the plaintiffs’ specific causes of action, the court held that the defendant had negligently constructed the house. The court ruled that the plaintiffs had sustained their claim for negligent misrepresentation.

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Bluebook (online)
Michael E Ingle v. Aaron Lilly Construction, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michael-e-ingle-v-aaron-lilly-construction-llc-tennctapp-2005.