Moore v. McCarty's Heritage, Inc.

404 N.E.2d 167, 62 Ohio App. 2d 89, 16 Ohio Op. 3d 219, 1978 Ohio App. LEXIS 7691
CourtOhio Court of Appeals
DecidedApril 7, 1978
DocketWD-77-39
StatusPublished
Cited by8 cases

This text of 404 N.E.2d 167 (Moore v. McCarty's Heritage, Inc.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Moore v. McCarty's Heritage, Inc., 404 N.E.2d 167, 62 Ohio App. 2d 89, 16 Ohio Op. 3d 219, 1978 Ohio App. LEXIS 7691 (Ohio Ct. App. 1978).

Opinions

Defendant, McCarty's Heritage, Inc., appeals from a judgment on a jury verdict of $13,500 in favor of plaintiffs, Fred H. and Patricia Moore, rendered in the Wood County Common Pleas Court. This action arose from the claimed negligent construction of a house in Bowling Green by defendant, which was sold by defendant to plaintiffs under a written contract.

The house was in a stage of partial construction when the contract of sale for a price of $41,900 was signed on February 14, 1973. Possession was given to plaintiffs, the purchase money and deed exchanged, and the sale closed on May 23, 1973. Before the closing date, defendant's construction work on the house was inspected on five occasions by the Wood County Building Inspector and certificates of compliance were issued for various phases of construction.

The parties agreed that the case should be tried under a negligence theory rather than under a breach of contract approach. The trial judge adopted the negligence theory and conducted the trial on that basis.

The evidence presented by plaintiffs consists largely of many claimed defects in construction, predicated upon the testimony of the plaintiffs who lived in the house after its completion and experienced the results of the claimed construction defects and shortcomings, and also upon the detailed testimony of their expert, professional engineer John Weithman, who examined and studied the claimed construction defects in May 1977.

Mr. Weithman estimated that the cost of repairs for the defects he described would be $12,000. Another witness, a Mr. Richmond, testified to additional costs in the amount of approximately *Page 91 $1,000. No opinion was elicited from either of these witnesses as to the diminution in market value of plaintiffs' realty as a result of the damage caused by the claimed shoddy construction by defendant. However, plaintiff Fred Moore testified that there was a reduction in the fair market value of plaintiffs' realty in the amount of $4,000 to $5,000 as a direct result of damage caused by defendant's negligent construction.

Defendant produced seven witnesses whose testimony largely refuted, or at least conflicted with, the plaintiffs' evidence concerning negligent construction. Most significantly, defendant's expert, realtor and appraiser John Pendeleton, testified on the issue of diminution in the fair market value of plaintiffs' realty directly resulting from the negligent construction, and stated that a complete correction of the defective items would increase the market value of the realty only $500.

The first assignment of error is that the jury verdict is against the weight of the evidence and contrary to law because the jury disregarded the jury instruction on the measure of damages applicable. The relevant part of the instruction on the issue of damages is as follows:

"You will determine from a preponderance of the evidence the amount of money that will reasonably compensate Mr. and Mrs. Moore for the actual damage to their residence or that they have suffered.

"Now when damage to real property is of a temporary nature and can be repaired so that the property can be restored to a condition it would have been in if there had been no negligence, then the owner may recover the reasonable cost of repairs necessary to restore it to that condition, unless it should first appear that such cost of repair is greater than the difference in the fair market value of the property immediately before and after the damage, in which case the difference in this value, the difference in the market value, would be the amount recovered."

The foregoing instruction was a sincere effort by the trial court to give the correct rule of law concerning negligent damage to real estate, as articulated in Ohio Collieries Co. v. Cocke (1923), 107 Ohio St. 238, and in Koch v. O'Brien Nye *Page 92 Cartage Co. (1942), 37 Ohio Law Abs. 270.1 See also,Northwestern Ohio Natural Gas Co. v. First CongregationalChurch (1933), 126 Ohio St. 140. However, the rule in these cases developed from factual situations in which the realty was in an undamaged condition until the defendant's negligence caused injury. In contrast, in the present case the realty, a house, was never in an undamaged condition. The defects due to the negligent construction existed prior to the completion of the house and prior to the time plaintiffs occupied the building. Therefore, we do not find the general rule, under which the trial court instructed the jury, to be applicable to this case.

"The general rule that the measure of damages for injury to real estate shall not exceed the difference in the market value of the entire tract immediately before and immediately after the injury is not an arbitrary or exact formula to be applied in every case without regard to whether its application would compensate the injured party fully for losses which are the proximate result of the wrong-doer's conduct." Thatcher v.Lane Constr. Co. (1970), 21 Ohio App.2d 41, paragraph one of the syllabus (negligent destruction of trees and brush).

We find that plaintiffs have a right to hold the house for their own use as well as to hold it for sale, and if they elect the former they should be compensated for the injuries done them in that respect although those injuries may not substantially impair the market value of the building. Therefore, we find that the jury instruction on the measure of damages was incorrect in that it restricted recovery to the diminution in value if such exceeded the cost of repair.

However, we find that the jury did not follow the jury instruction on the issue of damages. There was credible evidence that the cost of repairs was at least $12,000, and perhaps exceeded $13,500. The only evidence on the diminution in market value (or increase in value by making all repairs) as a result of the damage was the testimony of defendant's expert, John Pendeleton, that such diminution in value was $500, and plaintiff Fred Moore's testimony that the diminution in fair market value was $4,000 to $5,000. *Page 93

The jury is obligated to follow the law even if the charge is incorrect. See Pennsylvania Co. v. Wasson (1914), 3 Ohio App. 458,468 as follows:

"The instruction of the court to the jury was correct. This is not challenged by the defendant in error, and even if it was not correct the verdict of the jury should be set aside for a violation of the instructions of the court, unless these instructions are challenged and disputed. Drew v. Watertown Ins.Co., 6 S.D. 335, 61 N.W. Rep., 34; McAllister v. Rocky Ford CoalCo., 31 Mont. 359, 78 Pac. Rep. 595."

To permit the jury to formulate its own law of damages invades the province of the judge. Variety Iron Steel Co. v.Poak (1914), 89 Ohio St. 297, 310. For this court to say on the facts that the jury was right invades the province of the jury. The Pennsylvania Co. case states, at 468:

"By entering judgment after a remittitur had been made the court was not reducing an excessive verdict but was determining a question of fact which the law required the jury to determine. This we think the court could not do."

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Bluebook (online)
404 N.E.2d 167, 62 Ohio App. 2d 89, 16 Ohio Op. 3d 219, 1978 Ohio App. LEXIS 7691, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moore-v-mccartys-heritage-inc-ohioctapp-1978.