Sachs v. Hoffman

299 S.E.2d 694, 224 Va. 545, 1983 Va. LEXIS 160
CourtSupreme Court of Virginia
DecidedJanuary 21, 1983
DocketRecord 800722
StatusPublished
Cited by9 cases

This text of 299 S.E.2d 694 (Sachs v. Hoffman) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sachs v. Hoffman, 299 S.E.2d 694, 224 Va. 545, 1983 Va. LEXIS 160 (Va. 1983).

Opinion

PER CURIAM.

The principal issue on this appeal is whether the trial court erred in overruling the defendant’s motion to strike the plaintiffs’ evidence of rental losses, part of the damages claimed by Gerald and Carman Hoffman against A. Charles Sachs in a suit sounding in tort.

The Hoffman brothers operated Hoffman’s Lunches, Inc., a food-processing and mobile-catering service. The corporation conducted its business in a building, leased from the brothers, which, was specially designed, constructed, and equipped for such an enterprise. The corporation was declared bankrupt in August 1975, and the trustee obtained an appraisal of the corporate assets subject to sale.

After the business closed, Carman went to work for Sachs, president of Pizza Inns of Virginia, Inc. Carman informed Sachs about the sale and suggested that some of the assets of the estate might be useful in the pizza restaurants. Sachs, Carman, and the trustee walked through the Hoffmans’ building and, with the aid of flashlights, inspected the furniture and equipment. Sachs made an offer of $9,000, and the bankruptcy court entered an order confirming the sale of the equipment listed on the trustee’s schedule. The trustee testified that “I only sold the property which was on this list”. Sachs testified that there “was supposed to be a list” but that he “never referred to the list” because “Carman just would always say, everything goes”, and would explain that “we just want to get everything out and get [the building] cleaned up and rent it or sell it.”

Finding that he could not use all the equipment, Sachs decided to hold an auction on the premises. A few days before the auction was scheduled, Gerald saw two of Sachs’ employees on the roof of the building, preparing to disconnect the exhaust fans. He told the men that “your boss has a list of what he bought” and instructed them to “leave all the rest of the property in place.” Ignoring Gerald’s objections, Sachs dismantled five exhaust fans and hoods, seven large refrigeration compressors, and certain accessory equipment attached to the building. These items and a refrigerated truck body, none of which was included in the trustee’s schedule *548 of assets, were sold at the June 5, 1976 auction or otherwise disposed of. After deducting the auctioneers’ commissions, Sachs kept the proceeds.

The Hoffmans filed a motion for judgment seeking damages for unlawful conversion. They also alleged that the building had been damaged when the equipment was removed and, as a result, they had been unable to lease the property. Accordingly, they claimed damages for loss of rent for a period of nearly three years. In support of that claim, the Hoffmans called as their expert witness Joseph J. Harding, III, a real estate agent specializing in commercial properties.

Harding testified that, in the early spring of 1976, the Hoffmans had engaged him to sell or lease their building. Harding inspected the property, which he described as “a special-use kind of building”. He found normal wear and tear but no structural damage and considered the building “a good prospect for renting ... at its highest and best use”. Because the building contained extra plumbing and electrical apparatus, terrazzo floors, tile, and floor drains, he began “looking for something that could utilize” those features, such as a “chemical lab or other type of food processor”. He believed the fair rental value was $2.00 per square foot of floor space, or $16,000 per year.

On a rainy day following the June auction sale, Harding visited the building again. He found holes in the roof where the ducts leading to the fans and compressors had been removed and “water just collected on the floor.” The Hoffmans hired contractors to fix the roof, but the repairs proved ineffective. Although Harding conducted an extensive advertising campaign by telephone, newspaper, and mass mailings, he was unable to lease the property, and following the auction in 1976, the building remained vacant until March 1979.

The Hoffmans called witnesses to prove the value of the equipment they alleged Sachs had converted, the cost of installation of that equipment, and the cost of plumbing, electrical, and roofing repairs. The estimates totalled something more than $22,000. Overruling Sachs’ motion to strike Harding’s testimony, the trial court instructed the jury on the question of damages for rental losses, as well as the other losses alleged. The jury awarded the Hoffmans $40,000 in damages, and the trial court entered judgment on the verdict.

*549 On appeal, Sachs argues that Harding’s testimony is insufficient to support an award of damages for rental losses. Sachs points to Harding’s reply when he was asked if he was “aware of . . . any objectively ascertainable reason or cause for why the building did not lease readily after the auction”:

Well, it was just a combination of factors: The building condition itself and, I think also maybe the market conditions. We didn’t have the right — couldn’t find the right person.

Reaffirming this testimony on cross-examination, Harding explained that “you don’t know whether someone who was looking at the building did not come back because of the physical condition of the building or else he may have found another building that suited his needs a lot better.”

As Sachs interprets this testimony, the rental loss was the result of different but interdependent causes. In such case, he says, a plaintiff is not entitled to any recovery unless he proves the amount of damages attributable to each cause. He relies on Hale v. Fawcett, 214 Va. 583, 202 S.E.2d 923 (1974), and Barnes v. Quarries, Inc., 204 Va. 414, 132 S.E.2d 395 (1963). Sachs misconceives the rationale in those cases. In both, our decisions were based upon the plaintiff’s failure to produce evidence sufficient to establish specific causal connection between the defendant’s conduct and the damage alleged. Here, Harding’s testimony expressly identified the damage Sachs did to the building as a proximate cause of the loss of rentals. See Pebble Bldg. Co. v. Hopkins, Inc., 223 Va. 188, 288 S.E.2d 437 (1982).

But, Sachs argues, even if the evidence was sufficient to show that he was responsible for part of the loss, it was insufficient to enable a jury to determine the portion attributable to the condition of the building. This argument raises the pivotal issue.

The standard of proof required when damage is the result of multiple causes is not absolute certitude but reasonable certainty. In Smith v. The Pittston Company, 203 Va. 711, 127 S.E.2d 79 (1962), Smith alleged that his property had been damaged by contaminants emitted from Pittston’s smokestacks. Smoke from another plant operated by Appalachian Power Company also drifted across Smith’s property. At Pittston’s request, the trial court granted Instruction No.

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299 S.E.2d 694, 224 Va. 545, 1983 Va. LEXIS 160, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sachs-v-hoffman-va-1983.