Ternes v. C.R. Home Improvement, Inc.

District Court, District of Columbia·Decided March 24, 2025·No. Civil Action No. 2024-1277·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

LISA TERNES, et al.,

Plaintiffs,

Civil Action No. 24 - 1277 (SLS)

v. Judge Sparkle L. Sooknanan

C.R. HOME IMPROVEMENT, Defendant.

MEMORANDUM OPINION

This case arises from a failed home renovation project. In 2021, Lisa Ternes and Jay Jemail contracted with C.R. Home Improvement to renovate their home in Northeast D.C. The Defendants failed to complete the work as promised, prompting this lawsuit alleging violations of the D.C. Consumer Protection Procedures Act (DCCPPA), fraudulent misrepresentation, negligent misrepresentation, breach of contract, breach of the implied covenant of good faith and fair dealing, and negligence. When the Defendant failed to answer, the Clerk of Court entered default. Before the Court is the Plaintiffs’ Motion for Default Judgment. After scrutinizing the record, the Court grants the motion in part, awarding compensatory damages. The Court denies the Plaintiffs’ request for consequential damages, non-economic damages, and attorney’s fees, as they have not submitted sufficient information for the Court to make the necessary determinations.

BACKGROUND

A. Factual Background The Court draws the facts, accepted as true, from the Plaintiffs’ “pleadings, motion for default judgment, and various attachments.” Omni Bridgeway Ltd. v. Ministry of Infrastructure & Energy of the Republic of Albania, 23-cv-1938, 2025 WL 506570, at *1 (D.D.C. Feb. 14, 2025).

Ana Rivera is the co-owner of C.R. Home Improvement, a construction company headquartered and licensed in Maryland. Compl. ¶ 9– 10, ECF No. 1. On February 8, 2021, Ms. Rivera met Ms. Ternes and her mother, Ms. Jemail, to discuss renovating their home at 804 Maryland Avenue NE, in Washington, D.C. Id. ¶¶ 13, 18. At the meeting, Ms. Rivera walked Ms. Ternes through the “nature, scope, and quality” of the renovations that C.R. Home Improvement could offer. Id. ¶ 19. She boasted of the company’s success, telling Ms. Ternes that C.R. Home Improvement was “engaged in renovation projects on numerous historical homes” in Capitol Hill and had “very satisfied” customers. Id. ¶ 22. She added that the company had “significant experience” in the renovation of historical homes and the “capacity to handle such projects.” Id. ¶ 23. She said C.R. Home Employment had “two structural engineers,” id. ¶ 25, who could renovate the home “in accordance with D.C. Residential Code,” id. ¶ 27, within twelve weeks, id. ¶ 29. Ms. Rivera did not disclose that her company was neither registered to do business in D.C., nor licensed to perform home construction services there. Id. ¶¶ 30–31.

The Plaintiffs now consider most of Ms. Rivera’s statements during the meeting to be “false” and designed to “induce” them into signing a contract with C.R. Home Improvement. Id. ¶¶ 25, 27. They did so on February 18, 2021, agreeing to pay $77,550 “for the interior renovation of the subject property, along with small exterior items.” Id. ¶ 32. A copy of the contract provides detailed descriptions of the work (e.g., “[i]nstall carpet staircase”), Mot. Default J., Ex. C at 1, ECF No. 6-4, and outlines a payment schedule, id. at 4. But the contract was only the first of many agreements. The Plaintiffs signed their first additional “change order” with the Defendant on March 11, 2021, totaling $15,850, which listed tasks such as “exterior painting” and the “renovation of a staircase.” Compl. ¶ 43. They signed a second and a third change order on April 13, 2021, agreeing to pay $4,480 for “exterior renovation” and $16,500 for a “full renovation

of the third[-]floor bathroom.” Id. ¶ 45. In early May 2021, the Plaintiffs noticed that the Defendant was “failing to complete the work as promised or was otherwise engaging in substandard work[.]” Id. ¶ 47. The Plaintiffs notified the Defendant, who attempted to “placate” them, “telling them the damages would be addressed and fixed.” Id. ¶ 48. According to the Complaint, this began “a months-long process of additional, compounding misrepresentations by the Defendant[.]” Id. ¶ 48.

Despite the Plaintiffs’ concerns, they continued to authorize more payments to C.R. Home Improvement, endorsing a fourth change order on May 11, 2021, for $14,682 to cover tasks like “light installation” and “brick wall repairs,” id. ¶ 49, and a fifth on May 28, 2021, for $7,950 to pay for items like “additional light installation” and “bathroom plumbing,” id. ¶ 53. On May 31, 2021, as “follow up to an in-person meeting,” Ms. Jemail sent a letter to Ms. Rivera outlining “a number of workmanship errors, quality problems, and defects created through the Defendant’s renovation.” Id. ¶ 54. The record contains no evidence that Ms. Rivera responded. Still the Plaintiffs pushed on, signing a sixth change order on June 4, 2021, for $12,000 to cover “construction of a first-floor water closet,” id. ¶ 55, and another on August 7, 2021, for $2,200, for “additional work,” id. ¶ 56. In all, the Plaintiffs signed seven change orders totaling $73,662.

On December 10, 2021, Ms. Rivera emailed Ms. Jemail to tell her that “only a few items remained to be completed.” Id. ¶ 60. Three days later, the Plaintiffs visited the property—almost ten months after they signed the contract—and found “work that had not been finished, defects present in the house, and breaches of the prior agreements[.]” Id. ¶ 62; see also ¶ 63 (listing specifics such as “[t]he main bathroom was lacking tiling”). On June 11, 2022, Ms. Jemail met with one of C.R. Home Improvement’s employees, Ramon Batres, to go over the many unfinished projects in the home. Id. ¶ 68. She then sent a notice to C.R. Home Improvement identifying the issues. Id. (e.g. “flooring done improperly”). Ms. Rivera again “assured” her that the “items would

be corrected promptly.” Id. ¶ 69. On September 20, 2022, Ms. Jemail emailed Ms. Rivera to express concern that she was not receiving authentic reports of the project’s progress and that the home was “not habitable.” Id. ¶ 70–71. Ms. Rivera responded that she “was not even aware that her company was still working” on the Plaintiffs’ home. Id. ¶ 72.

In November 2022, the Plaintiffs again visited the house. Id. ¶¶ 32, 76. They saw “myriad defects” and “critical work” that had “not been performed[.]” Id. ¶ 76. When Ms. Jemail reached out to Ms. Rivera to reassert her concerns, Ms. Rivera replied that she was “so done” with the project and “tired of [Ms. Jemail] always accusing [the Defendant of] of doing things wrong.” Id. ¶ 77. The Plaintiffs filed a “stop work” order on November 14, 2022, alleging that the home had become “defective and dangerous[.]” Id. ¶ 78. Ms. Jemail, who was funding the project for her daughter, asserts in an affidavit that she paid C.R. Home Improvement a total of $169,492.50 over the course of the construction project. See Mot. Default J., Aff. of Jay Jemail ¶ 7, ECF No. 6-9. Left with a defective, unfinished house, the Plaintiffs had to hire contractors to “remediate and repair” the damages. Compl. ¶ 83. The Complaint states that Ms. Ternes paid three contractors to complete the work: $4,659 to Power-Up Builders, id. ¶ 85, $43,784.62 to Keil Construction, id. ¶ 88, and $1,264 to Cropp Metcalfe, id. ¶ 90. Ms. Ternes also had to “reduce and ultimately suspend” her small business, which led to $171,415.41 in lost revenue. Compl. ¶ 92; see also Mot. Default J., Aff. of Lisa Ternes ¶ 34, ECF No. 6–10. The Plaintiffs have also suffered “serious and ongoing mental and emotional distress, inconvenience, and other non-economic damages, which will continue into the future.” Compl. ¶ 95.

B. Procedural Background The Plaintiffs filed this Complaint on May 1, 2024, alleging six causes of action:

(1) violations of the DCCPPA, (2) fraudulent misrepresentation, (3) negligent misrepresentation,

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