Twin Lakes Manufacturing Co. v. Coffey

281 S.E.2d 864, 222 Va. 467, 32 U.C.C. Rep. Serv. (West) 770, 1981 Va. LEXIS 330
CourtSupreme Court of Virginia
DecidedSeptember 11, 1981
DocketRecord 790390
StatusPublished
Cited by12 cases

This text of 281 S.E.2d 864 (Twin Lakes Manufacturing Co. v. Coffey) 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
Twin Lakes Manufacturing Co. v. Coffey, 281 S.E.2d 864, 222 Va. 467, 32 U.C.C. Rep. Serv. (West) 770, 1981 Va. LEXIS 330 (Va. 1981).

Opinions

POFF, J.,

delivered the opinion of the Court.

The manufacturer of a mobile home appeals from a judgment awarding the purchasers damages for breach of an implied warranty of merchantability.

The judgment was entered in favor of the purchasers, Davis F. Coffey and Evada J. Coffey, against the appellant, Twin Lakes Manufacturing Company, Mobile Home Division of the Key Company (Twin Lakes), one of several defendants named in the motion for judgment. The evidence shows that the Coffeys signed a contract in December 1974 to purchase a “double-wide” mobile home (manufactured by Twin Lakes) from R & R Mobile Homes (R & R). The Coffeys completed arrangements to pay the $15,191.60 purchase price in April 1975, and R & R towed the home in two sections to the Coffeys’ lot. As the home was being installed, Reginald P. Johnson, a partner in R & R, noticed that the frame had been “broken and rewelded”, that it was “bow[ed]” in two places, and that “on the front side ... it looked like it. . . had been dropped.” As a result, he found it difficult to align and join the two sections and to level the combined unit on its foundation.

The Coffeys had inspected the separated sections on R & R’s sales lot but had found nothing amiss except a defective door and paneling and “some little mouldings here and there that was loose.” Shortly after the installation, the Coffeys complained to R & R about major defects they had discovered, and R & R conveyed their complaint to Twin Lakes. Twin Lakes engaged Marion Gleaton, a man with 27 years’ experience in selling, transporting, installing, and repairing mobile homes, to examine the Coffeys’ home. Gleaton visited the home in May 1975 and pre[471]*471pared a list of 72 defects. The list included bulges, creases, and buckles in the interior and exterior walls. There were “gaps” between the walls and the ceilings. The floors were buckled and unlevel. The roof was not properly secured, and the ceiling showed evidence of leaks. Doors, windows, and cabinets were out of plumb, and some were inoperable. The plumbing leaked, and kitchen drain pipes sloped in the wrong direction.

Gleaton testified that the Coffeys’ home was “[o]ne of the most deplorable degradations of a manufactured home . . . that I’ve ever seen in my life.” He felt that an inspection of the two sections before they were joined would not necessarily have disclosed the defects he found. “Maybe the walls weren’t buckled then . . . but whenever you put pressure on that home to level it up and if that home is not built square and things are not right for fitting together and you force it to make it fit then you’re going to introduce a buckle, which yes, is the manufacturer’s fault. . . .” He considered the home beyond repair “[bjecause the way a mobile home is built you don’t go in and repair them unless you tear them apart and start all over again. Now, you could patch it . . . but you end up with not a repaired item, a patched item.” Asked what value he placed on the home, Gleaton replied that “if somebody had said, Gleaton, I’ll give you this home if you’ll move it out of here, I would have refused it. I put no value on it at all

Mr. Coffey discussed Gleaton’s list with a Twin Lakes’ representative who told him to “go ahead and move in the home, that they would take care of the items.” Meanwhile, the Coffeys had sold their former residence and “had to get out,” so they moved into the Twin Lakes home in August 1975.

On several occasions, Twin Lakes sent workers to repair minor defects, some of which proved to be beyond repair, but the major defects remained. In February 1976, Mr. Coffey met with the treasurer of Twin Lakes’ parent corporation, gave him a list of his complaints, and was assured that “he would take care of them.” On August 10, 1976, the Coffeys filed their motion for judgment.

At trial, the Coffeys, who had continued to live in the home, introduced 32 photographs taken in March 1976. Mr. Coffey testified that the photographs showed the principal defects in the home as they existed when Gleaton conducted his inspection in May 1975 and that those defects had not been corrected.

[472]*472Called as a witness by Twin Lakes, Jessie Hurt, county building official, testified that he went to the Coffeys’ home in April 1976 to investigate seven alleged violations of standards promulgated by the State Fire Marshall’s Office, State Corporation Commission. Hurt “found that the seven deficiencies had been corrected” and that the home satisfied all “safety” and “sanitary” standards. On cross-examination, Hurt explained that he was not “concerned with whether the frame is bent” or with other defects unrelated to such standards.

Twin Lakes also called Steve Usry, another expert witness, who had visited the Coffeys’ home eight days before the trial. Accompanied by Coffey and using Gleaton’s list as a guide, Usry inspected the defects and agreed that extensive repairs were necessary. However, he attributed some of the defects to faults in the foundation and others to improper installation. In U.sry’s opinion, the home could be repaired on its site for $3,200, and his opinion was endorsed by his service manager.

The trial court, sitting without a jury, found that Twin Lakes was liable to the plaintiffs for breach of implied warranty; that the date of acceptance by the purchasers was “when this suit was instituted August 10, 1976”; that, on that date, the value of the home as warranted was $15,191.60; that the measure of damages was the difference between that value and the value of the defective home on the date of acceptance, see Code § 8.2-714(2); and that the home was worthless on that date.

In the first of two assignments of error, Twin Lakes asserts that “the plaintiffs failed to establish . . . that the implied warranty of merchantability . . . was breached by the defendant” and that the trial court erred in overruling the motion to strike the plaintiffs’ evidence.

Preliminarily, the defendant argues that “the implied warranty of merchantability [was] waived by the plaintiffs when they inspected the mobile home.” We reject this argument. “[W]hen the buyer before entering into the contract has examined the goods . . . there is no implied warranty with regard to defects which an examination ought in the circumstances to have revealed to him.” Code § 8.2-316(3)(b). The superficial defects the Coffeys observed when they examined the separated sections of the mobile home had only a marginal effect on the merchantability of the goods. The skewed frame and the resulting distortion in construction of the superstructure were the essence of the breach of war[473]*473ranty. These defects in manufacture did not become apparent, even to experienced workmen, until pressure was applied to join the two sections and level the unit on its foundation. Such latent defects are not those contemplated by § 8.2-316(3)(b).

Addressing the gravamen of its first complaint, Twin Lakes maintains that the evidence was not sufficient to prove a breach of the implied warranty of merchantability. “Goods to be merchantable must be at least such as . . . are fit for the ordinary purposes for which such goods are used.” Code § 8.2-314(2)(c). Alluding to this language, the defendant insists that “the home was obviously reasonably fit for the ordinary purpose for which it was intended . . .

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Twin Lakes Manufacturing Co. v. Coffey
281 S.E.2d 864 (Supreme Court of Virginia, 1981)

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Bluebook (online)
281 S.E.2d 864, 222 Va. 467, 32 U.C.C. Rep. Serv. (West) 770, 1981 Va. LEXIS 330, Counsel Stack Legal Research, https://law.counselstack.com/opinion/twin-lakes-manufacturing-co-v-coffey-va-1981.