Hess v. Canberra Development Co., LC
2011 UT 22
Utah2011Background
- In 2004, Hesses purchased Lot 41 in Canberra Development from Canberra Development Company, LC, and the sale occurred without disclosure of the AGEC soil report.
- AGEC's report warned of collapsible, moisture-sensitive soils and identified test pit twelve located on Lot 41's eventual backyard.
- The Hesses built a home on Lot 41; shortly after move-in, the home experienced significant settlement due to unstable soils beneath the foundation.
- The Hesses discovered the AGEC Report after purchase and later incurred substantial costs to investigate and repair.
- The district court allowed fraudulent nondisclosure to go to the jury; the jury awarded economic damages and noneconomic damages, with the Developers moving for JNOV and remittitur.
- The Utah Supreme Court reduced the awarded economic damages from $536,750.50 to $330,057.30 while affirming other rulings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether there was sufficient evidence for JNOV on nondisclosure | Hesses: sufficient evidence of duty and knowledge | Developers: insufficient evidence of duty to disclose | No error; evidence supported duty and disclosure |
| Whether the court should have given an instruction on intervening/superseding causes | Hesses: instruction not required; fraud claims barred by intent | Developers: should have limited liability via intervening acts | Instruction not required; not applicable to intentional fraud |
| Whether remittitur or new trial was warranted for economic damages | Hesses: damages proven total $330,057.30; jury miscalculated | Developers: award excessive and unsupported | Remittitur warranted; reduce to $330,057.30 |
Key Cases Cited
- Smith v. Fairfax Realty, Inc., 2003 UT 41 (Utah Supreme Court, 2003) (adequate briefing and standard for JNOV and evidence review)
- Brookside Mobile Home Park, Ltd. v. Peebles, 2002 UT 48 (Utah Supreme Court, 2002) (standard for damages and sufficiency of evidence)
- Smith v. Frandsen, 2004 UT 55 (Utah Supreme Court, 2004) (duty limits and continued liability in fraud/intentional torts)
- Yazd v. Woodside Homes Corp., 2006 UT 47 (Utah Supreme Court, 2006) (standard of care and expert testimony in disclosures)