Legacy Builders, LLC, a Wyoming Limited Liability Company and Joe Seneshale, an individual
2014 WY 103
| Wyo. | 2014Background
- Brittany and Brian Andrews contracted with Legacy Builders to construct and obtain a single-family home in Rock Springs, Wyoming, with numerous defects discovered post-purchase.
- Legacy conducted soils tests showing expansive soils; engineer recommended precautions but Legacy did not share the report with the Andrews.
- Andrews notified Legacy of twenty-seven defects in 2006; Legacy failed to correct them, and repairs continued to be needed over years.
- Expert testimony at trial showed potential repairs including foundation stabilization with helical piers; Andrews' expert estimated higher costs than Legacy's.
- Trial court awarded 319,302 in damages based on cost of repairs (foundation stabilization, unworkmanlike construction, and temporary housing).
- On appeal, Legacy challenged the measure of damages, reliance on future-damage estimates, and the finding that expansive soils caused damage; the court affirmed but remanded to correct the damage amount to 189,498.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| What damages measure applies when cost of repairs may exceed loss in value? | Andrews argues cost of repair is appropriate; diminution in value not proven. | Legacy argues diminution in value should govern where damages are disproportionate. | Generally the lesser of cost of repairs or diminution in value governs; if diminution evidence is absent, cost of repairs may apply. |
| Did the court err in relying on future-cost estimates for items not yet damaged and in attributing damage to expansive soils? | Andrews substantiated future repairs and causal link to expansive soils; evidence supports damages. | Legacy argues future damages should be limited to currently damaged items; soils issue contested. | Court did not err in relying on credible future-repair evidence, but reduced recoverable future-damage by excluding items (roof/trusses) not reasonably foreseeable. |
Key Cases Cited
- City of Kemmerer v. Wagner, 866 P.2d 1283 (Wyo. 1993) (lower of cost of repairs or diminution in value; extensive damage may warrant market-value measure)
- Ely v. Kirk, 707 P.2d 706 (Wyo. 1985) (damages for real property inversely related to repair vs. value loss)
- Belle Fourche Pipeline Co. v. Elmore Livestock Co., 669 P.2d 505 (Wyo. 1983) (damage measurement framework in property disputes)
- Tavares v. Horstman, 542 P.2d 1275 (Wyo. 1975) (implied warranty damages framework for new homes)
- Graham v. State, 16 P.3d 712 (Wyo. 2001) (Restatement damages approach for contract cases; reference on §348)
