McGinty v. Hennen
372 S.W.3d 625
| Tex. | 2012Background
- Villas By Design built Hennen’s home; post-move leaks and mold were found.
- Inspection confirmed widespread contamination; remediation costs exceeded $651,000.
- Hennen sued Villas for negligence, warranties, contract, and DTPA violations, among others.
- Jury awarded remedial damages $651,230.72 and difference-in-value damages $262,885.83, plus exemplary damages and attorney’s fees.
- Trial court limited the action to breach-of-contract damages; denied JNOV on the remedial award.
- Texas Supreme Court granted review to resolve whether remedial or value damages were proven and recoverable
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Reasonableness of remedial damages | Hennen: costs were reasonable and necessary repairs. | Villas: no evidence shows reasonableness; reliance on estimates insufficient. | Remedial damages not proven reasonable or necessary |
| Difference-in-value damages as of closing | Hennen could prove value difference by closing date; jury could infer from cost. | No evidence of house value at closing; trial relied on later testimony. | No evidence supports difference-in-value at closing |
| Court of appeals' affirmance on damages | Appeals court properly affirmed because damages were supported. | Court of appeals erred by affirming based on insufficient evidence of reasonableness and value. | Court of appeals reversed; judgment for Hennen on breach-of-contract damages reversed; take-nothing judgment entered |
| Waiver of arguments on cross-appeal | Hennen waived cross-points because no petition for review filed. | Waiver applies; cross-points not preserved for review. | Cross-issues waived; no relief |
Key Cases Cited
- Mustang Pipeline Co. v. Driver Pipeline Co., 134 S.W.3d 195 (Tex. 2004) (out-of-pocket costs alone do not prove reasonableness; must show charges are reasonable)
- Turner, Collie & Braden, Inc. v. Brookhollow, Inc., 642 S.W.2d 160 (Tex. 1982) (two measures of damages for breach of construction contract)
- Dall. Ry. & Terminal Co. v. Gossett, 294 S.W.2d 377 (Tex. 1956) (recovery requires evidence that charges are reasonable)
- Akin, Gump, Strauss, Hauer & Feld, L.L.P. v. Nat'l Dev. & Research Corp., 299 S.W.3d 106 (Tex. 2009) (measurements and evidentiary standards for damages; closing-date value guidance)