Mutual of Enumclaw Insurance v. Gregg Roofing, Inc.
315 P.3d 1143
Wash. Ct. App.2013Background
- MOE appeals a $1.5 million jury verdict for Gregg Roofing on tortious interference with a business relationship claim.
- Evidence showed Gregg Roofing suffered minimal lost profits; damages largely reflected injury to reputation, which Gregg Roofing failed to quantify.
- Parkside Church hired Gregg Roofing; a rainstorm damaged interior after Gregg Roofing removed the roof; MOE insured claim was subrogated to the church and paid CPR for repairs.
- Lowrie, MOE’s adjuster, persuaded the church to terminate Gregg Roofing and hire CPR, with alleged kickbacks from Chill; CPR performed unnecessary repairs for insurer payments.
- Gregg Roofing did not present reliable quantifiable damages for reputational harm; jury verdict lacked a clear damages breakdown, and MOE moved for judgment as a matter of law or remittitur/new trial.
- On appeal, the court held that damages for injury to a business’s reputation require quantifiable economic harm; the trial record did not provide sufficient evidence, so a new trial on damages is required.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Damages for reputation injury require quantification | Gregg Roofing: reputation injury suffices without quantification. | MOE: needs measurable economic loss to support reputation damages. | Evidence insufficient; require quantifiable damages; new trial on damages ordered. |
| Remedy for insufficient damages evidence | Remittitur/new trial not needed; full award stands. | New trial or reduction appropriate due to speculative damages. | New trial on damages appropriate; remittitur not warranted; jury liability findings upheld. |
| Scope of new trial if damages retried | New trial should cover all issues again. | Limit new trial to damages only since liability issues resolved. | Limit new trial to damages only. |
Key Cases Cited
- Lewis River Golf, Inc. v. O. M. Scott & Sons, 120 Wn.2d 712 (1993) (loss of goodwill must be proven with reasonable certainty; expert testimony often helps quantify goodwill)
- Fisons Corp. v. Washington State Physicians Ins. Exch., 122 Wn.2d 299 (1993) (damages for loss of professional reputation may be proven by nonquantified personal opinions)
- Malarkey Asphalt Co. v. Wyborney, 62 Wn. App. 495 (1991) (Restatement 774A guidance on damages for contractual interference)
- Lincor Contractors, Ltd. v. Hyskell, 39 Wn. App. 317 (1984) (negligible impact; scope of damages damages for interference considerations)
- Island Air, Inc. v. LaBar, 18 Wn. App. 129 (1977) (reputation damages recoverable in interference with business relationships)