Landis v. William Fannin Builders, Inc.
Court of Appeals of Ohio
951 N.E.2d 1078 (Ohio Ct. App. 2011)
Landis and Weidman (plaintiffs) hired Fannin Builders (defendant) to build a $356,750 custom rustic-style home, specifying T1-11 exterior siding with two coats of a particular semi-transparent green stain after receiving assurances Fannin had relevant experience. Fannin's supplier, 84 Lumber, subcontracted the staining to PACE, which underestimated the sheets needed and had to stain 19 extra sheets separately, producing a visibly darker batch; Fannin's field superintendent assured the plaintiffs a second coat would blend the mismatched shades, but it didn't, leaving the house with an unwanted striped appearance that multiple repair attempts failed to fix. When Fannin proposed masking the mismatch with a solid stain, the plaintiffs rejected that fix because it would have destroyed the rustic look they'd specifically contracted for, and after suing for breach of contract, they were awarded $66,906.24, the full cost of replacing the mismatched siding; Fannin appealed, arguing damages should have been capped at the $8,500 diminution in the home's market value instead.
Whether a court may award damages based on the cost of restoration in a construction contract case even when that cost exceeds the diminution in the property's market value.