Hutchison v. Pyburn

567 S.W.2d 762 (1977)

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Nature of the Case

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Facts

P purchased a house and lot from D for $24,000.00. The home had been built by defendant Jack Williams. Ps noticed seepage from their sewage disposal system, investigated, and discovered that their property had not been approved as a home site by the Metropolitan Board of Health because it lacked the requisite topsoil to sustain the septic tank and overflow field needed for sewage disposal. The Metropolitan Department of Codes Administration had been informed of the problem and had issued a building permit to defendant Jack Williams only by mistake. D had become aware of the sewage problem after purchasing the property from Williams and had prevailed on Williams to release him from his obligation to purchase it, whereupon D and Williams negotiated the sale to P. P sued Ds charging that the failure to inform them of the sewage problem amounted to fraud and deceit and that the condition of the property represented a breach of the warranties contained in the deed. The Chancellor allowed Ps rescission of the contract, incidental damages in the form of expenses incurred in connection with the property, moving costs, and attorney's fees, from all of which was deducted the reasonable rental value of the property for the period of P's occupancy. In addition to the sum due P in incidental damages, which was set at $3,168.94, the Chancellor assessed $5,000.00 in punitive damages against Ds and made a specific finding that Ds' misrepresentation was fraudulent. A motion to rehear was filed, but that was denied. Ds appealed contending that the award of punitive damages was improper.