FOR PUBLICATION
ATTORNEYS FOR APPELLANTS
: ATTORNEYS FOR APPELLEES:
JEFFREY O. MEUNIER LIBERTY L. ROBERTS
Indianapolis, Indiana KENNETH COLLIER-MAGAR
Collier-Magar & Roberts, P.C.
RICHARD M. GIESEL Indianapolis, Indiana
Gaston Cavanaugh & Giesel
Indianapolis, Indiana
IN THE
COURT OF APPEALS OF INDIANA
MICHAEL WEISS d/b/a WEISS & )
COMPANY, INC., )
)
Appellant-Defendant, )
)
CINCINNATI INSURANCE COMPANY, )
)
Appellant/Intervenor-Defendant, )
)
vs. ) No. 49A02-0212-CV-1010
)
WARREN HARPER & MAUREEN HARPER, )
)
Appellees-Plaintiffs. )
APPEAL FROM THE MARION CIRCUIT COURT
The Honorable William Lawrence, Judge
Cause No. 49C01-0001-CP-116
December 4, 2003
OPINION - FOR PUBLICATION
MAY, Judge
In 1991, Warren and Maureen Harper entered into a home improvement contract with
Weiss & Company, Inc. (Weiss).
See footnote Upon completion of the project, the Harpers
experienced water leaks and damage to the interior of their home. The
Harpers filed a complaint against Weiss in Marion Circuit Court alleging in part
they had suffered damages due to Weiss poor workmanship and home improvement fraud.
After a bench trial the trial court issued findings of fact and
conclusions of law, in which it awarded to the Harpers compensatory damages in
the amount of $157,651.04. Weiss filed a motion to correct error, which
was denied.
Weiss raises five issues on appeal, which we consolidate and restate as:
Whether the trial courts findings are supported by the evidence and sufficiently specific
to support the judgment;
Whether the trial court properly included in its award of costs items other
than filing fees and statutory witness fees; and
Whether the award of attorneys fees to the Harpers was an abuse of
discretion.
We affirm.See footnote
FACTS AND PROCEDURAL HISTORY
In 1991, the Harpers contracted with Weiss to construct a two-story addition to
the Harpers home. Weiss began construction in the summer of 1991 and
substantially completed the work in February 1992. Shortly thereafter, water began to
leak into the home in numerous areas as a result of a poorly
constructed roof. The leaks continued for several years. The Harpers suffered
damage to the interior of their home including wet and moldy drywall, peeling
paint, water stains to the ceiling and walls, and an electrical fire in
the breaker box. The bathtub and shower in the master bath were
also improperly installed, causing additional water damage to the nearby walls of the
house.
Weiss made attempts over several years to repair the damage to the Harpers
home, at times charging for those services and on other occasions making repairs
free of charge. Despite the repairs, water continued to leak into the
home resulting in additional damage; therefore, Weiss eventually agreed to replace the roof.
During the roof replacement in the fall of 1998, more water damage
occurred to the home during a storm because the roofers had not provided
adequate coverage for the home. Despite the roof replacement, there were more
water leaks.
On September 30, 1999, the Harpers filed a complaint against Weiss alleging 1)
the Harpers had suffered damages as a result of Weiss poor workmanship resulting
in breach of contract; 2) Weiss had misrepresented the quality of the workmanship
and materials used in constructing the additions, and thereby committed home improvement fraud;
3) as a result of the defects in the home, the Harpers insurance
provider refused to renew their homeowners policy; and 4) the poor workmanship and
damage had resulted in loss of value to the home in excess of
$200,000. A three-day bench trial commenced on December 4, 2001.
See footnote
Several witnesses in the fields of structural engineering and home building and remodeling
testified regarding the quality of the addition Weiss constructed. All experts agreed
that both the original roof and the 1998 replacement roof on the Harpers
home were of poor quality. Even Weiss admitted the roof was poorly
constructed.
Dave Adams, a sales representative and manager for Maxson Remodeling and Construction, testified
regarding the repairs that should be made to correct the poor quality of
the construction of the addition and the damages that resulted to the Harpers
home. In its report, Maxson Remodeling recommended the following repairs with an
estimated total cost of $125,000 to $132,000:
1. Replace the insulation in the north and south attics, shim rafters where
needed, add support members to ridge, and re-nail rafters to ridge;
2. Replace gutters with 6-inch gutters and 3-inch by 4-inch downspouts;
3. Replace trim, flashing, siding, drip edges, and guttering around the dormers, and
prime and paint all dormers;
4. In the crawl space, install foundation vents, vapor barrier, foam board insulation
around the perimeter, dig sump pit, install existing pit, and remove and replace
one defective floor joist;
5. Replace exterior siding;
6. On the north end of the house, remove and replace roof over
doors off family room, including the wood columns, replace all exterior trim around
window, caulk and flash around window, install flashing on all windows on the
north and south ends, install new siding around windows;
7. Throughout the house, repair or replace drywall, prime and paint drywall, repair
ceilings, and paint as needed; and
8. Replace carpet in the master bedroom.
See footnote
(Ex. Vol., Plaintiffs Ex. 25; Tr. at 179-258.)
Weiss presented the testimony of William Fox, a building code inspector with experience
in home building and remodeling. Fox disagreed there was a need for
many of the repairs Maxson Remodeling recommended, proposed different methods to repair certain
defects, and opined that Maxsons budget estimate for the recommended repairs was too
high.
The trial court issued its findings of fact and conclusions of law on
October 4, 2002. It determined the materials and workmanship employed in the
construction of the addition to the Harpers home were of poor quality and
Weiss was negligent in performing all subsequent attempts to repair the damages caused
to the home.
See footnote (Appellants App. at 25.) The trial court awarded
to the Harpers $125,000, which represented the reasonable cost to repair the remaining
defects in the home, (
id. at 23-24), and also awarded damages suffered by
the Harpers in their attempts to assess and repair the damage to their
home. The total compensatory damage award was $157,651.04. The trial court
also determined that, pursuant to the home improvement contract, the Harpers as the
prevailing party were entitled to costs and attorney fees. Weiss filed a
motion to correct error, which was denied.
STANDARD OF REVIEW
The Harpers requested special findings of fact and conclusions of law pursuant to
Ind. Trial Rule 52(A). Our standard of review is therefore two-tiered:
we determine whether the evidence supports the trial courts findings, and whether the
findings support the judgment. Indianapolis Ind. Aamco Dealers Adver. Pool v. Anderson,
746 N.E.2d 383, 386 (Ind. Ct. App. 2001). We will not disturb
the trial courts findings or judgment unless they are clearly erroneous. Id.
Findings of fact are clearly erroneous when the record lacks any reasonable
inference from the evidence to support them. Culley v. McFadden Lake Corp.,
674 N.E.2d 208, 211 (Ind. Ct. App. 1996). A judgment is clearly
erroneous when a review of the record leaves us with a firm conviction
that a mistake has been made. Carroll v. J.J.B. Hilliard, W.L. Lyons,
Inc., 738 N.E.2d 1069, 1075 (Ind. Ct. App. 2000), trans. denied 761 N.E.2d
411 (Ind. 2001). We will neither reweigh evidence nor judge the credibility
of witnesses, but will consider only the evidence favorable to the judgment and
all reasonable inferences to be drawn therefrom. Anderson, 746 N.E.2d at 386;
Gunderson v. Rondinelli, 677 N.E.2d 601, 603 (Ind. Ct. App. 1997).
DISCUSSION AND DECISION
1. Adequacy of Findings of Fact
Special findings are those which contain all facts necessary for recovery by a
party in whose favor conclusions of law are found.
Bowman v. Bowman,
686 N.E.2d 921, 925 (Ind. Ct. App. 1997). The findings are adequate
if they are sufficient to support a valid legal basis for the trial
courts decision. Id. The purpose of special findings of fact is
to provide reviewing courts with the theory on which the judge decided the
case, so they should contain a statement of the ultimate facts from which
the trial court determined the legal rights of the parties. Id.
On appeal, we construe the trial courts findings together liberally in support of
the judgment; however, we may not add anything to the special findings of
fact by way of presumption, inference, or intendment. Baltimore & Ohio R.R.
Co. v. Taylor, 589 N.E.2d 267, 271 (Ind. Ct. App. 1992), trans. denied
600 N.E.2d 543 (Ind. 1992) (citation omitted). Where, as here, the issue
on review relates to the award of damages, the damage award should not
be reversed if it is within the scope of the evidence before the
trial court. Smith v. Washington, 734 N.E.2d 548, 550 (Ind. 2000), rehg
denied.
In its finding of fact number 87, the trial court determined [i]n addition
to the amount in Finding 88,
See footnote
[the Harpers] have sustained additional damages in
the amount of $125,000, which represents the reasonable cost to repair the remaining
defects in [the Harpers] home caused by [Weiss] breach of contract. (Appellants
App. at 23-24) (footnote added).
Sufficiency of Findings
Weiss contends the trial court failed to issue findings sufficient to support its
award of $125,000 to the Harpers.
See footnote
Weiss notes that in finding number
86, the trial court set out a specific amount of damages for each
repair the Harpers had previously made. However, an equivalent finding was not
made to support the award of $125,000 in damages under Finding nos. 87
and 88. (Appellants Br. at 6.)
In most of its first 85 findings, the trial court described in great
detail Weiss inadequate workmanship and use of poor quality materials. In finding
number 86, it determined the damages due the Harpers for the repairs they
had already made. Finding number 87 addressed damages representing the reasonable cost
to repair the
remaining defects (Appellants App. at 23-24) (emphasis supplied) in the
Harpers home caused by Weiss breach. We decline to hold the trial
court was obliged to restate in finding number 87 all the defects that
had not yet been repaired and were therefore not itemized in finding number
86.
Furthermore, the finding that repair of the remaining defects would cost $125,000 was
within the scope of the evidence. The trial court had before it
the report by Maxson Remodeling and Construction referred to above, which listed in
detail the repairs that remained necessary and estimated the cost of those repairs
to be in the range of $125,000 to $132,000. It heard testimony
to the same effect. We acknowledge the sharp conflict in the evidence
in the record as to whether there are defects, the extent of the
defects, and the cost to repair them, (Appellants Br. at 7), but we
must decline Weiss invitation to reweigh that evidence. The damage award to
the Harpers was well within the scope of the evidence before the trial
court. The findings of fact therefore are sufficient to support the award.
Specificity of Findings
Weiss argues finding number 87 lacks the specificity
See footnote
required to enable the parties
and reviewing court to understand the trial courts reasoning.
See footnote
Specifically, Weiss argues
that although there was conflicting evidence with regard to the necessary repairs and
their cost,
the trial court made no findings as to what comprised the other remaining
defects and what is the reasonable cost to repair [] necessary to correct
each individual item. The trial court merely stated a total amount for
all remaining defects. Identification by the trial court of what constitutes the
other remaining defects and what is the reasonable cost to repair to correct
each is vital to permit this Court to give a meaningful review of
the findings and judgment.
(Id. at 9.)
As explained above, a review of the findings as a whole leaves no
doubt as to which were the remaining defects referred to in finding no.
87. A special finding of fact, as opposed to a general finding,
contains all facts necessary for recovery by a party in whose favor conclusions
of law are found and should contain a statement of the ultimate facts
from which the trial court determines legal rights of the parties to the
action. Willett v. Clark, 542 N.E.2d 1354, 1357 (Ind. Ct. App. 1989).
In an action for money damages the facts necessary for recovery are
facts that indicate there was damage and that support the amount of the
award.
See footnote
The trial court explained in great detail in its 88 findings
of fact the problems that gave rise to the damages it ultimately awarded.
Its findings were sufficiently specific.
2. Award of Costs
The trial court awarded the Harpers costs in the amount of $7,150.91.
It included as costs such items as expert witness fees, travel expenses, deposition
expenses, and photocopies. Weiss asserts the award was error because the term
costs in Ind. Code § 34-52-1-1 and T.R. 54(D) is strictly interpreted to
include only filing fees and statutory witness fees. (Appellants Br. at 15.)
Even assuming for purposes of argument Weiss interpretation of the term costs
is correct, see, e.g., Van Winkle v. Nash, 761 N.E.2d 856 (Ind. Ct.
App. 2002), we find no error as the costs were awarded pursuant to
the contract between the Harpers and Weiss and not the code provision or
trial rule.
The parties contract, which appears to have been drafted by Weiss, provides that
the costs of litigation are an element of damages that may be recovered
by the prevailing party. (Ex. 1 at 13.) The contract does
not define costs of litigation, but the parties must have intended that the
costs of litigation would include more than statutory costs as the contractual provision
explicitly includes attorneys fees, which are not included in the category of filing
fees and statutory witness fees. We cannot say the trial court erred
in awarding such items as expert witness fees, travel expenses, deposition expenses, and
photocopies as costs of litigation pursuant to the parties contract.
3. Excessiveness of Attorneys Fees
The trial court awarded the Harpers attorneys fees in the amount of $55,000.
Weiss argues the fees were excessive.
See footnote
In reviewing a trial courts award of attorneys fees, we apply an abuse
of discretion standard.
Mason v. Mason, 775 N.E.2d 706, 711 (Ind. Ct.
App. 2002), trans. denied 792 N.E.2d 34 (Ind. 2003). A trial court
has wide discretion in awarding attorneys fees, and we will reverse such an
award only if it is clearly against the logic and effect of the
facts and circumstances before the court. Id. The trial court may look
at the responsibility of the parties in incurring the attorneys fees. Id.
The trial judge has personal expertise he or she may use when
determining reasonable attorneys fees. Id.
The factors to be considered in determining the reasonableness of a fee include:
(1) the time and labor required, the novelty and difficulty of the questions
involved, and the skill requisite to perform the legal service properly;
(2) the likelihood, if apparent to the client, that the acceptance of the
particular employment will preclude other employment by the lawyer;
(3) the fee customarily charged in the locality for similar services;
(4) the amount involved and the results obtained;
(5) the time limitations imposed by the client or by the circumstances;
(6) the nature and length of the professional relationship with the client;
(7) the experience, reputation, and ability of the lawyer or lawyers performing the
services; and
(8) whether the fee is fixed or contingent.
Ind. Professional Conduct Rule 1.5(a).
The Harpers filed an affidavit indicating the case spanned over four years and
involved four expert witnesses, a number of lay witnesses, extensive discovery and three
full days of testimony. The affidavit indicates the Harpers counsel spent 462
hours working on the case and sought $150 per hour for their services.
We acknowledge Weiss characterization of this case as a simple contractual claim,
the pursuit of which required no special skill or extraordinary knowledge. (Appellants
Br. at 16.) Still, in light of the time and effort spent
in this litigation we cannot say the trial court abused its discretion in
awarding $55,000 in attorneys fees.
CONCLUSION
The trial courts finding number 87 was supported by the evidence and was
within the scope of the evidence. The trial court did not err
in awarding to the Harpers costs of litigation pursuant to the contract and
did not abuse its discretion in its award of attorneys fees. We
accordingly affirm.
Affirmed.
KIRSCH, J., concurs.
MATHIAS, J., dissents with separate opinion.
IN THE
COURT OF APPEALS OF INDIANA
MICHAEL WEISS d/b/a WEISS & )
COMPANY, INC., )
)
Appellant-Defendant, )
)
CINCINNATI INSURANCE COMPANY, )
)
Appellant/Intervenor-Defendant, )
)
vs. ) No. 49A02-0212-CV-1010
)
WARREN HARPER & MAUREEN HARPER, )
)
Appellees-Plaintiffs. )
MATHIAS, Judge, dissenting
I respectfully dissent.
The majority acknowledges that [t]he purpose of special findings of fact is to
provide reviewing courts with the theory upon which the judge decided the case,
so they should contain a statement of the ultimate facts from which the
trial court determines the legal rights of the parties.
Bowman v. Bowman,
686 N.E.2d 921, 925 (Ind. Ct. App. 1997) (citing Willett v. Clark, 542
N.E.2d 1354, 1357 (Ind. Ct. App. 1989)). Further, [o]n appeal, we construe
the trial courts findings together liberally in support of the judgment; however, we
may not add anything to the special findings of fact by way of
presumption, inference, or intendment. Baltimore & Ohio R.R. Co. v. Taylor, 589
N.E.2d 267, 271 (Ind. Ct. App. 1992), trans. denied (citation omitted).
In finding number 87, the trial court awarded $125,000 to the Harpers, which
represents the reasonable cost to repair the remaining defects in their home.
In response to Weisss argument that finding number 87 is not sufficiently specific
to support the damage award, the majority concludes:
As explained above, a review of the findings as a whole leaves no
doubt as to which were the remaining defects referred to in finding no.
87. . . . In an action for money damages the
facts necessary for recovery are facts that indicate there was damage and that
support the amount of the award. The trial court explained in great
detail in its 88 findings of fact the problems that gave rise to
the damages it ultimately awarded. Its findings were sufficiently specific.
Slip op. at 9-10. I disagree.
At trial, the contested issues were 1) what defects still remained in the
Harpers home, which required repair; 2) the method by which those defects were
to be repaired; and 3) the cost to repair the remaining defects.
The Harpers witness, Dave Adams of Maxon Construction, and Weisss witness, William Fox,
gave conflicting testimony concerning those issues, particularly regarding which, among the alternative methods,
was required to repair the siding and drywall in the house. For
example, Adams testified that the exterior siding needed to be replaced, but Fox
stated that the siding could be repaired at a significantly lower cost by
either scraping and repainting it or by placing shims under the siding to
allow moisture to evaporate. Tr. pp. 194, 439-41, 465-66. Despite lengthy
testimony on this issue, the trial court never addressed it in its findings.
The trial court simply found that the siding was not back-primed, and
as a result, it absorbed water, which caused the paint on the exterior
of the home to blister with water pockets, and caused the paint to
peel. Appellants App. p. 22.
Additionally, several recommended repairs listed in the Maxon Remodeling report discussed at trial
were not specifically addressed by the trial court in its findings. For
example, Dave Adams testified that the insulation in the north and south attics
was damaged and needed to be replaced, but Weisss expert disagreed. Tr.
pp. 187-88, 438. The trial court made no finding with regard to
whether the insulation was damaged or whether it should be replaced. Adams
also determined that repairs were needed to the ceilings in various rooms in
the Harpers home. See Ex. Vol., Plaintiffs Ex. 25; Tr. pp. 179-258
(testimony of Dave Adams). Once again, the trial court failed to make
any findings concerning whether the ceilings required repair.
Given the trial courts $125,000 judgment, although the trial court never referenced the
Maxon Remodeling report in its findings, I must presume that the trial court
relied heavily on the report in issuing that damage award. The trial
court was clearly entitled to choose whom to believe among the experts.
However, as noted above, when our court reviews special findings of fact and
conclusions of law, we may not add anything to those findings by way
of presumption, inference, or intendment. Therefore, under these circumstances, I reluctantly
conclude that the trial court did not issue sufficiently specific findings to support
its $125,000 judgment and would remand this case for a new trial limited
to the issue of damages.
See footnote
Footnote:
When the Harpers entered into the contract, the company was known as
Weiss & Curise, Inc., but after Curise left the company, it became Weiss
& Company, Inc.
Footnote:
The Harpers request for oral argument is denied.
Footnote:
On November 13, 2001, Cincinnati Insurance Company intervened in the lawsuit.
Footnote:
This list is a summary of the repairs Maxson Remodeling recommended.
Maxsons report itemized the repairs by stating the room or area of the
house where the defects were located.
Footnote:
Weiss does not challenge that determination in this appeal.
Footnote:
Finding number 88 states Plaintiffs have sustained compensatory damages in the amount
of $157,651.04. (Appellants App. at 24.) It therefore appears the trial
court meant to refer in finding number 87 to damages in addition to
the amount in finding number 86, and not finding number 88.
Footnote:
Weiss also argues the $125,000 award was excessive, but premises that allegation
of error only on the lack of evidentiary support for finding number 87.
We therefore do not address the excessive nature of the verdict separately
from the question whether the findings were sufficient to support the award.
Footnote:
Weiss premises this allegation of error on a statement from a workers
compensation case, Outlaw v. Erbrich Products Co., Inc., 758 N.E.2d 65 (Ind. Ct.
App. 2001). There we stated that findings must be specific enough to
provide the reader, whether it be the claimant, the employer, or this court,
with an understanding of the Boards reasons, based on the evidence, for its
finding of ultimate fact. Id. at 68.
Weiss acknowledges
Outlaw was a workers compensation case but asserts, without explanation or
citation to authority, that the courts analysis of the specificity required for findings
of fact applies equally to finds [sic] of fact made by a trial
court. (Appellants Br. at 11.) We decline to so hold.
The
Outlaw statement on which Weiss relies in this civil action for damages
was based on Perez v. U.S. Steel Corp., 426 N.E.2d 29, 30 (Ind.
1981). There our supreme court determined a finding of the workers compensation
board was inadequate to support its conclusion that Perez was totally disabled:
It does not reveal the factual basis for the Boards ultimate determination of
Perezs claim, which is the quintessential purpose of the requirement that administrative agencies
enter specific findings of fact as part of their orders. (Emphasis supplied.)
Our supreme court noted as the General Assembly undoubtedly recognized in establishing
the fact-finding requirement, specific findings of fact are essential to an effective system
of administrative law. Id. (emphasis supplied). The reasons for the fact-finding
requirement have to do with facilitating judicial review, avoiding judicial usurpation of administrative
functions, assuring more careful administrative consideration, helping parties plan their cases for rehearings
and judicial review, and keeping agencies within their jurisdiction. Id. (emphasis supplied)
(quoting Kenneth Davis, 2 Administrative Law Treatise § 16.05 (1958)). The Perez
court relied also on statutory requirements for specific findings in the version of
the Administrative Procedure Act in effect at that time.
The legal standard on which Weiss relies in this civil lawsuit thus appears
applicable only to administrative fact-finding. We choose instead to apply the more
useful standard of whether the damage award was within the scope of the
evidence before the trial court. Under that standard, the trial court provided
findings adequate to support the judgment.
Footnote:
Weiss also argues finding number 87 is actually a conclusion of law,
which cannot be accepted as a finding of fact. However, in Hughes
v. City of Gary, 741 N.E.2d 1168 (Ind. 2001), our supreme court noted
that where a trial court has made special findings pursuant to a partys
request under Trial Rule 52(A), the reviewing court may affirm the judgment on
any legal theory supported by the findings. Any debate over the classification
of each trial court finding as one of fact versus law does not,
therefore, affect our analysis. Id. at 1172 n.6. We acknowledge the
Harpers position that finding number 87 is not a legal conclusion, but a
factual determination as to the cost to repair the defects in their home.
Footnote:
Weiss also asserts, without explanation or citation to authority, that [t]his additional
specificity should include identification of . . . what repairs are necessary to
correct those defects. (Appellants Br. at 13.) We decline to impose
on the trial court an obligation to so micromanage the remediation of the
defects in the Harper home. As the Harpers correctly note, this is
an action for damages for Weiss breach, and not an action for specific
performance. The trial court was not obliged in this action for damages
to explain how to repair each problem, just as a trial court in
a medical malpractice case would not be obliged to advise a physician or
physical therapist how he or she might treat a plaintiffs medical problems resulting
from the malpractice.
Footnote:
Weiss also argues the award was improper because the Harpers failed to
raise in the pleadings its request for attorneys fees and failed to present
evidence at trial regarding a contractual claim for attorneys fees. The Harpers
explicitly requested in their complaint reasonable attorneys fees. (Appellants App. at 60.)
The contract, which explicitly provided for recovery of attorneys fees by the
prevailing party, was admitted into evidence. We therefore decline to address that
allegation of error.
Footnote:
Under most circumstances, remanding this case to the trial court to make
specific findings of fact concerning the defects to be repaired would be an
appropriate resolution.
See Willet, 542 N.E.2d at 1358-59. However, Judge Lawrence,
who presided over the bench trial, has since retired from the Marion Circuit
Court, and now serves as a magistrate in the United States District Court
for the Southern District of Indiana.