Frank and Karen Naples contracted with Keystone to build a new home for them for $620,500. The

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Frank and Karen Naples contracted with Keystone to build a new home for them for $620,500. The work was warranted by the contract. Soon after they moved into the home, major problems were noticed. The builder sent crews several times to do repair work, but problems continued.

An expert, Dykins, was hired to evaluate the home. He stated that to repair the problems, extensive work would be needed that he detailed. The estimated cost was $113,511. Painting would be an additional $15,819. The Naples sued Keystone for that amount.

The trial court held for the Naples but awarded them $59,140, stating that the higher damage figure had "not been established with a sufficient degree of certainty." The Naples appealed the damage award.


1. Suppose the Naples are awarded all damages requested but have the work done for less than the amount awarded. Should the difference between the award and the actual costs incurred have to be returned?

2. Do you think it would be reasonable for the Naples to receive compensation for the time cost of their troubles?


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The Legal Environment of Business

ISBN: 978-0538473996

11th Edition

Authors: Roger E Meiners, Al H. Ringleb, Frances L. Edwards

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