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Real Property
Professional Negligence
Failure to Disclose

Portia Reid, Ronald Gaines v. Daystar Termite Control Inc., Mark Watt, Kelly Watt, Vince Espinoza, Shirley Lee, Prudential Realty

Published: Dec. 9, 2003 | Result Date: Jul. 2, 2003 | Filing Date: Jan. 1, 1900 |

Case number: 292070 Verdict –  $355,000

Judge

John E. Griffin Jr.

Court

Stanislaus Superior


Attorneys

Plaintiff

Richard G. Hyppa


Defendant

John Steven Cechini


Experts

Plaintiff

Bill Leer
(technical)

Tom Ineichen
(technical)

Dan Kavarian
(technical)

Facts

Plaintiffs Ronald Gaines and his wife Portia Reid purchased a 50-year-old house in Stanislaus County from defendants Mark and Kelly Watt. Daystar Termite Control Inc. had performed a termite inspection, repairs and a report. The defendants were responsible for some of the repairs described in Daystar's report. Daystar then issued a report stating that the house was free of infestation by wood-destroying organisms. The plaintiffs reviewed and signed this report at the close of escrow. After moving in, the plaintiffs attempted to replace doors on one wall but found extensive termite damage on all the wood surrounding both doors and in the subfloor. Further inspection revealed damage in many other areas in addition to dry rot damage. The plaintiffs sued Daystar, Mark and Kelly Watt (sellers), Vince Espinoza (listing broker), Shirley Lee (selling broker) and Prudential Realty, alleging professional negligence.

Settlement Discussions

The plaintiffs demand was $200,000; Daystar's offer was $20,000.

Damages

The plaintiffs claimed that most of the walls of the house and the floors were opened to determine the extent of termite damage. Consequently, the house could not be sealed off from intrusion of weather and pests. The plaintiffs lived under these conditions for two years. The house was almost condemned by a county inspector. It must now be rebuilt completely due to extensive damage and the high cost of attempting to tear out the damaged portions and rebuild.

Injuries

Due to the circumstances, plaintiff Gaines claimed he suffered extreme depression and was committed to a county mental health facility for three weeks, released, and again committed for one week. He currently takes medication which he will continue to take for the remainder of his life. Plaintiff Reid also claimed that she suffered depression. She quit her job as a nurse and was unemployed for a month before returning to work.

Result

Prior to trial, plaintiffs settled with the Watts, Espinoza, Lee and Prudential Realty for an undisclosed amount. Daystar was the remaining defendant. The jury found in favor of plaintiffs and returned a gross award of $355,000 for both economic and non-economic damages. It found Daystar 29 percent negligent, Mark Watt 20 percent negligent, Kelly Watt 20 percent negligent, Espinoza 20 percent negligent, Lee five percent negligent, Prudential Realty five percent negligent and plaintiffs one percent comparatively negligent. After taking into account Daystar's liability and plaintiffs' comparative liability and offsets for the prior settlements, the verdict was $196,500, plus costs.

Deliberation

three hours

Length

seven days


#122991

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