John Healy (defendant) sold a house to Ronald Johnson (plaintiff). During negotiations, Johnson asked Healy about the construction of the house and Healy stated the house was made of the best material and there was nothing wrong with it. Johnson relied on this statement to make the purchase. A few years later, a structural problem with the house caused it to settle into the ground and caused major damage to the foundation and sewer lines. Healy did not know of this structural problem when he sold the house. Johnson repaired the damage and brought suit for misrepresentation. The trial court found in favor of Johnson and awarded him damages, although the award of damages was not based on the cost of repairs. Both parties appealed.