Landis v. William Fannin Builders, Inc.

In 2004, Landis and Weidman (plaintiffs) hired Fannin Builders, Inc. (Fannin Builders) (defendant) to build them a custom home for $356,750.00. The contract required Fannin Builders to build the home according to the plaintiffs’ specifications. Because the plaintiffs desired a rustic look to their home, they required that Fannin Builders use T1-11 exterior siding with two coats of stain. The plaintiffs received assurances from Fannin Builders that it had experience with T1-11 siding. The plaintiffs selected a semi-transparent green color stain for the siding. Fannin Builders arranged for 84 Lumber to provide the siding. 84 Lumber in turn hired Precision Applied Coating Enterprises (PACE) to stain the siding in the color chosen by the plaintiffs. However, PACE initially underestimated how many sheets of siding were required, and thus had to stain an additional 19 sheets separately from the rest of the siding. Consequently, one batch of siding was a darker shade than the other. Fannin Builders’ field superintendent, Jeff Klinger, assured Weidman that the two shades would blend after a second coat of stain was applied. 84 Lumber proceeded to install the siding. However, the second coat of stain did not blend the colors as promised and the house had a striped appearance as a result. Despite multiple attempts, Fannin Builders was unable to remedy the difference in colors. Fannin Builders proposed applying a solid stain, which would have masked the different shades. However, the plaintiffs rejected this proposal because a solid stain would not lead to the rustic look for which the plaintiffs had contracted. The plaintiffs brought suit for breach of contract and were awarded $66,906.24 for the cost to preplace the mismatched siding. Fannin Builders appealed, arguing that the trial court should have awarded the amount representing the diminution in market value of the house, which was estimated at $8,500.00, as opposed to the cost to replace the mismatched siding.