Ewing v. 1645 W. Farragut LLC

Dist Ct. did not err in finding that defendant had engaged in fraud and breached contract to sell house to plaintiffs, and jury did not improperly award plaintiffs $905,000 in damages arising out of said fraud. Record showed that at time contract to purchase house was generated, defendant represented that closing would be on October 3, 2016, that house was gutted and scheduled for extensive renovations, that plaintiffs had until August 15, 2016 to obtain mortgage for house, that renovations would be completed in six months, and that house had all proper permits. However, at all relevant times, house was subject to stop work order because defendant had not obtained said permits. When plaintiffs could not obtain mortgage by deadline, plaintiffs sought return of their $117,500 earnest money, but defendant refused, and plaintiff filed instant lawsuit. Jury could properly find that defendant’s fraud causally related to plaintiffs’ damages, especially where its failure to timely renovate house due to existence of stop work order precluded plaintiffs from obtaining mortgage. Also, defendant’s refusal to return earnest money prevented plaintiffs from obtaining another house. Moreover, Dist. Ct. did not err in admitting statement from defendant’s representative that referred to plaintiffs (married males) as “fruit cups,” where said statement was relevant on plaintiffs’ claim that said statement was made with homophobic malice towards them. Fact that plaintiffs did not ultimately prevail on their punitive damages claim did not retroactively render “fruit cups” comment irrelevant.