v.
Henry Moncure Motors, Inc.
IN THE COURT OF APPEALS OF NORTH CAROLINA
No. COA14-1186
Filed: 1 September 2015
Halifax County, No. 08 CVS 1437
ASHLEY KEITH PITTMAN, and wife, DeANNA PITTMAN, Plaintiffs,
v.
HENRY MONCURE MOTORS, INC., MOBILE HOME SALES, a Corporation, and CRESTLINE HOMES, INC., a Corporation, Defendants.
Appeal by defendants from judgment entered 30 June 2014 by Judge W.
Russell Duke, Jr. in Halifax County Superior Court. Heard in the Court of Appeals
18 March 2015.
Jimmie R. “Sam” Barnes for plaintiffs-appellees.
Chichester Law Office, by Geoffrey P. Davis, for defendants-appellants Henry Moncure Motors, Inc. and Mobile Home Sales.
GEER, Judge.
Defendants Henry Moncure Motors, Inc. (“Moncure Motors”) and Mobile Home
Sales appeal from a judgment entered against them for damages arising out of defects
in a manufactured home that Moncure Motors sold to plaintiffs. On appeal, defendants primarily argue that the warranties set out in the Uniform Commercial
Code (“UCC”), the basis for the trial court’s award, do not apply to defendants’ sale of the manufactured home to plaintiffs. We hold that the manufactured home that
PITTMAN V. HENRY MONCURE MOTORS, INC.
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defendants Moncure Motors sold to plaintiffs here was a “good” covered by the UCC. It is well established that the UCC allows a purchaser of goods to hold the seller liable for breach of the implied warranty of merchantability. Because the undisputed evidence and the trial court’s findings establish that the home’s defects breached the implied warranty of merchantability, we affirm the trial court’s judgment and award of damages against defendants. Facts Plaintiffs’ evidence tends to show the following facts. On 10 January 2003, after talking with Philip Moncure, President and General Manager of defendant Moncure Motors, plaintiffs Ashley Keith Pittman and DeAnna Pittman entered into a contract with Moncure Motors for the sale, delivery, and setup of a manufactured home for a total price of $92,135.00. That price included $15,000.00 in “optional equipment,” $9,500.00 of which was for a brick foundation. Plaintiffs intended for the home to be their primary residence. At Mr. Moncure’s request, Mr. Pittman contacted Jessie Thompson to build a foundation for the home. Mr. Moncure contacted a crane crew in Petersburg, Virginia and a contractor named Tommy Marlowe to perform the rest of the setup of the home. Mr. Marlowe and his crew were tasked with “lift[ing] the walls and the roof and put[ting] all that stuff together,” including “put[ting] braces on the rafters,” nailing extra shingles, and attaching plywood to the roof.
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The home, which was manufactured by Crestline Homes, Inc. (“Crestline”), a company that has apparently filed for bankruptcy, was delivered to plaintiffs’ lot in two sections wrapped in a plastic wrap seal sometime in May 2003. In transit, wind and rain ripped the plastic of one of the sections all the way down its side, causing water to enter into it. After both sections were delivered to plaintiffs’ lot, more rain fell and entered into the exposed section. Prior to the setup, Mr. Pittman and Mr. Moncure together saw that one of the sections had suffered water damage from the leakage. After the foundation was built by Mr. Thompson and the home was lifted onto the foundation by crane, Mr. Marlowe’s crew erected the roof. However, they improperly installed the roof. Although Mr. Pittman told Mr. Moncure that “this is not what I paid for” and to “take [the home] back,” Mr. Moncure assured Mr. Pittman that he would address the problems with the home. Part of the home was gutted, cleaned of mold, and rebuilt, and, in September 2003, plaintiffs moved into the home. After moving in, plaintiffs experienced severe water leakage through their roof as well as a number of other problems with the interior and exterior of the home. Mr. Moncure unsuccessfully attempted to address these problems over the next year and, in September 2004, plaintiffs, through their attorney, demanded a replacement home from Moncure Motors and Crestline.
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Following the September 2004 letter, the parties agreed that Crestline would be given a further opportunity to cure the defects in the home, and Moncure Motors would be financially responsible for the repairs covered by warranty. While over the next two years, the roof, vinyl siding, and electrical circuit breakers were replaced, many defects, including problems with the electrical system, persisted. Plaintiffs filed suit against Crestline and Moncure Motors at some point in 2006, but dismissed that action without prejudice. On 26 September 2008, plaintiffs refiled their complaint against defendants and Crestline alleging that as a result of Crestline’s manufacture and delivery and defendants’ setup of the home, the home sustained extensive water damage and other serious problems with the roof, vinyl siding, flooring, bathroom, interior walls, and electrical wiring. On 9 December 2008, Moncure Motors filed an answer to plaintiffs’ complaint. On 12 December 2008, Crestline answered plaintiffs’ complaint denying the material allegations, and on 29 December 2008, Crestline filed a cross-claim against Moncure Motors asserting a claim for indemnification for work performed on plaintiffs’ home allegedly on Moncure Motors’ behalf. On 7 January 2009, Moncure Motors amended its answer to respond to Crestline’s cross-claim and, in turn, filed a cross-claim against Crestline for indemnification or contribution for any liability Moncure Motors might have on account of, among other reasons, any alleged breach of warranty of Crestline.
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On 14 April 2014, following a pre-trial conference in which the parties entered into several stipulations, the trial court held a bench trial. Plaintiffs presented the testimony of Mr. Pittman, and defendants presented the testimony of Mr. Moncure. The trial court found both witnesses “to be very credible” and noted that “the evidence and/or testimony in these matters was basically the same[.]” On 30 June 2014, the trial court entered a judgment in plaintiffs’ favor that included the following findings of fact. Defendant Moncure Motors is a dealer in the business of selling new manufactured modular homes. Plaintiffs and Moncure Motors entered into a contract providing that plaintiffs would purchase from Moncure Motors “a new modular home, a dwelling,” and Moncure Motors would place and setup the home on plaintiffs’ lot. Plaintiffs further agreed to pay Moncure Motors a total negotiated price of $92,135.00. The house sustained extensive water damage prior to the setup, which caused substantial defects to the manufactured dwelling. The subsequent setup was also not performed in a workmanlike manner, resulting in further substantial defects in the manufactured dwelling. The combination of the water damage sustained prior to the setup and the failure to set up the house in a workmanlike manner “caused the dwelling to fail to meet the standard workmanlike quality then prevailing at the time and place of construction in Halifax County, resulting in substantial defects in the manufactured dwelling[.]” Plaintiffs’ expectations regarding the purchase of the dwelling were not
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met, and “a reasonable person in the same or similar circumstances would consider the breach a substantial deprivation of the material benefit of the purchase of the dwelling[.]” The trial court further found that by their words and conduct, plaintiffs elected to rescind the purchase of the dwelling. Plaintiffs gave Moncure Motors notice of the breach and, subsequently, Moncure Motors attempted to correct or repair “the water damage and the workmanlike setup of the dwelling in a reasonable and timely manner, but failed to be successful in doing so.” Based on these findings, the trial court made the following conclusions of law:
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