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Gay v. Cornwall
Citations: 494 P.2d 1371; 6 Wash. App. 595; 1972 Wash. App. LEXIS 1212Docket: 411-2
Court: Court of Appeals of Washington; March 22, 1972; Washington; State Appellate Court
The Court of Appeals of Washington addressed whether an implied warranty of fitness exists from a builder to the first purchaser-occupant of a new house sold before completion. The case involved Jean Walters Gay, who purchased an incomplete house built by Elmo C. Willoughby from the Cornwalls. After moving in, Gay discovered significant defects, including a leaky roof, defective plumbing, issues with the furnace, and inadequate drainage, leading to extensive damage. The trial court found an implied warranty from Willoughby to Gay that the house would be fit for its intended purpose, which he breached due to numerous defects rendering the house uninhabitable without major repairs. The court ruled that privity of contract was not necessary for Gay's claim against Willoughby, and dismissed the Cornwalls from liability since they were unaware of the defects at the time of sale. On appeal, Willoughby contended that recovery based on implied warranty was inappropriate due to the lack of privity, as Gay did not have a direct agreement with him regarding the house's construction; she purchased it from the Cornwalls while it was still being built. A written agreement existed between Childs and Willoughby, but the specifics of the arrangement with the Cornwalls remain unclear. Evidence suggests that minor structural changes were discussed between Willoughby and the Cornwalls. The court determined that privity between the plaintiff and the builder is not necessary to impose liability on a builder for a defective product unsuitable for its intended purpose. In cases involving new housing, the doctrine of caveat emptor has been replaced by strict liability for defects affecting habitability. The court emphasized that the builder-vendor is more culpable than the unsuspecting buyer, establishing an implied warranty that new houses are structurally sound for occupancy. Mrs. Gay, being the first to occupy the premises, is entitled to this protection despite not being the initial purchaser. The trial court found hidden defects that rendered the house uninhabitable, which were not discovered until after Mrs. Gay took possession. Consequently, the court correctly imposed liability on Willoughby without privity. Willoughby raised two objections regarding the findings' sufficiency and the evidence supporting them, specifically noting the absence of a finding on damages. However, the trial court's conclusions of law specified damages of $2,000, which can be treated as a factual finding. The court's oral opinion demonstrated consideration of the defects, repair costs, and damages incurred. An appellate court may refer to the trial court's oral opinion to confirm determinations on material facts when express findings are lacking. The appellate court found substantial evidence supporting the trial court's conclusions, affirming that the dwelling was unfit for habitation without significant repairs. The judgment against Willoughby was upheld.