Neal A. Leno and Susan A. Leno v. K & L Homes, Inc.

Summary

The North Dakota Supreme Court affirmed a judgment entered on a jury verdict for homeowners against a home builder for breach of contract and implied warranties. The court held that comparative fault did not apply to the homeowners’ contract-based implied warranty claims involving economic loss to the house, upheld the ruling that the builder had not effectively disclaimed implied warranties, and found no abuse of discretion in denying a late inspection request or excluding testimony concerning observations during the jury’s viewing.

Holdings

1. Fault and modified comparative fault under N.D.C.C. chapter 32-03.2 do not apply when the cause of action arises solely from the parties' contract and the damages sought are only the loss of the expected bargain.
2. The Homeowners' Guide delivered at closing did not effectively disclaim the implied warranties because the purported exclusion was not part of the parties' bargain.
3. The district court did not abuse its discretion by denying K & L Homes' request to inspect the house after the discovery deadline and shortly before trial.
4. The exclusion of the witness's testimony was not reversible error because K & L Homes did not object when the ruling was made and did not show that its substantial rights were affected.

Questions Presented

1. Whether fault and modified comparative fault under N.D.C.C. chapter 32-03.2 applied to the Lenos' contract-based implied-warranty claims for economic loss from a defective house.
2. Whether K & L Homes effectively disclaimed implied warranties through a Homeowners' Guide delivered to the Lenos at closing.
3. Whether the district court abused its discretion by denying K & L Homes' late request to inspect the house.
4. Whether the district court committed reversible error by excluding K & L Homes' witness from testifying about observations made during the jury's viewing of the house.

Disposition

affirmed