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Factual and Procedural Background

Appellees sued appellant for damages resulting from a fire at appellees' residence on July 26, 1947, alleging negligence by appellant's agents, servants, and employees. At trial before a jury, appellees were awarded damages totaling $14,145: $6,250 for damage to the dwelling; $4,750 for contents; $345 for lost rental value; and $2,800 exemplary damages. Appellant appealed, presenting approximately 20 points of error. The Court of Civil Appeals of Texas, Galveston, heard the appeal and rendered this opinion affirming the judgment.

Legal Issues Presented

  1. Whether there was sufficient competent evidence as to the market value of appellees' real property after the fire to support the jury's finding.
  2. Whether the trial court erred in admitting Mr. McGuff's opinion as to market value and Mrs. McGuff's testimony as to radio repair costs, and whether testimony as to damages to wearing apparel was admissible given the pleadings.
  3. Whether the trial court erred in refusing to submit an issue asking whether appellant's employees failed to extinguish the pilot light in the hot water heater.
  4. Whether submission of issues on difference in value of household goods and on lost rental value (in addition to lost market value) permitted double recovery and whether certain items should have been excluded from valuation issues.
  5. Whether there was probative testimony to support submission of lost rental value, i.e., how long appellees were deprived of use of their house.
  6. Whether exemplary damages were improperly submitted and awarded absent evidence that appellant participated in, authorized, or ratified the agents' negligent acts.

Arguments of the Parties

Appellant's Arguments

  • The evidence was insufficient to prove market value of the property after the fire.
  • Mr. McGuff was not qualified to give an opinion on market value; Mrs. McGuff's radio repair testimony was inadmissible for lack of proof of necessity or reasonableness; damages for wearing apparel were unpled.
  • The court erred in not submitting a special issue on whether appellant's employees failed to extinguish the pilot light.
  • The submissions on household goods' value and lost rental value duplicated recovery and improperly included certain fixtures.
  • There was no evidence to support exemplary damages because appellant did not participate in, authorize, or ratify the alleged negligence.

Appellees' Position (as reflected in the opinion)

  • Evidence, including appellee Mr. McGuff's detailed testimony, established market value and qualified him to give an opinion.
  • Evidence showed repairs to the radio were necessary and reasonably priced; other claimed items of damage were recoverable under the pleadings and proof.
  • Testimony (notably Mrs. McGuff's) established that appellant's agents cleaned with gasoline (or equivalent), failed to extinguish the pilot light, and left windows closed, producing gross negligence justifying exemplary damages; this testimony was undisputed at trial.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Texas Interurban Ry. Co. v. Halford, Tex.Civ.App., 299 S.W. 277 Support for admission of owner/lay testimony as to market value. Cited to justify admitting Mr. McGuff's opinion as competent evidence of market value.
Davis v. Fain, Tex.Civ.App., 152 S.W.2d 218 Support for admission of owner/lay testimony as to market value. Cited to justify admitting Mr. McGuff's opinion as competent evidence of market value.
Missouri Pac. Ry. Co. v. Fagan et al., 72 Tex. 127, 9 S.W. 749, 2 L.R.A. 75, 13 Am.St.Rep. 776 Support for admission of owner/lay testimony as to market value. Cited to justify admitting Mr. McGuff's opinion as competent evidence of market value.
Gulf, C. S. F. Ry. Co. v. Morris, Tex.Civ.App., 241 S.W. 235, affirmed Tex.Com.App., 250 S.W. 1017 Support for admission of owner/lay testimony as to market value. Cited to justify admitting Mr. McGuff's opinion as competent evidence of market value.
Joffre v. Mynatt, Tex.Civ.App., 240 S.W. 319 Support for admission of owner/lay testimony as to market value. Cited to justify admitting Mr. McGuff's opinion as competent evidence of market value.
Rankin v. Parker, Tex.Civ.App., 4 S.W.2d 227 Support for admission of owner/lay testimony as to market value. Cited to justify admitting Mr. McGuff's opinion as competent evidence of market value.
Telephone-Telegraph v. Forke, 2 Willson Civ.Cas. Ct.App. § 365 Support for admission of owner/lay testimony as to market value. Cited to justify admitting Mr. McGuff's opinion as competent evidence of market value.
Foley Bros. Dry Goods Co. v. Settegast, Tex.Civ.App., 133 S.W.2d 228, error ref. Support for admission of owner/lay testimony as to market value. Cited to justify admitting Mr. McGuff's opinion as competent evidence of market value.
State v. Carpenter, 126 Tex. 604, 89 S.W.2d 194, 979 Support for the court's definition of reasonable cash market value. Cited to uphold the trial court's definition in special issues 13 and 14 as indicating a cash transaction was contemplated.
West Texas Hotel Co. v. City of El Paso, Tex.Civ.App., 83 S.W.2d 772 Support for the court's definition of reasonable cash market value. Cited to uphold the trial court's definition in special issues 13 and 14 as indicating a cash transaction was contemplated.
Springfield Fire Marine Ins. Co. v. William Cameron Co., Tex.Civ.App., 96 S.W.2d 788 Principle that under certain undisputed circumstances the testimony of an interested witness may be taken as true as a matter of law. Cited to support treating Mrs. McGuff's undisputed testimony as true without requiring further controversion.
Wiley v. Powell, Tex.Civ.App., 164 S.W.2d 242, reversed on other grounds, 141 Tex. 74, 170 S.W.2d 470 Principle that under certain undisputed circumstances the testimony of an interested witness may be taken as true as a matter of law. Cited to support treating Mrs. McGuff's undisputed testimony as true without requiring further controversion.
Chronister Lumber Co. v. Williams, 116 Tex. 207, 288 S.W. 402 Imputation of agents' gross negligence to the employer as a matter of law. Cited to support that the agents' gross negligence was imputable to the appellant.
Gulf, C. S. F. Ry. Co. v. Moore, 69 Tex. 157, 6 S.W. 631 Principle that ratification by a principal renders him liable irrespective of specific authorization. Cited to support that the jury's finding of ratification rendered appellant liable even absent specific authorization.
Bankers' Mortgage Co. v. Baxter et al., Tex.Civ.App., 66 S.W.2d 408 Principle that ratification by a principal renders him liable irrespective of specific authorization. Cited to support that the jury's finding of ratification rendered appellant liable even absent specific authorization.

Court's Reasoning and Analysis

The court concluded there was sufficient evidence to support each item of damages awarded. It held Mr. McGuff competent to testify as to the post-fire market value of the house because he built, repaired, cared for, and knew the property; authorities were cited to support admission of such owner testimony. The court found no error in its definition of reasonable cash market value in special issues 13 and 14, citing authorities supporting the form used. Mrs. McGuff's testimony as to necessity and reasonable cost of radio repairs was admissible because the record showed those facts. The court refused appellant's complaint that it should have submitted a special issue on whether employees failed to extinguish the pilot light because appellant never requested such an issue, the testimony that they failed to extinguish it was undisputed, and appellant did not controvert that testimony. On exemplary damages, the court held the pleadings and evidence justified (and arguably required) a finding of gross negligence: appellees' agents cleaned the kitchen floor with gasoline (or equivalent), left the pilot light burning, and left windows closed, creating a highly negligent situation. The court further held that such gross negligence was imputable to appellant as a matter of law and that the jury's finding of ratification rendered appellant liable irrespective of specific authorization.

Holding and Implications

AFFIRMED.

Direct effect: The trial court judgment in favor of appellees for $14,145 (composed of $6,250 for the dwelling, $4,750 for contents, $345 lost rental value, and $2,800 exemplary damages) was affirmed. The opinion affirms the trial court's evidentiary rulings, submission of issues (including exemplary damages), and the legal conclusions that gross negligence was imputable to appellant and that ratification supported liability. The opinion does not purport to announce a new rule of law beyond the application of existing authorities cited.

KING v. McGUFF et ux.

GRAVES, Justice.

Appellees sued appellant for damages, as having resulted from a fire that occurred at appellees' residence on the 26th day of July, 1947, which, they alleged, had been the result of the negligence of the agents, servants, and employees of the appellant in a number of particulars.

In a trial before a jury, to which special issues were submitted, the appellees were awarded judgment for these items of damages they so declared upon: (1) $6,250 as damage to their two-story dwelling house; (2) $4,750 as damage to all the contents of the house; (3) $345 as lost rental value for the period during which they were found to have been deprived of the use of their house; and (4) $2,800 in exemplary damages, a total of $14,145.

In this court, through some 20 points of error, appellant complains of the result so adverse to him below, in material substance charging error of the trial court in these respects:

(1) In holding there was sufficient competent evidence as to the market value of appellees' real property, after the fire, to support the jury's finding of damages thereto.

(2) In admitting testimony of Mr. McGuff, expressing an opinion as to the market value of his house after the fire, as against appellant's objections that he had not qualified himself to express such an opinion; further, in admitting Mrs. McGuff's testimony as to the cost of repairs of appellees' radio, as against the objection that no showing had been made, either as to the necessity for such repairs, or that the amount of them had been reasonable, and, finally, in admitting any testimony as to the damages to appellees' wearing-apparel located within the house, as against the objection that no such element of damages had been pled by them.

(3) In failing to submit an issue to the jury as to whether or not appellant's employees failed to extinguish the pilot light in the hot water heater in appellees' house, thereby assuming that such a fact existed.

(4) In submitting issues 15 and 16, inquiring as to the difference in value of appellees' household goods and furnishings in the house before and after the fire, without excluding the value, if any, of appellees' attic fan, floor furnace, hot water heater, and venetian blinds; further, in submitting issues on the lost market value of the house, as well as the rental value of it, during the time the appellees were found to have necessarily been deprived of its use-in that such two submissions authorized a double recovery for appellees against the appellant.

(5) In submitting issues on the lost rental value of appellees' house, when there was no probative testimony by which the jury could determine how long, if at all, appellees were necessarily deprived of the use of their house.

(6) In submitting issues on exemplary damages, 'when there was no evidence that the Defendant (appellant) either participated in the acts or omissions of negligence which caused Plaintiffs' (appellees') damage, specifically authorized his agents to commit them, or ratified the action of his agents.'

This court finds no fault with the sufficiency of the evidence to sustain the amounts of any of the items of damages found by the jury, nor with the holding of the court that they constituted recoverable elements of damages, under the pleadings and evidence in the cause.

Indeed, it seems clear that the four elements of damages enumerated supra, for which the court awarded the appellees judgment, were, each and all, separate and distinct as the recoverable losses to the appellees and that there was sufficient evidence before the jury to sustain the amounts of each of them as the jury found.

It is not deemed necessary, therefore, to review the evidence upon which they were so arrived at, nor to belabor the point as to the recoverability as to each item thereof.

Indeed, it would seem that the two questions raised by the appellant, first, as to whether or not the trial court erred in refusing to submit his requested special issue to the jury inquiring as to whether or not his employees failed to extinguish the pilot light in the hot water heater in the appellees' house and in assuming such fact to have existed instead, and, second, whether the court erred in submitting issues on, and rendering judgment on the findings for, exemplary damages, were erroneous.

Before discussing those two, however, this court's reasons for its conclusion that the judgment-in its other features-was sound may be thus indicated: The market value of the house after the fire was plainly and competently testified to by the appellee Mr. McGuff, who, though not a technical expert in such matters, was shown by detailed evidence to have known whereof he spoke, what the market value of the burned premises was-in fact, he had built the property, repaired it, cared for it, knew all about it, and, without detailing the circumstances, plainly qualified himself to give his opinion as to such value. 19 Tex.Jur., page 138, paragraph 93; Texas Interurban Ry. Co. v. Halford, Tex.Civ.App., 299 S.W. 277; Davis v. Fain, Tex.Civ.App., 152 S.W.2d 218; Missouri Pac. Ry. Co. v. Fagan et al., 72 Tex. 127, 9 S.W. 749, 2 L.R.A. 75, 13 Am.St.Rep. 776; Gulf, C. S. F. Ry. Co. v. Morris, Tex.Civ.App., 241 S.W. 235, affirmed Tex.Com.App., 250 S.W. 1017; Joffre v. Mynatt, Tex.Civ.App., 240 S.W. 319; Rankin v. Parker, Tex.Civ.App., 4 S.W.2d 227; Telephone-Telegraph v. Forke, 2 Willson Civ.Cas. Ct.App. § 365; and Foley Bros. Dry Goods Co. v. Settegast, Tex.Civ.App., 133 S.W.2d 228, error ref.

Neither did the court err in overruling appellant's objections to its definition of a reasonable cash market value, as contained in its special issues 13 and 14, to the effect that such definition failed to instruct the jury that a cash transaction was contemplated in such definition; this for the reason that the court's special issues 13 and 14 each contained a definition that was plainly sufficient to indicate that a cash transaction was contemplated. These authorities support the definition as given: State v. Carpenter, 126 Tex. 604, 89 S.W.2d 194, 979; and, West Texas Hotel Co. v. City of El Paso, Tex.Civ.App., 83 S.W.2d 772.

As presaged supra, there was no error in the admission of the testimony of the appellee Mrs. McGuff as to the amount of cost of repairs to the appellees' radio, since the record shows ample testimony to the effect that such repairs were necessary, and that the cost recovered therefor was reasonable.

Appellant's 4th point of error, on the court's 'Failure to submit an issue as to whether appellant's employees failed to extinguish the pilot-light in the hot-water-heater in Appellees' house', referred to supra, along with his 10th and 11th points, challenging the manner of submission of exemplary damages, is overruled, in the main upon considerations, the brief substance of which may be thus stated:

The appellant did not request the submission of any such issue, contenting himself on the trial, as well as in his motion for new trial there, with objecting to the court's charge in having omitted such an issue.

Moreover, the testimony of the appellees that such failure occurred was based on the personal observations and knowledge of the premises made by the appellee Mrs. McGuff, and was wholly undisputed.

The appellant himself, as a witness, declined to in any manner controvert the positive testimony so given by Mrs. McGuff, simply stating that he had been out of town at the time the fire occurred, and that he did not know the circumstances and conditions under which it occurred.

It is true Mrs. McGuff was an interested witness, but, under circumstances constituting the legal equivalent of those so shown here, our courts have held that such testimony should be taken as true, as a matter of law. Springfield Fire Marine Ins. Co. v. William Cameron Co., Tex.Civ.App., 96 S.W.2d 788; Rule 272, Texas Rules Civil Procedure; and Wiley v. Powell, Tex.Civ.App., 164 S.W.2d 242, reversed on other grounds, 141 Tex. 74, 170 S.W.2d 470.

Likewise, appellant's 10th and 11th points, protesting against the visitation upon him of exemplary damages, are overruled. The affirmance upon this feature is rested upon the finding and conclusion from the record, — irrespective of any determination of whether or not the appellant's objection to the charge in this respect was sufficient-that the pleadings and evidence justified, if indeed they did not require, the jury to find that the appellant and his agents were guilty of such acts of gross negligence in their occupation and handling of appellees' premises before and at the time of the fire as to properly subject him to the $2,800 recovery for exemplary damages, so allowed the appellees against him in the judgment rendered.

Indeed, in this instance, the recovery of exemplary damages was based alone upon the findings of both the jury and the trial court that such acts of gross negligence toward the appellees were committed by the appellant and his agents, servants, and employees-they having been found to have been cleaning the kitchen floor of appellees' house with gasoline, or its equivalent, without taking the trouble to extinguish the pilot light in the hot water heater in such kitchen, coupled, also, with their having left the windows of the kitchen closed, making it further susceptible to the explosion that occurred-thus conclusively establishing that no care whatever was exercised on their part for the welfare of the appellees, and their property.

Such gross negligence, under these authorities was imputable as a matter of law to the appellant. Chronister Lumber Co. v. Williams, 116 Tex. 207, 288 S.W. 402.

Moreover, the jury's finding of ratification by the appellant of such gross acts of negligence on the part of his agents, servants, and employees rendered him liable, irrespective of whether or not there was a finding of specific authorization thereof on his part. 13 Tex.Jur., paragraph 139, page 250; Gulf, C. S. F. Ry. Co. v. Moore, 69 Tex. 157, 6 S.W. 631; and Bankers' Mortgage Co. v. Baxter et al., Tex.Civ.App., 66 S.W.2d 408.

Further discussion is deemed unnecessary. These conclusions require an affirmance of the judgment. It will be so ordered.

Affirmed.

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KING v. MCGUFF
(Apr 27, 1950)