Professional Documents
Culture Documents
No. 11-1988
Appeal from the United States District Court for the District of
Maryland, at Baltimore.
William M. Nickerson, Senior District
Judge. (1:07-cv-02844-WMN)
Argued:
Before TRAXLER,
Judges.
Chief
Judge,
Decided:
and
DUNCAN
and
DAVIS,
Circuit
PER CURIAM:
This case arises out of a real estate deal involving a
194-acre Maryland farm owned by Appellees Edward and Suzanne
Primoff.
jury
found
Appellants
Kennard
and
Mary
Warfield
or
new
trial
on
damages.
For
the
following
I.
The evidence at trial established the following facts.
Around 2001, the Primoffs began the process of subdividing and
developing a vacant portion of the farm. J.A. 72.
In November
approved
preliminary
plan
for
Freedom
Hills
Id. at 413.
the
subdivision,
Warfield
for
five
and
years
the
in
resulting
exchange
for
lands--to
$3.5
Kennard
million
and
at
40102.
The
contract
allowed
Warfield
to
make
only
couple submitted a final record plat for Freedom Hill Farms and
granted Carroll County a flood plain easement in the resulting
lands. 1
existed.
See
id.
at
109-12.
FEMA
regulations
barred
horseback
riding,
maintaining
trails,
and
Id. at
109.
The
Primoffs
attorney
learned
of
the
flood
plain
that
he
knew
about
the
J.A. 12729.
easement,
the
Without
Primoffs
complied
in
December
2004.
Id. at 251-54.
Id.
at
258,
The
47173.
Id. at 103-08.
J.A.
if
they
knew
Instead,
he
removed,
then
about
planned
to
contact
the
encumbrance.
reject
bidders
all
to
bids,
make
Id.
at
121,
have
the
deal
to
Id. at 122.
157.
easement
sell
the
He believed that
J.A. 121.
Id. at 12122,
14344.
In November 2005, the Primoffs sued Carroll County in
state
court
to
remove
the
easements
that
J.A. 12526.
the
Warfields
had
lands at $3 million.
not valued the land in 2007, he estimated that the value had
likely dropped because of a leveling off overall of property
values in 2007.
Id. at 273.
the
district
warranty,
and
court,
other
alleging
breach
claims. 4
The
of
contract,
Primoffs
breach
of
that
the
alleged
substantially
property,
and
diminished
[a]s
the
further
value
result
of
the
the
J.A. 22.
the
contract
and
special
warranty
counts,
and
additional
Warfields
inter
alia,
raised
that
several
the
affirmative
Primoffs
owed
defenses,
duty
to
J.A.
(Continued)
38.
The
Warfields
6
also
asserted
several
At
the
close
of
the
Primoffs
case
at
trial,
the
Primoffs
plain
S.J.A. 2, 6.
had
easement
provided
had
[z]ero
caused
testimony
diminution
in
that
value,
the
flood
and
no
Id. at 10-11.
their
million
auction
Warfields
asked
damages
by
bid
for
the
judge
inquiring
their
to
further
property.
instruct
into
Id.
the
at
jury
to
the
8.
the
The
consider
$5.2
Id.
of
damages
is
matter
that
the
jury
can
Id.
jury
found
the
Warfields
liable
for
breach
of
J.A.
400C.
warranty
claim,
and
24,000.
awarded
the
$274,000
verdict,
the
in
damages:
Warfields
250,000
renewed
their
See
First, they
argued that the Primoffs had failed to present evidence that the
easement had caused a compensable injury.
Id. at 661.
The
was
little
or
no
testimony
that
the
easement
was
the
direct cause of the loss of value, a jury could have made this
reasonable inference.
Id. at 662.
that, as a matter of law, the award for each claim should have
been identical.
Id.
awards, however, citing the presumption that the jury had heeded
the instruction against duplicate damages, and the presumption
in favor of supporting jury verdicts, even when harmonizing a
jurys
special
interpretation.
verdict
answers
requires
strained
to
the
mitigate
Warfields
their
argued
damages
that
when
the
they
Primoffs
failed
to
had
more
J.A.
664.
The
district
court
rejected
this
argument,
finding that the jury had drawn a reasonable inference that the
Primoffs had not failed to mitigate because (1) Edward Primoff
had testified that a sale could have resulted in a lawsuit, and
(2) the Primoffs were not required to risk additional loss in
order to mitigate harm.
Id.
judgment
against
the
Warfields,
who
filed
timely
appeal.
II.
The Warfields do not contest liability; they challenge
only $500,000 of the $524,000 damages award.
10
failed
to
mitigate
damages;
and
(3)
the
awards
for
the
reasons
that
follow,
we
agree
that
the
litigation
costs,
and,
thus,
the
district
court
erred
in
III.
As
preliminary
contention
that
challenging
the
Appellees
Br.
the
matter,
Warfields
sufficiency
16.
The
of
are
the
Primoffs
we
reject
the
procedurally
damages
argue
Primoffs
barred
evidence.
that
the
from
See
Warfields
Id.
But
the
only
complete
failure
at
trial
to
challenge
At trial, the
11
Warfields
undoubtedly
challenged
sufficiency
when
they
argued
that the Primoffs had presented no evidence that the flood plain
easement had caused a decrease in value or made the property
unsellable.
S.J.A. 7, 9-10.
IV.
A.
We review de novo the legal conclusions upon which
the district court's denial of judgment as a matter of law were
premised.
B.
The
Warfields
argue
that
the
Primoffs
failed
to
the
damages
were
reasonably
In determining
foreseeable,
Maryland
Id.
(emphasis
in
original)
(internal
citation
omitted).
13
qualify
as
reasonably
certain
recoverable as contract damages. 8
and
therefore
936
A.2d
at
93536
(internal
citations
omitted).
Id. at 936.
damages
must
strictly
comply
with
the
proximate
plaintiff
demonstrate
must
show
the
diminution
difference
of
value
between
damages,
two
valuation
Ltd. Pship, 8 A.2d 344, 354 (Md. Ct. Spec. App. 1998).
amount the plaintiff received for reselling the land, and the
amount the plaintiff would have received absent the defendants
breach.
Primoffs
damages.
The
sought
evidence
lost
was
profits
and
insufficient,
diminution
of
however,
to
See Hoang,
936 A.2d at
15
934.
notion
that
land,
being
inherently
of
limited
availability,
if
the
parties
had
contemplated
such
sale,
established
with
reasonable
certainty.
See
id.
The
the
likelihood
that
they
would
have
found
buyer,
experience
(or
that
of
similarly
situated
potential
evidence
also
failed
to
establish
that
the
evidence
knowledge
of
Moreover,
the
showed,
the
the
appraisals
easements.
appraisals
See
were
J.A.
more
were
27880,
than
two
made
without
285,
288-90.
years
apart,
providing no basis for comparing the value of the land with the
easement, and the value of the land without the easement, at a
single point in time.
Thus, the
jury could only speculate that the easement had caused a drop in
value.
V.
For the reasons set forth, we conclude as a matter of
law that the evidence was insufficient to support the jurys
$524,000 damages award.
judgment
as
matter
law,
vacate
the
damages
award,
and
17
about the value of the land shortly after the auction, but no
testimony
about
whether,
or
was
left
to
how,
the
flood
plain
easement
speculation
and
conjecture
18
as
to
the
25 C.J.S. Damages