Opinion ID: 426017
Heading Depth: 2
Heading Rank: 5

Heading: Real Property Damages

Text: 29 Finally, G.E. alleges that the district court erred by failing to grant its motion for a partial directed verdict on the issue of real property damages. G.E. maintains that Spesco's appraisal expert miscalculated the fair market value of the land destroyed by the fire because he failed to include the value of the improvements on the land in his calculations. G.E. relies on Sanborn Electric Co. v. Bloomington Athletic Club, 433 N.E.2d 81 (Ind.App.1982) to support its calculation of real property damages. G.E. interprets Sanborn as holding that real estate, by definition, includes improvements. According to G.E., Spesco's appraisal expert, in calculating the fair market value of the land after the fire, failed to include amounts for the parking lot, the concrete foundation and the concrete loading dock. These improvements remained intact after the fire. Spesco relies on General Outdoor Advertising Co. v. LaSalle Realty Corp., 141 Ind.App. 247, 218 N.E.2d 141 (1966) as articulating the Indiana rule for calculating real property damages. We agree with Spesco. 30 Although G.E.'s reliance on Sanborn is not misplaced, the Sanborn court incorporates in its opinion the test for calculating real property damages espoused in General Outdoor. General Outdoor is more analogous to the case before us because in that decision the court was similarly confronted with the proper measure of damages following an action for tortious injury to real property. Sanborn, on the other hand, dealt with the calculation of damages following the breach of a construction contract. Therefore, under Indiana law, we conclude that the proper measure of damages is as follows: 31 (1) if the injury is permanent, the measure of damages is the market value of the real estate before the injury, less the market value of the real estate after the injury; (2) if the injury to the real estate is not permanent, then the measure of damages is the cost of restoration. 32 General Outdoor Advertising Co. v. LaSalle Realty Corp., supra, 141 Ind.App. at 265, 218 N.E.2d at 150. 33 We find no error in Spesco's appraisal expert's calculation of damages. As we stated previously, acceptance or rejection of an expert's opinion is clearly within the province of the jury. Riggs v. Penn Central Railroad Co., 442 F.2d 105 (7th Cir.1971). The jury here properly accepted Spesco's expert's theory on the proper measure of damages. Under these circumstances, the district court did not abuse its discretion by refusing to grant G.E.'s motion for a partial directed verdict. 34 G.E.'s final contention is that the district court abused its discretion by denying G.E.'s motion for a new trial on grounds that the jury verdict is excessive as a matter of law. G.E. suggests that under the maximum recovery rule set forth in Dimick v. Schiedt, 293 U.S. 474, 55 S.Ct. 296, 79 L.Ed. 603 (1935), the jury verdict is greater than an amount justified by the evidence presented. We disagree. 35 In this circuit, a motion for a new trial is addressed to the trial court's discretion, and on appeal the scope of review is limited to whether the trial court abused its discretion in ruling on the motion. Young v. J.C. Penney Life Insurance Co., 701 F.2d 709, 713 (7th Cir.1983); Hahn v. Becker, 588 F.2d 768 (7th Cir.1979). In the present case, our review is therefore limited to whether the jury verdict was excessive as a matter of law thereby necessitating a new trial. Applying the maximum recovery rule as G.E. suggests, the jury verdict is plainly supported by the evidence. Both G.E. and Spesco's appraisal experts offered conflicting calculations to establish the value of the real estate destroyed by the fire. The jury alone is vested with the responsibility of resolving this conflict. Here, the verdict conforms with Spesco's estimates. Accordingly, the amount of the jury's award is not excessive. The district court's refusal to grant a new trial on this ground did not constitute an abuse of discretion.