Deventer North America, Inc. Deventer and Julia Lumpkin entered into a contract for Lumpkin’s purchase of a house being renovated by Deventer. Before the house was finished, however, Lumpkin ordered Deventer to stop work and contracted with someone else to complete construction. Deventer later invoiced Lumpkin for work performed, but Lumpkin refused to pay. Deventer then brought this suit charging Lumpkin with, among other things, breach of contract and fraud. Lumpkin, in turn, filed a counterclaim charging Deventer and its owner, Wesley Godwin, with breach of contract and fraud. Both Deventer and Lumpkin also sought attorney fees based on allegations of bad faith in their dealings with one another. Finding no evidence of fraud by either Lumpkin, Deventer or Godwin, the trial court directed a verdict against both Lumpkin and Deventer on their fraud claims, even though neither Deventer nor Godwin had moved for a directed verdict on Lumpkin’s claim of fraud. The jury returned a verdict awarding Deventer $170,000 on its breach of contract claim and $128,182.47 on its attorney fee claim and awarding Lumpkin nothing on her counterclaim. After the court’s entry of judgment on the verdict, Lumpkin moved for a jnov or for a new trial on her claim of fraud against Deventer and Godwin. Following the court’s denial of those post-trial motions, Lumpkin filed a notice of appeal from the judgment entered against her in favor of both Deventer and Godwin. For reasons that follow, we find that the trial court erred in directing a verdict in favor of Deventer and Godwin on Lumpkin’s fraud claim and, therefore, reverse.
Evidence introduced at trial showed that after Deventer had acquired the residential property and begun to renovate it, Lumpkin came to the construction site, met with Godwin, and expressed an interest in purchasing the house. Godwin told Lumpkin that the house, as renovated in accordance with existing construction drawings and specifications, would cost $1.1 million, but that any major changes or alterations would have to be “priced out,” i.e., would increase the price. Godwin and Lumpkin verbally agreed that she would disburse about $250,000 to help defray expenses for certain aspects of the renovation of the house and that she would thereby acquire an option either to buy the house or, upon sale of the house to someone else, be reimbursed for the funds she had provided. Throughout the construction process, Lumpkin dealt with Godwin or with Deventer’s project supervisor, Eric Busbee. Undisputably, Lumpkin requested a number of major changes and alterations to the original plans.
