The City of Atlanta appeals from the trial court’s judgment awarding homeowner Lavonia Conner $100,000 in this contract dispute. Because the trial court used an improper measure of damages that resulted in a windfall to the appellee, we vacate the award and remand for a recalculation of damages. The record shows that Conner owned a small, wood frame house in southeast Atlanta. The 1,100 square foot house was approximately 80 years old and had outdated plumbing, heating, and electrical systems. In 1990, the roof began to leak. A portion of the roof collapsed in 1994, making the house uninhabitable and forcing Conner to move out. In 1998, the City of Atlanta approved Conner’s application for a housing rehabilitation loan. Under the rehabilitation program contract, the City was responsible for selecting and hiring a builder to bring the house up to building code specifications. On April 24, 1998, the City hired a builder based upon his low bid of $38,396.50. Conner signed a $38,396.50 promissory note and security deed in favor of the City. The balance due under the note would be forgiven, however, if Conner lived in the restored house for five years.
In August 1998, the builder tore off the roof and removed part of the floor. At that point, he determined that he could not perform the necessary repairs under the contract and abandoned the project. The City paid the builder for his demolition work, and left the house uncovered and unprotected. Between 1998 and 2000, Conner repeatedly tried without success to get the City to finish the project. The City attempted to hire another builder, but the bids exceeded the funding limits of the City’s housing rehabilitation program. Eventually, the City notified Conner that she would have to secure additional private funds to finish the project. By this time, however, the house had suffered severe water damage and had deteriorated to the point where it could not be repaired.
