Signature Designs Group, LLC v. Wayne Ramko and Donna Ramko

This case involves an alleged breach of a construction contract. The plaintiff contractor entered into a fixed priced contract to build a custom home for the defendant homeowners. During the construction, the contractor told the homeowners that the project was under budget, and that they could apply the cushion in the budget toward upgrades. Many upgrades and additions outside the scope of the original contract were made. The project ended up over budget, and the homeowners refused to pay more than the fixed price of the contract. The contractor filed this lawsuit, alleging breach of contract. The homeowners counterclaimed for breach of contract, violation of the Tennessee Consumer Protection Act, and fraudulent and/or negligent misrepresentation. After a bench trial, the trial court awarded the contractor some of the upgrade costs and dismissed the homeowners’ counterclaims. The homeowners now appeal. We reverse the award for the cost of the upgrades and remand for specific findings as to each upgrade or addition. In all other respects, the trial court’s order is affirmed.