This section contains the nature of the case and procedural background.

Sandock (P) entered into a contract with F.D. Borkholder (D) for the construction by D of a concrete block house. The blockhouse was to be used as a retail showroom and warehouse by P in furtherance of his carpet and furniture business. P was unable to use the structure because of recurring moisture problems on the inside of one of the walls. P sued for compensatory and punitive damages. P was awarded $8,711.69 in compensatory damages and $6,500 in punitive damages. The court of appeals affirmed the compensatory award but struck the punitive damages award.

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