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

Healy (D) built a new home and sold it to Johnson (P) in 1965. Between 1968 and 1971 the house settled and caused displacement to the foundation walls and substantial damage to the sewer lines. P sued for misrepresentation and negligence. P inquired about the quality of construction during the sales negotiations. D replied that the house was made of the best material and he had built it and there was nothing wrong with it. The damage to the home was from improper fill which had been placed on the lot beneath the building sometime before D purchased the lot as a building lot in 1963. The trial court concluded that D had made an express warranty. The trial court found for P on misrepresentation and for D on negligence. Both parties appealed.

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