Jobe (D) rented property from Wade (P). D had three young children, and shortly after taking occupancy, D discovered numerous defects in the premises. Within a few days, she had no hot water; this was from the flame on the water heater being extinguished by accumulated sewage and water in the basement. P took action but could not create a permanent fix. City inspection resulted in a finding of unsafe conditions for lack of a sewer connection and other problems. Substantial hazards to health and safety were also found. Notice of condemnation was issued. During this period in November 1988, D notified P that she would not pay rent until the sewage problem was solved permanently. Eventually, D moved out. P then sued D for back rent. D counterclaimed because of uninhabitable condition. P got the verdict for $770. D was denied any offsets and her counterclaim was dismissed. D appealed.

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