## Facts

- Beckie Price and her then-husband built a home in DeWitt, Michigan, in 1975 that was originally heated by an oil furnace.
- In 2006, Price replaced the oil furnace with a propane furnace and ended her oil-service contract, but the home’s oil fill pipe remained in place.
- In November 2007, High Pointe Oil mistakenly placed Price’s address on its “keep full” list.
- While Price was away, a High Pointe driver pumped nearly 400 gallons of fuel oil into the basement through the oil fill pipe before discovering the error and calling 911.
- The spill created an environmental hazard requiring demolition of the house and destroying many belongings.
- Insurance and related payments covered remediation, construction of a new home on the property, cleaning or replacement of personal property, and temporary housing; Price was fully compensated for economic losses.
- Price sought noneconomic damages for mental anguish, emotional distress, and psychological injuries caused by the negligent destruction of her home.

## Issues

1. Under Michigan common law, may a plaintiff recover noneconomic damages (e.g., mental anguish and emotional distress) for the negligent destruction of real property when the claimed loss is solely property damage?

## Decision

- The Michigan Supreme Court reversed the Court of Appeals.
- The court held that noneconomic damages are not recoverable for the negligent destruction of property (real or personal) when the claim is solely for property damage.
- The court remanded for entry of summary disposition for High Pointe on the noneconomic-damages claim.

## Legal Principles

- For negligent injury to property, Michigan’s common-law measure of damages is economic and is generally limited to:
  - diminution in market value for permanent or irreparable injury; or
  - reasonable cost of repair (or replacement) when repair is feasible and does not exceed the property’s value.

- Michigan law does not recognize noneconomic damages (including emotional distress and mental anguish) as a component of recovery for negligent destruction of property absent an accompanying personal injury.
- A judicial expansion of recoverable damages for property torts to include noneconomic loss is a policy change reserved to the Legislature, not the courts.

## Conclusion

The Michigan Supreme Court held that negligent destruction of property supports recovery of economic damages measured by repair/replacement cost or diminution in value, but not noneconomic damages for emotional distress where the plaintiff’s loss consists solely of property damage.


Price v. High Pointe Oil Co., 493 Mich. 238, 828 N.W.2d 660 (Mich. 2013)