Insurance Co. of North America v. Bonnie Built Homes

In Mitchem v. Johnson (1966), 7 Ohio St. 2d 66, this court held that a builder-vendor is liable to its vendee for damages proximately caused by the failure of the builder-vendor to construct a real-property structure in a workmanlike manner. Essentially, this court held the builder-vendor liable for the diminished value of the structure resulting from the builder-vendor’s failure to comport with “ ‘an implied term of the sale that the builder* * * [would] complete the house in such a way that***the work [both before and after the sale] would be done in a***workmanlike manner.’ ” Id., at page…