Charitable home dispute trial set to open

May 29—A lawsuit filed by a former Muhlenberg County family against Jagoe Homes, over whether the company had contracted to build them a free home, is set to go to trial this week.

The lawsuit, which was filed against Jagoe Homes in 2015 by Chad Watson and his daughter, Kylie Watson. The suit alleges the homebuilding company broke its contract with the family when it did not build the family a home. Nine members of the Watson family were killed in a Jan. 30, 2014, fire at their home in Depoy.

The fire was ruled accidental. Chad Watson and Kylie Watson were treated for injuries at Vanderbilt Hospital and released.

Attorneys for Jagoe Homes claim there never was a contract, but that the offer was only charitable. Jagoe's attorneys argue Chad Watson did not acquire land needed for the project to go forward. The family no longer lives in Muhlenberg County.

In a Messenger-Inquirer story printed a few days after the fire, Scott Jagoe, one of the partners in Jagoe Homes, said the company had offered to build the Watsons a new home, with donated materials and Jagoe covering any additional costs. The offer was withdrawn in March 2015. Court documents say the Watsons claim they had a agreed-upon home design and were looking for land when the offer was withdrawn.

Court records filed by Jagoe's attorneys say the case hinges on what constitutes an enforceable contract, and on whether the Watsons suffered a loss when the promise was withdrawn, since they had not acquired land for the home. A question for the jury is whether the Watsons had failed to meet a condition of the agreement by the time the offer was withdrawn.

The case was previously dismissed in Daviess Circuit Court, but the state Court of Appeals ruled the case could go forward.

In their opinion, the Appeals Court judges said there was what could be considered a contract between the Watsons and Jagoe Homes for the company to build the home in exchange for the family participating in the publicity surrounding Jagoe's work.

Court records filed by Jagoe's attorneys say the Watsons did not do any media interviews that would have promoted community "goodwill" toward the company.

Chad Watson's attorney, Travis Holtrey, declined to answer any questions about the case Friday, saying he couldn't talk about specifics before the case is heard by a jury. The Watsons argue in court documents that Jagoe Homes did receive "goodwill" from the community from the "public notice of their intent to build the home, through much publicity in their market area."

The trial is set for Wednesday. Daviess Circuit Judge Jay Wethington said the trial is expected to last three days.

James Mayse, 270-691-7303, jmayse@messenger-inquirer.com, Twitter: @JamesMayse