A & B Restaurant Equipment, Inc. v. HOMESEEKERS S & L.

506 So. 2d 137
CourtLouisiana Court of Appeal
DecidedApril 9, 1987
DocketCA-6526
StatusPublished
Cited by4 cases

This text of 506 So. 2d 137 (A & B Restaurant Equipment, Inc. v. HOMESEEKERS S & L.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A & B Restaurant Equipment, Inc. v. HOMESEEKERS S & L., 506 So. 2d 137 (La. Ct. App. 1987).

Opinion

506 So.2d 137 (1987)

A & B RESTAURANT EQUIPMENT, INC.
v.
HOMESEEKERS SAVINGS AND LOAN and Latter & Blum, Inc., Relators.

No. CA-6526.

Court of Appeal of Louisiana, Fourth Circuit.

April 9, 1987.
Rehearing Denied May 20, 1987.

*138 Sidney L. Shushan, Guste, Barnett & Shushan, New Orleans, for plaintiff-appellant.

Paul J. Mirabile, Middleberg & Riddle, Metairie, for Homeseekers Sav. & Loan Assn.

Mitchell J. Hoffman, Jenny Brown Lacour, Lemle, Kelleher, Kohlmeyer, Dennery, Hunley, Moss & Frilot, New Orleans, Latter & Blum, Inc., relators, for defendants-appellees.

Before SCHOTT, WARD and WILLIAMS, JJ.

SCHOTT, Judge.

In this suit, plaintiff, the purchaser of commercial property, seeks a diminution in the purchase price because of alleged latent defects in the roof and hidden termite damage. He also claims damages against the seller and the seller's real estate agent because they allegedly misrepresented the number of square feet in the building. The case was tried to a commissioner who recommended to the judge that the case be dismissed. From a judgment of the district judge dismissing the suit the purchaser has appealed contending primarily that the trial court's factual findings are manifestly erroneous.

The property involved in this case is located on Washington Avenue in New Orleans and was, before December, 1979, the home of the Russell Ice Cream Company. This company had gone bankrupt and the plant was closed for some time when defendant, Homeseekers Savings & Loan Association, foreclosed on the property and bought it at the sheriff's sale. Home-seekers *139 then listed the property for sale with defendant, Latter & Blum, Inc., a real estate broker.

Plaintiff, Rufus Abshire, operated a restaurant equipment business. He was contacted by Emmett Russell, one of the principals of the defunct ice cream business about purchasing some of the equipment in the plant. After showing plaintiff some of the equipment, Russell informed Homeseekers that plaintiff might be interested in purchasing the property. Homeseekers representative, Ted Wunder, relayed this information to Latter & Blum's agent, Herbert Stringer, who contacted plaintiff.

Plaintiff inspected the property on December 14, 1979 and on that day, signed an agreement to purchase it for $200,000. The act of sale was passed on February 18, 1980. A few days later when it rained plaintiff discovered that the roof leaked. Over the next several months plaintiff operated his business on the premises but was severely hampered by extensive roof leaks which could not be stopped despite efforts by his employees to patch the roof. Also following his purchase Abshire discovered that a second floor section was ruined by termites after he moved some pallets and boxes which had been stored in this area and left by the ice cream company.

On September 12, 1980 Abshire filed suit against Homeseekers and Latter & Blum for a rescission of the sale and for damages to his business. On June 10, 1982 Abshire amended his petition to seek a reduction in the purchase price and increased damages based upon allegations that Homeseekers and Latter & Blum had informed Abshire that a new roof had been installed on the premises; that they knew about the defects and unsound condition of the roof; and that they failed to disclose and actively concealed the defects. On November 18, 1982 Abshire further amended his petition to allege that he discovered an additional latent defect consisting of a shortage of 10,637 square feet in the building. Finally, on December 10, 1984 Abshire amended his pleadings to delete his prayer for a rescission of the sale and to proceed for a reduction in price and damages.

The building in this case was actually a complex of several buildings with separate roofs varying in height. They were built around 1930. The ice cream company closed in May, 1979 and the buildings were filled with equipment, furniture, machinery, and supplies as well as trash and debris. When Abshire inspected the premises on December 14 there were no lights and he did not go into some of the separate buildings in the complex. He testified that he saw no evidence of leaks or damage to the roof except in one section where the ceiling had caved in, but he was told by Russell that a new roof had been installed over this area; and he was also told by Wunder of Homeseekers and Stringer of Latter & Blum that the building had a new roof. This testimony was corroborated by Abshire's secretary who testified that she heard Russell and Stringer tell Abshire the building had a new roof. This lady testified that she had visited the property in December and "it seemed like a very nice building."

As to termites, Abshire testified that he had just started to move into the premises after the sale when one of his employees called him to the second floor of the building designated "H" and showed him that the floor was separating from the wall. This floor was covered with pallets and cases of ice cream cup lids. Only when these were cleared away was the presence of termites and termite damage revealed. In the interest of safety a portion of the floor was removed.

When Abshire first saw the property there was a Latter & Blum sign stating the building or buildings contained 34,000 square feet. Several days before the act of sale was passed Abshire received an appraisal from Stringer which reiterated the 34,000 square feet measurement.

In 1981 Abshire consulted Andrew J. Sullivan, Jr., a civil engineer and surveyor, to investigate the condition of the roofs on the buildings. Sullivan testified as follows: At the outset of his engagement by Abshire he was given copies of a survey of the property and of the appraisal furnished by Stringer. This appraisal showed 19,000 *140 square feet on the ground floors and 14,964 on the second floors. Immediately Sullivan knew something was wrong because casual observation told him there could not be that many square feet on the second floors if there were 19,000 feet on the first. He was commissioned to measure the square footage and found 19,460 on the ground floors and 6,767 on the second. Included in these figures were 1,965 on the ground floor and 936 on the second floor of one building which was located on a closed street belonging to the City. This combined "encroachment" square footage of 2,901 was excluded from the total by Sullivan to produce a net square footage actually purchased by Abshire of 23,326 square feet.

Abshire's suit in redhibition is based upon the existence of three defects, the condition of the roof, the presence of the termites, and the shortage in square feet. His suit for damages is based upon alleged misrepresentation or concealment by both defendants concerning the condition of the roof and the square footage of the buildings.

Redhibition is the avoidance of a sale because of a vice or defect in the thing sold which renders it either useless or so inconvenient and imperfect that the buyer would not have purchased the thing had he known about the vice. LSA-C.C. art. 2520. Apparent defects, that is, defects the buyer might have discovered by simple inspection, do not constitute redhibitory defects. Art. 2521. Simple inspection involves more than mere casual observation. It requires a buyer who observes defects to conduct further investigation as would be conducted by a reasonably prudent buyer acting under similar circumstances. Estopinal v. Bourshie, 420 So.2d 749 (La.App. 4th Cir. 1982).

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506 So. 2d 137, Counsel Stack Legal Research, https://law.counselstack.com/opinion/a-b-restaurant-equipment-inc-v-homeseekers-s-l-lactapp-1987.