Austin Homes, Inc. v. Thibodeaux

821 So. 2d 10, 2002 WL 922166
CourtLouisiana Court of Appeal
DecidedMay 8, 2002
Docket01-1282, 01-1283
StatusPublished
Cited by11 cases

This text of 821 So. 2d 10 (Austin Homes, Inc. v. Thibodeaux) 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
Austin Homes, Inc. v. Thibodeaux, 821 So. 2d 10, 2002 WL 922166 (La. Ct. App. 2002).

Opinion

821 So.2d 10 (2002)

AUSTIN HOMES, INC.
v.
Harold THIBODEAUX and Deborah Thibodeaux.

Nos. 01-1282, 01-1283.

Court of Appeal of Louisiana, Third Circuit.

May 8, 2002.
Rehearing Denied August 7, 2002.

*11 Richard Mary, Jefferson Joseph Moss, Jr., Moss & Bradley, Lafayette, LA, for Plaintiff/Appellee Austin Homes, Inc.

Jeffrey Ackermann Durion, McGoffin, & Stagg, Lafayette, LA, for Defendants/Appellants Harold Thibodeaux and Deborah Thibodeaux.

Court composed of NED E. DOUCET JR., Chief Judge, BILLIE COLOMBARO WOODARD, and ELIZABETH A. PICKETT, Judges.

WOODARD, Judge.

Austin Homes, Inc. filed suit against Mr. and Mrs. Harold Thibodeaux to recover costs for which it had expended, but not been paid, for building their home. The *12 Thibodeauxs counter-sued, claiming that it had breached the contract by providing substandard work. The two suits were consolidated for trial. The trial court awarded Austin $58,388.55 for work that it had done, properly, but for which the Thibodeauxs had not yet paid, and $18,570.00 in lost profits due to the Thibodeauxs' breach. Thus, it did not award damages to the Thibodeauxs because it found that they had breached the contract. They lodged this appeal.

We find that the trial court legally erred in granting Austin Homes, Inc. a blanket immunity under La.R.S. 9:2771. Thus, we conduct a de novo review, modify the judgment, and remand to determine how much of the $78,358.83 that the Thibodeauxs expended to complete the home, after Austin's departure, went towards correcting Austin's substandard work, as well as for the subcontractors' costs, both to be deducted from Austin's award.

* * * * *

On February 9, 1991, Mr. and Mrs. Thibodeaux entered into a written contract with Austin Homes, Inc. (Austin) for the construction of a new home located at 100 Villere Circle in Lafayette, Louisiana. Robert Chatham, a designer from Mobile, Alabama, sold them the plans and specifications for the Georgian style home. Afterwards, Austin reviewed the plans with various subcontractors and offered to build the Thibodeauxs' home, per the plans, for $381,500.00. The Thibodeauxs agreed and signed the contract, after which they paid Austin a $38,150.00 deposit.

Although construction began on March 25, 1991, it progressed slowly. Austin did not pour the slab for the foundation until June, three months later. Nonetheless, on August 1, 1991, the Thibodeauxs paid its first draw request of $123,606.00. In October, seven months after having started construction, Austin had not, yet, weather-proofed the house. Consequently, the wooden framing was still exposed to rain and began to rot from excessive water exposure. Notwithstanding, on December 26, 1991, Austin submitted a second draw request, totaling $51,502.50, which the homeowners refused to pay because of Frank Carruther's, a Lafayette Metro Code inspector, report, detailing rotten structural members, flooring, plates, and headers, buckling studs, and rotting out of the underside of the windows. Ultimately, after Austin remedied the problems, the house passed the Metro Code inspections. At this time and in a good faith effort to get the home weatherproofed as soon as possible, on February 4, 1992, the Thibodeauxs paid Austin $20,000.00, with an agreement to make weekly payments thereafter. Although Austin continued to work until March 24, 1992, essentially, it stopped working because the Thibodeauxs refused to pay per the agreement.

In April 1992, they hired a consultant, Mr. J. Harry Hebert, a contractor, to inspect the home and determine its progress and condition. He found excessive water damage, resulting from toe boards that were nailed through the roofing; water infiltration in the chimney area and breakfast room; a lack of rain diverters over the balcony French doors; and an improper slope on the porch balcony. He, also, noted that the jacuzzi did not have a drain or water source and that, without permission, the contractor had substituted waferboard for plywood sheeting on the walls.

On April 27, 1992, Austin submitted another draw request for $58,388.55, the amount due through March 24, 1992; however, the Thibodeauxs made no payment. Eventually, on June 19, 1992, they terminated their contract and hired Mr. Hebert to take over construction as the construction manager.

*13 Austin filed suit against them to recover costs which it had expended to build their home. They counter-sued, seeking damages for the contractor's breach of contract in the home's construction. The two suits were consolidated for trial. The trial court awarded Austin $58,388.55 for the work that it had done, properly, and for which the court found that the Thibodeauxs should have paid, as well as $18,570.00 in lost profits, because of the Thibodeauxs' breach. It did not award the Thibodeauxs damages, as it found that they had breached the contract on June 19, 1992. They appeal.

* * * * *

The Thibodeauxs argue that the New Home Warranty Act (NHWA), La.R.S. 9:3141, preempts La.R.S. 9:2771—essentially, a contractor's immunity statute. On the contrary, Austin urges that it is entitled to La.R.S. 9:2771's immunity from liability because it constructed the home according to their plans and specifications.

NHWA OR LA.R.S. 9:2771

The NHWA provides for certain mandatory warranties for the purchasers and occupants of new homes in Louisiana. It, also, permits the public to use homeowners' insurance as additional protection against defects in the construction of new homes.[1] It provides:

A. Subject to the exclusions provided in Subsection B of this Section, every builder warrants the following to the owner:
(1) One year following the warranty commencement date, the home will be free from any defect due to noncompliance with the building standards or due to other defects in materials or work-manship not regulated by building standards.
(2) Two years following the warranty commencement date, the plumbing, electrical, heating, cooling, and ventilating systems exclusive of any appliance, fixture, and equipment will be free from major structural defects due to noncompliance with the building standards or due to other defects in materials or workmanship not regulated by building standards.
(3) Ten years following the warranty commencement date, the home will be free from major structural defects due to noncompliance with the building standards or due to other defects in materials or workmanship not regulated by building standards.

Contrarily, generally, La.R.S. 9:2771 relieves a contractor of liability for defects in construction, if he builds the home according to the owner's plans and specifications. Notwithstanding, if the contractor knew or should have known of the defective specification, in order to escape liability, he had a duty to report the problem to the homeowner; if the homeowner instructs him to continue according to the plan, anyway, the contractor is immune from liability.[2] The statute provides that:

No contractor shall be liable for destruction or deterioration of or defects in any work constructed, or under construction, by him if he constructed, or is constructing, the work according to plans or specifications furnished to him which he did not make or cause to be made and if the destruction, deterioration or defect was due to any fault or insufficiency of the plans or specifications. This provision shall apply regardless of whether the destruction, deterioration

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Cite This Page — Counsel Stack

Bluebook (online)
821 So. 2d 10, 2002 WL 922166, Counsel Stack Legal Research, https://law.counselstack.com/opinion/austin-homes-inc-v-thibodeaux-lactapp-2002.