Beth Israel v. Bartley, Inc.

579 So. 2d 1066, 1991 WL 57757
CourtLouisiana Court of Appeal
DecidedApril 18, 1991
Docket89-CA-2192
StatusPublished
Cited by29 cases

This text of 579 So. 2d 1066 (Beth Israel v. Bartley, Inc.) 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
Beth Israel v. Bartley, Inc., 579 So. 2d 1066, 1991 WL 57757 (La. Ct. App. 1991).

Opinion

579 So.2d 1066 (1991)

BETH ISRAEL
v.
BARTLEY, INC. and Seaboard Surety Company of New York.

No. 89-CA-2192.

Court of Appeal of Louisiana, Fourth Circuit.

April 18, 1991.
Rehearing Denied June 18, 1991.

*1067 James B. Irwin, V, Gustave A. Fritchie, III, Montgomery, Barnett, Brown, Read, *1068 Hammond & Mintz, New Orleans, for plaintiff/appellee.

Douglas A. Kewley, Gardner & Kewley, Metairie, for defendant/appellant, The Celotex Corp.

Before GARRISON, BARRY and PLOTKIN, JJ.

BARRY, Judge.

Celotex Corporation appeals a judgment which awards damages to Beth Israel Synagogue due to a defective roof.

PROCEDURAL HISTORY

Beth Israel filed suit January 17, 1979 against Bartley, Inc., [Bartley] a general contractor, and Seaboard Surety Company, its surety, based on breach of a building contract for construction of a synagogue and school building. Beth Israel had partially moved into the building on October 12, 1969, but a number of defects noted on a punch list had not been corrected by Bartley. Bartley and Seaboard Surety answered and filed exceptions of no cause and no right of action and prescription. No hearings was held on the exceptions.

By supplemental petition filed January 7, 1980 Beth Israel added defendants August Perez & Associates, Inc. [Perez], August Perez, Jr., and August Perez III, architects; Continental Casualty Company [CNA], insurer of Perez; Celotex Corporation [Celotex], the roof manufacturer, and Aetna Casualty & Surety Company, Celotex's bonding company. Beth Israel claimed that Perez breached its obligation to supervise construction and allowed Bartley to furnish substandard materials; alternatively, that Perez's specifications were defective. Beth Israel specified that the defective work included the built-up roof and remedial work and would far exceed the $4,340 amount of the bond. Beth Israel prayed for judgment against Celotex and Aetna jointly and in solido with all other defendants for $4,340 plus costs, attorney's fees and interest. Perez, Perez, Jr. and Perez III answered and claimed Beth Israel's claims had prescribed (re-urged in answer to the supplemental petitions).

In its second supplemental petition (filed May 30, 1980) Beth Israel stated that it accepted the work on June 18, 1970 subject to a reservation for specified defective work. Beth Israel alleged that it completed payment to Bartley under the mistaken impression that the defects had been remedied. Beth Israel claimed that Bartley failed to perform in a workmanlike manner, did not remedy the defects, and its failure to repair resulted in damages of $500,000.00. Beth Israel prayed that the defendants be cast in solido, plus costs and attorney's fees.

Bartley and Seaboard Surety answered the supplemental petitions and reiterated their exceptions. Celotex answered the supplemental petitions, alleged that any liability was limited to its $4,340.00 bond, and filed exceptions of no cause of action and prescription. Those exceptions were not tried.

In its third supplemental petition (filed November 22, 1983) Beth Israel alleged that Bartley, Perez, and Celotex knew or should have known that the construction was substandard due to defective materials, and the roof would leak and damage the inside of the building and its contents. Beth Israel pleaded res ipsa loquitur.

Trial was by a commissioner who found liability as to Bartley, Perez, and Celotex, except that Bartley and Perez were exonerated for repairs that could have been made in 1978. Celotex was denied mitigation of damages because Beth Israel undertook replacement of the roof as soon as it was aware it was defective. The commissioner made no award for mental anguish, inconvenience, humiliation and embarrassment. The commissioner recommended awards against: Bartley and Seaboard Surety Company, $40,818; Perez, $97,500 ($40,000 exterior, $40,000 interior damages; $17,500 professional costs); Celotex and Aetna Casualty & Surety, $218,816 ($123,816 exterior, $50,000 interior damages; $30,000 professional fees; $15,000 attorney's fees).

The commissioner awarded legal interest from the date of demand and all costs including expert fees. The commissioner dismissed August Perez, Jr. and August *1069 Perez, III because they acted in their corporate capacity.

In its judgment the trial court denied numerous exceptions to the report and adopted the commissioner's findings except for certain damages. The court deleted $7,224.31 in damages to be paid by Perez and $8,000 in damages plus $4,340 (Celotex's bond) from the amount to be paid by Celotex. The court granted a defense motion for a new trial because the complete transcript was not available when the judgment was rendered. Aetna's motion for a new trial (based on damages in excess of its roof bond) was also granted. The case was submitted on the record without additional argument or briefs. The court rendered judgment in favor of Beth Israel and against Perez & Associates, Inc. and Continental Casualty Company for $90,275.69; against Celotex for $206,476.00; against Aetna for $4,340.00 with a credit for $3,500.00; and against Bartley and Seaboard Surety Company for $40,818.00. All costs were to be paid by the defendants. Claims against August Perez, Jr. and August Perez III were dismissed with prejudice.

Celotex argues the trial court erred:

1) by allowing evidence on redhibition because it constituted an expansion of the pleadings;
2) by finding the redhibition claims had not prescribed;
3) by concluding that Beth Israel had proven damages with specificity;
4) by not allowing Celotex a credit for unjust enrichment/beneficial use;
5) by granting legal interest from judicial demand on attorney's fees.

Beth Israel answered the appeal, then filed a motion to dismiss its answer which was granted by this Court.

On October 17, 1990 Celotex filed under Chapter 11 of the U.S. Bankruptcy Code and a stay order (including all matters on appeal) was issued. On November 30, 1990 Beth Israel obtained an order to modify the stay to permit this appeal.

BACKGROUND

On June 29, 1966 Beth Israel contracted with Perez to design and provide contract administration for a synagogue and school building. Bartley was low bidder and entered into a $758,000.00 contract with Beth Israel on July 26, 1968. During construction two changes were made without Beth Israel's approval (allegedly pursuant to industry custom): (1) the plaster and material on the exterior of the building was changed; (2) the roofing system was changed from 4-ply to 2-ply. The roof was completed October 1, 1969 and Beth Israel occupied portions of the building soon after. The building was completed in December, 1969 except for punch list items. The roof bond is dated February 3, 1970. The building was accepted June 4, 1970 (registered June 18) although the punch list had not been completed.

One punch list item involved a section of defective aggregate panel. Over time other areas began to crack and fall off. In 1975 Gene Erwin, an expert in lathing and plaster, recommended removal of the Bondcoat on the exterior aggregate panels. In 1976 Perez advised removal of the deteriorating aggregate panel.

Soon after the project was accepted Beth Israel observed leaks inside the building and informed Bartley. In August, 1970 there were complaints of roof leaks in several areas which were repaired by November 24, 1970.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Whalen v. Monsanto
Fifth Circuit, 2024
Jones v. Coty Inc.
362 F. Supp. 3d 1182 (U.S. Circuit Court, 2018)
Lemieux v. American Optical Corp.
712 F. App'x 409 (Fifth Circuit, 2018)
Pitre v. Yamaha Motor Co.
51 F. Supp. 3d 644 (E.D. Louisiana, 2014)
Gadpaille v. Thomas
990 So. 2d 126 (Louisiana Court of Appeal, 2008)
DOMINION EXPLORATION & PRODUCTION v. Waters
972 So. 2d 350 (Louisiana Court of Appeal, 2007)
Alston v. Fleetwood Motor Homes of Indiana Inc.
480 F.3d 695 (Fifth Circuit, 2007)
Orleans Sheet Metal Works & Roofing, Inc. v. Rabito
916 So. 2d 1143 (Louisiana Court of Appeal, 2005)
DIVISION PLACE PART. v. Carl E. Woodward, Inc.
806 So. 2d 912 (Louisiana Court of Appeal, 2002)
Encalade v. Coast Quality Const. Corp.
772 So. 2d 244 (Louisiana Court of Appeal, 2000)
Shopeze Food Stores, Inc. v. Tanwar
769 So. 2d 646 (Louisiana Court of Appeal, 2000)
Morris v. United Services Auto. Ass'n
756 So. 2d 549 (Louisiana Court of Appeal, 2000)
Tiger Bend, L.L.C. v. Temple-Inland, Inc.
56 F. Supp. 2d 686 (M.D. Louisiana, 1999)
In Re Medical Review Panel for Dede
729 So. 2d 603 (Louisiana Court of Appeal, 1998)
Stuart v. American Cyanamid Company
158 F.3d 622 (Second Circuit, 1998)
Stuart ex rel. Craven v. American Cyanamid Co.
158 F.3d 622 (Second Circuit, 1998)
Dixie Roofing v. Allen Parish Sch. Bd.
690 So. 2d 49 (Louisiana Court of Appeal, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
579 So. 2d 1066, 1991 WL 57757, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beth-israel-v-bartley-inc-lactapp-1991.