Capitano v. Huber, Hunt & Nichols, Inc.

359 So. 2d 308
CourtLouisiana Court of Appeal
DecidedMay 10, 1978
Docket9107
StatusPublished
Cited by5 cases

This text of 359 So. 2d 308 (Capitano v. Huber, Hunt & Nichols, 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
Capitano v. Huber, Hunt & Nichols, Inc., 359 So. 2d 308 (La. Ct. App. 1978).

Opinion

359 So.2d 308 (1978)

Sam CAPITANO, Jr., d/b/a El-Cap Construction Company
v.
HUBER, HUNT & NICHOLS, INC. and Blount Brothers Corporation (a joint venture) and Louisiana Stadium and Exposition District.

No. 9107.

Court of Appeal of Louisiana, Fourth Circuit.

May 10, 1978.
Rehearing Denied June 13, 1978.

*310 Cecil M. Burglass, Jr., Burton G. Klein, New Orleans, for plaintiff-appellee.

Gordon, Arata, McCollam & Watters, Blake G. Arata, Andrew L. Gates, III, New Orleans, for defendant-appellant, Huber, Hunt & Nichols, Inc. and Blount Brothers Corp. (A Joint Venture).

Before GULOTTA, BEER and GARSAUD, JJ.

GULOTTA, Judge.

Defendant-general contractor for the Louisiana Superdome appeals from a $150,000.00 unjust enrichment award in favor of plaintiff-subcontractor for excavation and demolition work performed during the construction of the Dome. It is defendant's contention that plaintiff is not entitled to any recovery or, alternatively, that the award should be limited to $19,757.00 with interest from date of final judgment. In a reconventional demand, defendant claims entitlement to $270,965.00. Plaintiff has answered the appeal, seeking either 1) an increase to $781,390.00, the contract price or 2) an increase to $392,700.00 ($197,700.00 for work performed and $200,000.00 for loss of anticipated profits) plus 10% attorney's fees. We reduce the award to the sum of $93,540.00 with interest from date of final judgment but affirm the judgment in all other respects.

FACTUAL BACKGROUND

Defendant entered into negotiations with Sam Capitano in anticipation of awarding to Capitano the subcontract for excavation and demolition of the Dome Stadium site. On May 12, 1971, their negotiations were reduced to a document entitled "Rider No. 1" which was to be incorporated in a subcontract to be signed at a later date.

Rider No. 1 described in detail the work to be performed by plaintiff and set forth lump sum prices for particular phases of the job in addition to unit prices for estimated quantities of materials to be removed or placed on the job site. The total approximate subcontract price set forth was $781,390.00. The document was not signed by both parties.[1]

On May 27, 1971, defendant authorized Capitano to begin the excavation and demolition of the basement of the Swift & Company Building, one of the items of work to be performed. Plaintiff began work as directed and on August 11, 1971, subsequent to sale of the stadium bonds, he received a telegram from defendant authorizing him to proceed with other aspects of the work as outlined in Rider No. 1.

Capitano continued working on the site until September 28, 1971, when he left the job.[2] He was subsequently replaced by another excavation and demolition subcontractor. In early October, 1971, plaintiff submitted to defendant a request for payment of the sum of $192,700.00. This total was itemized in plaintiff's request as follows:

 1. Mobilization                   $     4,700.00
 2. Demolition of the Swift
    Building (100% completion)           9,800.00
 3. Demolition and storage
    (70% completion)                    63,000.00
 4. Excavation and grading
    (15% completion—At trial,
    plaintiff testified that the
    15% figure on the request was
    an error and should have been
    40%.)                               86,800.00
 5. Excavation and disposing of
    materials—25,000 yards        25,000.00
 6. Sand and extras ordered              3,400.00
                                    _____________
                                    $  192,700.00

*311 Defendant refused payment and this litigation followed.

It is undisputed that prior to September 28, 1971, defendant had paid plaintiff a total of $25,200.00 for work performed. At issue are 1) whether a contract had been entered into between the parties and whether a breach of that agreement had taken place, and 2) if no contract existed, the amount to which plaintiff is entitled for demolition and excavation work performed.

CONTRACT

The trial court[3] rejected plaintiff's contention that a contract existed entitling plaintiff to recover the $781,390.00 or contract price. The record supports this conclusion.

Rider No. 1 provides:

"This subcontract is awarded subject to approval of the Subcontractor by the Owner and/or his representative . . . ."

The evidence is clear that the owner never approved Capitano. Further, Rider No. 1 provides that the subcontractor is to furnish a performance bond in the amount of the approximate subcontract price and to carry insurance in the same minimum limit as required of the contractor, which in this case was a $1,000,000.00/$5,000,000.00 liability policy. Plaintiff, by his own testimony, indicated that no performance bond was furnished and that the maximum amount of insurance coverage provided by him was a $100,000.00/$300,000.00 policy. Although it is true, as pointed out by plaintiff, attempts were made to modify the insurance requirements to accommodate Capitano by allowing him to provide insurance on particular phases of the job on a piecemeal basis in order to circumvent the $1,000,000.00/$5,000,000.00 requirement, no final arrangements were made and no insurance was furnished. It was during these negotiations that Capitano left the job. Under the circumstances, we conclude, as did the trial court, that ". . . Rider 1 was never reduced to a binding contract . . . ."

ACTIO DE IN REM VERSO

Plaintiff, though not performing under a contract, did, nevertheless, work on the job site pursuant to authorization by defendant. Plaintiff's claim is one in the actio de in rem verso. See Oil Purchasers, Inc. v. Kuehling, 334 So.2d 420, 425 (La. 1976).

Five prerequisites to recovery are necessary under this concept: 1) an enrichment, 2) an impoverishment, 3) a connection between the enrichment and the impoverishment, 4) an absence of "justification" or "cause" for the enrichment and impoverishment, and 5) plaintiff's lack of any other remedy at law. Minyard v. Curtis Products, Inc., 251 La. 624, 205 So.2d 422 (1967); Edmonston v. A-Second Mortgage Company of Slidell, Inc., 289 So.2d 116 (La.1974). Recovery is based upon the principle that one who is unjustly enriched at the expense of another must make restitution of the amount of the enrichment or in some cases the amount of impoverishment. Minyard v. Curtis Products, Inc., supra. See also Custom Builders & Supply Inc. v. Revels, 310 So.2d 862 (La.App.3d Cir. 1975). In an actio de in rem verso case, as in any other, the burden is upon plaintiff to satisfy these prerequisites.

The record is clear that defendant was enriched as a result of plaintiff's work. Huber-Hunt billed to and received from the Dome owners a total of $255,000.00 for excavation and demolition work through October 31, 1971. A part of this work was performed by plaintiff. Also clear is the fact that plaintiff was impoverished. The undisputed testimony of the demolition subcontractor *312 who succeeded plaintiff on the job was that Capitano had incurred unpaid equipment and labor costs in the sum of $64,162.32. Because no contract or valid juridical act existed, there is an absence of "justification" or "cause". See Edmonston v. A-Second Mortgage Company of Slidell, Inc., supra. Furthermore, plaintiff has no other legal remedy. The prerequisites for establishing entitlement under the actio de in rem verso have been met in this case.

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359 So. 2d 308, Counsel Stack Legal Research, https://law.counselstack.com/opinion/capitano-v-huber-hunt-nichols-inc-lactapp-1978.