Carbo v. Maison Jolie, Inc.

155 So. 2d 238, 1963 La. App. LEXIS 1157
CourtLouisiana Court of Appeal
DecidedJuly 1, 1963
DocketNo. 1072
StatusPublished
Cited by6 cases

This text of 155 So. 2d 238 (Carbo v. Maison Jolie, 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
Carbo v. Maison Jolie, Inc., 155 So. 2d 238, 1963 La. App. LEXIS 1157 (La. Ct. App. 1963).

Opinion

CHASEZ, Judge.

This lawsuit involves two claims, entirely distinct except in relation to defendant, Maison Jolie, Inc. One claim is for the balance of the price of a lot Maison Jolie, Inc., caused to be transferred to plaintiff, Bertram C. Carbo and the second claim relates to building contract liens filed against the lot and building constructed thereon by Maison Jolie, Inc., for Carbo. The suits which were consolidated with this one all involve building contract liens.

Judgment was rendered in favor of Bertram C. Carbo and against Maison Jolie, Inc., for the balance due on the price of the lot; and Maison Jolie, Inc., appeals seeking reversal of that judgment, and Bertram C. Carbo appeals seeking to have United Bonding Insurance Company adjudged liable in solido with Maison Jolie, Inc. United Bonding Insurance Company is the surety on the building contract performance bond.

Judgment was also rendered in favor of the lien claimants against Bertram C. Carbo, Maison Jolie, Inc., and United Bonding Insurance Company in solido, and the judgment also provided for adjustment of the liability of the solidary judgment debtors inter se. Both Bertram C. Carbo and United Bonding Insurance Company appeal from that part of the judgment, each arguing that he is not liable but not disputing the correctness of the amounts of the lien claims.

Plaintiff’s petition alleged, and the evidence admitted over objections based on parol evidence rules clearly proves, the facts set forth hereafter. The question is whether the evidence was properly admitted.

Plaintiff entered into negotiations with one John R. Cafiero for the construction of a home on plaintiff’s lot in a subdivision known as Redgate. When it appeared the cost of constructing on his own lot would be more than plaintiff desired to spend, he and Cafiero began negotiations for the construction of a house on a less valuable lot on Wildwood Street which Cafiero had bound himself to buy from one John A. DeGrey. The buy-sell agreement stipulated the $6,750.00 price was to be paid half cash and half credit, secured by a second mortgage, payable upon completion of a house to be constructed; and the mortgage was to be inferior to a collateral mortgage to be executed by purchaser to obtain interim construction financing.

At or about this time the persons with whom Cafiero was operating incorporated Maison Jolie, Inc., for the purpose of building the house for plaintiff and other houses, and Cafiero became Maison Jolie, Incorporated’s general manager and continued his dealings with plaintiff in that capacity.

As general manager of Maison Jolie, Inc., Cafiero agreed with plaintiff verbally that Maison Jolie, Inc., would assume the Ca-fiero-DeGrey buy-sell agreement and have [240]*240title to the Wildwood property placed in plaintiff’s name, would construct the desired house on the lot, all for a price of $29,000.00, which was $2,000.00 less than the price Maison Jolie, Inc., asked for the house and lot; and would accept plaintiff’s Redgate lot assuming the existent $3,500.00 mortgage upon it and give plaintiff credit for the net worth of the lot based on a price of $7,500.00, which was $2,000.00 less than plaintiff’s valuation of his Redgate lot. And plaintiff agreed that he would convey his Redgate lot to Maison Jolie, Inc., at the reduced price, and would additionally pay for the house and Wildwood lot, the reduced price of $29,000.00, composed of $4,-000.00 represented by the reduced net worth of his Redgate lot and $25,000.00; and that he as new owner would execute the second mortgage on the Wildwood lot required by the Cafiero-DeGrey buy-sell agreement assumed by Maison Jolie, Inc., and the collateral mortgage also stipulated in that buy-sell agreement to secure interim construction financing.

In furtherance of that agreement plaintiff did transfer his Redgate lot to Maison Jolie, Inc., (who in turn sold it for $9,800.-00), and the following documents were executed, all on May 19, 1960, and all before the same notary:

(1) Sale of the Wildwood lot by De-Grey to plaintiff, reciting payment of $6,750.00 in cash. In fact Mai-son Jolie, Inc., paid the cash half of the price, in complete compliance with the original buy-sell agreement, by its check signed by Cafiero and William L. Tungate, its vice-president, and annotated in a space provided for explanation of the check “l/j Pay lot 14 Wildwood Subd”. The balance of the price was in fact represented by a mortgage note made by plaintiff as mortgagor and endorsed by Cafiero.
(2) Mortgage on the Wildwood lot executed by plaintiff as á new owner to secure the mortgage note given for the credit half of the price of the Wildwood lot.
(3) Collateral mortgage on the Wild-wood lot executed by plaintiff for some $20,000.00.
(4) Building contract between plaintiff and Maison Jolie, Inc., for the construction of the desired house, prepared on a printed form and providing “work to be performed for the price of $29,000.00” and also reciting the first payment of $4,000.00 “has been previously paid by owner and received by contractor prior to the signing of this contract.”

Plaintiff, Maison Jolie, Incorporated’s then general manager, Cafiero, DeGrey and the Notary Public all testified that it was expressly confirmed verbally by Cafiero immediately prior to and at the time of executing the above documents that Maison Jolie, Inc., would itself pay the balance of the price on the Wildwood lot upon the completion of the house.

The following day United Bonding Insurance Company executed a “performance bond” in the amount of $29,000.00 by which the Bonding Company, in effect, guaranteed the building contract performance by Maison Jolie, Incorporated. In no case can the Bonding Company be held as S’trety on Maison Jolie, Incorporated’s promise to pay for the Wildwood lot; sure-tyship must be “restrained within the limits intended by the contract”, LSA-C.C. Art. 3039, and being the promise to pay the debt of a third party must be in writing, LSA-C.C. Art. 2278(3). United Bonding Insurance Company therefore has no responsibility in any case for the lot price, whether or not parol is admissible to- show Maison Jolie Incorporated’s promise, and the judgment appealed from was correct in rejecting this claim as against United Bonding Insurance Company.

[241]*241Maison Jolie Incorporated’s objections to parol are based on two grounds.

We eliminate preliminarily the objection that Maison Jolie Incorporated’s promise to pay for the lot was a promise to pay the debt of a third party, to prove which parol is inadmissible under LSA-C.C. Art. 2278(3). The whole thrust of plaintiff’s case is that he was never obliged, as between himself and Maison Jolie, Incorporated, to pay for the lot. Since Maison Jolie Incorporated had him take title to the lot, because a newborn corporation like Maison Jolie Incorporated could not handle the interim financing, it was necessary that plaintiff as owner grant the second mortgage to secure the debt of Maison Jolie Incorporated. But it is plaintiff who promised, to DeGrey only, to pay the direct and primary obligation of Maison Jolie Incorporated and not vice versa. We note also that Art. 2278(3) merely prohibits the reception of verbal proof, and that the written buy-sell agreement and the written Maison Jolie Incorporated check for “i/£ pay”' fairly show Maison Jolie Incorporated’s promise by written proof. Therefore Art. 2278(3) did not prevent the reception of the evidence introduced.

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Related

Dahl v. National Bank of Commerce in New Orleans
196 So. 2d 578 (Louisiana Court of Appeal, 1967)
Air Conditioning Specialists, Inc. v. Maison Jolie, Inc.
155 So. 2d 243 (Louisiana Court of Appeal, 1963)
S. W. Campbell & Son, Inc. v. Maison Jolie, Inc.
155 So. 2d 243 (Louisiana Court of Appeal, 1963)
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155 So. 2d 244 (Louisiana Court of Appeal, 1963)
David v. Carbo
155 So. 2d 244 (Louisiana Court of Appeal, 1963)

Cite This Page — Counsel Stack

Bluebook (online)
155 So. 2d 238, 1963 La. App. LEXIS 1157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carbo-v-maison-jolie-inc-lactapp-1963.