Chance v. Stevens of Leesville, Inc.

491 So. 2d 116
CourtLouisiana Court of Appeal
DecidedJune 25, 1986
Docket85-695
StatusPublished
Cited by5 cases

This text of 491 So. 2d 116 (Chance v. Stevens of Leesville, 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
Chance v. Stevens of Leesville, Inc., 491 So. 2d 116 (La. Ct. App. 1986).

Opinion

491 So.2d 116 (1986)

Lorenzo CHANCE, Plaintiff-Appellee,
v.
STEVENS OF LEESVILLE, INC., Defendant-Appellee, and
Winston Homes, Inc., Defendant-Appellant.

No. 85-695.

Court of Appeal of Louisiana, Third Circuit.

June 25, 1986.
Rehearing Denied July 24, 1986.
Writ Denied October 17, 1986.

*117 Watson, Murchison, Steven D. Crews, Natchitoches, for defendant-appellant.

Edward Chevallier of Burkett and Chevallier, Many, for plaintiff-appellee.

Edwin Cabra of Cabra and Leach, Leesville, for defendant-appellee.

Before STOKER and YELVERTON, JJ., and BERTRAND, J. Pro Tem.[*]

YELVERTON, Judge.

The plaintiff, Lorenzo Chance, filed this redhibition suit against Stevens of Leesville, Inc., the seller, and Winston Industries, Inc., the manufacturer, for the return of the price paid for a mobile home. He also sought damages and attorney's fees. Winston Industries was later dismissed from the suit when it was discharged in bankruptcy. Defendant Stevens answered generally denying any fault on its part, and filed a third party demand against Winston Homes, Inc. alleging Winston Homes to be the bankrupt manufacturer's successor and obligor on all obligations and warranties of Winston Industries. Plaintiff amended to name Winston Homes a party defendant. Winston Homes filed a cross-claim against Stevens. After trial a judgment was rendered for the plaintiff against Winston Homes for $27,234.94, representing the payoff value of the mobile home, plus $9.92 per day interest on that sum from February 22,1985, as well as damages in the sum of $15,000, attorney's fees in the amount of $5,000, and judicial interest. The trial court rejected plaintiff's claim against Stevens as well as the cross claim of Winston Homes against Stevens. From these judgments the defendant, Winston Homes, has appealed.

The plaintiff answered the appeal of Winston Homes and asked for an increase in the awards, and in this answer he asked for a judgment against Stevens. Plaintiff did not appeal the rejection of his demand against Stevens.

Facts

Winston Industries, the manufacturer, delivered the mobile home to the dealer, Stevens, in the summer of 1982. Subsequently Winston Industries filed a petition in the United States Bankruptcy Court in Cleveland, Ohio. The trustee in bankruptcy sold substantially all of the assets of Winston Industries to a Mr. Don Tidwell, who immediately created Winston Homes, Inc., and conveyed the assets to that company. These sales occurred in January 1983. Under the terms of the bankruptcy sale the buyer or his assigns assumed certain warranty liabilities of the former company. The assumed liability was expressed simply as a dollar amount, without reference to any particular warranty claim or any particular item manufactured by the bankrupt, presumably meaning that Winston Homes assumed warranty liability on a "first come, first served" claim basis, up to the limit of its dollar assumption and no more. On October 18, 1983, the bankruptcy court issued an order releasing and discharging the purchaser and his assigns from any further obligations after determining that the purchaser had satisfied in *118 full all of his assumed liabilities under the sale.

Some four months before this discharge, on June 22, 1983, Stevens sold the mobile home to the plaintiff, Lorenzo Chance. At the time of sale Stevens provided Chance with the standard written warranty that had come with the mobile home from Winston Industries.

On July 16, 1983, three and a half weeks after the purchase of the home, plaintiff fell through the floor. He immediately contacted Stevens for repairs. Upon inspection Stevens' serviceman found water damage to the floor. Stevens then contacted Winston Homes about the problem. Although Winston Homes scheduled a serviceman to repair the floor, the repairs were never accomplished. After discovery of the extent of the water damage and of numerous other problems with the trailer, the plaintiff filed this suit on December 8, 1983, for rescission of the sale based on redhibition.

Trial on the merits lasted four days. In its written reasons for judgment the trial court found that the mobile home was defective and that the defects rendered its use so inconvenient that the buyer would not have purchased it had he known of the vices. It held Stevens not liable on a finding that Stevens had no knowledge of the defects. The court found that Winston Homes assured Stevens it would meet all warranty obligations of the manufacturer, Winston Industries. Based on that finding, the trial court held that Winston Homes took over the warranty obligations of the manufacturer and awarded plaintiff a judgment.

Issues

The issues presented by defendant's appeal are:

1) Whether the trial court erred in finding the defects were redhibitory;

2) Whether the trial court erred in finding that Winston Homes had taken over the warranty obligations upon this mobile home;

3) Whether the trial court erred in its award of damages and attorney's fees; and

4) Whether the trial court erred in failing to find Stevens responsible for any portion of the damages.

Winston Homes has also questioned a ruling of the trial court regarding the expertise of a witness in the field of bankruptcy. Because we find that the laws of bankruptcy are not applicable to the outcome of this case, it is not necessary to address this particular assignment of error.

The plaintiff in his answer to the appeal is seeking an increase in the award of damages, as well as attorney's fees.

Redhibition

In Moses v. Ed's Manufactured Housing, Inc., 470 So.2d 935 (La.App. 3rd Cir. 1985), this circuit was presented with a similar redhibition suit against the seller and manufacturer of a mobile home. Finding that the trial court was not clearly wrong in its determination that the defects were redhibitory, this court stated:

"The defendant-appellant, Eagle, has assigned seventeen errors to the judgment of the trial court finding the defects complained of to be redhibitory. We do not think that the trial court was clearly wrong in its factual findings regarding the nature and severity of the roof and plumbing leaks and their redhibitory nature. The trial court found that the defects existed at the time of the sale, and that they were not readily apparent:
"The principles of law applicable to redhibitory actions generally and applicable to the case before us specifically were summarized in Rey v. Cuccia, 298 So.2d 840 (La.1974):
"`In Louisiana sales, the seller is bound by an implied warranty that the thing sold is free of hidden defects and is reasonably fit for the product's intended use. Civil Code Articles 2475, 2476, 2520; Media Production Consultants, Inc. v. Mercedes-Benz of North America, Inc., 262 La. 80, 262 So.2d 377 (1972). The seller, of course, can limit this warranty by declaring to *119 the buyer the hidden defects at the time of the sale, Article 2522, or can otherwise limit his obligations as seller, providing he do so clearly and unambiguously, Article 2474.
"`A redhibitory defect entitling the buyer to annual the sale is some defect in the manufacture or design of a thing sold "which renders it either absolutely useless, or its use so inconvenient and imperfect, that it must be supposed that the buyer would not have purchased it, had he known of the vice." Article 2520.

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491 So. 2d 116, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chance-v-stevens-of-leesville-inc-lactapp-1986.