Chastant v. Oasys Imaging, Inc.

839 So. 2d 1124, 2002 La.App. 3 Cir. 1218, 2003 La. App. LEXIS 614, 2003 WL 751457
CourtLouisiana Court of Appeal
DecidedMarch 5, 2003
DocketNo. 02-1218
StatusPublished
Cited by1 cases

This text of 839 So. 2d 1124 (Chastant v. Oasys Imaging, 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
Chastant v. Oasys Imaging, Inc., 839 So. 2d 1124, 2002 La.App. 3 Cir. 1218, 2003 La. App. LEXIS 614, 2003 WL 751457 (La. Ct. App. 2003).

Opinion

hPICKETT, Judge.

FACTS

Dr. Robert Chastant, an orthodontist, attended an orthodontic conference in 1994. He was in the market for an imaging system for his orthodontic practice. This system would be used to make digital images of his patients. Those images would be used to assist in prescribing the correct treatment and communicating with the referring dentists regarding the treatment.

Dr. Chastant had already put a deposit down with Dolphin Imaging when he met Tom Gwaltney, the president of Oasys Imaging, Inc. He discussed his computer needs with Gwaltney and eventually decided to purchase an imaging system from Oasys instead of Dolphin.

One of Chastant’s concerns was that his system be able to interface with the Or-thotrac Management Software (OMS) already in use at his office. He wanted to be able to enter information into one system that could be read by both. Gwaltney knew that Chastant wanted this and agreed he could do it. The main problem was that OMS was a UNIX-based system and Oasys was Windows-based. Oasys agreed to design software to make the interface possible.

On April 25, 1994, Dr. Chastant entered into a contract with Rockfort Industries, [1126]*1126Inc., to provide the software and the hardware with the specifications to run the software. Oasys sold the hardware and software to Rockfort, who leased the hardware to Chastant. Included in the agreements were service contracts with Rock-fort for the hardware and with Oasys for the software.

Dr. Chastant claims the problems with the Oasys system began almost immediately. The computers would lock up when attempting to get the OMS and Oasys to interact. Error messages frequently appeared during routine functions. | gThey were unable to retrieve information stored on back-up systems. Images were not of high quality, and they could not print the images. The voice recognition system which would have allowed one technician to take pictures would not work, so two technicians were required to do the job. In initial consultations, instead of being able to use the computer terminal in the room set aside for that purpose, the technician would often have to take the images and then leave the room to enter data into another terminal. When images were sent to referring dentists, the wrong name would be on the image, misidentifying the patient. Chastant’s office manager, Liz-ette Breaux, testified that it was often difficult to get someone from Oasys on the phone to help correct the problems.

Although Oasys did attempt to help solve the problem, Chastant claims they were never able to get the OMS and Oasys systems to interface. In 1997, Chastant abandoned use of the Oasys system.

On November 6, 1996, Oasys sent Chas-tant a demand letter for payment for certain computer equipment and unpaid maintenance contracts. Chastant, in turn, canceled their contract with Oasys alleging defects in the computer system. On April 4, 1997, Chastant filed suit in redhibition against Oasys, seeking the return of the purchase price of the system, interest, expenses, damages, and attorney fees.

This matter went to trial on April 5, 1999, and was continued on October 9, 1999. The trial court issued Reasons for Judgment on March 30, 2001, and First Amended and Supplemental Reasons for Judgment on May 30, 2001. A Motion to Fix Attorney’s Fees was heard on September 7, 2001, and written reasons for judgment on that motion were issued on October 10, 2001. A formal judgment was signed on November 30, 2001, awarding Chastant damages in the amount of | s$88,636.00 plus legal interest from the date of judicial demand, attorney fees in the amount of $12,469.50 plus legal interest from the date of judicial demand, and casting Oasys with all costs. It is from this judgment Oasys appeals.

ASSIGNMENT OF ERROR

Oasys alleges four assignments of error, as follows:

1) The trial court erred when it found that Chastant was entitled to recission of the contract of sale for equipment with Oasys.
2) The trial court erred by finding that the Oasys imaging system was defective because it could not interface with Or-thotrac.
3) Alternatively, the trial court erred by failing to Award a reduction in the purchase price rather than recission of the sale.
4) The trial court erred by awarding attorney fees.

DISCUSSION

Redhibition is defined in La.Civ.Code art. 2520:

The seller warrants the buyer against redhibitory defects, or vices, in the thing sold.
[1127]*1127A defect is redhibitory when it renders the thing useless, or its use so inconvenient that it must be presumed that a buyer would not have bought the thing had he known of the defect. The existence of such a defect gives a buyer the right to obtain recission of the sale.
A defect is redhibitory also when, without rendering the thing totally useless, it diminishes its usefulness or its value so that it must be presumed that a buyer would still have bought it but for a lesser price. The existence of such a defect limits the right of a buyer to a reduction of the price.

An action in redhibition only lies if the defect existed at the time of delivery. La.Civ.Code art. 2530. In this case, the trial court relied on La.Civ.Code art. 2545 in assessing damages, which governs the liability of a seller who knows of a redhibi-tory defect. It states:

A seller who knows that the thing he sells has a defect but omits to declare it, or a seller who declares that the thing has a quality that he |4knows it does not have, is liable to the buyer for the return of the price with interest from the time it was paid, for the reimbursement of the reasonable expenses occasioned by the sale and those incurred for the preservation of the thing, and also for damages and reasonable attorney fees. If the use made of the thing, or the fruits it might have yielded, were of some value to the buyer, such a seller may be allowed credit for such use of fruits.
A seller is deemed to know that the thing he sells has a redhibitory defect when he is a manufacturer of that thing.

Since Oasys developed the software in this case, they are considered to be the manufacturer and are thus presumed to know of any defect.

This court discussed the meaning of “defect” in a redhibitory action in Harper v. Coleman Chrysler-Plymouth-Dodge, Inc., 510 So.2d 1366, 1369 (La.App. 3 Cir.1987):

The term “defect”, as contemplated by Article 2520, means a physical imperfection or deformity; or a lacking of necessary components or level of quality. Ezell v. General Motors Corporation, 446 So.2d 954 (La.App. 3rd Cir.1984), writ denied, 449 So.2d 1350 (La.1984); Williams v. Louisiana Machinery Company, Inc., 387 So.2d 8 (La.App. 3rd Cir.1980).

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839 So. 2d 1124, 2002 La.App. 3 Cir. 1218, 2003 La. App. LEXIS 614, 2003 WL 751457, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chastant-v-oasys-imaging-inc-lactapp-2003.