Chumley v. Today's Realty, Inc.

995 So. 2d 676, 2008 WL 4791900
CourtLouisiana Court of Appeal
DecidedNovember 25, 2008
Docket43,676-CA
StatusPublished
Cited by1 cases

This text of 995 So. 2d 676 (Chumley v. Today's Realty, 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
Chumley v. Today's Realty, Inc., 995 So. 2d 676, 2008 WL 4791900 (La. Ct. App. 2008).

Opinion

995 So.2d 676 (2008)

J. Gale CHUMLEY, Plaintiff-Appellant,
v.
TODAY'S REALTY, INC., Frank M. Cordaro and Kathie Cordaro, Defendants-Appellees.

No. 43,676-CA.

Court of Appeal of Louisiana, Second Circuit.

November 5, 2008.
Order Granting Rehearing November 25, 2008.

*678 H. Russell Davis, Arcadia, for Appellant.

Napper, Madden & Rogers by Thomas W. Rogers, Ruston, for Appellees.

Before BROWN, MOORE and LOLLEY, JJ.

LOLLEY, J.

J. Gale Chumley appeals a judgment by the Third Judicial District Court, Lincoln Parish, Louisiana, partially in favor of *679 the defendants/appellees, Today's Realty, Inc., Frank M. Cordaro and Kathie Cordaro, who, in turn, have answered the appeal. For the following reasons, we reverse in part and amend in part the trial court's judgment.

FACTS

In the fall of 2003, Dr. J. Gale Chumley agreed to sell a lot located on West Mississippi Avenue, Ruston, Louisiana, to Louisiana Tech University ("La. Tech") for the price of $145,000.00. Dr. Chumley was to retain ownership of his house located on the property. At the time, Dr. Chumley was 83 years of age and a retired professor from La. Tech. He and his family had lived in the house for approximately 47 years. Dr. Chumley has no complaint regarding his real estate transaction with La. Tech.

Seeking to move his home to a new location, Dr. Chumley sought the help of defendant Frank M. Cordaro, a local real estate agent and broker. The two men had known each other for many years— since the time Cordaro was a student of Dr. Chumley's. After looking at several locations for the house, it was agreed that the house would be moved to a lot owned by Cordaro at 1303 Gains Street in Ruston (the "Gains Street lot"). Dr. Chumley was to pay the cost of moving the house in addition to the cost of improvements to prepare it for him and his wife, Helen.[1] Ultimately, Cordaro collected a total sum of $115,000.00 from Dr. Chumley for moving and renovating his home. Cordaro oversaw the move of the house as well as the renovation. Cordaro also furnished employees to perform labor in connection with the relocation and improvement of the house. The agreement of the parties was not reduced to writing.

Between December 22, 2003, and August 4, 2004, Dr. Chumley issued checks totaling $115,000.00, payable either to Cordaro or his corporation, Today's Realty, Inc. The house was actually moved to the Gains Street lot in July, 2004. The Chumleys moved back into their home in early August, 2004, and they continuously resided in the house from the date they moved in until the trial of this matter. In August, 2004, Cordaro asked Dr. Chumley for another $30,000.00 to complete the renovation of the house. Dr. Chumley refused and demanded an accounting of all funds he had previously delivered to Cordaro. From this point forward, Dr. Chumley and his family made repeated requests for an accounting from Cordaro.

In the fall of 2004, Cordaro had his attorney prepare a written document entitled "Right to Habitation." This document recognized Cordaro and his wife, Kathie, as owners of the house and lot and granted Dr. Chumley and his wife a right of habitation. Dr. Chumley refused to sign the document.

On June 27, 2005, at a meeting with Dr. Chumley and his children, Cordaro guessed that he has expended between $75,000.00 to $85,000.00 of the $115,000.00 that had been delivered to him for the relocation of the house. On July 29, 2005, Cordaro finally furnished Chumley with a handwritten accounting, without supporting documentation. This initial accounting was later supplemented by a more detailed accounting furnished on November 17, 2006. These accountings showed that Cordaro had spent $57,470.76 for the moving *680 of Dr. Chumley's home and necessary renovations.

This lawsuit was filed on February 6, 2006, and subsequently, on March 9, 2006, Cordaro issued a check to Dr. Chumley, refunding him the sum of $57,529.41. On March 13, 2006, Cordaro gave Dr. Chumley written notice to remove the house from the lot pursuant to La. C.C. art. 493. On June 17, 2006, Cordaro gave written notice to Dr. Chumley that Cordaro had "appropriated" the house, pursuant to La. C.C. art. 493. This notice further instructed Dr. Chumley to vacate the premises within five days. Subsequently, Cordaro initiated proceedings to evict Dr. Chumley from the premises in Ruston City Court; the suit was subsequently dismissed.

Following a trial of the matter, the trial court ruled partially in favor of Dr. Chumley and partially in favor of the defendants/appellees. In written reasons for judgment, the trial court determined that Dr. Chumley had not proven his claim of fraud. However, applying the doctrine of quantum meruit, the trial court entered judgment against the defendants and awarded Dr. Chumley damages in the amount of $64,000.00 for the increased value of the lot; interest in the amount of $5,263.43 for the use of Dr. Chumley's funds; and, the amount of $1,650.00 for unaccounted funds—a total monetary award to Dr. Chumley of $70,913.43. The trial court also declared the Cordaros to be the owner of the house as of June 17, 2006, and ordered Dr. Chumley to pay Cordaro $750.00 per month as rental until he vacated the property. Dr. Chumley appeals the judgment, and the defendants/appellees answer the appeal.

DISCUSSION

Fraud

On appeal, Dr. Chumley raises four assignments of error, the first two of which are related: (1) whether the trial court erred in finding that Dr. Chumley failed to prove Cordaro committed fraud; and (2) as a result, whether the trial court erred in failing to order the conveyance of the lot by Cordaro to Dr. Chumley for its unimproved fair market value. Specifically, Dr. Chumley argues that he was detrimentally induced to move his home and provide the funds for moving by fraudulent acts, misrepresentations and suppression of the truth by Cordaro. Dr. Chumley claims that Cordaro induced him to believe that ownership of the Gains Street lot would be turned over to Dr. Chumley; in fact, Dr. Chumley claims he made it plain to Cordaro that he wanted to own the lot. Dr. Chumley argues that after Cordaro received Dr. Chumley's $115,000.00 and the house had been moved to Cordaro's lot, only then did Cordaro inform him that he could not own the lot. Dr. Chumley maintains the moving of his house onto Cordaro's lot was only accomplished through Dr. Chumley's trust of Cordaro and his acts, omissions and misrepresentations; thus, Cordaro acted fraudulently and the Cordaros should be required to convey the lot to Dr. Chumley for its fair market value of $6,000.00. We agree.

An appellate court may not set aside a trial court's finding of fact in the absence of manifest error or unless it is clearly wrong, and where two permissible views of the evidence exist, the fact finder's choice between them cannot be manifestly erroneous or clearly wrong. Cole v. Department of Public Safety & Corrections, 2001-2123 (La.09/04/02), 825 So.2d 1134; Stobart v. State through Dept. of Transp. and Development, 617 So.2d 880 (La.1993). To reverse a fact finder's determination, the appellate court must find from the record that a reasonable factual basis does not exist for the finding of the trial court and that the record establishes *681 that the finding is clearly wrong. Stobart, supra.

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995 So. 2d 676, 2008 WL 4791900, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chumley-v-todays-realty-inc-lactapp-2008.