Coffman Homes, L.L.C. v. Sutherland

60 So. 3d 52, 10 La.App. 5 Cir. 178, 2011 La. App. LEXIS 209, 2011 WL 523384
CourtLouisiana Court of Appeal
DecidedFebruary 15, 2011
DocketNo. 10-CA-178
StatusPublished
Cited by1 cases

This text of 60 So. 3d 52 (Coffman Homes, L.L.C. v. Sutherland) 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
Coffman Homes, L.L.C. v. Sutherland, 60 So. 3d 52, 10 La.App. 5 Cir. 178, 2011 La. App. LEXIS 209, 2011 WL 523384 (La. Ct. App. 2011).

Opinions

SUSAN M. CHEHARDY, Judge.

| sjThis suit arises from a contract involving construction of a home. The defendants, Robert Sutherland and Jeanne Sutherland, appeal the trial court’s judgment against them that awarded damages to the contractor. We affirm.

FACTS

On November 18, 2004, the Sutherlands signed a document titled “Coffman Homes, LLC Builder’s Contract,” which provided that Coffman Homes, LLC (“Coffman”) would construct a house for the Suther-lands on Square B, Lot 51A in Southlake Village Subdivision in Kenner. The agreement designated the Sutherlands as Owner and Coffman as Contractor and states as follows, in pertinent part:

Contractor and Owner, for the consideration hereinafter named, agree and bind and obligate themselves as follows:
(Project to start in 30-90 days)
Contractor’s Obligations:
The Contractor agrees to, obtain all subcontractors, to do and perform or have performed all the work, and to erect, build finish and deliver in a workmanlike manner a single or two story, single family residence, with one year warranty as shown on the drawings and described in the specifications prepared or to be prepared by Owner’s architect, _and to be dated and signed by the parties hereto on the date of submission to the Contractor, which said drawings and specifications are |3by reference made a part thereof, and, together with this agreement, form the contract.
* * *
The said building to be erected on the following described property, which either currently belongs to the Owner, or shall be obtained by Owner, viz:
Southlake Village Subdivision Kenner, LA
Square B Lot 51A 81.25/75x9543/120

The contract also contained the following cancellation clause:

Should the Owner cancel this contract, at any time and for any reason, Owner hereby agrees and stipulates that liquidated damages to the Contractor in the amount of $20,000.00 shall be paid directly to the Contractor as damages for cancellation of this Contract.... Should Contractor be required to enforce the terms of this contract through the institution of legal proceedings, Owner hereby agrees to pay all of Contractor’s legal [55]*55costs and attorney’s fees in the amount of 25% of the total amount due under the Contract.

After they signed the agreement with Coffman, the Sutherlands purchased the designated lot. Thereafter they met with an architect on several occasions in an attempt to have plans drafted for construction of the house. The Sutherlands were not satisfied with any of the proposed house plans, because those that had all the features they desired would not fit on their lot due to the lot’s odd shape. Eventually the Sutherlands informed Coffman they were not going to build a house on the lot.

Coffman filed suit against the Suther-lands on June 1, 2006, alleging the Suther-lands had breached the contract to build the house. Coffman sought the contractual stipulated damages of $20,000 plus attorney’s fees.1

The Sutherlands answered the petition with a general denial.2 The matter proceeded to trial, and the trial court rendered judgment in favor of Coffman in the amount of $20,000 plus costs and attorney’s fees.

l4In reasons for judgment incorporated into the judgment, the trial court held as follows:

This is a suit for liquidated damages for the non-performance of a conditional contract, containing suspensive conditions .... The primary issue ... is whether the Sutherlands breached the contract by refusing to commence construction on the subject lot or whether the suspensive conditions contained within the contract rendered the contract null and void.
It is uncontested that there existed a condition in the contract which required “drawings and specifications” be prepared or procured by the “owners” and then submitted to the contractor. It is this suspensive condition which the Court addresses and upon which the issues before this Court depend. Although other conditions exist within the contract, the fulfillment or non-fulfillment of the owners[’] obligation to submit plans supercedes all other conditions which are not before this Court this date and are inconsequential at this point in time.
Defendants entered into the subject contract with Coffmann [sic] apparently as [a] purchase requirement and/or a condition of the Subdivision within which the lot was located.
Testimony of defendants revealed that plans were drawn and reviewed with Coffman and it was then they first interjected a desire to place a pool in the yard. The pool was not contemplated initially nor was it made a condition of the contract subsequently. The plans were never signed and dated. The contract could not be fulfilled and failed.
Defendants also argue that there was no meeting of the minds nor price certain negotiated between the parties. The Court disagrees. It is clear that the intention of both parties was that Coffman was to build defendants’ house on the designated lot and that a “cost-plus” price was the agreed price certain.
While La. Civ.Code Article 1770 states that an obligation is null and void when dependent upon the will of the obligor, as argued by the Sutherlands, the obli[56]*56gations in the contract at hand are not based solely on whim but are clearly conditions that defendants were in control of bringing about or not. Accordingly, La. Civ.Code Art. 1772 must be considered:
|r/4 condition is regarded as fulfilled when it is not fulfilled because of the fault of a party with an interest contrary to fulfillment.
Testimony and evidence revealed that defendants clearly had interests contrary to fulfillment of the contract. Defendants wanted a pool[,] which they testified would not fit to their satisfaction on the lot; and, consequently, they wanted to sell the lot, and have done so.

Finally, the court found no merit to the defendants’ argument that the contract’s $20,000 in liquidated damages was excessive and against public policy. The court noted there was no testimony of discussion or objection to the stated damages prior to the institution of this suit. The court found that the stipulated amount “conservatively approximates lost profit of Coff-man” due to the failure of the contract and that the amount is reasonable.

The Sutherlands filed a motion for new trial, which was denied, and now they appeal.

LAW AND ANALYSIS

We address the assignments of error in the order in which they are raised in the Sutherlands’ brief.

I. Validity and Enforceability of Contract

In their first assignment, the Suth-erlands argue the trial court erred in concluding there was a valid, completed, and enforceable contract between the parties, because there was no meeting of the minds as to the object of the contract and no agreement as to the price.

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Bluebook (online)
60 So. 3d 52, 10 La.App. 5 Cir. 178, 2011 La. App. LEXIS 209, 2011 WL 523384, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coffman-homes-llc-v-sutherland-lactapp-2011.