Degeneres v. Burgess

486 So. 2d 769
CourtLouisiana Court of Appeal
DecidedMarch 25, 1986
DocketCA 84 1435
StatusPublished
Cited by14 cases

This text of 486 So. 2d 769 (Degeneres v. Burgess) 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
Degeneres v. Burgess, 486 So. 2d 769 (La. Ct. App. 1986).

Opinion

486 So.2d 769 (1986)

Samuel G. DEGENERES and Mary Sue Barker Degeneres
v.
Norwin D. BURGESS, Jr., et als.

No. CA 84 1435.

Court of Appeal of Louisiana, First Circuit.

March 25, 1986.

*770 Huntington B. Downer Jr., Waitz & Downer, Houma, for plaintiffs and appellees—Samuel G. Degeneres and Mary Lee Barker Degeneres.

Michael J. Scurto & Stephen M. LaRussa, Gaidry & LaRussa, Houma, for defendant and appellant—LaRussa Enterprises, Inc.

Robert J. Prejeant, Watkins, Walker & Prejeant, Houma, for defendants—Norwin D. Burgess Jr., and Annie Child Burgess.

*771 Before CARTER, SAVOIE and ALFORD, JJ.

ALFORD, Judge.

This is an appeal from a judgment in favor of plaintiffs, Samuel G. Degeneres and Mary Sue Barker Degeneres against defendant builder, LaRussa Enterprises, Inc. (LaRussa), for defects in the construction of their home. The court also awarded plaintiffs interest from the date of judicial demand and cast LaRussa for all court costs.

In September of 1977, LaRussa contracted with Norwin D. Burgess, Jr. and Anne Child Burgess to build a new house for them on property owned by LaRussa. The house was to be built according to plans and specifications that LaRussa already had in his possession, subject to several modifications requested by the Burgesses. These modifications, for which the Burgesses agreed to pay, included additional square footage, the substitution of an atrium with glass and wood walls for the wet bar shown on the plans,[1] and the installation of operable French doors on the front of the house in place of the windows specified on the plans.

S.P. LaRussa, president of LaRussa, and LaRussa's subcontractors, none of whom had ever constructed an atrium, advised against building the atrium, especially in the location that the Burgesses had selected for aesthetic reasons, because they could foresee drainage problems. Additionally, they suggested that the French doors should be permanently sealed, and that the atrium should have metal flashing instead of exposed wood on the walls. However, they complied with the Burgesses' wishes and built the house according to the requested modifications. All decisions as to construction procedures and practices to be used to effect the changes were made by LaRussa. During construction, Mr. Burgess noted several problems with water leakage in the atrium and around the chimney to the fireplace,[2] and LaRussa agreed to correct them. The act of sale between the Burgesses and LaRussa was passed on June 8, 1978.

Approximately a month thereafter, the Burgesses moved to Texas and placed their house for sale. The plaintiffs signed a purchase agreement on April 6, 1979, making correction of mildew on the ceiling near the fireplace part of the agreement.[3] After signing the act of sale on April 27, 1979, but prior to moving in, the plaintiffs discovered serious leakage problems caused by rainwater in the living room near the French doors and in the atrium. Mr. Degeneres contacted Mr. LaRussa in early May and Mr. LaRussa sent a carpenter, Mr. Carl Naquin, to correct the problems on May 17, 1979. Mr. Naquin weatherstripped and caulked the French doors and the glass in the atrium. However, Mr. Naquin's efforts did not stop the water leakage, and Mr. Degeneres wrote to both Mr. LaRussa and Mr. Burgess on May 31, 1979, informing them of the continuing problem. Neither Mr. LaRussa or Mr. Burgess took any further action to correct the problems. Mr. Degeneres continued to contact Mr. LaRussa throughout the summer about the water leakage.

On June 6, 1980, the plaintiffs filed suit against the Burgesses as their prior vendors, LaRussa as the builder, and LaRussa Real Estate Agency, Inc. LaRussa and the Burgesses in turn filed third party demands against each other. After hearing testimony, the trial court found LaRussa solely liable, dismissed with prejudice the plaintiffs' suits against the Burgesses and LaRussa Real Estate and dismissed with prejudice LaRussa's third party demand *772 against the Burgesses alleging limitation of warranty.

LaRussa alleges that the trial court erred in finding that plaintiffs were entitled to a reduction in sale price and/or damages since they knew of the defects prior to purchase. LaRussa also contends that the house was built on a speculative basis, therefore the ten-year prescriptive period should not apply, and that the Burgesses had agreed to a limitation on LaRussa's implied warranty against structural defects.

The initial petition referred to the action as a suit in quanti-minoris and for damages. An action in quanti-minoris is governed by the Civil Code articles on redhibition, LSA-C.C. arts. 2520-2548. An action for damages occasioned by a contractor's faulty construction of a custom-built house is governed by Civil Code articles on building contracts, LSA-C.C. arts. 2756-2777. The prescriptive period for a quanti-minoris action is one year from date of sale, or discovery of the defect if the seller is in bad faith. LSA-C.C. arts. 2534, 2546. The prescriptive period to seek damages for defective construction under a building contract action is ten years. LSA-C.C. art. 3500. Additionally, to recover under quanti-minoris, the plaintiff must prove a lack of knowledge of non-apparent defects (LSA-C.C. arts. 2520-2522); whereas under the building contract articles, the plaintiff can recover for apparent, as well as non-apparent defects. Price v. Huey Childs Builder, Inc., 426 So.2d 398 (La.App.2d Cir.1983), writ denied, 433 So.2d 164 (La.1983). Because we find that the instant action meets the requirements for a suit under a building contract, we need not address any questions about one year prescription or knowledge on the part of the Burgesses or the Degenereses.

Duhon v. Three Friends Homebuilders Corporation, 396 So.2d 559, 561 (La.App.3d Cir.1981) sets out the three major factors in determining if a contract is a contract of sale or a contract to build.

First, in a contract to build, the "buyer" has some control over the specifications of the object. Second, the negotiations in a contract to build take place before the object is constructed. Third, and perhaps most importantly, a building contract contemplates not only that one party will supply the materials, but also that that party will furnish his skill and labor in order to build the desired object.

It is readily apparent from the facts previously stated that the contract between the Burgesses and LaRussa met all three requirements listed above. The Burgesses required certain modifications and additions that were agreed upon prior to construction, and LaRussa agreed to supply both the labor and materials needed to build the house. The fact that the house was built upon land owned by LaRussa, and that the Burgesses did not actually purchase the property until after construction is of no import. An agreement for construction of a home upon land owned by the contractor, at a price based upon the original set of plans, with the future homeowner to make changes and be charged for them during the course of construction, must be treated as a building contract though the contractor subsequently transferred title by sale. Broussard v. Pierret, 215 So.2d 136 (La.App. 3d Cir.1968). Also, see Price, 426 So.2d at 399.

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Bluebook (online)
486 So. 2d 769, Counsel Stack Legal Research, https://law.counselstack.com/opinion/degeneres-v-burgess-lactapp-1986.