Ditcharo v. Stepanek

538 So. 2d 309, 1989 WL 4647
CourtLouisiana Court of Appeal
DecidedFebruary 17, 1989
Docket88-CA-572
StatusPublished
Cited by8 cases

This text of 538 So. 2d 309 (Ditcharo v. Stepanek) 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
Ditcharo v. Stepanek, 538 So. 2d 309, 1989 WL 4647 (La. Ct. App. 1989).

Opinion

538 So.2d 309 (1989)

Joann Cangelosi, Wife of/and Dominick DITCHARO, Jr.
v.
Janice Bush, Wife of/and Dennis D. STEPANEK, et al.

No. 88-CA-572.

Court of Appeal of Louisiana, Fifth Circuit.

January 18, 1989.
Limited Rehearing Granted February 17, 1989.
Writ Denied April 7, 1989.

*311 Carmouche, Gray & Hoffman, Lawrence J. Centola, Jr., New Orleans, for Northbrook Surplus Ins. Co., defendant-appellant.

George B. Richard, Marrero, for Murdock Richard and Paul Richard, both d/b/a Murdock Richard & Co., defendants-appellants.

Windhorst, Gaudry, Talley & Ranson, Daniel A. Ranson, Gretna, for Joann Cangelosi, wife of/and Dominick Ditcharo, Jr., plaintiffs-appellees.

Before CHEHARDY, GRISBAUM and DUFRESNE, JJ.

CHEHARDY, Chief Judge.

Plaintiffs, Joann Cangelosi, wife of/and Dominick Ditcharo, Jr., filed suit on June 9, 1983, seeking rescission of their purchase of a home located at 2552 Fawnwood Road, Marrero, Louisiana. In addition they sought damages for repairs necessitated by plaintiffs' discovery that the home, purchased on December 1, 1982, was termite-infested. Made defendants were the sellers, Janice Bush, wife of/and Dennis D. Stepanek; the real estate brokers, Murdock Richard and Paul Richard, both d/b/a Murdock Richard & Company; and the termite inspector, Jules G. Adams, d/b/a Ajax Termite and Pest Control Company.

Plaintiffs alleged that Adams falsely certified the house to be termite-free on November 30, 1982; that plaintiffs purchased the house on December 1, 1982, relying on Adams' representations; that Murdock Richard entered into a contract with Adams on December 2, 1982, to have the house fumigated against the termites; and that the Stepaneks, the Richards, and Adams all were aware at the time of the sale that the house was not termite-free. Plaintiffs sought return of their $180,000 purchase price and other expenses and damages, for a total of $222,055.64. In the alternative plaintiffs sought a reduction in the purchase price in a sum sufficient to pay for disassembling the structure to determine the extent of structural damage and for repairing such damage.

In the answer filed by Murdock Richard and Paul Richard, they alleged the Ditcharos met with all the defendants on December 1, 1982, prior to the act of sale to inspect the premises and that Adams pointed out to plaintiffs and the other defendants the signs of termite infestation; that all parties agreed to have the home treated for termites; and that the plaintiffs elected to proceed with the act of sale that day nonetheless.

In addition, the Richards asserted they merely acted as real estate agents for the sellers and were not part of any arrangements pertaining to the termite treatment. Since they were not owners of the property, the Richards asserted, they cannot be liable for any damages to the plaintiffs.

The Stepaneks filed an answer reiterating the Richards' claim that the Ditcharos knew of the existence of termites at the time of the sale. In addition, the Stepaneks filed a third-party demand against Jules Adams, d/b/a Ajax Termite and Pest Control Company, asserting he was liable to indemnify them for any damages for which they might be cast in the suit.

Adams simply filed a general denial of the plaintiffs' allegations. Prior to trial Adams died and his legal representatives were substituted in his place as defendants.

Plaintiffs filed a supplemental and amending petition adding as defendants United States Fidelity & Guaranty Company (USF & G), as surety on a $2,000 performance bond on Jules Adams, and Northbrook Surplus Insurance Company as Adams' liability insurer. The Richards then filed a third-party demand against these insurers.

Northbrook moved for summary judgment, asserting this incident was excluded from coverage by a policy provision. The motion for summary judgment was denied. Subsequently, plaintiffs settled with USF & G and dismissed that defendant from the suit.

*312 Following a non-jury trial on the merits, the trial court rendered judgment in favor of the plaintiffs, finding them entitled to damages of $8,869.23 (the cost of repairs to the house), plus legal interest from date of judicial demand, for all costs, and for attorney's fees in the amount of $3,000. The defendants' third-party demands were dismissed.

In his reasons for judgment, the trial judge found the following facts:

The day before the sale, November 30, 1982, Paul Richard and Jules Adams made a termite inspection of the premises and Adams prepared a termite certificate indicating he found no evidence of active termite infestation. However, Adams testified in his deposition (which was used at trial in lieu of his testimony because of his death) that he told both Richards the house had to be treated for termite infestation.

The day following the sale Adams showed Mr. Ditcharo various places where termites had entered the home, but assured Ditcharo he had killed all the termites. Within a few days, the Ditcharos discovered more termites and within a few weeks the termites had eaten through the French doors.

The judge concluded further the Stepaneks were aware of the termites but failed to disclose the fact to the plaintiffs. Accordingly, he held the Stepaneks liable for attorney's fees under LSA-C.C. art. 2545.

He also found that Murdock Richard and Paul Richard knew the house was infested with termites and that they had a legal duty to disclose the fact to the plaintiffs. He found that Adams intentionally misrepresented the condition of the property, because he was fully aware of the infestation yet issued a termite certificate that indicated the contrary.

Finally, the judge found Northbrook's policy provided coverage for the plaintiffs' damages.

Subsequently, the court amended the judgment to grant the defendants a credit of $1,950 against the award, representing the amount of plaintiffs' settlement with USF & G.

Northbrook and the Richards have appealed.

On appeal, Northbrook asserts the trial court erred in finding Jules Adams at fault, in finding that Northbrook's policy provided coverage for this situation, and in holding Northbrook liable for attorney's fees.

Similarly, Murdock Richard and Paul Richard contend the trial judge erred in failing to find that plaintiffs had knowledge of the termites prior to the sale, in failing to find that the parties had settled and resolved the termite problem prior to the act of sale, in finding the Richards liable under redhibition theory when they were not the sellers but were only the real estate brokers, in awarding attorney's fees against the Richards, and in failing to recognize their third-party demand against Northbrook for indemnification.

The Ditcharos, on the other hand, seek to have this court award them damages for inconvenience and mental anguish arising out of the defendants' actions, which demand was implicitly denied by the trial court's silence on the issue. We cannot consider this request, however, because plaintiffs failed to file a timely answer to the appeal.[1]

The first issue to be determined is whether the trial judge erred in his factual findings regarding the knowledge of the plaintiffs. The testimony of the plaintiffs was that they did not know and were not informed of the infestation; the testimony of the defendants was to the effect that plaintiffs *313 were informed of and were present when the infestation was discussed among the defendants.

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Cite This Page — Counsel Stack

Bluebook (online)
538 So. 2d 309, 1989 WL 4647, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ditcharo-v-stepanek-lactapp-1989.