Dixie MacH. v. Gulf States Marine Tech.

692 So. 2d 1167, 1997 WL 106370
CourtLouisiana Court of Appeal
DecidedMarch 12, 1997
Docket96-CA-869
StatusPublished
Cited by16 cases

This text of 692 So. 2d 1167 (Dixie MacH. v. Gulf States Marine Tech.) 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
Dixie MacH. v. Gulf States Marine Tech., 692 So. 2d 1167, 1997 WL 106370 (La. Ct. App. 1997).

Opinion

692 So.2d 1167 (1997)

DIXIE MACHINE WELDING & METAL WORKS, INC.
v.
GULF STATES MARINE TECHNICAL BUREAU, INC.

No. 96-CA-869.

Court of Appeal of Louisiana, Fifth Circuit.

March 12, 1997.

Leonard L. Levenson, Zara Zeringue, New Orleans, for Defendant/Appellant.

Ronald J. Pursell, Harahan, for Plaintiff/Appellee.

Before GOTHARD, CANNELLA and DALEY, JJ.

*1168 GOTHARD, Judge.

Defendant, Gulf States Marine-Technical Bureau, Inc. (Gulf States), appeals a ruling of the trial court in favor of plaintiff, Dixie Machine Welding & Metal Works, Inc. (Dixie) in which Gulf States is cast in judgment for $1,408.00 together with legal interest from date of demand, and attorney fees in the amount of $800.00. For reasons that follow, we affirm the money judgment, but we reverse the judgment awarding attorney fees.

This matter began on May 5, 1992, when an employee of Gulf States went to Dixie and requested milling on a "goose neck" pin. After some discussion, the pin was left with Dixie for the work. An employee of Gulf States returned the next day, picked up the pin and gave Dixie a check for $1,760.00. Subsequently, Gulf States stopped payment on the check and Dixie filed this suit on open account to recover the $1,760.00. After a trial on the merits, the trial court found that an open account existed and rendered judgment in favor of Dixie in the amount of $1,408.00.

At trial the plaintiff offered testimony from Charles Roussell, who was the machine shop superintendent for Dixie. He testified that on May 5, 1992, Alberto Guevara an employee of Gulf States, brought in a boom step or goose neck pin from the boom of a ship for milling. Mr. Roussell filled out a work authorization form, a copy of which is contained in the record. However, the form is not signed by Gulf States. Mr. Roussell stated that the indication, "T & M" on the work authorization shows that the job was taken on a time and materials basis, not a flat rate. Because Mr. Guevara explained that he needed the pin by the following morning, Mr. Roussell consulted with his father, Carl Roussell, Sr. president of Dixie, who authorized overtime on the project. The witness further explained that Dixie employees had spent 24 hours of straight time and 17 hours of overtime on the project.

Mr. Guevara, who communicated several times with Dixie, picked up the pin the next day about 12:30 P.M., at which time the pin was about 80 to 90% complete. Mr. Guevara was given an invoice for $1760.00, which he paid by check. He signed the dray ticket, took the pin and left.

Mr. Carl Roussell, Sr. also testified. He corroborated his son's testimony that the job was quoted on a time and materials basis, and that the company spent a total of 37 hours on the project. He explained that 75% of prices are quoted on a time and materials basis. He stated that Mr. Guevara telephoned his superior at Gulf States for authorization before leaving the pin for milling. Mr. Roussell also testified that Gulf States stopped payment on the check and has paid nothing on the account. He explained that an account for Gulf States was opened when the job was taken. However, because Gulf States did not have an existing account with Dixie before May 5, 1992, they were required to pay for the milling of the pin upon delivery.

Roberto Guevara, an employee of Gulf States testified that he brought the partially pre-machined pin in to Dixie for milling about noon on May 5, 1992. He explained that Gulf States had undertaken the job of making the pin for one of its customers, whose ship was due to set sail the following evening. Because Gulf States did not have the proper equipment to mill the top part of the pin, it was taken to Dixie. Mr. Guevara was told the work could be completed by the following morning at a cost of about $1500.00. Mr. Guevara telephoned his superior and got approval to leave the pin with Dixie. Mr. Guevara testified that he explained to Dixie employees that he needed the pin by the following morning because additional work had to be done by Gulf States on the bottom of the pin before it could be delivered to a ship which was set to sail the following evening.

Mr. Guevara testified that he went to Dixie about 8 or 9 o'clock in the evening of May 2nd and saw that Dixie was having some trouble with the "inserts on the fly cutter breaking". However, when Mr. Guevara returned the next morning about 6 or 7, the milling was progressing normally and he was told that the pin should be ready by noon. Mr. Guevara stated that when he came to pick up the pin the next day, only about 30% *1169 of the work had been completed. He was instructed by his superior to pick up the unfinished pin. Because he was told that he could not take the pin until payment was made in full, Mr. Guevara wrote a check to Dixie for $1760.00. He took the pin, and returned to Gulf States where the remainder of the work on the pin was completed in time for the sailing. When he returned to Gulf States he was told that a stop payment order would be placed on the check he had just written.

Costas Moustacas, president of Gulf States, testified that he sent Mr. Guevara to Dixie with the boom pin because Gulf States did not have the right equipment to do the job correctly. Shortly afterward he received a telephone call from Mr. Guevara to inform him that Dixie could do the milling by the next morning at a cost of about $1500.00. Mr. Moustacas authorized the job. Mr. Guevara called again about midnight to say that the job was going slowly. Nonetheless, Mr. Moustacas decided to allow Dixie to continue. However, when he was told the pin was not ready the next morning, Mr. Moustacas told Mr. Guevara to pick it up and return to Gulf States. Mr. Moustacas admitted that Mr. Guevara telephoned him to say that the cost was $1760.00. Mr. Moustacas authorized payment because he was told that Dixie would not release the pin without payment. However, he conceded that he later stopped payment on the check and has paid nothing to Dixie.

Also contained in the record are various documents including two letters. In one of the letters written on May 12, 1992, Mr. Moustacas informed Dixie that he stopped payment on the check because the price was excessive for the uncompleted work. He offered to settle the matter for $700.00. The second letter is a certified demand letter with proof of delivery, written by Dixie on September 11, 1992 requesting the full amount of $1760.00. Plaintiff also offered into evidence the original work order authorization which is signed only by Dixie's representative, a production order, the check indicating the stop payment order, a photograph of the pin, and copies of daily time sheets to support the hours charged.

As previously stated, the trial court rendered judgment in favor of Dixie in the amount of $1,408.00 with interest from date of demand, and $800.00 in attorney fees. From comments made by the trial court contained in the record, it is apparent that the court found an open account existed and that the job was about 80% complete. Thus, the award of $1408.00.

On appeal, Gulf States denies the existence of an open account, and challenges the award of attorney fees and pre-judgment interest.

Our standard of review of the finding of facts by the trial court is restricted to the manifest error/clearly wrong standard. Rosell v. ESCO, 549 So.2d 840 (La.1989); Arceneaux v. Domingue, 365 So.2d 1330 (La. 1978). Upon review we find manifest error in the trial court's determination that an open account existed between the parties.

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692 So. 2d 1167, 1997 WL 106370, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dixie-mach-v-gulf-states-marine-tech-lactapp-1997.