Ducote v. Katz

361 So. 2d 1320, 1978 La. App. LEXIS 3012
CourtLouisiana Court of Appeal
DecidedJuly 26, 1978
DocketNo. 9244
StatusPublished
Cited by3 cases

This text of 361 So. 2d 1320 (Ducote v. Katz) 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
Ducote v. Katz, 361 So. 2d 1320, 1978 La. App. LEXIS 3012 (La. Ct. App. 1978).

Opinions

BEER, Judge.

Failure to pass an act of sale pursuant to the terms of a written agreement precipitated this action by the allegedly thwarted purchasers, Kenneth and Deborah Ducote, against owner, Albert Katz, and realtor, Patio Realty, Inc. The Ducotes sought return of their deposit, an award of an equal amount as a penalty, and legal fees.1

The Ducotes’ interest in certain architectural features of the house they sought to purchase, considered with the warning of friends who had heard of instances of such features being ripped out of homes just before their being sold, led the Ducotes to specify in the agreement to purchase that all mantels and lighting fixtures would be included, and that “Purchaser has right to inspect property immediately prior to act of sale.”

[1322]*1322On May 11, 1976, the date originally set for the passage of the act of sale, the Du-cotes were advised (by the seller’s representative) of an encroachment on adjoining property, and, in accordance with the agreement, seller invoked a 45-day extension of the deadline for passage of act of sale because of the necessity of curative work.

The Ducotes heard nothing more from the owner or the realtor, or the homestead notary before whom the act of sale was to be passed, until Saturday, June 26, 1976, when they received a letter via certified mail from Bernard Freedman, president of Patio Realty, Inc., advising that the passage of the act of sale had been set for 11:00 a. m. on the following Monday, June 28 — the last day of the 45-day extension period.

Patio Realty’s employee, Ray Tolbert, contacted Mrs. Thelma Septh, the tenant of the Soniat Street property, on Saturday to arrange for an inspection by the Ducotes on Monday morning just prior to the act of sale. However, Mrs. Septh advised Tolbert that a Monday morning inspection was impossible. Tolbert advised Freedman of this development, and Freedman, in turn, contacted Maurice Katz, who acted as agent for the seller, Albert Katz. According to Freedman’s testimony, he explained to Maurice Katz that the contract called for an inspection of the premises immediately prior to the act of sale and asked his assistance in arranging the same. He testified, “At that point I turned it over to him.”

Maurice Katz contacted the tenant, Septh, and he, too, was refused a Monday morning inspection appointment. Thus, on Saturday evening, Katz went to the Ducote residence to propose some alternatives to the Monday morning inspection. On this issue, significant conflict exists in the record. Katz testified that he offered three alternatives: an inspection on Sunday; resetting of the act of sale for a later hour on Monday preceded by an early afternoon inspection; or a written extension of the deadline for passage of the act of sale. Katz claims the Ducotes would accept none of his alternatives and told him then and there that they refused to take title. The Ducotes, on the other hand, contend that Katz did not suggest a rescheduling of the act of sale for a later hour on Monday and that a Sunday inspection was not acceptable to them as it was too much in advance of the sale to suit the purpose for which the inspection was intended.

Notwithstanding the failure to resolve the inspection issue, on the morning of Monday, June 28, 1976, at 9:00 a. m., Mr. and Mrs. Ducote sought but were denied entry into the Soniat Street premises for inspection purposes. They were told by a man who answered the door (apparently tenant’s son) that they could not come in. Thereafter, at 11:00 a. m., all parties appeared at the office of Robert Jeffers, the notary who was to pass the act of sale,2 whereupon the Ducotes’ attorney hand delivered a letter demanding return of the deposit, an equal amount as a penalty, and legal fees, on the grounds that seller had failed to comply with his obligation.

By reconventional demand, the appellants contend that the Ducotes willfully, arbitrarily and capriciously refused their reasonable offers to set up an alternate time to inspect the house and breached their agreement. Patio Realty seeks to recover a commission of $1,215.00 with interest and attorneys’ fees, and Albert Katz seeks to recover damages in the amount of the deposit, plus interest, costs and attorneys’ fees.

Trial of the case resulted in judgment for plaintiffs, Kenneth and Deborah Ducote, against Albert Katz in the amount of $3,025.00 (deposit plus $1,000 attorneys’ fees) plus interest and costs, and against Patio Realty, Inc., in the amount of $2,025.00 plus interest and costs.

In written reasons for judgment, the trial judge found that the language of the agreement to sell reserving the right to inspect immediately prior to the act of sale was intended to permit inspection on the same [1323]*1323day as the act of sale, and since the purchasers were told that they could not inspect on Monday, June 28, there was, then and there, a default which formed the basis of defendants’ liability. The court stated:

“When an Act of Sale is set for passage on the last day permitted by a contract, the risks inherent are obvious.
“The vendor had the obligation to permit, and arrange for the inspection of his property. He was unable to arrange for the inspection.
“The purchasers had no obligation to waive the inspection, or to extend the time for the act of sale.”

Appellants here contend that the trial court erred:

1. .In failing to find the notary and tenant were not under defendants’ control;
2. In failing to find that the refusal of the Ducotes to inspect on Sunday or to extend the contract was arbitrary and capricious;
3. In failing to find that “immediately prior to” could have meant the day before;
4. In failing to find that defendants had until sunset to meet their contractual obligations, according to La.Civ.Code art. 2057,3 and that purchasers breached by walking out on the deal at approximately 11:00 a. m.; and
5. In ordering the return of $2,025.00 cash in spite of the fact that plaintiffs gave $1,500 in cash and a note for $525.

Guidelines for the interpretation of the inspection clause are found in La.Civ.Code arts. 1950 and 1956:

“Article 1950.
When there is anything doubtful in agreements, we must endeavor to ascertain what was the common intention of the parties, rather than to adhere to the literal sense of the terms.”
“ Article 1956.
When the intent of the parties is doubtful, the construction put upon it, by the manner in which it has been executed by both, or by one with the express or implied assent of the other, furnishes a rule for its interpretation.”

The motivation for including an inspection clause was explained by Deborah Du-cote, as follows:

“(By Mr. Thomas)
Q. Now, this document was signed by you and your husband, is that correct?
A. Yes.
Q. On March 27th, 1976?
A. 1976. We explained to Mr. Tobort (sic) the conditions of the sale.

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Related

Jordan v. Weber
388 So. 2d 812 (Louisiana Court of Appeal, 1980)
Ducote v. Katz
362 So. 2d 1386 (Supreme Court of Louisiana, 1978)

Cite This Page — Counsel Stack

Bluebook (online)
361 So. 2d 1320, 1978 La. App. LEXIS 3012, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ducote-v-katz-lactapp-1978.