Emile, Michele, Brittany and Cecilia Chacon Versus Regal Remodelers, L.L.C., Tanweer Bhatti, Aix Specialty Insurance Company, State Farm Insurance Company, Powerpay LLC and American Heritage Creditt Union

CourtLouisiana Court of Appeal
DecidedJanuary 31, 2024
Docket23-CA-174
StatusUnknown

This text of Emile, Michele, Brittany and Cecilia Chacon Versus Regal Remodelers, L.L.C., Tanweer Bhatti, Aix Specialty Insurance Company, State Farm Insurance Company, Powerpay LLC and American Heritage Creditt Union (Emile, Michele, Brittany and Cecilia Chacon Versus Regal Remodelers, L.L.C., Tanweer Bhatti, Aix Specialty Insurance Company, State Farm Insurance Company, Powerpay LLC and American Heritage Creditt Union) 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
Emile, Michele, Brittany and Cecilia Chacon Versus Regal Remodelers, L.L.C., Tanweer Bhatti, Aix Specialty Insurance Company, State Farm Insurance Company, Powerpay LLC and American Heritage Creditt Union, (La. Ct. App. 2024).

Opinion

EMILE, MICHELE, BRITTANY AND CECILIA NO. 23-CA-174 CHACON FIFTH CIRCUIT VERSUS COURT OF APPEAL REGAL REMODELERS, L.L.C., ET AL STATE OF LOUISIANA

ON APPEAL FROM THE FORTIETH JUDICIAL DISTRICT COURT PARISH OF ST. JOHN THE BAPTIST, STATE OF LOUISIANA NO. 78,174, DIVISION "C" HONORABLE J. STERLING SNOWDY, JUDGE PRESIDING

January 31, 2024

STEPHEN J. WINDHORST JUDGE

Panel composed of Judges Susan M. Chehardy, Jude G. Gravois, and Stephen J. Windhorst

AFFIRMED IN PART; REVERSED IN PART; REMANDED WITH INSTRUCTIONS SJW SMC JGG COUNSEL FOR PLAINTIFF/APPELLANT, EMILE, MICHELE, BRITTANY, AND CECILIA CHACON Robert L. Redfearn, Jr. Kelly A. Gismondi

COUNSEL FOR DEFENDANT/APPELLEE, POWERPAY, LLC Timothy Braden Riley WINDHORST, J.

Appellants/plaintiffs, Emile, Michelle, Brittany, and Cecilia Chacon, appeal

the trial court’s December 12, 2022 judgment that sustained the peremptory

exception of no cause of action filed by defendant, PowerPay LLC (“PowerPay”),

dismissing plaintiffs’ claims against PowerPay with prejudice, and denying

plaintiffs’ request for leave to amend. For the following reasons, we affirm in part,

reverse in part, and remand this case to the trial court with instructions.

PROCEDURAL HISTORY and FACTS

Emile and Michele Chacon are the owners of and resided in the immovable

property located at 425 Belle Chase Drive in LaPlace (“the home”), with Brittany

and Cecilia. The home sustained damage from Hurricane Ida, which made landfall

in Louisiana on August 29, 2021.

On September 9, 2021, Emile and his daughter Brittany met with Tanweer

Bhatti (“Bhatti”), the principal member of Regal Remodelers, LLC (“Regal”), and

entered into an agreement wherein Regal would repair the home. Bhatti and/or

Regal agreed to perform the repair work for the amount paid by plaintiffs’ insurer

for damage caused by Hurricane Ida. On the same day, plaintiffs entered into a

contract with Bhatti and/or Regal to perform additional remodeling work in the

amount of $89,700.00, and on September 22, 2021, the parties signed an

Authorization for Additional Work in the amount of $30,000.00. On September 27,

2021, upon receiving a telephone call and email from Bhatti, Brittany electronically

signed documents for a $60,000 loan with PowerPay. The PowerPay loan

documents included an authorization to immediately disburse the funds to Regal.

On September 28, 2021, the funds from the loan were disbursed to Bhatti and Regal.

In early February 2022, Bhatti and/or Regal informed plaintiffs’ insurer that

the repair work on the home was completed. Plaintiffs’ insurer conducted a virtual

inspection which was performed by a Regal employee using a cell phone camera to

23-CA-174 1 show the work allegedly completed. Plaintiffs were informed by Bhatti and Regal

that the repair work was completed. Plaintiffs moved out of the rental home and

back into the home on February 19, 2022.

After moving back into the home, plaintiffs became aware that the repair and

remodeling work on the home was not completed and had been performed in a

negligent and defective manner and additional damage was done to the home. A

third party subsequently performed an inspection of the home and informed

plaintiffs that it would cost at least $117,000 to properly repair the home, including

the remodeling work performed by Bhatti and/or Regal.

On July 8, 2022, plaintiffs filed a petition for damages against several

defendants, including PowerPay.1 As to PowerPay, plaintiffs alleged that they

incurred damage from PowerPay’s negligence in the disbursement of the loan funds

in the amount of $60,000 to Bhatti and/or Regal on September 28, 2021. Based on

PowerPay’s negligence, plaintiffs seek to have Brittany released from liability for

repayment of the loan and recovery of all payments made on the loan, both principal

and interest.

On September 8, 2022, PowerPay filed an exception of no cause of action,

arguing that it was unclear from the petition what legal theory plaintiffs were

asserting against it. To the extent the petition alleged a negligence claim, plaintiffs

failed to enunciate facts that would meet the elements of that cause of action.

PowerPay averred plaintiffs would not be able to cure any defect in the petition and

therefore, they should not be permitted to amend the petition pursuant to La. C.C.P.

art. 934.

Plaintiffs filed an opposition and attached thereto the PowerPay loan

documents signed by Brittany. Plaintiffs averred that paragraph 8 of the petition

1 On August 4, 2022, plaintiffs filed a first amended and supplemental petition for damages, and on November 14, 2022, plaintiffs filed a second amended and supplemental petition for damages. Neither amendment added or changed any of the allegations against PowerPay.

23-CA-174 2 asserted the facts against PowerPay and paragraph 44 stated the cause of action

against PowerPay. Plaintiffs argued that the petition “concisely and directly” alleged

negligent and wrongful acts by PowerPay in pressuring Brittany to sign electronic

loan documents and in disbursing those funds to Bhatti and/or Regal when PowerPay

knew the work on the home was not completed. Plaintiffs averred that they alleged

sufficient facts to support a claim of negligence against PowerPay. Further,

plaintiffs contended that the alleged facts are sufficient to suggest collusion and/or

conspiracy between PowerPay and Bhatti to take advantage of plaintiffs. Therefore,

plaintiffs argued they should be allowed to conduct discovery to determine the nature

and extent of the relationship between Bhatti and PowerPay prior to Brittany signing

the PowerPay loan documents.2 Alternatively, assuming the petition did not state a

valid cause of action against PowerPay, plaintiffs asserted that pursuant to La. C.C.P.

art. 934, they should be permitted to amend their petition for damages.

On December 6, 2022, after argument of counsel, the trial court took the

matter under advisement. The PowerPay loan documents were referred to during

the hearing, but were not offered or admitted into evidence at the hearing. On

December 12, 2022, the trial court sustained the exception of no cause of action,

denied plaintiffs’ request to amend the petition, and dismissed plaintiffs’ claim

against PowerPay with prejudice. This appeal followed.

LAW and LEGAL ANALYSIS

In their first assignment of error, plaintiffs contend the trial court erred in

sustaining the exception of no cause of action and dismissing plaintiffs’ claims with

prejudice.

Appellate courts review a judgment sustaining an exception of no cause of

action de novo because the exception raises a question of law, and the trial court’s

2 Plaintiffs did not argue or pursue an argument that the petition states a cause of action for collusion and/or conspiracy at the hearing, nor do plaintiffs assert or brief this argument on appeal. Nevertheless, the petition does not state a cause of action for collusion and/or conspiracy.

23-CA-174 3 decision is based only on the sufficiency of the petition. Scanlan v. MBF of Metairie,

LLC, 21-323 (La. App. 5 Cir. 03/23/22), 337 So.3d 562, 565; Succession of

Gendron, 17-216 (La. App. 5 Cir. 12/27/17), 236 So.3d 802, 807.

The purpose of the peremptory exception of no cause of action is to test the

legal sufficiency of the petition by determining whether the law affords a remedy on

the facts alleged in the petition. Jackson v.

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