First National Bank of Ruston v. Miller

329 So. 2d 919
CourtLouisiana Court of Appeal
DecidedJune 11, 1976
Docket12869
StatusPublished
Cited by5 cases

This text of 329 So. 2d 919 (First National Bank of Ruston v. Miller) 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
First National Bank of Ruston v. Miller, 329 So. 2d 919 (La. Ct. App. 1976).

Opinion

329 So.2d 919 (1976)

FIRST NATIONAL BANK OF RUSTON, Plaintiff-Appellee,
v.
John M. MILLER et ux., Defendants-Appellees Third Party Plaintiffs-Appellees,
BARRON MOBILE HOMES, INC., Third Party Defendant-Appellant.

No. 12869.

Court of Appeal of Louisiana, Second Circuit.

March 15, 1976.
Rehearing Denied April 19, 1976.
Writ Refused June 11, 1976.

*920 Holloway, Baker, Culpepper & Brunson by Joseph A. Cusimano, Jr., Farmerville, for third party defendant-appellant.

Rabun & Post by Armand F. Rabun, Farmerville, for third party plaintiffs-appellees.

Barham, Adkins & Coleman by Ronald G. Coleman, Ruston, for plaintiff-appellee.

Before PRICE, SMITH and MARVIN, JJ.

En Banc. Rehearing Denied April 19, 1976.

PRICE, Judge.

First National Bank of Ruston brought this suit against John M. Miller and his *921 wife, Florece Miller, seeking judgment for the balance due on a promissory note secured by a chattel mortgage on a mobile home.

Defendants purchased the subject mobile home from Barron Mobile Homes, Inc., on December 11, 1972, and executed a note secured by chattel mortgage in the amount of $18,977.76 payable to Barron for the credit portion of the purchase price together with finance charges and insurance costs. The note was transferred immediately by endorsement without recourse to the plaintiff Bank.

In answer and reconventional demand, defendants deny the Bank is a holder in due course of the note and allege it is subject to all defenses which they have against the vendor, Barron Mobile Homes, Inc.

In a third party demand against Barron, defendants assert the mobile home sold to them contained inherent defects which rendered it useless for the purpose for which it was intended and that the sale should be rescinded. Under their position that the Bank is not a holder in due course, defendants primarily contend the note should be canceled and all payments previously made on it refunded unto them. Alternatively, they contend that should the Bank be found to be a holder in due course, then they should have judgment against Barron for whatever amount they are found liable to the Bank together with the sum of $2,372.22 previously paid on the note. Defendants also ask for judgment for the sum of $1,000 representing the trade in allowance of a trailer previously owned by them and the sum of $500 as damages for loss of time expended in connection with attempts to have the defects corrected.

After trial on the merits, the district court rendered judgment in favor of the Bank and against defendants on the principal demand for the balance owed on the note of $16,488.75, together with legal interest and attorney fees provided in the note. Defendants were awarded judgment under the third party demand against Barron decreeing a rescission of the sale and ordering a return of the purchase price subject to a credit of $2,625 for a fair rental value for the time defendants occupied the unit.[1]

Barron perfected this appeal from the judgment against it on the third party demand specifying the following:

1. That an exception of prescription of one year for an action in redhibition should have been sustained.
2. That the trial court was in error in finding the mobile home contained redhibitory defects.
3. That it should not have been taxed with one-half the costs of the suit as was provided in the trial court's judgment.

Defendants answered the appeal asking that the judgment in their favor on the third party demand be modified to provide that the purchase price ordered to be refunded to them be increased to the sum of $19,977.76, together with legal interest on $16,488.75 of this amount from November 12, 1974, until paid and for 15% of this amount plus interest as attorney fees. Also they request the credit for the fair rental value be reduced to the sum of $1,312.50, and that the judgment award them all court costs taxed against them in the principal demand.

The judgment in favor of the Bank is not before us on this appeal.

We shall first discuss the specifications of error made by third party defendant, Barron.

The exception of prescription is based on the provisions of Louisiana Civil Code Article 2534 which provides that a redhibitory action must be instituted within *922 a year of the sale unless the seller is in bad faith. It is now well settled that in circumstances where the seller has made continued attempts to repair the defects, prescription does not begin to accrue until the seller has abandoned all such attempts to repair. de la Houssaye v. Star Chrysler, 284 So.2d 63 (La.App. 4th Cir. 1973); Domingue v. Whirlpool Corporation, 303 So.2d 813 (La.App. 3rd Cir. 1974). The trial judge found that repeated attempts had been made by Barron to repair defects to within a year prior to the filing of this suit and that the exception is not well founded. From our examination of the evidence, we conclude the trial judge was correct in overruling the exception.

In Rey v. Cuccia, 298 So.2d 840 (La.1974), the Supreme Court summarized the law pertaining to the rescission of a sale because of a redhibitory vice as follows:

"In Louisiana sales, the seller is bound by an implied warranty that the thing sold is free of hidden defects and is reasonably fit for the product's intended use. Civil Code Articles 2475, 2476, 2520.... A redhibitory defect entitling the buyer to annul the sale is some defect in the manufacture or design of a thing sold `which renders it either absolutely useless, or its use so inconvenient and imperfect, that it must be supposed that the buyer would not have purchased it, had he known of the vice.' Article 2520. Upon proof of such a defect, the buyer is entitled to annul the sale and recover the purchase price, rather than being limited to recovering the cost of curing any such substantial defects . . . The buyer must prove the defect existed before the sale was made to him. Article 2530. However, if he proves that the product purchased is not reasonably fit for its intended use, it is sufficient that he prove that the object is thus defective, without his being required to prove the exact or underlying cause for its malfunction. . . The buyer may prove the existence of redhibitory defects at the time of the sale not only by direct evidence of eyewitnesses, but also by circumstantial evidence giving rise to the reasonable inference that the defect existed at the time of the sale . . .
"If the defect appears within three days following the sale, it is presumed to have existed before the sale. Article 2537. However, even where the defect appears more than three days after the sale. . . if it appears soon after the thing is put into use, a reasonable inference may arise, in the absence of other explanation or intervening cause shown, that the defect existed at the time of the sale."

The operative facts underlying defendants' action to rescind the sale for redhibitory vices and the evidence presented by them in support of their allegations are concisely stated in the trial judge's reasons for judgment as follows:

The Millers purchased the mobile home involved in this action from Barron Mobile Homes, Inc. (referred to hereinafter as "Barron") in November, 1972. The vendor moved the trailer out to a site selected by the purchaser and set it up. Defendants moved into the mobile home in December, 1972.

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423 So. 2d 41 (Louisiana Court of Appeal, 1982)
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394 So. 2d 670 (Louisiana Court of Appeal, 1981)
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