Frank L. Beier Radio, Inc. v. Brown

453 So. 2d 656
CourtLouisiana Court of Appeal
DecidedJune 29, 1984
Docket83-CA-834
StatusPublished
Cited by8 cases

This text of 453 So. 2d 656 (Frank L. Beier Radio, Inc. v. Brown) 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
Frank L. Beier Radio, Inc. v. Brown, 453 So. 2d 656 (La. Ct. App. 1984).

Opinion

453 So.2d 656 (1984)

FRANK L. BEIER RADIO, INC.
v.
Janet Duet, Divorced wife of/and Roy P. BROWN.

No. 83-CA-834.

Court of Appeal of Louisiana, Fifth Circuit.

June 29, 1984.
Writ Denied October 12, 1984.

*657 Eric A. Holden, Metairie, for plaintiff-appellant.

Robert G. Creely, Michael F. Somoza, Gretna, for defendant-appellee.

Before KLIEBERT, GAUDIN and DUFRESNE, JJ.

DUFRESNE, Judge.

This is a suit in redhibition, alternatively for quanti minoris, in which the plaintiff, purchaser of defendants' metal warehouse building, complains of a defective roof.

The basic facts are as follows:

Plaintiff, Frank L. Beier Radio, Inc. agreed to purchase a constructed, but not wholly finished, prefabricated metal warehousetype *658 building from defendants, Janet Duet and Roy Brown.

The warehouse was constructed by a subsequently named defendant, Rudy Brown Builders, Inc. who was to have built the structure with two finished office space bays and two unfinished office space bays.

During negotiations leading to execution of an agreement to purchase, and upon a simple inspection prior to the act of sale, plaintiff's representatives noticed and became aware of some leaks in the roof which were listed on a "punch list" of items which would have to be corrected by the defendants-sellers. Included in those "punch list" items were reference to a minor water stain problem.

The punch list, called Addendum "A" to the purchase agreement, lists in item 2, "Seller agrees to waterproof and repaint cement Block Wall" and in item 10, "Repair all leaks where roof meets brick wall." When asked to explain the items on the punch list, Mr. Fred Weber, the real estate agent representing the defendant, Roy P. Brown, stated that there was "noticeable water seepage" along the top of one of the back walls. He also testified that in drawing up the agreement to purchase for the plaintiff, he considered the roof leakage:

MR. WEBER: When we first examined the rear wall we were not knowledgeable of what was causing the leakage showing on the wall. I agree I am not an expert in repair work either but we did try to cover whatever was the cause back there, whether it was through inadequate waterproofing or whether there was in turn a leak at the point that was causing it to show water. We also reiterated in here repair all leaks where roof meets brick wall in the event it was not just water coming through the concrete bricks, it was an attempt to cause a correction to be made from that in a waterproofing company or someone would come in there and examine it specifically.
MR. HOLDEN: That is item number 2?
MR. WEBER: That is the comparison between item 2 and why we put it more or less as a continuation of number 10, repair all leaks. I did not presume to inspect it. It was obviously [sic] there was something wrong and we tried to cover that, that that would be corrected, whatever the cause was.

On or before June 4, 1979, the date the punch list was prepared as an Addendum to the first agreement to purchase, a second agreement to purchase was executed on August 21, 1979, which also included an Addendum with the same items as on the first punch list to be repaired. The second agreement to purchase differed from the first only in that it deleted the provision in which the defendant, Roy Brown agreed to rent one of the bays.

Mr. Weber further stated that he knew the purchasers were aware of roof leaks in the rear wall of the building prior to signing the agreement to purchase. He also stated that he visited the building with the purchasers four or five times prior to the June 4, 1979 agreement and that he discussed with them the leakage problem. Prior to this June 4, 1979 agreement and through September 4, 1979, Mr. Weber, the plaintiff-purchaser, and the defendants-sellers negotiated about the problems on this punch list.

It wasn't until September 4, 1979, did the plaintiff and defendants agree to place in an escrow account $5,000.00 of the purchase price to ensure that the "punch list" items were completed. Being assured that all items contained on the "punch list" were completed, the plaintiff directed a letter to Delta Title Corporation authorizing the release of the funds remaining in the escrow account.

Eric Beier, Vice President and Secretary of Frank L. Beier Radio, Inc. and appearing as one of the plaintiff's representatives testified that prior to the execution of the agreement to purchase, he was aware of the leakage problems in the building and while he said he saw only stains, he admitted he thought there were leaks where the roof met the back wall. He testified that when he looked at the back wall of the building, he definitely assumed that there *659 was water leakage and that obviously something was wrong. Eric Beier visited the building two or three times before the act of sale and thought that his brothers had also been there.

There was no leaks in the building from September 4, 1979, until December 17, 1979. During that time, the plaintiff had construction work done on the inside of the building and a tenant occupying the building. Mr. Beier stated that the first notice of roof leaks in the building he received was on or about December 17, 1979, yet he admitted that his company authorized the release of escrow funds on February 15, 1980, almost two months later. Yet, Mr. Beier also testified that at the time the authorization to release the escrow funds was given, he had no knowledge of the leaks.

At all times, the defendants defend this suit by stating plaintiff was aware of the water leakage problem prior to the act of sale.

The plaintiff contends that only subsequent to its purchase of the building did it discover the warehouse had severe water leakage into the interior emanating from the front wall of the building. The defendants failed to correct the defect complained of and thus, plaintiff was reluctantly compelled to hire a metal building erector, Mr. Fred Martin, who examined the structure. He recommended and completed replacement of the structure's roof and valley gutters. The plaintiff asserts that the building continued to leak until Mr. Martin completed the necessary repairs.

Consequently, the plaintiff filed this suit in order to recover the costs of repairs, damage, attorney's fees and court costs. Furthermore, the plaintiff argues that it would not have purchased the building had it known of the severe defect, thus plaintiff seeks recovery in redhibition or quanti minoris.

After a trial on the merits, the trial court gave written reasons for judgment wherein it found that since the plaintiff was aware of the "serious water problem before the sale, that a checklist was made of deficiencies, and that the sale price of the building was negotiated down from the $225,000.00 to $200,000.00" created serious obstacles for plaintiff's recovery. The court commented further:

"In short, the price of the building was negotiated down because of deficiencies in layout and condition; money was placed into escrow, and an addendum prepared therewith speaks of leakage problems. All the testimony taken together indicates that the purchaser knew of a serious leakage problem before the sale, although perhaps not the extent of the problem. Nevertheless, the purchaser is charged with knowledge, and the purchaser's claims are rejected."

The trial court also held that information included in the deposition testimony of Mr.

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