Frischhertz Elec. Co. v. Housing Authority of New Orleans

534 So. 2d 1310, 1988 WL 120100
CourtLouisiana Court of Appeal
DecidedNovember 10, 1988
Docket88-CA-0399
StatusPublished
Cited by8 cases

This text of 534 So. 2d 1310 (Frischhertz Elec. Co. v. Housing Authority of New Orleans) 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
Frischhertz Elec. Co. v. Housing Authority of New Orleans, 534 So. 2d 1310, 1988 WL 120100 (La. Ct. App. 1988).

Opinion

534 So.2d 1310 (1988)

FRISCHHERTZ ELECTRIC COMPANY, INC.
v.
HOUSING AUTHORITY OF NEW ORLEANS, Edward M. Alba & Associates, Inc. and Edward M. Alba.

No. 88-CA-0399.

Court of Appeal of Louisiana, Fourth Circuit.

November 10, 1988.
Writ Denied January 20, 1989.

*1311 Russ M. Herman, Edward M. Morris, Herman, Herman, Katz & Cotlar, New Orleans, for plaintiff-appellant.

O'Keefe, O'Keefe & Bernstein, Arthur J. O'Keefe, New Orleans, for appellee Housing Authority of New Orleans.

John I. Hulse, IV, Hulse, Nelson & Wanek, New Orleans, for defendants-appellees Edward M. Alba and Associates, Inc. and Edward M. Alba.

Before BYRNES, WILLIAMS and PLOTKIN, JJ.

BYRNES, Judge.

Frischhertz Electric Company, Inc. (Frischhertz) appeals the district court's dismissal of its petition against the Housing Authority of New Orleans (HANO), Edward M. Alba & Associates, Inc. (Alba) and Edward M. Alba, individually. This appeal arises out of a dispute over the interpretation of various clauses in the contract documents for electrical renovations in the Iberville Housing Project.

Frischhertz brought suit to recover $127,888.86 plus costs and interests for the expenses of additional materials, labor and delays incurred in the performance of the contract. After a bench trial before Commissioner Holahan, the trial court followed the Commissioner's recommendation to dismiss the suit, finding that the contract terms were explicit in calling for Frischhertz to perform all work necessary to rewire the project and that the steel structural members within the 14 inch thick walls should be commonly anticipated in masonry buildings.

FACTS

On May 22, 1981, Frischhertz entered into a contract agreement with HANO to perform electrical renovations at the Iberville Housing Project for approximately $2,367,616. The contract had been open to public bid and Alba, the architect/engineers, had provided Technical Specifications and Drawings detailing the job, accompanied by HANO's General and Special Conditions for the bid package. (Alba's fee charged to HANO was approximately $99,000.)

The electrical renovations included providing new circuits for air conditioning and kitchen appliances; installing new apartment panels and connecting existing branch circuits to the new apartment panels; and running new electric wiring through conduits into the Iberville Project apartments.

Work commenced in October, 1981, and in December of 1981, at a monthly jobsite meeting, Frischhertz reported the problem of drilling and hitting steel obstructions within the walls above the doorways and windows in its attempt to install the conduits in some of the apartments, later determined to be 201 (approximately 25%) of the 800 project apartments. Frischhertz complied with the contract and gave notice in writing. Alternate methods of installing the conduits were discussed in correspondence and in monthly jobsite meetings. In March, 1982, HANO's representative knocked a large hole in the wall in one of the apartments to determine the extent of the steel obstruction in the apartments. Thereafter, on April 15, 1982, HANO directed Frischhertz to cut the steel structural member pursuant to the Technical Specifications without cost. In June, 1982 Frischhertz proceeded but gave notice of its intent to charge additional compensation. The work was completed well within the maximum time allowed by the contract.

ISSUES

Frischhertz asks for a total sum of $127,888.86 compiled from two figures: $84,124.33 *1312 for additional labor, materials, and time delays encountered in burning the structural steel members; and $43,764.53 for delays associated with the inability to get into locked HANO apartments.

Frischhertz avers that the trial court erred in (1) interpreting the construction contract to exclude any additional expenses incurred by the steel obstruction; (2) not giving adequate weight to witnesses' testimony regarding prior electrical renovations performed by Frischhertz for HANO; (3) excluding expert opinion testimony on customary usage concerning various terms and provisions of the contract; (4) disregarding damages claimed for delays in gaining access to HANO apartments; (5) finding no duty owed by Alba to provide structural plans showing hidden steel obstructions within the apartment walls; and (6) failing to find Alba liable for expenses caused by delays in Alba's response to the problems presented by Frischhertz.

INTERPRETATION OF THE CONSTRUCTION CONTRACT

Frischhertz bases its claim for additional compensation for burning the steel structural members as being unanticipated and not within the scope of work contemplated in the contract. Frischhertz contends that the language of various terms and provisions of the contract are ambiguous and therefore must be construed against the parties who prepared the contract (HANO and Alba). HANO counters that the contract is not ambiguous and that Frischhertz is not entitled to additional compensation for materials and labor involved in burning and cutting the steel obstructions, contending that this work was within the scope contemplated by the contract.

The threshold issue is whether the contract's terms are ambiguous or explicit. If the language of the contract provisions are found to be explicit and unambiguous, no additional evidence can be introduced. Under La.C.C. Art. 2046. "when the words of a contract are clear and explicit, and lead to no absurd consequences, no further interpretation may be made in search of the parties' intent." In Investors Assoc. Ltd. v. B.F. Trappey's Sons, 500 So.2d 909, 912 (La.App. 3rd Cir.1987), the appellate court ruled that:

[c]ontracts, subject to the interpretation from the instrument's four corners without the necessity of extrinsic evidence, are to be interpreted as a matter of law. The use of extrinsic evidence is proper only where a contract is ambiguous after an examination of the four corners of the agreement.

In finding that the contract was not ambiguous, the trial court excluded additional evidence and expert testimony. However, an examination of the contract indicates that various provisions contain ambiguous terms.

As set forth in the General Conditions, Sec. 3 (p. 2 of 20), Examination of the Premises, and in NO. 5, Special Conditions, Bidder's Inspection, Frischhertz's obligation to inspect the jobsite is ambiguous in that the contract does not set forth what is included in an adequate inspection. Appellees point out that the term "visual" inspection never is mentioned in the contract. However, Alba claims that it could not be responsible for providing detailed structural drawings for every apartment. In like manner, this court interprets that the contractor's responsibility to inspect could not encompass knocking out walls in each apartment to find the hidden structural steel members prior to bidding. The obstructions could not be found by knocking down one wall in one apartment because the obstructions were present in approximately 25% of the Iberville Project apartments, presenting a hit or miss situation.

Other terms of the contract are ambiguous, including the interpretation of the meaning of latent conditions materially different from those provided in the contract under General Conditions, Claim, p. 5 of 13, Paragraph 9b. HANO and Alba contend *1313 that the work and equipment used in burning the steel members were not materially different from that necessary for performance of the renovation work required by the contract.

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