Fruge v. ONOB, INC.

32 So. 3d 1115, 9 La.App. 3 Cir. 1028, 2010 La. App. LEXIS 357, 2010 WL 785821
CourtLouisiana Court of Appeal
DecidedMarch 10, 2010
Docket09-1028
StatusPublished
Cited by5 cases

This text of 32 So. 3d 1115 (Fruge v. ONOB, INC.) 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
Fruge v. ONOB, INC., 32 So. 3d 1115, 9 La.App. 3 Cir. 1028, 2010 La. App. LEXIS 357, 2010 WL 785821 (La. Ct. App. 2010).

Opinion

AMY, Judge.

[,The defendant broker company appeals the trial court’s judgment granting the plaintiffs motion for summary judgment. The defendant asserts that the trial court erred in finding that it owed a duty to the plaintiff, a prospective seller, to place deposit money given by the prospective buyer into its escrow account when the plaintiff and a prospective buyer never executed a purchase agreement. For the following reasons, we reverse and render judgment in favor of the defendant.

Factual and Procedural Background

The plaintiff, John Terrell Fruge (Fruge), hired the defendant, ONOB, Inc. d/b/a Century 21, Mike D. Bono and Company (Bono), to sell a tract of land located in Calcasieu Parish. Negotiations began between Fruge’s listing agent, Betty Sit-tig, and the prospective buyer of the property, Innovative Hospitality Services (IHS), who was represented by Luis De-Castro (DeCastro). DeCastro/IHS’s real estate agent was Debbie Lafleur. Lafleur and Sittig were both real estate agents employed by Bono, and, thus, a dual agency relationship existed. 1

On July 81, 2006, Lafleur met DeCastro at the Lake Charles Airport and presented him with an agreement to purchase or sell the tract of land for $550,000.00. DeCas-tro initialed and dated the written agreement on every page, however, he did not sign the purchaser’s line. Several days later, DeCastro sent Bono a $10,000.00 deposit check, as called for in the written agreement. According to Ms. Lafleur’s deposition, when she received the deposit check, she reviewed the purchase agreement and realized DeCastro had not signed the purchaser’s line. Bono then placed the check into an office safe. Ms. Lafleur contacted DeCastro and informed him that his signature was not on the purchase agreement, and according to Ms. |2Lafleur’s deposition, DeCastro indicated that “he just wasn’t going to sign it.” Some time later, DeCastro died in a plane crash, and a stop payment order was issued on the $10,000.00 check.

On October 15, 2007, Fruge filed a petition against Bono contending that Bono “owes [him] at least $10,000.00” because “[t]he conditions of the contract were met, however, the $10,000.00 was not turned over to [him].” Fruge stated that “[t]he check was not deposited in an escrow account under Louisiana law.” Bono answered the petition, denying Fruge’s allegations and asserting that “[tjhere was never an agreed upon contract therefore the $10,000.00 was never delivered to plaintiff.”

Bono then filed a motion for summary judgment, alleging that because DeCastro did not sign the purchase agreement, the parties never contracted, and therefore no obligations were due to Fruge. Bono supported his argument by citing La.Civ.Code art. 1839, which provides that “[a] transfer of immovable property must be made by authentic act or by act under private signature.”

Fruge filed a cross motion for summary judgment, alleging that “but for the negligence of the Bono sales agents in failing to secure a single signature and place into their Sales Escrow Account the deposit, the matter would not be pending today.” *1117 Fruge also contended that, apart from the absence of DeCastro’s signature, “every requirement for sale of the Fruge property was met.”

After a hearing, the trial court issued a judgment denying Bono’s motion for summary judgment and granting Fruge’s cross motion and awarding him $10,000.00. 2 IsBono now appeals, assigning the following errors:

|4I. The Trial Court committed reversible error finding Bono acted negligently by failing to deposit [IHSJ’s check into its real estate escrow account despite the fact that the unrefuted evidence showed that [IHS] and Fruge never got beyond negotiations, never had an offer and acceptance, did not execute an Agreement to Purchase and Sell, did not enter any real estate transaction, and neither Fruge nor anyone else had any interest in [IHS]’s check.
II. The Trial court committed reversible error assessing damages without *1118 any evidence of damages being presented.

Discussion

Summary Judgment

Louisiana Code of Civil Procedure Article 966(B) states that summary judgment shall be rendered “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to material fact, and that mover is entitled to judgment as a matter of law.” In Boykin v. PPG Industries, Inc., 08-117, p. 4 (La.App. 3 Cir. 6/18/08), 987 So.2d 838, 842, writs denied, 08-1634 and 08-1649 (La.10/31/08) 994 So.2d 537, this court explained the standard of review applicable to motions for summary judgment, stating:

Appellate courts review a trial court’s grant or denial of a motion for summary judgment using the de novo standard of review, under the same criteria that govern the trial court’s consideration of whether a summary judgment is appropriate in any given case. Indep. Fire Ins. Co. v. Sunbeam Corp., 99-2181, 99-2257 (La.2/29/00), 755 So.2d 226.

Merits

The defendant asserts that the trial court erred in finding that it owed a duty to place the $10,000.00 into escrow absent a properly executed agreement to purchase or sell and, accordingly, in failing to dismiss the plaintiffs claim. As explained below, we find merit in this argument.

|sWe note that the trial court correctly determined that the parties did not execute a valid agreement to purchase or sell in light of DeCastro’s failure to sign the document. Despite DeCastro’s partial completion of the document, the contract is deficient in vital respects. Namely, it contains no notation in the area of the form indicating it was “accepted as written,” “accepted as amended on addendum,” “accepted as amended or countered,” or “rejected.” Rather, the adjacent boxes remained unfilled. And, as stated, it lacks the “purchaser’s signature.” Louisiana Civil Code Article 1839 provides, in pertinent part, that “[a] transfer of immovable property must be made by authentic act or by act under private signature.” Accordingly, the trial court did not err in determining that the plaintiff failed to demonstrate that he could prove a contract claim at trial.

Duty/Risk

Otherwise, the plaintiff argued he would be able to recover for negligence due to what he contends was the defendant’s responsibility to deposit the check into an escrow account and/or to ensure the completion of the agreement to purchase or sell.

Louisiana Civil Code Article 2315 provides the foundation for negligence claims in Louisiana.

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Related

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44 So. 3d 779 (Louisiana Court of Appeal, 2010)

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Bluebook (online)
32 So. 3d 1115, 9 La.App. 3 Cir. 1028, 2010 La. App. LEXIS 357, 2010 WL 785821, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fruge-v-onob-inc-lactapp-2010.