Gitschlag v. US Home Corp.

506 So. 2d 1236
CourtLouisiana Court of Appeal
DecidedMarch 4, 1987
Docket85 CA 1083
StatusPublished
Cited by11 cases

This text of 506 So. 2d 1236 (Gitschlag v. US Home Corp.) 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
Gitschlag v. US Home Corp., 506 So. 2d 1236 (La. Ct. App. 1987).

Opinion

506 So.2d 1236 (1987)

Karl R. GITSCHLAG and Carolyn Glynn Gitschlag
v.
U.S. HOME CORPORATION.

No. 85 CA 1083.

Court of Appeal of Louisiana, First Circuit.

March 4, 1987.
Rehearing Denied May 11, 1987.

*1237 David J. Krebs & Danny G. Shaw, T.A., New Orleans, for U.S. Home Corp.

Clark Richard, New Orleans, for Karl & Carolyn Gitschlag.

James Ryan, New Orleans, for Crow Ready Mix.

Tom W. Thornhill, Slidell, for Cable Foundations.

Henry Wolbrette, III, New Orleans, for Homecraft Inc.

*1238 James R. Jenkins, Abita Springs, for St. Tammany Parish.

Before LOTTINGER, SHORTESS and CARTER, JJ.

LOTTINGER, Judge.

This is an appeal from a judgment in favor of plaintiff in a redhibitory action, rescinding the sale of a house located in Mandeville, Louisiana.

FACTS

On January 22, 1980, plaintiffs, Karl R. Gitschlag and Carolyn Glynn Gitschlag, purchased a home at 428 Water Oak Lane in Mandeville, Louisiana, from defendant, U.S. Home Corporation (U.S. Home).

Shortly after purchasing the home, the Gitschlags encountered problems with excessive water in their backyard. When the 1980 spring rains began, plaintiffs' backyard flooded. This flooding continued intermittently from the spring of 1980 until mid-1984. As a result of the flooding, plaintiffs were unable to plant landscaping, construct a pool or otherwise effectively utilize their yard.

The Gitschlags also had several problems with their home. Despite numerous repairs by U.S. Home, problems with the slab, windows, doors, air conditioning system, fireplace, sheetrock, wallpaper, cabinets and carpeting persisted. After 1981, U.S. Home refused to send repairmen to resolve plaintiffs' problems.

On January 20, 1981, plaintiffs filed suit against U.S. Home and St. Tammany Parish. In their petition, plaintiffs sought a reduction of the purchase price and $47,000 in damages, alleging that the home had a defective slab and that the property on which the house was situated tended to flood.

Plaintiffs amended their petition naming Homecraft Land Development, Inc. and Homecraft Corporation, alleged joint venturers with U.S. Home, as additional defendants. In their amended petition, plaintiffs increased their claim for damages to $502,000, including a claim for damages for mental anguish. Plaintiffs filed a second amending and supplemental petition, naming as additional defendants Cable Foundations, Inc. and Crow Ready-Mix, Inc., subcontractors of U.S. Home who had constructed the slab of the Gitschlag home. Thereafter, plaintiffs filed a third amending and supplemental petition, requesting a rescission of the sale.

Various third-party demands were filed. All of the claims and third-party demands were satisfactorily resolved prior to or during trial on the merits,[1] with the exception of plaintiff's claim against U.S. Home.

The matter was tried by jury, which returned a verdict in favor of plaintiffs and against U.S. Home Corporation for $227,817.00. The damages were itemized as follows:

The purchase price              $78,950.00
Interest on down payment price
while in hands of seller        $ 5,360.00
Expenses incurred in connection
with sale                       $ 1,507.00
Expenses incurred in
preservation of property          $  -0-
Interest on mortgage on
property                         $38,000.00
Loss of favorable interest rate  $39,000.00
Mental anguish                   $50,000.00
Attorney's fees                  $15,000.00

The trial judge signed the judgment in accordance with the jury's verdict and awarded plaintiff legal interest on all damages from date of judicial demand. Thereafter, U.S. Home filed a motion for judgment notwithstanding the verdict, for new trial and for remittur, all of which were denied by the trial judge on June 14, 1985.

From this adverse judgment, U.S. Home appeals, assigning the following specifications of error:[2]

1. The trial court erred in overruling U.S. Home Corporation's Exception of *1239 No Cause of Action and/or Motion to Strike and allowing plaintiffs to proceed with their suit for rescission of the sale.
2. The jury committed manifest error in awarding plaintiffs $50,000 for mental anguish and distress.
3. The trial court erred in instructing the jury that plaintiffs could recover as an item of damage the increased interest rate which plaintiffs would have to pay upon taking out a new mortgage.
4. In determining damage due for loss of favorable mortgage rate, the jury committed manifest error in refusing to reduce such award to the present value of such future damages.
5. The jury committed manifest error in refusing to allow U.S. Home a credit for plaintiffs' use of the house during their five year residence.
6. The trial court erred in holding that interest should run from the date of judicial demand on all items of damage.

REDHIBITION

Defendant does not contest the jury's factual findings that the property contained redhibitory defects; however, defendant contends that the trial judge erred in allowing plaintiffs to amend their petition to seek rescission of the sale three and one-half years after they instituted suit for reduction in price. Defendant reasons that La.Civ.Code art. 2543 bars the plaintiffs having filed suit for a reduction in price from thereafter seeking a rescission of the sale. Defendant further contends that, although the property contained redhibitory defects, there was no evidence in the record to support the jury's determination that the property was absolutely useless or totally unsuitable for its purpose. Defendant reasons that the Gitschlags are entitled to recover only the amount necessary to convert the unsound structure into a sound one, viz. a reduction in the purchase price.

AMENDMENT TO PETITION

Defendant argues that the trial judge erred in allowing plaintiffs to amend their petition to seek rescission of the sale after they had instituted suit for reduction in price. Defendant reasons that La.Civ. Code art. 2543 bars plaintiffs from so amending their petition.

La.Civ.Code art. 2543 provides, in pertinent part as follows:

The purchaser who has contented himself with demanding a reduction of the price, can not afterwards maintain the redhibitory action.

Defendant reasons that this article bars plaintiffs from amending their petition to seek rescission once they have filed suit requesting only reduction. Defendant, however, has not cited any jurisprudence which supports this position.

We find, however, that defendant has misconstrued and misapplied La.Civ.Code art. 2543.[3] Clearly, under La.Code Civ.P. art. 1151, a plaintiff may amend his petition to alter his demand, with leave of court, after the defendant has answered. In so doing, when the action asserted in the amended petition arises out of the conduct, transaction or occurrence set forth or attempted to be set forth in the original pleading, the amendment relates back to the date of the filing of the original pleading.

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Bluebook (online)
506 So. 2d 1236, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gitschlag-v-us-home-corp-lactapp-1987.