Guedon and Associates, Inc. v. Haik

533 So. 2d 1256, 1988 WL 113205
CourtLouisiana Court of Appeal
DecidedOctober 27, 1988
Docket88-CA-0468
StatusPublished
Cited by6 cases

This text of 533 So. 2d 1256 (Guedon and Associates, Inc. v. Haik) 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
Guedon and Associates, Inc. v. Haik, 533 So. 2d 1256, 1988 WL 113205 (La. Ct. App. 1988).

Opinion

533 So.2d 1256 (1988)

GUEDON AND ASSOCIATES, INC.
v.
Lawrence HAIK, Sr. and Equity Investment Services, Inc.

No. 88-CA-0468.

Court of Appeal of Louisiana, Fourth Circuit.

October 27, 1988.
Rehearing Denied December 14, 1988.

*1257 Harry T. Widmann, New Orleans, for plaintiff/appellant.

Before BYRNES, WILLIAMS and PLOTKIN, JJ.

WILLIAMS, Judge.

This suit concerns a dispute over the balance due plaintiff under a cost plus profits oral construction contract. Plaintiff's petition asserts defendants owe a balance of $21,866.60 for services rendered at the 2000 Old Spanish Trail project in Slidell, while defendants' answer denies a balance is due because plaintiff failed to pay subcontractors who delivered materials for the building project. The trial court found a balance of $22,210.10 was due and owing, but awarded defendants credits of $5,000.00 and $9,906.92. Thus, from the final award in plaintiff's favor in the amount of $7,304.18, plaintiff appeals claiming defendants' evidence for the credit of $9,906.92 was hearsay and in disregard of discovery rules; defendant was not a credible witness for proving the $5,000.00 credit; and the trial court erred in not finding this suit an action on an open account under LSA-R.S. 9:2781, thereby entitling plaintiff to attorney's fees. We disagree with plaintiff's assertions. Accordingly, we affirm the lower court's judgment.

Plaintiff, Guedon and Associates, Inc., is a general contracting and construction company owned 98% by Edward E. Guedon and 2% by his spouse. Defendants are Lawrence Haik, Sr., and the company of which he is president and sole owner, Equity Investment Services, Inc. Because Equity Investment, a real estate brokerage company, is in bankruptcy, plaintiff sought to hold and succeeded in holding Mr. Haik personally liable for negotiating the oral construction contract on behalf of Equity Investment.[1] As Mr. Haik neither appealed *1258 nor answered plaintiff's appeal, the issue of his personal liability is now final.

Mr. Guedon representing Guedon and Associates and Mr. Haik for Equity Investments, orally agreed to a construction contract of time and materials plus 15% profits. Their original agreement was to renovate Mr. Haik's property at 2000 Old Spanish Trail in Slidell, by connecting two existing buildings through the construction of a conference room and an office in the space between the buildings. The project originally had a cost ceiling of $31,928.00, inclusive of profits. Subsequently, the construction plans were modified to include skylights and restroom facilities; no new ceiling was set.

Plaintiff began construction work in August, 1983 and concluded work on or about September 30, 1983. Thereabouts, Mr. Guedon submitted to Mr. Haik an invoice dated September 30, 1983 indicating payments totalling $15,000.00 and a balance due of $22,211.10. On February 28, 1985 a written demand for payment was sent on behalf of plaintiff by certified mail to defendants requesting payment within 30 days. When no payment was made in response to the demand letter, plaintiff filed this suit on June 10, 1985, claiming $21,866.60 due for the 2000 Old Spanish Trail project and $28,460.54 due for the John F. Lawhon Company project[2], demanding attorney's fees pursuant to LSA-R.S. 9:2781 and claiming Mr. Haik and Equity Investments were solidarily liable for the aggregate due.

Defendants originally excepted to venue and the nonjoinder of a necessary party. Plaintiff then amended its petition to include the John F. Lawhon Company and the company with which it had merged, W. & J. Sloane Corporation. Within a month of amending the petition, W. & J. Sloane Corporation and its subsidaries filed for protection under Chapter 11 Bankruptcy so that all actions against it were stayed. Then, prior to the hearing on their exception to venue, Mr. Haik and Equity Investments answered and filed their third party demand against John F. Lawhon Co. and W. & J. Sloane Corporation.

During discovery, plaintiff filed a motion to compel answers to interrogatories, production of documents and that admissions be deemed admitted. Mr. Haik filed a motion for summary judgment to have all claims against him be dismissed. The record reflects that neither motion was heard or ruled upon. On April 15, 1987, the suit was tried by bench trial.

At trial, plaintiff introduced its invoice dated September 30, 1983 showing payments totalling $15,000.00 and a remaining balance due of $22,211.10. The invoice did not indicate the dates or the amounts of the prior payments. For Guedon and Associates, Mr. Guedon testified the $15,000.00 had been paid at various times prior to his preparation of the invoice. He also testified Mr. Haik's check for $5,000.00 dated September 30, 1983 is included in the $15,000.00 credit indicated on the September 30, 1983 invoice; he claimed he may have prepared the invoice a few days after September 30th.

The trial court's reasons for judgment indicate Mr. Guedon's testimony contradicted itself as to whether the invoice was prepared on September 30, 1983 or before or after that date and as to whether Mr. Haik's check dated September 30, 1983 was included in the $15,000.00 credit indicated on plaintiff's invoice. The court, however, did not find Mr. Haik's testimony contradictory when he testified the $15,000.00 credit indicated on the plaintiff's invoice did not include his September 30, 1983 payment. The trial court also made note of Mr. Haik's testimony concerning payments, totalling $9,906.92, he made for supplies and of those payments being evidenced by copies of checks entered into evidence.

Mr. Haik also testified that some of the invoices plaintiff submitted into evidence in support of its claim were either for materials *1259 used on projects other than the 2000 Old Spanish Trail project or for invoices defendants had paid suppliers directly. Mr. Haik then testified he had paid the Southern Air Conditioning invoice of $3,500.00, an invoice that plaintiff claimed was due it as part of the $22,211.10 balance due. Under cross-examination, Mr. Guedon admitted that he had not paid that invoice and admitted it was included as part of the balance he claimed as due and owing. Mr. Guedon also admitted the $5,664.56 in charges from Bernard Lumber for materials delivered in May or June, 1983 did not relate to the 2000 Old Spanish Trail project, as plaintiff did not begin that project until August, 1983.

In its resolution of plaintiff's claim, the trial court remarked upon the problems with proof in the case caused by both parties being poor record keepers. Despite this handicap, the trial court rejected plaintiff's argument that this is a suit on an open account and resolved plaintiff's monetary claims as follows: plaintiff is due the sum of $22,211.10 for the work performed at 2000 Old Spanish Trail, but from that sum, defendants are entitled to a credit of $5,000.00 and of $9,906.92. Thus, plaintiff is due the balance of $7,304.18.

From that judgment, plaintiff appeals, claiming the trial court erred in granting the credits of $9,906.92 and $5,000.00 and in not finding this is a suit on an open account.

ASSIGNMENT OF ERROR NO. 1

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Bluebook (online)
533 So. 2d 1256, 1988 WL 113205, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guedon-and-associates-inc-v-haik-lactapp-1988.