Guest House of Slidell v. Hills

76 So. 3d 497, 2010 La.App. 1 Cir. 1949, 2011 La. App. LEXIS 980, 2011 WL 3610417
CourtLouisiana Court of Appeal
DecidedAugust 17, 2011
Docket2010 CA 1949
StatusPublished
Cited by6 cases

This text of 76 So. 3d 497 (Guest House of Slidell v. Hills) 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
Guest House of Slidell v. Hills, 76 So. 3d 497, 2010 La.App. 1 Cir. 1949, 2011 La. App. LEXIS 980, 2011 WL 3610417 (La. Ct. App. 2011).

Opinion

GAIDRY, J.

|2In this suit on open account, a nursing home appeals a trial court judgment dismissing its petition based upon a finding that the defendant’s signature on an admission agreement did not obligate him to pay the costs of his stepfather’s care. We affirm.

FACTS AND PROCEDURAL HISTORY

Guest House of Slidell, L.L.C. (“Guest House”) filed a petition on open account on December 4, 2009 against Sam Hills, individually and on behalf of Leroy Gilley, seeking to recover $9,159.95 1 for services rendered on behalf of Mr. Hills’s stepfather, Mr. Gilley. Guest House alleged that the open account was created by an Admission Agreement signed by Mr. Hills on September 5, 2008, which obligated Mr. Hills to pay basic daily room charges for Mr. Gilley. Mr. Hills denied any obligation for the charges incurred by Mr. Gilley.

*499 After a bench trial, the court rendered judgment in favor of Mr. Hills. The pivotal issue, in the court’s opinion, was whether Mr. Hills, by signing the Admission Agreement in the space designated for the “Responsible Party,” individually and on behalf of the resident in his capacity as “Authorized Agent and/or health care surrogate,” obligated himself to pay the costs of care provided to Mr. Gilley, even though Mr. Gilley was listed as the responsible party on the first page of the Admission Agreement. Considering the evidence, the court found that the contract was clear that Mr. Gilley was the responsible party and that Mr. Hills’s signature as a responsible party was only given in his capacity as “Authorized Agent and/or health care surrogate.” Furthermore, in regard to Guest House’s claims against Mr. Hills on behalf of Mr. Gilley, the court noted that no evidence |swas presented to prove that Mr. Hills was Mr. Gilley’s succession representative so as to make him the proper party defendant under La. C.C.P. art. 734. Therefore, the court concluded that Mr. Hills had no legal obligation under the contract and rendered judgment in favor of Mr. Hills, dismissing Guest House’s claims against him with prejudice.

Guest House has appealed this judgment, arguing that the trial court’s interpretation of the contract was erroneous.

DISCUSSION

We are obligated to give legal effect to contracts according to the true intent of the parties. See La. C.C. art. 2045. The true intent of the parties to a contract is to be determined by the words of the contract when they are clear, explicit, and lead to no absurd consequences. See 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. Id. In such cases, the meaning and intent of the parties to the written contract must be sought within the four corners of the instrument and cannot be explained or contradicted by parol evidence. See La. C.C. art. 1848. Contracts, subject to interpretation from the instrument’s four corners without the necessity of extrinsic evidence, are to be interpreted as a matter of law, and the use of extrinsic evidence is proper only where a contract is ambiguous after an examination of the four corners of the agreement. In cases in which the contract is ambiguous, the agreement shall be construed according to the intent of the parties. Intent is an issue of fact which is to be inferred from all of the surrounding circumstances. A doubtful provision must be determined in light of the nature of the contract, equity, usages, the conduct of the parties before and after the formation of the contract, and other contracts of a like nature between the same parties. |4La. C.C. art. 2058. Interpretation of ambiguous terms in a contract requires construction against the contract’s drafter. La. C.C. art. 2056.

Thus, our first inquiry is whether, looking within the four corners of the Admission Agreement, the contract is ambiguous. Whether a contract is ambiguous or not is a question of law and subject to the de novo standard of review on appeal. Where factual findings are pertinent to the interpretation of a contract, those factual findings are not to be disturbed absent manifest error. Amitech U.S.A., Ltd. v. Nottingham Const. Co., 09-2048, pp. 18-19 (La.App. 1 Cir. 10/29/10), 57 So.3d 1043, 1058, writs denied, 11-0866, 11-0953 (La.6/17/11), 63 So.3d 1036, 1043. A contract is considered ambiguous on the issue of intent when it lacks a provision bearing on the issue, its written terms are susceptible to more than one interpretation, there is uncertainty as to its provisions, or the *500 parties’ intent cannot be ascertained from the language used. Campbell v. Melton, 01-2578, p. 6 (La.5/14/02), 817 So.2d 69, 75.

The heading on the first page of the Admission Agreement provides that it is an agreement “By and Between” the following parties:

Provider: ComCare of LA

Facility (d/b/a): Guest House of Slidell

Resident: Leroy Gilley

Responsible Party: Leroy Gilley

Relationship/Representative Capacity:Self

The final page of the Admission Agreement contains lines for the signatures of the authorized facility representative, the resident, the responsible party, additional co-responsible parties, and witnesses. There is an “X” and a mark (presumably made by Mr. Gilley) on the line for the resident’s signature. Under the signature line for the responsible party is the following language:

|sSignature of Responsible Party in His/ Her Individual Capacity and on behalf of the Resident in the following capacity (Circle one or more:
(1) Authorized Agent and/or health care surrogate;
(2) Curator;
(3) Power of Attorney)

Mr. Hills signed on the line for the responsible party, and under his signature, “(1) Authorized Agent and/or health care surrogate” was circled. There were no co-responsible parties listed.

Although the trial court found the contract to be clear and unambiguous, in our de novo review, viewing the agreement as a whole, we find that the intent of the contract as to the identity of the responsible party and the capacity in which Sam Hills signed was unclear. Mr. Hills is not listed as a party to the agreement on the first page; however, Mr. Hills signed the contract as the responsible party both in his individual capacity and on behalf of the resident. Guest House alleges that Mr. Hills was the intended responsible party, and Mr. Gilley’s name was only listed on the first page because the form was pre-printed before Guest House was aware that Mr. Hills would be the responsible party. However, no explanation was given as to why the forms were not reprinted when it was discovered that Mr. Hills would be the responsible party. Mr. Hills alleges that the intent was never for him to be the responsible party, and he only signed the contract on Mr. Gilley’s behalf, despite the fact that the language below his signature states that he is signing individually and on behalf of the resident.

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Bluebook (online)
76 So. 3d 497, 2010 La.App. 1 Cir. 1949, 2011 La. App. LEXIS 980, 2011 WL 3610417, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guest-house-of-slidell-v-hills-lactapp-2011.