Hollenbach v. Holden

728 So. 2d 544, 1999 WL 44892
CourtLouisiana Court of Appeal
DecidedMarch 15, 1999
Docket98-970
StatusPublished
Cited by6 cases

This text of 728 So. 2d 544 (Hollenbach v. Holden) 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
Hollenbach v. Holden, 728 So. 2d 544, 1999 WL 44892 (La. Ct. App. 1999).

Opinion

728 So.2d 544 (1999)

Kenneth HOLLENBACH, Plaintiff—Appellant,
v.
Farrell HOLDEN, et al., Defendants— Appellees.

No. 98-970.

Court of Appeal of Louisiana, Third Circuit.

February 3, 1999.
Amending Opinion On Rehearing March 15, 1999.

*546 Patrick Bayard McIntire, Edgar Dean Gankendorff, Lafayette, for Kenneth Hollenbach.

Daryl Stewart, et al., for Daryl Stewart, et al.

Aubrey Edward Denton, Lafayette, for Acadiana Hot Oil Service, et al.

BEFORE: YELVERTON, WOODARD, and PICKETT, Judges.

WOODARD, Judge.

This is a breach of contract case. Kenneth and Cynthia Hollenbach (the Hollenbachs) contracted with Daryl Stewart (Stewart) and his company, Spirit Transportation and Communication, Inc., to remove a tank farm and its contents from the Hollenbachs' property. After an oil spill occurred on the property, Stewart and his company abandoned the contract. The Hollenbachs sued for damages and were awarded $7,340.00, pursuant to the delay damages provision of the contract, and attorney's fees of $2,446.67. The trial court denied the Hollenbachs an award for actual damages. The Hollenbachs appeal the trial court's damages award. We affirm in part, and modify in part.

FACTS

On July 8, 1983, the Hollenbachs purchased a twenty-acre tract of land in Vermillion Parish, Louisiana, from Holden Services, Inc., owned by Farrell Holden. The property included a small tank farm, which the Hollenbachs did not want.

The tank farm consisted of several large metal tanks, each of which was used to store hundreds of barrels of oil. The tanks were surrounded by a low "fire wall" made of dirt. The purchase price of the tract was $72,079.00, but $14,000.00 was to be held in escrow until Holden cleaned up the property and removed the tank farm. The money held in escrow would then be released to him.

Holden made some progress in closing two small pits on the property, but he did not remove the tank farm. As of September 16, 1983, it remained on the property. Holden alleged that he needed a substantial portion of the money held in escrow to do the necessary work in removing the tank farm. In exchange for a reduction by $2,000.00 in the purchase price, Hollenbach agreed to allow Holden to have $7,000.00, leaving $5,000.00 in escrow. Holden did work towards cleaning up the property, but a majority of the work remained. On November 4, 1983, Hollenbach agreed to release the remaining $5,000.00 held in escrow to Holden in exchange for Holden's promise to remove the remaining tanks within fourteen business days. Holden did not perform his obligation. At this point, Holden introduced into this situation Daryl Stewart and his company, Spirit Transportation and Communications, Inc.

On February 10, 1984, Stewart and his company executed a contract obligating them to remove all the remaining tanks from the farm, including the contents of the tanks. The contract contained the following relevant clauses:

DARYL STEWART and SPIRIT TRANSPORTATION AND COMMUNICATIONS, INC. agree to and do hereby bind themselves to the removal of all the remaining tanks comprising the tank farm, to include contents of the tanks, miscellaneous hoses and piping, and other paraphernalia associated with the operation of the tank farm. STEWART and SPIRIT further agree to remove the contents of the tanks, along with the water contained within the firewall surrounding the tank farm, by tank truck or other device, off the premises of the HOLLENBACH lands, and into a proper disposal receptacle authorized by the Louisiana Department of Conservation, Waste Disposal Division. Further, STEWART and SPIRIT agree to do the above within 50 days of the date of this agreement.
. . . .
5. FARRELL HOLDEN, HOLDEN SERVICES, INC., DARYL L. STEWART and SPIRIT TRANSPORTATION AND COMMUNICATIONS, INC. further appear and declare that, should they fail to perform according to this agreement, or within the time limits stipulated, that they shall be liable, individually *547 and in solido, in damages to the Hollenbachs, in the amount of U.S. $20.00 per day for each day of nonperformance, in addition to attorney's fees, and any court costs incurred to enforce this agreement.
6. It is specifically understood and agreed by all the parties hereto that all parties shall have the right to specific performance for the enforcement of the rights and obligations assumed under this agreement.

On March 27, 1984, Hollenbach's attorney, Thomas Miller, wrote to Stewart, encouraging him to complete the removal of the tanks within the agreed time limits. About the same time, Stewart and/or Holden retained the services of Acadiana Hot Oil to heat the oil for removal from one of the tanks. During that operation, the tank broke open and began slowly leaking several hundred barrels of oil onto the property. Stewart did not take any steps to remedy the leak but, instead, simply abandoned the contracted work.

Being aware that Stewart had not removed the tanks but unaware of the oil spill which had covered his property, Hollenbach had his attorney issue a demand letter to Stewart on March 30, 1984. Stewart refused to accept delivery of the demand letter. Hollenbach remained unaware of the leak until early April 1984, when the President of Acadiana Hot Oil called upon Hollenbach to report the leak and to offer suggestions about containing it.

Once he became aware of the magnitude of the oil spill, Hollenbach began mitigating the damages. He tried to remedy the situation with rented equipment and laborers hired by the day. After he had done all that he could, he turned to Roy Young, Inc. and finally to Well-Vac, Inc. to complete the clean-up. Hollenbach spent over $35,006.66 in cash in his efforts to clean-up the mess. However, the total clean-up costs exceeded $77,830.27. Well-Vac, Inc.'s invoices totaled $58,501.76, of which Hollenbach could only pay $15,678.15.

As Hollenbach was unable to pay the total costs of the clean-up, Well-Vac, Inc., sued Hollenbach for its expenses and ultimately seized the tract and had it sold at a sheriff's sale to satisfy the demands of Well-Vac, Inc. This was particularly a tragic situation for Hollenbach, as he had used the proceeds from a personal injury settlement to originally purchase the land as an investment for possible development of a subdivision. Hollenbach contends that his total losses, because of Stewart's and his company's failure to perform the contract for removal of the tank farm, totaled $112,666.84. This comprised his investment in the tract, which was seized and sold, and his costs to mitigate the damages to the land from the spill until his cash was completely expended. He does not include in his claim for damages those Well-Vac, Inc., invoices for which the property was sold to satisfy his debt, as this would result in a double recovery.

The case was tried on April 30 and May 1, 1997. The trial court rendered written reasons for judgment on May 28, 1997. The trial court held that the defendants were obligated to remove the tanks and their contents and that they had breached the contract and were responsible for their failure to perform. It further found that the provision in paragraph five of the contract, stipulating damages of $20.00 per day for each day of non-performance, was the stipulation for all damages, pursuant to La.Civ.Code art.2007. The Hollenbachs were not allowed to recover their actual damages.

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Cite This Page — Counsel Stack

Bluebook (online)
728 So. 2d 544, 1999 WL 44892, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hollenbach-v-holden-lactapp-1999.