Iteld v. Four Corners Construction L.P.

157 So. 3d 702, 2012 La.App. 4 Cir. 1504, 2013 WL 2443261, 2013 La. App. LEXIS 1142
CourtLouisiana Court of Appeal
DecidedJune 5, 2013
DocketNos. 2012-CA-1504, 2012-CA-1505, 2012-CA-1506
StatusPublished
Cited by10 cases

This text of 157 So. 3d 702 (Iteld v. Four Corners Construction L.P.) 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
Iteld v. Four Corners Construction L.P., 157 So. 3d 702, 2012 La.App. 4 Cir. 1504, 2013 WL 2443261, 2013 La. App. LEXIS 1142 (La. Ct. App. 2013).

Opinion

PAUL A. BONIN, Judge.

|T Sandy Iteld and her husband, Bruce, contracted with Four Corners Construction, L.P., an Austin Texas firm, to remodel their luxury home in Uptown New Orleans. As the remodeling project progressed, the Itelds and Four Corners had an increasing number of disputes, culminating in the Itelds forbidding Four Corners from returning to the project site and ultimately in their filing of this lawsuit. Four Corners reconvened.

In the pre-trial stages of the litigation, the trial judge granted two motions for partial summary judgment filed by Four [707]*707Corners which are before us on review. The Itelds seek our appellate review of these two interlocutory judgments in connection with their appeal of the final judgment rendered against them in this matter. See Bass Partnership v. Gravolet, 12-0024, pp. 10-11 (La.App. 4 Cir. 11/21/12), 105 So.3d 224, 231. Both partial summary judgments involved the application of the contract to the first twenty-six of Four Corners’ pay applications and the outstanding unpaid 10% retainage related to those applications. After our \9de novo review of these summary judgments, we affirm the ruling which foreclosed the Itelds’ claim that the jury reconsider disputes on the first twenty-six pay applications which had been authorized by their architect. With respect to the 10% retain-age issue, however, we find that there are genuine issues of material fact which preclude summary judgment and, accordingly, vacate the judgment and remand that issue to the district court for further proceedings.1

During the jury trial, the trial judge made three rulings which the Itelds argue were in error. The first ruling, an eviden-tiary one, restricted the testimony of a forensic accountant whom the Itelds had engaged as an expert witness. We have reviewed the proffer of the accountant’s testimony. We have also reviewed the ruling itself under an abuse-of-discretion standard and conclude that the trial judge did not abuse her discretion. The other two rulings related to the trial judge, over the Itelds’ objection, allowing the jury on jury interrogatories to consider and apportion fault on the architect and one of Four Corners’ subcontractors with respect to a damage claim involving the HVAC system.

We review these rulings under an abuse-of-discretion standard and find no abuse in the jury interrogatories which the trial judge submitted to the jury. Because the jury apportioned fault to the two non-parties, thus diminishing the fault attributable to Four Corners, we have reviewed their verdict under the clearly wrong standard and find that the jury’s verdict on this point is not clearly wrong and is reasonable.

I sin the post-trial stages of the litigation, the trial judge granted Four Corners’ motion for judgment notwithstanding the verdict with respect to two separate items. The trial judge granted the judgment notwithstanding the verdict and set aside the jury’s award of $25,000 to the Itelds for mental anguish because the parties’ contract conventionally limited the homeowners’ remedies to those allowed under the New Home Warranty Act. We review the granting of a judgment notwithstanding the verdict on the same criteria as that used by the trial judge. Because the Itelds are not entitled to mental anguish damages under their contract, the trial judge was legally correct in granting the judgment notwithstanding on this award. With respect to the other issue, increasing the jury’s award of $16,484 to Four Corners on account of the Itelds’ breach of the contract to the amount of $84,383.95, we find that reasonable persons exercising impartial judgment could reach differing conclusions about the amount to be assessed as damages and thus the trial judge erred in granting the judgment notwithstanding on that issue. Accordingly, we vacate that portion of the judgment notwithstanding and reinstate the jury’s verdict.

[708]*708For the sake of completeness on the issues before us in this forty-volume record, we also conclude that the issue raised by the Itelds concerning Four Corner’s recordation of a lien is moot.

In the Parts which follow we explain our decisions in considerably greater detail and also supply remand instructions to the trial judge.

Jii

In this Part, we discuss the general contours of the contract at issue, the facts underlying this matter, and the history of the proceedings in the district court. The Itelds, specifically, contracted with Four Corners to act as general contractor on an extensive renovation of their uptown New Orleans home.

A

The contract states that Four Corners agrees to renovate the Itelds’ residence according to plans prepared by their architect, Andersson/Wise Architects in exchange for the contract sum. The contract sum is defined as the cost of the work, as defined in the contract, and the builder’s fee, which is calculated as five percent for overhead costs and seven and one-half percent for profit.2 The contract further authorized Four Corners to present the Itelds, not more than twice a month, with draw requests for progress payments that were to be based upon the work performed, Four Corners’ general condition costs, subcontractor billings, materials on the job site and deposits paid for materials on the job site and deposits paid for | .^materials.3 The progress payments were also to include Four Corner’s prorated portion of its builder’s fee and profit, less a retainage often percent. The Itelds were obligated to pay Four Corners within five business days after receipt of each draw request, provided their architect approved the requested draw in writing. The contract also indicates that a final progress [709]*709payment, less a retainage often percent, shall be due and payable upon substantial completion.4 The home was to be deemed substantially completed upon either the issuance of a certificate of occupancy or the movement of the Itelds into the residence, whichever occurred earlier.

Additionally, the contract recognized that at the time it was signed, the Itelds’ architect had not completed the plans, specifications and drawings for the project and that it was, therefore, impossible for Four Corners to provide an estimated date for substantial completion., Accordingly, the contract indicated that when the Itelds’ architect fully and finally completed the plans, specifications and drawings for the renovation, Four Corners was obligated to provide a good faith | (¡estimate of the date of substantial completion. The estimated date of completion was to be included by Four Corners on its schedule of values.5 The schedule, however, was not introduced into evidence. Rather, Mrs. Iteld testified that Four Corners initially estimated that it would take fifteen months to complete the project.

Further, the contract noted that the provisions of the AIA201-1997, a standard form-contract general contract produced by the American Institute of Architects, shall apply and be effective with respect to thé renovation. Nevertheless, this provision of the contract also noted that because the project is extremely complex and revisions to the project may be extensive, complicated and require substantial additional time for Four Corners to complete, the provisions of this paragraph shall modify and control over the language contained in AIA201-1997 Article 7.

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157 So. 3d 702, 2012 La.App. 4 Cir. 1504, 2013 WL 2443261, 2013 La. App. LEXIS 1142, Counsel Stack Legal Research, https://law.counselstack.com/opinion/iteld-v-four-corners-construction-lp-lactapp-2013.