Kanaka Korrapati Versus Augustino Brothers Construction, LLC and Christopher Perdomo

Louisiana Court of Appeal·Decided July 31, 2020·No. 19-CA-426·Unknown

Opinion

KANAKA KORRAPATI NO. 19-CA-426 VERSUS FIFTH CIRCUIT

AUGUSTINO BROTHERS CONSTRUCTION, COURT OF APPEAL LLC AND CHRISTOPHER PERDOMO STATE OF LOUISIANA

ON APPEAL FROM THE TWENTY-FOURTH JUDICIAL DISTRICT COURT PARISH OF JEFFERSON, STATE OF LOUISIANA NO. 779-988, DIVISION "A"

HONORABLE RAYMOND S. STEIB, JR., JUDGE PRESIDING

July 31, 2020

STEPHEN J. WINDHORST

JUDGE

Panel composed of Judges Fredericka Homberg Wicker, Jude G. Gravois, and Stephen J. Windhorst

AFFIRMED SJW FHW JGG

COUNSEL FOR PLAINTIFF/APPELLEE, KANAKA KORRAPATI Eric J. Derbes Bryan J. O'Neill

COUNSEL FOR DEFENDANT/APPELLANT, AUGUSTINO BROTHERS CONSTRUCTION, LLC AND CHRISTOPHER PERDOMO Bradford H. Walker Gerald Wasserman

WINDHORST, J.

Defendants/appellants, Augustino Brothers Construction, LLC (also referred to as “Augustino”) and Christopher Perdomo (“Mr. Perdomo”), appeal the trial court’s judgment in favor of plaintiff/appellee, Kanaka Korrapati (“Ms. Korrapati”), for damages in the amount of $108,190.43 resulting from unlicensed and improper work pursuant to a construction contract, as well as misrepresentations Mr. Perdomo made on behalf of Augustino to Ms. Korrapati. For the reasons stated herein, we affirm the trial court’s judgment and award of damages. Facts and Procedural History In April 2017, Ms. Korrapati hired Augustino to enclose the back porch of her home for her daughter’s pending wedding. In negotiating the agreement, Ms. Korrapati communicated with Mr. Perdomo, Augustino’s sole member. A document entitled “Insurance Scope & Contract Specifications” outlines the work to be completed by Augustino Brothers Construction, LLC and provides that the construction permit is included. In a proposal letter dated April 27, 2017, signed by both parties, Augustino agreed to complete the project within three (3) months for a cost of $105,000.00.

After entering into the construction contract and after Augustino had commenced work, Ms. Korrapati learned that Augustino Brothers Construction, LLC was not a licensed contractor when it entered into the contract. In addition, after Augustino began work on the project, there were delays and problems with the quality of work.

On January 5, 2018, Ms. Korrapati cancelled the construction contract.

Before cancelling, she paid Augustino a total of $79,050.00 under the contract. On January 9, 2018, Jefferson Parish posted a notice of violation at the worksite because there was no permit for the project. Thereafter, Ms. Korrapati contacted Marc

Banner to help rectify the violation notice she received from Jefferson Parish and to finish the project.

On January 25, 2018, Ms. Korrapati filed suit in the Twenty-Fourth Judicial District Court of Jefferson Parish against Augustino Brothers Construction, LLC and Mr. Perdomo, seeking to recover the amount paid to Augustino, the costs of removing Augustino’s improperly constructed work, and other damages to be proven at trial. In the petition, Ms. Korrapati alleged that (1) Augustino failed to obtain a construction permit, as required by the construction contract; (2) the construction contract was void because Augustino failed to meet contractor licensing requirements; and (3) because Mr. Perdomo misrepresented that he acquired a permit, he was personally liable for her damages. She also alleged that Augustino’s work on the project failed to comply with the plans and specifications, the construction contract or the applicable code, was performed with inferior quality materials, and was incomplete and unsatisfactory. As a result, Ms. Korrapati asserted that Augustino’s work had to be removed and replaced, and that Augustino was not entitled to any compensation for the work.

On May 16, 2018, Ms. Korrapati filed a motion for partial summary judgment, seeking declarations that (1) the construction contract between her and Augustino Brothers Construction, LLC was void given that it lacked a valid contractor’s license; (2) all of Augustino’s work on the property was illegal; (3) Augustino was not entitled to payment for any materials, service or labor; and (4) she was entitled to return of the contract price ($79,050.00) and costs incurred for evaluation and removal of the improperly constructed addition ($19,917.93). By judgment dated August 22, 2018, the trial court granted Ms. Korrapati’s motion for partial summary judgment to the extent that it declared the construction contract null. The trial court denied the motion in other respects finding that there were genuine issues of material fact regarding the remaining issues. The case proceeded to trial on April 15, 2019.

At trial, Mr. Perdomo testified, as Augustino’s sole member, that in 2017, Augustino Brothers Construction, LLC was not a licensed contractor, and that the construction contract with Ms. Korrapati resulted in the Louisiana State Contractor’s Board fining Augustino for entering into this construction contract without a contractor’s license. With regard to Augustino Brothers, Inc., however, Mr. Perdomo testified that he has a commercial license, a residential license, and a home improvement contractor license. During his testimony, he asserted that the drafting of the construction contract between Ms. Korrapati and Augustino Brothers Construction, LLC instead of Augustino Brothers, Inc. was a paperwork error.

At trial, Ms. Korrapati’s counsel questioned Mr. Perdomo regarding whether he obtained a permit to perform the work on Ms. Korrapati’s house and what he told Ms. Korrapati regarding whether he had obtained a permit. In response to multiple questions, Mr. Perdomo testified that he “was given a number by an individual at the permit office”; “[t]hey told me a conditional number”; “I did not have a full permit”; and “I told her I went and paid for a permit, yes.” Ms. Korrapati’s counsel also questioned Mr. Perdomo regarding his experience obtaining permits. According to his testimony, Mr. Perdomo has been a contractor since 2005, has obtained permits before, and knows that when you obtain a permit, Jefferson Parish gives you a placard that the contractor posts somewhere on the jobsite. Mr. Perdomo did not receive a placard for Ms. Korrapati’s job, and thus could not post one at the jobsite. Thus, he ultimately testified that “We knew we did not have a permit.” Mr. Perdomo also admitted that he sent Ms. Korrapati the application for the permit when she asked for a copy of the permit.

Mr. Perdomo further testified that Augustino was unable to obtain the permit for the project because it did not have house plans and specifications, that Ms. Korrapati did not give him the necessary plans and specifications, and that she refused to pay for anything else. Additionally, according to Mr. Perdomo, there were

time delays because Ms. Korrapati made numerous changes to the scope of the work, and Augustino allegedly discovered problems while working on the project, including a serious plumbing issue under the slab, an unknown-layer of tile beneath the concrete pad, and a lack of pile support beneath the foundation. During the course of the construction contract, some of the work Augustino performed on the project included removing the roof structure down to the supports and portions of concrete from the slab; installation of a new slab; removal of some decking; and replacement of the wood.

Mr. Banner, who finished the project for Ms. Korrapati, testified at trial as an expert general contractor. He testified that a permit was required to construct the sunroom Ms. Korrapati wanted, and that to obtain a permit Jefferson Parish required a set of structural drawings. According to Ms. Korrapati, Mr. Banner asked her for the plans and specifications, and she gave them to him.

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