Kaufman v. AUDUBON FORD/AUDUBON IMPORTS

903 So. 2d 486, 2005 WL 1119228
CourtLouisiana Court of Appeal
DecidedApril 27, 2005
Docket2004-CA-1540
StatusPublished
Cited by2 cases

This text of 903 So. 2d 486 (Kaufman v. AUDUBON FORD/AUDUBON IMPORTS) 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
Kaufman v. AUDUBON FORD/AUDUBON IMPORTS, 903 So. 2d 486, 2005 WL 1119228 (La. Ct. App. 2005).

Opinion

903 So.2d 486 (2005)

David B. KAUFMAN
v.
AUDUBON FORD/AUDUBON IMPORTS, INC.

No. 2004-CA-1540.

Court of Appeal of Louisiana, Fourth Circuit.

April 27, 2005.

*487 John H. Brooks, Gretna, LA, for Plaintiff/Appellant.

Jo Ann Lea, E. Wade Shows, Shows, Cali & Berthelot, L.L.P., Baton Rouge, LA, for Defendant/Appellee.

(Court composed of Judge CHARLES R. JONES, Judge MICHAEL E. KIRBY, and Judge ROLAND L. BELSOME).

CHARLES R. JONES, Judge.

This is an appeal from a judgment in favor of the Appellee, Audubon Ford/Audubon Imports, Inc., rescinding an agreement to sell two automobiles to the Appellant, David B. Kaufman. For the following reasons, we affirm the judgment of the district court in part, and amend in part.

Facts

On or about August 28, 1997, the Appellant, David B. Kaufman, negotiated the sale of two Mercedes Benz M-Class vehicles to Mr. Veerasakdi Sukaviriya (hereinafter referred to as "Mr. Vee") of Thailand. The Appellant then contacted the Appellee, Audubon Ford/Audubon Imports, Inc. (hereinafter referred to as "Audubon"), to purchase the ML320 vehicles, and on September 2, 1997, a "Purchase and Disclaimer Contract" was completed by Carol Lynn (Doiron) Whittey (hereinafter referred to as "Whittey"), an Audubon Sales Consultant, for the purchase of one ruby 1998 Mercedes Benz ML320 automobile. A cashier's check in the amount of Five Hundred Dollars and No Cents ($500.00) was provided by the Appellant as a deposit on the vehicle.

On September 9, 1997, the Appellant provided a second cashier's check in the amount of Five Hundred Dollars and No Cents ($500.00) as a deposit on a second ML320 vehicle. Ms. Whittey completed a "Purchase and Disclaimer Contract" for the purchase of one black ML320 on September 30, 1997.

Under the terms of the sales agreement, the first vehicle (the ruby vehicle) was to be delivered on or about October 2, 1997, and the second vehicle (the black vehicle) was to be delivered between October 10 and October 15, 1997.

On October 8, 1997, the Appellant traveled to Baton Rouge to pick up the ruby ML320. During the course of the negotiation of the sale, the Appellee's general manager, Kyle Talbert (hereinafter referred to as "Talbert"), determined that the Appellant was an exporter of automobiles, and that the automobiles would likely be exported in violation of Mercedes Benz' *488 Export Agreement Policy, contrary to the Appellant's assurances that he would not export the vehicles. The record reflects that at this time, the Appellant represented to Talbert that he was not going to export the vehicles. In his deposition, the Appellant testified that at the time he negotiated the purchase of the vehicles with the Appellee, he did not intend to export the vehicles.

However, the Appellant refused to sign an "Addendum to Purchase Agreement" which provided that the Appellant would not export the vehicles or sell the vehicles to any persons for export. Upon the Appellant's refusal to sign the addendum, Talbert halted the conclusion of the sale of the ruby ML320 automobile to avoid violating the export policy and being fined by Mercedes Benz. The Appellant was then refunded the Five Hundred Dollar ($500.00) deposit for the ruby vehicle; however, he was not refunded the Five Hundred Dollar ($500.00) deposit for the black vehicle.

It is of note that the Appellant later stipulated at trial that he did intend to export the vehicles at the time of purchase despite his earlier protestations to the contrary.

Procedural History

On October 14, 1997, the Appellant filed suit for specific performance or damages for breach of contract, and for a temporary restraining order and an injunction prohibiting the Appellee from selling the ruby ML320 vehicle. The Appellee cross-filed to dissolve the temporary restraining order coupled with a request for attorney's fees and damages. On October 14, 1997, the ruby ML320 was sold for an amount less than the amount the Appellant agreed to pay and title was transferred. A temporary restraining order prohibiting the sale of the ruby ML320 was issued on October 15, 1997, and notice was provided to the Appellant's counsel at 2:05 p.m. that same day. A Preliminary Injunction was issued on October 28, 1997.

In his petition, the Appellant sought damages, lost profits, loss of reputation and attorney's fees based on the claim that the Appellee failed to perform under a contract of sale. He further sought treble damages under the Louisiana Unfair Trade Practices and Consumer Protection Act.

A trial on the merits was conducted on April 26 and 27, 2004. The district court granted judgment in favor of the Appellee, Audubon, and against the Appellant, Kaufman, dismissing all claims against Audubon with prejudice. The Appellant then filed this timely appeal.

Discussion

It is well settled that a court of appeal may not set aside a trial court's or jury's finding of fact unless it is manifestly erroneous or clearly wrong; and, where there is conflict in the testimony, reasonable evaluations of credibility and reasonable inferences of fact should not be disturbed upon review, even though the appellate court may feel that its own evaluations and inferences are as reasonable. Rosell v. ESCO, et al., 549 So.2d 840 (La.1989), citing Arceneaux v. Domingue, 365 So.2d 1330 (La.1978).

In his first assignment of error, the Appellant argues that the district court erroneously applied the laws concerning mistake of fact to its own findings, rather than apply the law of agency. We disagree. We find no error in the finding of the district court that rescission was the proper basis of relief in the present case. We find that the district court properly applied the laws of contract to the action at hand, even though the contract was entered into by an undisclosed agent.

*489 The Appellant has sued for specific performance of a contract to sell two automobiles, and for damages as a result of Audubon's failure to perform the contract of sale. Thus, we find that the district court correctly applied the law contained in the Civil Code section "Conventional Obligations and Contracts," finding that the Appellant's concealment of his agency status vitiated the Appellant's consent to the contract.

The district court found that the concealment by the Appellant of the fact that he was an agent for Mr. Vee was sufficient to vitiate the contract for want of consent on the part of the Appellant. In her written reasons for judgment, the district court stated:

It is clear from the record that if Ms. Whittey (formerly Ms. Doiron) and Mr. Talbert had been advised at the time of the sales contract was signed that the plaintiff, Mr. Kaufman, was acting as an agent for Mr. Veerasakdi Sukaviriya, who lived in Taiwan, they would not have consented to the acceptance of plaintiff's offer to purchase the two Mercedes ML320s.
Therefore, the concealment by plaintiff of the fact that he was an agent for Mr. Sukaviriya is sufficient to vitiate the contract for want of consent on the part of defendant. La. C.C. art.1948.

In the case sub judice, we find that there never was a valid contract confected by the parties; thus, we agree that the district court correctly found that the seller in this case, the Appellee, was entitled to rescind the sale. A contract is formed by the consent of the parties established through offer and acceptance. La. Civil Code Article 1927. Accordingly, there must be a meeting of the minds.

Consent to a contract may be vitiated by error, fraud, or duress. LSA-C.C. art. 1948.

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Cite This Page — Counsel Stack

Bluebook (online)
903 So. 2d 486, 2005 WL 1119228, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kaufman-v-audubon-fordaudubon-imports-lactapp-2005.