Lamar Contractors, Inc. v. Kacco, Inc.

174 So. 3d 82, 2014 La.App. 4 Cir. 1360, 2015 La. App. LEXIS 1350, 2015 WL 4031831
CourtLouisiana Court of Appeal
DecidedJuly 1, 2015
DocketNo. 2014-CA-1360
StatusPublished
Cited by2 cases

This text of 174 So. 3d 82 (Lamar Contractors, Inc. v. Kacco, Inc.) 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
Lamar Contractors, Inc. v. Kacco, Inc., 174 So. 3d 82, 2014 La.App. 4 Cir. 1360, 2015 La. App. LEXIS 1350, 2015 WL 4031831 (La. Ct. App. 2015).

Opinion

ROLAND L. BELSOME, Judge.

hln this construction case, Lamar Contractors, Inc., the general contractor, filed a breach of contract suit against Kacco, Inc., the subcontractor. In response, Kac-co filed a reconventional demand against Lamar. Lamar now appeals the trial court’s award in favor of Kacco. On cross-appeal, Kacco challenges the trial court’s damages award in favor of Lamar. For the following reasons, we affirm.

PROCEDURAL HISTORY

Lamar was selected as the general contractor in the construction of the YMCA1 in Plaquemines Parish. After a bid-selection process, Kacco was awarded a subcontract in the amount of $164,500.00 to perform framing and drywall work on certain portions of the building. Kacco began working on the job site at the end of October, 2010. In early February, 2011, Lamar placed Kacco in default and officially terminated the contract on February 5, 2011.

Subsequently, Lamar filed this suit against Kacco for breach of the Subcontract, and Kacco responded by filing a reconventional demand against Lamar. After a trial on the merits, the trial court rendered a judgment in favor of |2Lamar in the amount of $24,116.67. It additionally awarded Lamar attorney’s fees and costs in the amount of $7,681.75 and $3,105.81, respectively. The trial court further rendered a judgment in favor of Kacco in the amount of $60,020.00. Both Lamar and Kacco filed appeals.

FACTS

The following evidence was deduced, through witness testimony and exhibits, at trial. Kacco officially worked at the job site from October 26, 2010 through February 5, 2011. The project consisted of two major phases: framing work and the drywall work. Before Kacco began working, there were two change orders. The first change order resulted in a $585.00 decrease in the price of the subcontract based on a change in the size of studs to be used for the rear wall.

Kacco had recurring issues related to providing manpower and materials. On November 9, 2010, Steve Louque, Lamar’s representative and project manager, sent a certified letter on behalf of Lamar to Noel Buras, the owner of Kacco, expressing concerns regarding the lack of manpower and materials to timely complete the project.

On November 16, 2010, Mr. Buras responded by email and explained that the supply company put his account on hold. Mr. Buras expressed that Kacco could not pay the balance down, because it did not have sufficient funds. ' Mr. Buras requested that Lamar issue a joint check to Kacco and the supplier. Lamar agreed to issue a joint check, but only if Kacco agreed to a 10% back charge for the cost of the materials purchased. Kacco declined. In the interim, Mr. Buras was able to pay the supply company debt down; thus, enabling Kacco to purchase more supplies and continue the framing work.

| .¡Kacco worked through November and December. Towards’ the end of November, Kacco submitted an invoice for work performed that month. The invoice submitted at the end of December reflected that forty-five percent of the work had been performed. Lamar received payment for Kacco’s November invoice on De[86]*86cember 28, 2010, and issued a cheek to Kacco in the amount of $32,022.11 on December 30th.

Mr. Buras deposited the check; however, Kacco’s bank dishonored the check due to his failure to properly endorse the check. Mr. Buras mistakenly believed the check was returned for insufficient funds, and informed some of his employees and suppliers to hold checks he had issued due to the returned check. Once Lamar learned of these assertions, the business relationship between Lamar and Kacco declined.

On January 13, 2011, Lamar sent another email to address continuing concerns with Kacco’s ability to perform its scope of work under the contract. It also expressed dissatisfaction with Mr. Buras’s incorrect recounting of the facts involving the check issued by Lamar and threatened to file a defamation lawsuit. On the same day, Mr. Buras responded by email apologizing for the misunderstanding and addressed Lamar’s concerns regarding manpower and materials. He indicated that if Lamar needed to replace him, he understood, but he wanted to be allowed to finish the job.

Kacco continued working on site. After Kacco reported its completion of the metal framing and stud work, John Desselle, the site superintendent, arranged for John Bose, the structural engineer on the project, to inspect the metal framing for the exterior walls. Despite some minor deficiencies noted in the ten item punch Llist, the engineer’s field report, dated January 20, 2011, reflected that the framing was complete, and the “work was well done and according to the drawings.”

On January 28, 2011, Mr. Buras met with Mr. Desselle on site to discuss some questions about the engineer’s punch list. On January 31, 2011, Mr. Buras emailed Lamar in reference to some remaining issues and clarification regarding the structural engineer’s punch list of items for final completion of the framing work. In that email, Mr. Buras again notified Lamar that Kacco was waiting on the payment of its December invoice to pay the supplier and order the necessary supplies to complete the punch list. Despite the fact that Lamar and the architect had approved Kacco’s December invoice and Lamar had received payment from the owner, on January 26, 2011, Kacco was not paid for the work it performed in December.

With Kacco unable to obtain supplies to complete the punchlist, Lamar sent Kacco a default notice on February 3, 2011, stating that its contract would be terminated if it did not provide sufficient manpower and materials within forty-eight hours. Kacco did not respond to Lamar or return to the job site. Lamar officially terminated Kac-co’s subcontract in a letter dated February 5, 2011. In that letter, Lamar explained that it would begin requesting bids from other subcontractors to complete Kacco’s scope of work.

However, without requesting bids, Lamar hired Barrett Interior Specialty, Inc. to complete the work. Lamar paid for the materials, and Barrett performed the remainder of the work on a cost-plus basis.2 Lamar paid Barrett $151,144.38 for the cost of materials and the work it performed. Lamar paid Kacco $32,022.11 for |5the work it performed in November. The adjusted price of Kacco’s subcontract, after the decrease for the second change [87]*87order, was $163,915.00. In total, Lamar paid $248,249.83 to complete the framing and drywall work under Kacco’s subcontract.

STANDARD OF REVIEW

In reviewing a trial court’s findings of fact, appellate courts employ a “manifest error” or “clearly wrong” standard of review. Rosell v. ESCO, 549 So.2d 840, 844 (La.1989) (citations omitted). Likewise, mixed questions of law and fact are also reviewed under the manifestly erroneous standard of review. CII Carbon, L.L.C. v. Nat’l Union Fire Ins. Co. of Louisiana, Inc., 05-71 (La.App. 4 Cir. 8/17/05), 918 So.2d 1060, 1065 (citation omitted).

DISCUSSION

On appeal, Lamar challenges both of the trial court’s awards and the amount of attorney’s fees awarded.3 On cross-appeal, Kacco complains of the trial court’s finding that it breached the subcontract and of Lamar’s award, including attorney’s fees. We will first address the issues regarding Kacco’s breach of contract; then we will address the trial court’s awards.

KACCO’S BREACH OF CONTRACT

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Related

Lamar Contractors, Inc. v. Kacco, Inc.
189 So. 3d 394 (Supreme Court of Louisiana, 2016)

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174 So. 3d 82, 2014 La.App. 4 Cir. 1360, 2015 La. App. LEXIS 1350, 2015 WL 4031831, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lamar-contractors-inc-v-kacco-inc-lactapp-2015.