Magnolia Const. Co., Inc. v. Causey

421 So. 2d 990, 1982 La. App. LEXIS 8120
CourtLouisiana Court of Appeal
DecidedOctober 13, 1982
Docket82-162
StatusPublished
Cited by7 cases

This text of 421 So. 2d 990 (Magnolia Const. Co., Inc. v. Causey) 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
Magnolia Const. Co., Inc. v. Causey, 421 So. 2d 990, 1982 La. App. LEXIS 8120 (La. Ct. App. 1982).

Opinion

421 So.2d 990 (1982)

MAGNOLIA CONSTRUCTION COMPANY, INC., Plaintiff-Appellant,
v.
Vernon CAUSEY, et al., Defendants-Appellees.

No. 82-162.

Court of Appeal of Louisiana, Third Circuit.

October 13, 1982.
Rehearing Denied December 2, 1982.
Writ Denied February 4, 1983.

*991 John P. Navarre, Oakdale, for defendants-appellees.

James K. Nichols, DeRidder, for plaintiff-appellant.

Before FORET, CUTRER and STOKER, JJ.

STOKER, Judge.

This is a breach of contract suit by plaintiff, Magnolia Construction Company, Inc. (Magnolia), against defendants Cafi Company, Inc. and its president, Vernon Causey (Cafi), seeking damages for increased costs resulting from the defendants' failure to finish work it had contracted to do and for the costs of repairing defendants' defective work. The defendants reconvened for loss of profit because Magnolia allegedly failed to contact them to return to the job site, thus breaching the contract.

The trial judge entered judgment for plaintiff on the main demand, and dismissed defendants' reconventional demand. The plaintiff appeals, asking that this court award a greater amount of damages than that awarded by the trial court. The defendant appeals, asking that the trial court be overturned and judgment be granted on its reconventional demand.

We reject plaintiff's request. Plaintiff has not shown that the trial court was clearly wrong in finding that only 50% of the work repaired was solely caused by Cafi's negligent performance of its duties. However, we find merit in defendants' appeal and reverse that portion of the judgment dismissing defendants' reconventional demand. We find that plaintiff breached the subcontract by hiring another subcontractor instead of notifying Cafi to return to work, as required by the subcontract. Accordingly, we affirm that portion of the trial court's judgment in plaintiff's favor and enter judgment for Cafi Company, Inc. and Vernon Causey on the reconventional demand and award damages thereon.

FACTS

Magnolia was the main contractor and Cafi was hired by them to do subcontracting work on a project for the City of DeRidder. The work involved laying new sewer lines and connecting them to private residences. According to the contract, Cafi was only obligated to jack and bore (bore the holes in which the lines would be laid and put the pipe in them) and make tie-ins (connect the lines Cafi laid with the main sewer lines). After completing most of the work, Cafi left the job in November, 1978, but left its boring and jacking equipment in DeRidder. Magnolia claimed that the weather was bad and that Cafi obtained permission to stop working until the weather improved. Cafi contends it left because it had been told by Magnolia that no more streets would be bored at that time because of problems arising from running into existing utility lines. Cafi maintained that when it left in November it had only two or three bores left to do and that was why it left its equipment in DeRidder, and that it intended to return and complete the work when notified by Magnolia.

*992 Magnolia maintained that in January and February it attempted to contact Cafi to get it to return to work but was unsuccessful. In January or February, Magnolia employed another subcontractor, Glen Frost, to complete Cafi's work. Cafi contends it was never notified by Magnolia to return to work until long after Frost had been employed to complete the work. When in March and April of 1979 it was discovered that the sewer lines in the area were defectively installed, Magnolia began to make repairs and subsequently filed this suit.

I. THE RECONVENTIONAL DEMAND.

There are three issues to be decided regarding the reconventional demand:

1. Was Cafi hired by Magnolia to do the subcontracting work involving jacking and boring that was eventually done by Glen Frost?

2. If so, was the contract mutually terminated before Cafi left the job site in November of 1978? (If there was no mutual termination by the parties, the hiring of Glen Frost to complete the jacking and boring was a breach of contract by Magnolia, and Cafi is entitled to damages.)

3. If the contract was not mutually terminated in November, 1978, has Cafi introduced sufficient evidence to allow this court to make an award to it?

CAFI WAS HIRED TO DO THE JACKING AND BORING DONE BY GLEN FROST

The subcontract contemplated that Cafi was to do all the jacking and boring required of Magnolia under the principal contract. This included the work eventually done by Glen Frost.

The trial judge found this as a matter of fact. In a letter to Meyer and Associates, the project engineers, signed by Lewis Selig, president of Magnolia, Selig states: "If you approve [Vernon Causey as subcontractor] we intend to employ Vernon for all road boring on the projects." (Emphasis supplied.) Mr. Selig also testified at trial that his intention, in entering into the contract with Mr. Causey, was to agree that Causey would do all the work involving road boring on the project.

Magnolia correctly points out in its brief that the letter to Meyer & Associates is not a part of the contract between Magnolia and Caficand that the subcontract does not state that Cafi is to be the sole subcontractor for jacking and boring. Also, Mr. Selig's testimony of his intention to hire Cafi for all the work does not mean that there was a meeting of the minds on this point. However, plaintiff's petition states that because Cafi did not complete the work it was to perform it had to hire Glen Frost as subcontractor. This indicates to us that the parties to the contract intended that Cafi was to complete all the jacking and boring done by Glen Frost.

THE CONTRACT WAS NOT MUTUALLY TERMINATED

We find that there was no mutual termination of the contract. Under the terms of the contract, a three-day written notice was required to be sent by Magnolia to Cafi to return to the job, since Cafi left the job with Magnolia's permission. No such written notice was given. Although Magnolia contends that it attempted to contact Cafi through its president, Vernon Causey, the trial judge found, and we concur, that Magnolia could have contacted Mr. Causey had it truly wished to.

Mr. Willie Carbo, Magnolia's job superintendent on the DeRidder project, testified that he knew where Cafi was working on a different job, and that he made no attempt to contact Mr. Andrew Fisk, a co-owner of Cafi who actually worked on the DeRidder job. Mr. Carbo did say he left phone messages for Mr. Causey to call him back. In fact, Mr. Carbo actually contacted Mr. Causey and obtained permission to use a water truck which was left by Mr. Causey in DeRidder along with other equipment in anticipation of completing the work. However, it is clear that the terms of the contract, requiring written notice by Magnolia to Cafi, were not complied with. There was *993 no justification for the lack of written notice. Mr. Frost was hired in January or February long before the lines were tested for leaks and before the defective work was discovered.

No matter how unwilling Magnolia was to have Cafi return, it is clear that Mr. Causey did not acquiesce in Magnolia's decision to proceed without Cafi. There is no evidence which would allow that assumption. Vernon Causey testified that he was ready and willing to complete the work.

It cannot be implied that Cafi did not wish to continue its contractual relationship with Magnolia because Cafi did not demand to complete the work.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
421 So. 2d 990, 1982 La. App. LEXIS 8120, Counsel Stack Legal Research, https://law.counselstack.com/opinion/magnolia-const-co-inc-v-causey-lactapp-1982.