McGough v. Oakwood Mobile Homes, Inc.

779 So. 2d 793, 2000 WL 1634301
CourtLouisiana Court of Appeal
DecidedNovember 1, 2000
Docket34,091-CA
StatusPublished
Cited by11 cases

This text of 779 So. 2d 793 (McGough v. Oakwood Mobile Homes, 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
McGough v. Oakwood Mobile Homes, Inc., 779 So. 2d 793, 2000 WL 1634301 (La. Ct. App. 2000).

Opinion

779 So.2d 793 (2000)

Randy McGOUGH and Darla McGough, Plaintiffs-Appellees,
v.
OAKWOOD MOBILE HOMES, INC. and River Valley Homes, Defendants-Appellants.

No. 34,091-CA.

Court of Appeal of Louisiana, Second Circuit.

November 1, 2000.

*796 Roedel, Parsons, Koch, Frost, Balhoff & McCollister by Christina B. Peck, Counsel for Appellant, Oakwood Mobile Homes, Inc.

Gold, Weems, Bruser, Sues & Rundell by J. Kendall Rathburn, Counsel for Appellant River Valley Homes.

John B. Hoychick, Counsel for Appellees.

Before BROWN, PEATROSS & DREW, JJ.

PEATROSS, J.

In this redhibitory action, the trial court rendered judgment in favor of the purchaser of a mobile home and against the seller and manufacturer, ordering rescission of the sale and return of all monies paid to the seller, subject to a credit of $75 per month (totaling $17,384.53); awarding damages in the amount of $15,000 to the purchaser for mental anguish, aggravation and inconvenience; awarding the purchaser attorney fees in the amount of $21,757.77, plus judicial interest from date of demand; and assessing all costs to the seller and manufacturer. The trial court granted the seller's indemnity claim against the manufacturer for the entire amount owed by the seller to the purchaser, but denied the seller's request for attorney fees and costs in defending the claim. The manufacturer's motion for new trial was denied by the trial court. The seller and manufacturer appeal, both arguing that rescission of the sale and the award of damages for mental anguish were improper. Additionally, the seller challenges the trial court's finding that it was in bad faith regarding the sale of the mobile home and was, therefore, liable for damages and attorney fees. Finally, the manufacturer assigns as error the trial court's granting of the seller's request for full indemnification from the manufacturer for any amounts owed by it to the purchaser as a result of the lawsuit and the trial court's order that the manufacturer return any payments made by the purchaser to the seller. For the reasons stated herein, the portion of the judgment awarding the purchaser nonpecuniary damages is vacated and set aside; the portion of the judgment granting the seller's claim for indemnity against the manufacturer is reversed; and, in all other respects, the judgment is affirmed.

FACTS

Plaintiff Darla Plumley McGough[1] purchased a mobile home from Oakwood Mobile Homes, Inc. ("Oakwood"), on April 20, 1996. The mobile home was manufactured by River Valley Homes ("River Valley"), a division of Spirit Homes, Inc., in Bigelow, Arkansas, and was originally sold to Oakwood and placed on Oakwood's sales lot in Texarkana, Arkansas. After approximately one year on the Texarkana lot, on March 22, 1995, the mobile home was transferred to Oakwood's Bossier City, Louisiana, lot, which is where Mrs. McGough purchased it.

The McGoughs visited the Oakwood mobile home lot in Bossier City on two occasions before purchasing the mobile home. During their initial visit to the lot, the couple was approached by Oakwood salesperson Gary Burrows, who ultimately sold the mobile home to Mrs. McGough. At *797 that time, Mrs. McGough advised Mr. Burrows that they were seeking a home in the range of $25,000; and Mr. Burrows showed the McGoughs several mobile homes, manufactured by Oakwood, which were among the "nicest" homes on the lot. Mrs. McGough filled out a credit application at that time; and, according to Mr. Burrows' deposition testimony, she was approved for the purchase of an Oakwood home up to a purchase price of $29,000. He then contacted Mrs. McGough and requested that she return to the lot to view additional homes.

Mrs. McGough testified that, during their second visit to the Oakwood lot, she and Mr. McGough toured four or five mobile homes which were not as nice as the first group they had seen on their prior visit. Mr. Burrows admits in his deposition testimony that, at this point, he utilized the tactic of "bait and switch" in order to sell the River Valley home to Mrs. McGough. Knowing that the home was of inferior quality to the Oakwood homes (for which Mrs. McGough did qualify), Mr. Burrows told Mrs. McGough that the only home for which he could secure financing for her was the River Valley home. He testified as follows:

Q: What did you do with Mrs. [McGough] when she got to your lot on the second visit:
A: Took her back out on the lot. Met her on the lot and took her back out to a River Valley house, said "Darla, I'm sorry. Your credit came up kind of shaky. We can get you approved, but it's only going to be on this home right here."
Q: I thought you just testified that she qualified for an Oakwood home?
A: That's correct.
Q: Then why did you show her a River Valley home?
A: Because she was in a situation where I could enable ourselves to get rid of this one River Valley home once and for all.
Q: Well, using your own phraseology, did you not shoot yourself in the foot by showing her a River Valley home when she qualified for an Oakwood?
A: That's correct. I would be shooting myself in the foot showing that house up front. Bait and switch is what I was getting at.
Q: So it was a bait and switch?
A: That's correct.
Q: You admit that it was a bait and switch?
A: Oh, yes.

Unaware of Mr. Burrows' sales tactic, the McGoughs decided to purchase the River Valley mobile home, which they both testified seemed to be the best quality home of the group from which they were told to choose.[2]

The McGoughs paid a down payment on the mobile home in the amount of $3,571 and the remainder of the purchase price was financed through Oakwood Acceptance Corporation. The McGoughs have made monthly payments on the mobile home since the purchase.

The problems with this mobile home are numerous and our discussion must begin at the time of purchase. Apparently, there were four problems in the mobile home of which Mrs. McGough was aware prior to her purchase of the home. In her testimony at trial, Mrs. McGough admitted that she saw water stains on the lower portions of the interior walls of the mobile home, a crease in the living room ceiling, *798 cuts in the linoleum in the master bathroom and a hole in the wall beside the bathtub in the master bathroom. Mrs. McGough inquired about the water stains and Mr. Burrows assured her that the stains were from the initial storing of the paneling prior to installation in the mobile home (wall paneling standing in water) and would be concealed by molding that was to be installed by Oakwood. Both Mr. and Mrs. McGough testified that they did not think that the crease in the ceiling was a major problem, but was only a cosmetic defect. Mr. Burrows assured the McGoughs that all problems would be repaired by Oakwood.

Oakwood and River Valley claim that other conditions, such as silicone on the exterior of the mobile home, were also present at the time Mrs. McGough purchased the mobile home. Mrs. McGough, however, testified that she was unaware of silicone on the exterior of the mobile home; and Mr. McGough testified that, while he noticed silicone on a couple of windows, he thought that was "normal." Additionally, there is some indication in the record that the McGoughs may have noticed the carpet separating in spots in the home prior to purchase. Mrs.

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Cite This Page — Counsel Stack

Bluebook (online)
779 So. 2d 793, 2000 WL 1634301, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcgough-v-oakwood-mobile-homes-inc-lactapp-2000.