MORTON BLDG. v. Redeeming Word of Life Ch.

835 So. 2d 685, 2002 WL 31309948
CourtLouisiana Court of Appeal
DecidedOctober 16, 2002
Docket2001 CA 1836, 2001 CA 1837
StatusPublished
Cited by2 cases

This text of 835 So. 2d 685 (MORTON BLDG. v. Redeeming Word of Life Ch.) 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
MORTON BLDG. v. Redeeming Word of Life Ch., 835 So. 2d 685, 2002 WL 31309948 (La. Ct. App. 2002).

Opinion

835 So.2d 685 (2002)

MORTON BUILDING, INC.
v.
REDEEMING WORD OF LIFE CHURCH and David M. Diamond.
Redeeming Word of Life Church, Inc.
v.
Morton Buildings, Inc. and John B. Dunlap, III.

No. 2001 CA 1836, 2001 CA 1837.

Court of Appeal of Louisiana, First Circuit.

October 16, 2002.

*686 John B. Dunlap, Scott E. Mercer, Baton Rouge, for Plaintiff/Appellee, Morton Building, Inc.

Murphy J. Foster, III, Steven B. Loeb, for Defendant/Appellant, Redeeming Word of Life Church.

Before: WHIPPLE, LANIER and CIACCIO, JJ.[1]

WHIPPLE, J.

Defendant, Redeeming Word of Life Church, appeals from a judgment of the trial court, annulling a final judgment in its favor on the finding that the earlier judgment was obtained through ill practices. For the following reasons, we affirm.

FACTS AND PROCEDURAL HISTORY

In 1994, Reverend David Diamond, pastor of Redeeming Word of Life Church, Inc. (Redeeming Word), entered into design and construction contracts with Morton Buildings, Inc. (Morton Buildings) for the design and construction of a gymnasium and educational building.

Before construction began, the parties became aware that the proposed elevation for the building as set forth in the plans did not comply with the building code for the City of Baton Rouge/Parish of East Baton Rouge (City/Parish) and that it would be necessary to construct the building *687 at an elevation over two feet higher than that proposed in order to comply with the building code.

Due to cost constraints, Morton Buildings, through its representative, agreed to apply for a flood variance on behalf of Redeeming Word along with the building permit, requesting that the church be allowed to construct the gymnasium at the lower elevation. When a building permit was subsequently issued, Morton Building assumed that the variance had also been granted and, accordingly, began construction of the gymnasium at the lower elevation.

However, when construction of the building was approximately 90% complete, the Department of Public Works for the City/Parish denied the application for a flood variance for construction of the gymnasium. Because the building, as constructed, was not in compliance with the building code and a variance was not granted, Redeeming Word was unable to obtain a certificate of permanent occupancy upon completion of construction.

Due to the church's inability to obtain a certificate of permanent occupancy, Reverend Diamond, on behalf of Redeeming Word, refused to make final payment on the construction contract, design services contract and a change order. Morton Buildings then filed suit against Redeeming Word seeking payment on the contracts. Redeeming Word reconvened against Morton Buildings alleging breach of the construction contract and seeking return of the contract price and damages.

Following trial, the trial court found that construction of the building was substantially complete, thus entitling Morton Buildings to payment on the contracts. The court further found that while Morton Buildings had undertaken to help Redeeming Word secure the building permit and flood variance, it had no duty to guarantee that the variance would be granted. Thus, the trial court found no breach of contract by Morton Buildings and denied Redeeming Word's reconventional demand.

On appeal, this court reversed the trial court's judgment in its entirety. Morton Buildings, Inc. v. Redeeming Word of Life Church, Inc., 97-2251, p. 12 (La.App. 1st Cir.11/6/98), 744 So.2d 5, 12, writ denied, 99-0687 (La.4/30/99), 741 So.2d 16. With regard to Morton Buildings' demand, this court concluded that, because the building could not serve its intended purpose at its present elevation, Morton Buildings had not substantially performed the contract. This court noted that Redeeming Word was occupying the building at the time of trial pursuant to a temporary occupancy permit, but that Reverend Diamond had testified that the temporary occupancy permit was granted only for the duration of the litigation. Morton Buildings, Inc., 97-2251 at p. 5 n. 3, 744 So.2d at 8 n. 3. Thus, this court concluded, because the building was not fit for its intended purpose, Morton Buildings had failed to prove its entitlement to payment on the construction contract. Morton Buildings, Inc., 97-2251 at p. 11, 744 So.2d at pp. 11-12. Additionally, with regard to Redeeming Word's reconventional demand, this court further concluded that, while Morton Buildings had no duty to guarantee that a flood variance would be granted, Morton Buildings had breached the duty it assumed of applying for the flood variance by simply assuming that the variance had been granted by virtue of the building permit having been granted and beginning construction without verifying that the variance had in fact been granted. Morton Buildings, Inc., 97-2251 at pp. 10-11, 744 So.2d at 11. Accordingly, this court awarded Redeeming Word a return of all sums paid on the construction contract. Morton Buildings, Inc., 97-2251 at pp. 11-12, *688 744 So.2d at 12. The Supreme Court denied Morton Buildings' writ application on April 30, 1999. Morton Buildings, Inc. v. Redeeming Word of Life Church, Inc., 99-0687 (La.4/30/99), 741 So.2d 16.

After rendition of this court's opinion and a denial of Morton Buildings' writ application by the Louisiana Supreme Court, Morton Buildings filed a petition to nullify the previous judgment in favor of Redeeming Word. Morton Buildings alleged that subsequent to the Supreme Court's denial of its writ application and the resulting finality of this court's prior judgment, Redeeming Word had continued to use and occupy the building and had, in fact, obtained a certificate of permanent occupancy on June 16, 1999.

Morton Buildings alleged that during the pendency of the appeal of the original judgment, Redeeming Word had been informed by an attorney for the City/Parish that the City/Parish would grant Redeeming Word a certificate of permanent occupancy upon Redeeming Word's execution of an indemnification agreement in favor of the City/Parish. Additionally, Morton Buildings alleged that Redeeming Word had, in fact, executed the indemnification agreement in August of 1998, prior to rendition of this court's opinion in the original appeal. Thus, Morton Buildings contended, Redeeming Word's silence to this court and the Supreme Court as to its ability to obtain a certificate of permanent occupancy by mere execution of an indemnity agreement and its continued representation that the building was useless constituted fraud and ill practices pursuant to LSA-C.C.P. art.2004. Accordingly, Morton Buildings claimed that the basis for this court's previous judgment no longer existed.[2]

Following a hearing on cross motions for summary judgment, the trial court denied Redeeming Word's motion for summary judgment, granted Morton Buildings' motion and annulled this court's November 6, 1998 judgment in favor of Redeeming Word pursuant to LSA-C.C.P. art.2004, finding that the prior judgment was obtained by ill practices. From this judgment, Redeeming Word appeals.

SUMMARY JUDGMENT

A motion for summary judgment will be granted "if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to material fact, and that mover is entitled to judgment as a matter of law." LSA-C.C.P. art. 966(B). The summary judgment procedure is designed to secure the just, speedy, and inexpensive determination of every action.

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Bluebook (online)
835 So. 2d 685, 2002 WL 31309948, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morton-bldg-v-redeeming-word-of-life-ch-lactapp-2002.