Nassif v. Sunrise Homes, Inc.

720 So. 2d 452, 97 La.App. 5 Cir. 905, 1998 La. App. LEXIS 3041, 1998 WL 781956
CourtLouisiana Court of Appeal
DecidedOctober 28, 1998
DocketNo. 97-CA-905
StatusPublished
Cited by2 cases

This text of 720 So. 2d 452 (Nassif v. Sunrise 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
Nassif v. Sunrise Homes, Inc., 720 So. 2d 452, 97 La.App. 5 Cir. 905, 1998 La. App. LEXIS 3041, 1998 WL 781956 (La. Ct. App. 1998).

Opinion

JiGRISBAUM, Judge.

The defendants, J.J. Krebs & Sons, Inc. (hereinafter “J.J. Krebs”) and Coast Quality Construction Company (hereinafter “Coast”), appeal the judgment of the trial court granting the plaintiff, Toufic Nassif, rescission of the sale of the house, which was purchased from Sunrise Homes, Inc. (hereinafter “Sunrise Homes”) by Shirley Ann Nassif, with whom he entered into a Sale and Assumption. Plaintiff answered defendants’ appeal and appeals the trial court’s award of damages. We affirm in part, reverse in part, and amend in part.

ISSUES

The issues presented for review are:

(1) Whether the trial court erred in finding that the house contains a redhibitory defect and in granting rescission instead of quanti minoris;

12(2) Whether the trial court erred in finding that the foundation, as designed by J.J. Krebs, was defective, that J.J. Krebs failed to exercise the degree of care and skill customarily employed by other engineers engaged in the same profession in the Greater New Orleans area, and that J.J. Krebs’ negligence was the cause of the damages suffered by the plaintiff, Toufic Nassif;

(3) Whether the trial court erred in not finding plaintiff comparatively at fault;

(4) Whether the trial court erred in granting Coast indemnity from J.J. Krebs for attorney’s fees, which Coast is liable to the plaintiff, and whether it abused its discretion in awarding plaintiff attorney’s fees;

(5) Whether the trial court erred in not awarding plaintiff closing costs, expenditures for improvements, judicial interest from the date of sale, or any general damages; and

(6) Whether the trial court erred in granting a credit for use and deducting tax benefits from plaintiffs award.

FACTS AND PROCEDURAL HISTORY

This appeal involves the rescission of the sale of a house located at 2936 Keith Way in Woodmere South 2 of Jefferson Parish, Louisiana. Coast developed Woodmere South Subdivision and then built and sold the homes there. J.J. Krebs performed the engineering work and designed the foundation for the houses, which Coast built. On May 31, 1984, plaintiffs cousin, Shirley Ann Nas-sif, purchased this house from Sunrise Homes. Two months later, on July 31, 1984, the plaintiff, Toufic Nassif, entered into a Sale and Assumption with Ms. Nassif for the purchase of this house.

In September 1986, Mr. Nassif discovered that his house was experiencing differential settlement problems. He informed Coast of the problem and requested a new non-defective house. Coast refused to provide Mr. Nassif with a new house but offered to repair the problem. Mr. Nassif refused this offer, based |3on the recommendation of Mr. Lionel Flotte, Jr., a professional engineer, who investigated the problem and concluded that Coast’s repair method was inadequate.

This case went to trial, without a jury, on February 3 — 6, 1997. Judgment was rendered in favor of Mr. Nassif and against Coast, finding that the house contained a redhibitory defect, granting recission, and a damage award of $55,240.00, plus interest [455]*455and costs. The judgment was further rendered in favor of Coast, by way of indemnity, against J.J. Krebs for $55,240.00, plus interest and costs, less the value of the house. On September 3, 1997, after a hearing regarding attorney’s fees on May 6, 1997, the trial court rendered judgment in favor of Lowe, Stein, Hoffman, Allweiss & Hauver, L.L.P. (hereinafter “Lowe, Stein”) and against Coast for $141,646.31 in attorney’s fees and costs. The trial court further ordered that there be judgment granting full indemnity to Coast from J.J. Krebs for the $141,646.31, which it was ordered to pay plaintiff, Lowe, Stein, for attorney’s fees and costs.

ISSUE ONE — LAW AND ANALYSIS

Appellant, J.J. Krebs, contends that the trial court erred in finding that Mr. Nassifs house contained a redhibitory defect and in granting rescission, instead of quanti minoris. We disagree. The existence of a redhibitory defect is a question of fact which cannot be disturbed unless the record establishes that the finding is manifestly erroneous. St. Claire v. Lewis, 550 So.2d 737 (La.App. 2d Cir.1989). La. Civ.Code art. 2520, in pertinent part, provides that

A defect is redhibitory when it renders the thing useless, or its use so inconvenient that it must be presumed that a buyer would not have bought the thing had he known of the defect. The existence of such a defect gives a buyer the right to obtain rescission of the sale.
A defect is redhibitory also when, without rendering the thing totally useless, it diminishes its usefulness or |4its value so that it must be presumed that a buyer would still have bought it but for a lesser price. The existence of such a defect limits the right of a buyer to a reduction of the price.

It is clear from the record that the house experienced 13-14 inches of differential settlement in the foundation. Differential settlement refers to the foundation slab of a house settling unevenly, causing either an upward or downward slope in the house. Differential settlement of a certain magnitude can cause structural and plumbing problems, as well as disturb the comfort and livability of the home. All of the experts who testified agreed that appellee’s house experienced an excessive amount of differential settlement. Mr. Lloyd Held, an expert geotech-nical engineer, testified that he has never seen a house with a pile-supported foundation that experienced as much differential settlement as Mr. Nassifs house. The record establishes there is a noticeable drop from the front to the rear of the house. Accordingly, we find no error in the trial court’s conclusion that the house in question contains a redhibitory defect.

J.J. Krebs and Coast contend that the trial court erred in granting rescission, instead of quanti minoris, i.e., a reduction in the purchase price, and appellants argue the differential settlement in Mr. Nassifs house is not serious enough to render the house useless or so inconvenient to warrant rescission. We, again, disagree.

Based on expert testimony, repairs to Mr. Nassifs house would cost between $25,000.00 — $30,000.00. Furthermore, the testimony of Mr. Flotte, an expert in civil engineering specializing in foundation and structure design, stated that no one should reside in the house while these repairs were being done. Though the house was used after the differential settlement was discovered, and it can be repaired without suffering any permanent diminution in value or Igmarketability, we find that rescission is the appropriate remedy for the following reasons:

First, the house requires expensive, costly repairs to correct the differential settlement. Where defects are neither minor nor easily reparable, rescission is an appropriate remedy. Musemeche v. G & J Mobile Home Serv. & Supplies, 425 So.2d 791 (La.App. 3d Cir.1982). Second, considering Mr. Flotte’s testimony that the house should not be occupied while undergoing repairs, the house would be rendered useless for the period of time required to do the repairs. Last, expert testimony establishes there are several problems and risks associated with the repairs which need to be done. Mr. Flotte testified that the repair method Coast used to repair Mr. Ron Landis’ house, one of Mr. [456]

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Related

Sanders v. Earnest
793 So. 2d 393 (Louisiana Court of Appeal, 2001)
Nassif v. Sunrise Homes, Inc.
739 So. 2d 183 (Supreme Court of Louisiana, 1999)

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720 So. 2d 452, 97 La.App. 5 Cir. 905, 1998 La. App. LEXIS 3041, 1998 WL 781956, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nassif-v-sunrise-homes-inc-lactapp-1998.