National Glass & Glazing, Inc. v. Grimaldi Construction, Inc.

680 So. 2d 56, 1996 La. App. LEXIS 1505, 1996 WL 422211
CourtLouisiana Court of Appeal
DecidedJuly 30, 1996
DocketNo. 96-CA-121
StatusPublished
Cited by4 cases

This text of 680 So. 2d 56 (National Glass & Glazing, Inc. v. Grimaldi Construction, 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
National Glass & Glazing, Inc. v. Grimaldi Construction, Inc., 680 So. 2d 56, 1996 La. App. LEXIS 1505, 1996 WL 422211 (La. Ct. App. 1996).

Opinion

JaGOTHARD, Judge.

Plaintiff, National Glass <& Glazing, Inc. (National), filed this action seeking payment of an outstanding balance of $43,857.48 due on a subcontract agreement to perform certain work at the New Orleans International Airport. Named as defendant in the suit is the general contractor, Grimaldi Construction, Inc. (Grimaldi), and Grimaldi’s surety, Fidelity and Deposit Company of Maryland (Fidelity). Grimaldi filed an exception of lis pendens asserting that this action is between the same parties, in the same capacities and on the same transaction or occurrence as an action entitled, “HGP Industries, Inc. v. Gri-maldi Construction, Inc., et al” filed previously in Civil District Court for the Parish of Orleans. In the memorandum in support of that exception, Grimaldi asserts that the parties to this litigation worked together on a project at the New Orleans Museum of Art (NOMA) during which Grimaldi agreed to accept certain glass from a glass manufacturer, I3HGP Industries, Inc. (HGP) on behalf of National to expedite the construction. When National refused to pay the $35,153.55 due for the glass, the manufacturer sued Grimal-di in Orleans Parish. Grimaldi asserted a third party claim against National in that action.

In the interim, a preliminary default was taken against Fidelity. Fidelity filed a motion for leave to amend the exception of lis pendens to add Fidelity as a mover and a motion to set aside the preliminary default. The trial court rendered judgment setting aside the preliminary default judgment against Fidelity, but denying the exception of lis pendens.

Subsequently, Grimaldi and Fidelity answered the petition denying National’s claim for payment and asserting the affirmative defense of set-off. Further, Grimaldi asserted a claim in reconvention against National in the amount of $250,000.00 based on an alleged failure to provide the glass required [59]*59by the terms and specifications of the contract on the NOMA project. National filed an exception of lis pendens to the reconven-tional demand arising from the NOMA project, which was granted by the trial court. Consequently, the reconventional demand asserted by Grimaldi was dismissed. That dismissal was not appealed.

The matter proceeded to trial, after which the trial court rendered judgment in favor of plaintiff, National, in the amount of $43,-857.48 with legal interest from date of judicial demand. The question of National’s claim for attorney’s fees was left open for supplemental memoranda. Subsequently, the trial court rendered judgment denying National’s claim for attorney’s fees. Two separate written judgments were rendered on the same day. Grimaldi and Fidelity appeal the judgment awarding National payment on the subcontract. National answered the appeal, questioning the trial court’s judgment denying attorney’s fees and penalties.

jAt trial the parties stipulated that the balance due to National on the airport project is $43,857.48; that Grimaldi was paid in full for the airport project on February 9, 1994; and that, on the off-set claim, Grimaldi has paid HGP Industries, Inc., $41,933.35 for glass on the museum project. There was also a stipulation that the original invoice for the glass on the NOMA project was in the amount of $35,153.55. The parties also agreed to admit a demand letter written by National on May 2, 1994, and a copy of the certified return receipt, as well as, a letter written by Eugene Grimaldi on May 4, 1994 to National.

There is no dispute between the parties concerning the quality of work or money due on the airport project. The only issue is whether Grimaldi is entitled to a set-off of the amount due on the airport project as a result of any debt due on the museum project.

The court heard testimony from Mark Gibson, secretary of National, who testified that, while National had subcontracts to do glass work on both the New Orleans Museum of Art and the New Orleans International Airport projects, the two contracts were not related. He further explained that HGP is a glass manufacturer which provided glass for the museum project, but not for the airport project. Mr. Gibson testified that National did not pay HGP for the glass delivered to the museum project because there was a series of problems with the glass supplied. Mr. Gibson stated that Grimaldi installed the window frames in the museum project through its subcontractor, Coast to Coast. National had the contract to install the glass. The glass installed was not accepted by the museum because the sizes were incorrect and the glass lacked an industry stamp on the mull of the window which would indicate that the glass met certain industry standards.

|5The fact that the museum would not accept the glass was discussed at a meeting with museum officials and their attorneys, at which representatives of National and Gri-maldi were present. For those reasons, National refused to pay HGP for the glass.

It is Mr. Gibson’s testimony that, in spite of the fact that the glass was not accepted by the museum, Grimaldi entered into a settlement agreement with HGP pursuant to which Grimaldi paid $41,933.35. National was notified of the payment by Grimaldi to HGP after the fact.

Mr. Gibson testified that, to his knowledge, the museum has still not accepted the glass. In fact, National has been sued in Orleans Parish in connection with the claims arising ■out of the glass on the museum project.1 That suit is still pending. Mr. Gibson testified that he. was advised during discussions with representatives of Grimaldi that a consent judgment was being negotiated between Grimaldi and HGP in the Orleans Parish suit. Mr. Gibson explained that, at issue in the museum project was the size of the glass and the warranty. It was Grimaldi’s responsibility to furnish the frames for the glass and Grimaldi advised National of the size of glass needed to fit into the frames. Howev[60]*60er, the museum board hired a consultant who advised them that the glass needed more clearance than the frames installed by Gri-maldi provided. HGP refused to provide a warranty on the glass because it was installed without the correct clearance. After further investigation, it was discovered that the consultant made the recommendation based on aluminum frames, rather than .the steel frames installed in the museum. This fact led to settlement talks between HGP and Grimaldi in the Orleans Parish suit.

|e,On cross-examination Mr. Gibson acknowledged that National first installed annealed glass in the museum with the approval of the architect. However, National was advised later by the museum board that the specifications required heat tempered glass. After a meeting with representatives from Grimaldi in which the specifications were reviewed, National re-ordered heat tempered glass from HGP. Because HGP would not ship the glass without a guarantee of payment, Grimaldi agreed to be totally responsible for the amount due for the glass. To effect that agreement, National signed a joint cheek agreement and forwarded it to Grimal-di. Mr. Gibson explained that a joint check agreement, by which the general contractor writes a check jointly to the subcontractor and the supplier, is often required by suppliers on a construction job. The check would then be drawn on the proceeds owed by the general contractor to the subcontractor. Mr. Gibson was not sure when Grimaldi actually paid the invoice for the glass. Payment was demanded upon delivery, but Grimaldi did not pay at that time.

Mr.

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Bluebook (online)
680 So. 2d 56, 1996 La. App. LEXIS 1505, 1996 WL 422211, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-glass-glazing-inc-v-grimaldi-construction-inc-lactapp-1996.