Peltier v. Manuel Builders, LLC

976 So. 2d 785, 7 La.App. 3 Cir. 941, 2008 La. App. LEXIS 143, 2008 WL 313882
CourtLouisiana Court of Appeal
DecidedFebruary 6, 2008
DocketNo. CA 2007-941
StatusPublished

This text of 976 So. 2d 785 (Peltier v. Manuel Builders, LLC) 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
Peltier v. Manuel Builders, LLC, 976 So. 2d 785, 7 La.App. 3 Cir. 941, 2008 La. App. LEXIS 143, 2008 WL 313882 (La. Ct. App. 2008).

Opinion

JOHN D. SAUNDERS, Judge.

11 This is a case where the parties disagreed as to whether a valid transaction or compromise had been reached between them. The plaintiffs are homeowners who entered into a building contract with the defendant, a home builder. After completion of the home, the plaintiffs filed suit alleging that the home was defectively built. The defendant filed an Exception of Prematurity pursuant to an arbitration clause in the construction contract. Prior to a scheduled arbitration hearing, both parties agreed to continue the arbitration hearing without date. After receiving no communication from the home builder’s attorney for a period of time, the plaintiffs filed a Motion to Enforce Settlement that was granted by the trial court. Defendant appealed.

We find that the record does not contain sufficient evidence to grant the plaintiffs’ Motion to Enforce Settlement. The record has no written transaction or compromise and no recitation of any transaction or compromise in open court. As such, we reverse the trial court’s judgment granting plaintiffs’ motion and assess plaintiffs with all costs of this appeal.

FACTS AND PROCEDURAL HISTORY:

Plaintiffs, Mark and Chris Peltier (hereinafter “the Peltiers”), contracted with Manuel Builders, LLC (hereinafter “Manuel”) to build a home. On December 22, 2004, the Peltiers filed suit against Manuel alleging defective construction of the home. Manuel filed an Exception of Prematurity due to an arbitration clause contained in the construction contract entered into by the Peltiers and Manuel. Both parties agreed to have the exception hearing continued and proceed with arbitration.

During the process of arbitration, settlement negotiations between the parties took place. Counsel for Manuel, Mr. Paul J. McMahon, III, wrote a letter dated November 28, 2006, to counsel for the Pel-tiers, Edward P. Landry, stating that his | gdient is willing to purchase the house back to settle the case, and, if the Peltiers were so inclined, to please advise as to the sales price. Manuel’s counsel then wrote a letter dated November 29, 2006, informing the American Arbitration Association that the parties were on the verge of resolving the dispute and, therefore, both parties were requesting that the arbitration hearing presently set for December 4-5, 2006, be continued. Thereafter, counsel for the [787]*787Peltiers sent various letters to Manuel, through its attorney, indicating that a settlement had been agreed upon and that the settlement would be that Manuel would purchase the house back for the appraised value of $218,500.00.

After communications on the settlement halted, the Peltiers filed a Motion to Enforce Settlement in the Parish of Iberia. No opposition was filed to the motion, nor did Manuel or its attorney make any appearance to oppose the motion. The trial court granted the Peltiers’s motion. Manuel suspensively appealed alleging that the evidence was insufficient to grant the Pel-tiers’s motion as the alleged transaction or compromise was not written, nor was it recited in Open Court as required by La. Civ.Code art. 3071.

ASSIGNMENT OF ERROR:

Manuel contends that the trial court committed a reversible error when it granted the Peltiers’s Motion to Enforce Settlement when it ruled that the letters exchanged between counsel, one containing an offer to begin settlement negotiations and the other containing an appraisal estimate, was sufficient to create a settlement agreement. We agree.

Louisiana Civil Code Article 3071 of the Louisiana Civil Code of 1870, applicable to the case at bar, provides as follows:

13A transaction or compromise is an agreement between two or more persons, who, for preventing or putting an end to a lawsuit, adjust their differences by mutual consent, in the manner which they agree on, and which every one of them prefers to the hope of gaining, balanced by the danger of losing.
This contract must either be reduced into uniting or recited in open court and capable of being transcribed from the record of the proceeding. The agreement recited in open court confers upon each of them the right of judicially enforcing its performance, although its substance may thereafter be written in a more convenient form. (Emphasis added.) 1

The clear and explicit language of the article is that a transaction or compromise must either: (l)be reduced to writing or (2) be recited in Open Court. Here, the record contains evidence of neither. Our Louisiana Supreme Court, in Felder v. Georgia Pacific Corp., 405 So.2d 521, 523 (La.1981), held that even though La.Civ. Code art. 3071 does not provide for the consequences of failing to reduce a compromise into writing, “a compromise which is not reduced to writing is unenforceable.” Bourgeois v. Franklin, 389 So.2d 358 (La.1980); Jasmin v. Gafney, Inc., 357 So.2d 539 (La.1978).

Since Felder, La.Civ.Code art. 3071 has been amended to add the possibility that a compromise be enforceable if its contents were recited in Open Court and are capable of being transcribed from the record of the proceeding. After reviewing the record, we find no such recitation in Open [788]*788Court as neither Manuel, nor its counsel, appeared at the proceeding.

|4The Peltiers contend that the letters exchanged between the parties respective counsel, when read in light of the other letters included in the record, show that a transaction or compromise was reached. The Peltiers attempt to bolster their argument on language that appears in Felder, 405 So.2d at 524, that is as follows: “Where two instruments, when read together, outline the obligations each party has to the other and evidence each party’s acquiescence in the agreement, a written compromise agreement, as contemplated by La.C.C. art. 3071 has been perfected.” The Peltiers’s reliance on this language is misguided.

In Felder, 405 So.2d at 523-24, our supreme court stated:

[T]he requirement that the agreement be in writing and signed by both parties does not necessarily mean that the agreement must be contained in one document. It would suffice that there be a written offer signed by the offerer and a written acceptance signed by the acceptor, even if the offer and the acceptance are contained in separate writings.

After reviewing the record, we find no such written offer or acceptance signed by Manuel. The language cited by the Pel-tiers refers to a situation where, for example, a plaintiff offers, via a signed document, to settle a case for a certain sum and a defendant, in a different signed document, accepts the plaintiffs offer to settle that case for that certain sum. Here, the first letter referenced by the Peltiers consists of a letter from Manuel’s attorney indicating that Manuel is agreeable to purchasing the house back from the Peltiers. The November 28, 2006, letter, in pertinent part, states, “[a]s we discussed, my client [Manuel] is amiable to purchasing the house back from the Peltiers.

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Related

Jasmin v. Gafney, Inc.
357 So. 2d 539 (Supreme Court of Louisiana, 1978)
Bourgeois v. Franklin
389 So. 2d 358 (Supreme Court of Louisiana, 1980)
Felder v. Georgia Pac. Corp.
405 So. 2d 521 (Supreme Court of Louisiana, 1981)

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976 So. 2d 785, 7 La.App. 3 Cir. 941, 2008 La. App. LEXIS 143, 2008 WL 313882, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peltier-v-manuel-builders-llc-lactapp-2008.