Popich v. Fidelity & Deposit Co. of Maryland

231 So. 2d 604, 1970 La. App. LEXIS 5702
CourtLouisiana Court of Appeal
DecidedFebruary 2, 1970
DocketNos. 3757, 3758
StatusPublished
Cited by8 cases

This text of 231 So. 2d 604 (Popich v. Fidelity & Deposit Co. of Maryland) 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
Popich v. Fidelity & Deposit Co. of Maryland, 231 So. 2d 604, 1970 La. App. LEXIS 5702 (La. Ct. App. 1970).

Opinions

BARNETTE, Judge.

This is an action arising out of a building contract. The contractor seeks recov[606]*606ery of the balance alleged due from the owner under the terms of the contract. The owner seeks by way of reconvention against the contractor and by separate suit against the contractor’s surety, recovery of an amount alleged necessary to complete the building and to correct the deficiencies caused by improper workmanship.

On February 9, 1965, Joseph A. Popich, owner of a lot in Buras in Plaquemines Parish, contracted with H. Bennett Fox, a building contractor, to build a residence thereon for the contract price of $43,660. Certain extras were thereafter agreed upon to cost an additional $1,279.17. The contract provided for payments in four installments at respective stages of completion in the amount of $9,823.50 each and a fifth and final installment (not including extras) in the amount of $4,366. The contract completion date was August 13, 1965, with provision for “liquidated damages” of $10 per day for each day thereafter the building remained incomplete. Fidelity and Deposit Company of Maryland, as the contractor’s surety and bonding company, was a party to the contract which contained also the following clause:

“And it is agreed and understood that said surety, in addition to the amount of the foregoing bond/shall be liable for all costs, charges, expenses and attorney’s fees, incurred in any concursus or other legal proceeding made necessary by the failure of the contractor to faithfully comply with the foregoing contract, said attorney’s fees to be fixed at five per cent, on the amount of the foregoing bond.”

The first three installments were paid but Popich withheld payment of the fourth and fifth installments amounting to $14,-189.50 and the $1,279.17 for extras, being a total of $15,468.67. Fox brought suit for this amount.

Popich answered setting forth the defense of incomplete, improper and deficient work. He alleged an estimated cost of $15,626.92 plus $10,000 added by supplemental pleading for completion of the residence; $500 due for certain credits; $1,-512.83 for corrective work already done; liquidated damages for failure of completion by August 13, 1965, 320 days at $10 per day ($3,200); attorney’s fee $2,183— all totaling $33,022.75. This amount he claimed as a set-off and prayed for judgment in that amount in reconvention.

Thereafter Popich filed a separate suit against Fidelity and Deposit Company of Maryland seeking judgment for the same amount and for the specific items respectively alleged owing by the contractor, Fox, except the above item of $500 alleged due for certain credits.

The suits were consolidated for trial. In the first suit, number 9515 on the trial court docket, number 3758 on the docket of this court, there was judgment in favor of the plaintiff, Fox, against Popich for $15,468.67, the exact amount claimed by Fox. Neither the judgment nor the “Reasons for Judgments” makes any reference to the conventional demand. Popich appealed suspensively.

In the suit of Popich against the statutory bondsman, Fidelity and Deposit, number 9779 on the trial court docket and number 3757 on the docket of this court, there was judgment in favor of Popich, plaintiff, against Fidelity and Deposit Company of Maryland in the amount of $8,135. Fidelity and Deposit appealed suspensively. Po-pich answered the appeal in this court seeking an increase, including $500 for expert witness fees. He contends a net balance of $11,901.50 plus interest is due him after set-off of the acknowledged amount due Fox.

A certain type of brick was selected by Mr. and Mrs. Popich and was timely received on the building site by the contractor. Mr. and Mrs. Popich were dissatisfied with the brick delivered because of an alleged variation in color and rejected them. Approximately three weeks elapsed before they made selection of another type of brick. After the selection was made an [607]*607order was placed immediately and delivery was made in due course. Fox contends that the five or six weeks’ delay attributable to the rejection and reorder of the brick is chargeable to Popich and accounts for the noncompletion of the house by August 13. This issue will be discussed more fully below in connection with the claim for damages for delay in completion.

On September 9, 1965, while the building was still incomplete, the area was subjected to the devastating effects of hurricane “Betsy.” The house in question was extensively damaged. Fox was protected by builder’s risk insurance and in due time reached a settlement of the insurance claim.

In the meantime it became necessary for emergency protective measures to be taken. Labor and materials were scarce because of extensive damage to property in the area. We have no doubt that this further delayed repairs and completion of the house. A dispute arose between Fox and Popich over the delays and alleged unsatisfactory completion of the house and repairs of storm damage. On June 28, 1966, Popich filed a notice of default in the office of the Recorder of Mortgages and on the next day or at the latest by July 1, he moved into the house.

In addition to Popich’s claims for liquidated damages for noncompletion by August 13, 1965 and attorney’s fees, we have the usual issues of substantial performance and numerous disputed items of incompletion, improper repair or replacement of damaged parts, unskilled and substandard workmanship and the conflict of testimony of experts both as to the disputed items and the estimated costs involved.

Clearly this is a case of substantial performance and the owner is obligated to pay in full the contract price less the cost of making the necessary repairs or in completing the work contemplated by the building contract. The burden of proof of this cost is upon the owner. U-Finish Homes, Inc. v. Michel, 183 So.2d 101 (La.App. 1st Cir. 1965); Federico v. Kratzberg, 163 So.2d 843 (La.App. 4th Cir. 1964); Loeb v. Neilson, 128 So.2d 447 (La.App. 4th Cir. 1961).

Prior to trial below, by agreement of all parties, the trial judge, accompanied by the attorneys and the parties litigant, inspected the house in question. In his “Reasons for Judgments,” after holding that Popich was obligated for payment of the contract balance of $15,468.67 to Fox, the trial judge further found and held as follows:

“The Court spent considerable time in inspecting the house and could only conclude that there was much to be desired in the workmanship in the construction of same. Many defects were found and they are as follows:
1. The roof was not installed properly. (sagging in left front and back)
2. The garage door would not open and close.
3. The passage doors in the house were not plumb and therefore did not open and close properly.
4. The terrazzo was cracked in front of fire place and elsewhere throughout the house.
5. Cabinets in the kitchen should be replaced.
6. Cabinets in the bathroom should be replaced.
7. Sheet rock not finished properly in certain areas.
8. Front porch column not plumb.
9. Chipped and cracked bricks throughout.
10. Replace bathroom fixtures that were blistered by salt water.

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Cite This Page — Counsel Stack

Bluebook (online)
231 So. 2d 604, 1970 La. App. LEXIS 5702, Counsel Stack Legal Research, https://law.counselstack.com/opinion/popich-v-fidelity-deposit-co-of-maryland-lactapp-1970.