Purvis v. Statewide Trailer Sales, Inc.

339 So. 2d 403, 1976 La. App. LEXIS 4404
Louisiana Court of Appeal·Decided September 20, 1976·No. 10854·Published·Cited by 28 cases

Opinion

339 So.2d 403 (1976)

John W. PURVIS and Mildred Purvis
v.
STATEWIDE TRAILER SALES, INC.

No. 10854.

Court of Appeal of Louisiana, First Circuit.

September 20, 1976.
Rehearing Denied November 15, 1976.

*405 Kenneth W. Ford, Morgan City, for plaintiffs and appellants.

Elton A. Darsey, Houma, for defendant and appellee.

Jack C. Fruge, Ville Platte, for Macon Industries, Inc., third party defendant and appellee.

Before LANDRY, COVINGTON and PONDER, JJ.

LANDRY, Judge.

Plaintiffs John W. and Mildred Purvis (Appellants) appeal from judgment, which rescinded their purchase of a mobile home from defendant Statewide Trailer Sales, Inc. (Appellee) because of redhibitory defects, but which denied Appellants' claims for legal interest, reimbursement of finance charges and damages for mental anguish, discomfort and inconvenience. Appellee has answered the appeal seeking reversal of the order of rescission and, alternatively, credit for Appellants' use of the trailer. We affirm in part and reverse in part.

On September 25, 1972, Appellants purchased from Appellee a 1972 Summit Mobile Home. In consideration Appellants paid $100.00 cash, traded in a used trailer home for which credit of $1,150.00 was given and executed their promissory note for the remaining principal amount of $9,679.50, which included transfer fees, filing fees and insurance, together with a finance charge of $7,258.50, aggregating $16,938.00. The note, secured by chattel mortgage and vendor's lien on the trailer, was payable in 120 monthly installments of $141.15. Appellee negotiated the note to National American Bank, New Orleans, who became and remained its holder in due course. When this matter was tried on February 19, 1975, all payments on the note were current.

*406 The record contains seriously contradictory testimony regarding the type of trailer Appellants agreed to purchase. Appellants produced a copy of a purchase agreement dated September 25, 1975, bearing Number 002859, in the sum of $12,276.50 and listing a washer, dryer and central air conditioning as optional equipment. Appellants testified, however, that several days after the above purchase order was signed, they voluntarily signed another order on the representation of Appellee's salesman that a $500.00 error, adverse to Appellee, had been made in quoting the price of the trailer involved. Appellants acknowledged signing a second instrument, entitled Sale and Chattel Mortgage, which listed no optional equipment and recited a total price of $10,829.50. Conversely, Appellee introduced in evidence Purchase Order Number 003965, also dated September 25, 1975, listing the same figures and amounts as the second instrument signed by Appellants, which instrument bears signatures purporting to be those of Appellants. However, Appellants deny having signed this particular document.

Within a few hours of Appellants' occupancy of the trailer, after it had been set up by Appellee at a site which Appellants designated, Appellants began to experience grave defects in their new home. The trailer, a three bedroom, two bath mobile home, was occupied by Appellants and their three children. When Mrs. Purvis first entered the trailer after returning from work she discovered that the oven was inoperable and could not be used to prepare the night meal. Shortly thereafter, she found that the electrical outlets on one entire side of the trailer were defective to the extent that neither the lights or any appliances on that side could be used. Further use of the trailer home showed a leak beneath the kitchen sink and also beneath the toilet in one of the bathrooms. Within a few days a short in the electrical system caused a fire which resulted in considerable smoke damage to the trailer and its contents. Several leaks were found in gas supply line to one of the two water heaters in the trailer. During rainy weather it developed that the trailer leaked extensively where the walls joined the roof and also around the windows because of improper sealing. As a result rainwater caused considerable damage to the carpeting, flooring and paneling inside the trailer. Water damage from the leaking toilet progressed to the point that the water heater fell through the floor and was damaged such that Appellants had to replace it. Because of the defective wiring and the fear of an electrical fire, Mrs. Purvis would turn off the refrigerator when leaving for work each morning because the trailer was vacant until the afternoon. She removed her food to another refrigerator situated in a shed on the premises. On returning from work she brought the food back into the trailer and turned on the refrigerator.

Appellants brought this action on August 15, 1973, approximately 11 months after the purchase. Appellee, a distributor, third-partied the manufacturer, Macon Industries, Inc. The trial court rendered judgment: (1) Rescinding the sale; (2) Ordering Appellants to deliver the trailer to Appellee; (3) Directing Appellee to return the $10,088.00 purchase price to Appellants; and (4) Granting Appellee's demand against the manufacturer, a then bankrupt corporation.

On appeal, Appellants complain of the rejection of their demands for interest, the amount of finance charges for which Appellants are liable on the purchase money note now held by a holder in due course and for damages for their inconvenience and discomfort. Appellee challenges the correctness of the judgment ordering rescission. Alternatively, Appellee contends it is a seller in good faith, which limits Appellants' recovery, and also claims credit for the rental value of the trailer during Appellants' use thereof. A buyer's right of redhibition against a good faith seller is governed by La.Civ.Code Articles 2520 and 2531, which provide:

"Art. 2520. Redhibition is the avoidance of a sale on account of some vice or defect in the thing sold, which renders it either absolutely useless, or its use so *407 inconvenient and imperfect, that it must be supposed that the buyer would not have purchased it, had he known of the vice."
"Art. 2531. The seller who knew not the vices of the thing is only bound to repair, remedy or correct the vices as provided in Article 2521, or if he be unable or fails to repair, remedy or correct the vice, then he must restore the purchase price, and reimburse the reasonable expenses occasioned by the sale, as well as those incurred for the preservation of the thing, subject to credit for the value of any fruits or use which the purchaser has drawn from it."

To prevail in an action for redhibition, a purchaser must establish: (1) that the thing sold is absolutely useless for its intended purpose or that its use is so inconvenient that it must be supposed he would not have made the purchase had he known of the defects; (2) that the defects existed at the time of purchase but were neither known nor apparent to him; and (3) that the seller could not or would not correct the defects when given an opportunity to do so. La.Civ.Code Articles 2520, 2521, 2522, 2530 and 2531.

The record establishes beyond doubt that the trailer was sufficiently defective to entitle Appellants to rescission of the sale. The defects, not apparent at the time of purchase, became manifest immediately upon Appellants' occupancy of the trailer home. It is equally clear from the record that the defects existed prior to the sale and were of such nature and extent that no reasonable individual would have purchased the unit with knowledge of its condition. Additionally, the d

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Purvis v. Statewide Trailer Sales, Inc., 339 So. 2d 403, 1976 La. App. LEXIS 4404 (La. Ct. App. 1976).

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