Royal v. Cook

984 So. 2d 156, 2008 WL 1886058
CourtLouisiana Court of Appeal
DecidedApril 23, 2008
Docket2007-CA-1465
StatusPublished
Cited by10 cases

This text of 984 So. 2d 156 (Royal v. Cook) 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
Royal v. Cook, 984 So. 2d 156, 2008 WL 1886058 (La. Ct. App. 2008).

Opinion

984 So.2d 156 (2008)

Joel and Debra ROYAL
v.
Patsy J. COOK and Greater New Orleans Home Service, Inc.

No. 2007-CA-1465.

Court of Appeal of Louisiana, Fourth Circuit.

April 23, 2008.

*159 Michael D. Clement, Law Offices of Michael D. Clement, Belle Chase, LA, for Plaintiffs/Appellees.

Michael J. Rocks, Gretna, LA, for Patsy J. Cook.

(Court composed of Judge MAX N. TOBIAS, JR., Judge EDWIN A. LOMBARD, Judge LEON A. CANNIZZARO, JR.[*]).

MAX N. TOBIAS, JR., Judge.

The defendant, Patsy Cook ("Cook"), appeals the trial court's judgment in favor of Debra and Joel Royal ("the Royals") on their claim for redhibition and breach of contract.[1] After reviewing the record, we affirm the trial court's judgment.

BACKGROUND

On 21 July 2003, Cook sold to the Royals a home located at 121 Rho Street in Belle Chasse, Louisiana, (the "property"). The Royals, having moved from Puerto Rico, were relocating to Belle Chasse for work-related *160 reasons. After Joel Royal made an initial walk-through of the home, the parties entered into an Agreement to Purchase/Sell the property (the "Agreement") on 9 May 2003.[2] The Agreement, which did not contain an "as is" clause, granted the Royals the right to have the property inspected prior to purchase; if the inspection revealed deficiencies, the Royals were given the right to advise Cook of the deficiencies and request that they be remedied. After notification, Cook had the option to either remedy or refuse to remedy the deficiencies. If Cook refused to remedy the deficiencies, the Royals could accept the property in its then present (deficient) condition or void the Agreement.

The Royals retained Greater New Orleans Home Service, Inc. ("GNOHS") to inspect the property on their behalf. At the time of the inspection, Cook occupied the premises. On 15 May 2003, GNOHS issued a home inspection report specifying the deficiencies and stating recommendations for repair. Both parties received a copy of the report. The Royals provided a letter to Cook addressing the deficiencies identified by GNOHS and requesting that all repairs be made in accordance with the recommendations.

Subsequently, the parties negotiated what repairs would be made, how the repairs were to be made, and what compensation would be given in lieu of repairs. All negotiations took place through the parties' dual real estate agent, Robert Hallas ("Hallas"). On 13 June 2003, Cook, Joel Royal, and Hallas each signed a contract specifying the repairs to be made to the property, including an itemized list of those items that would be remedied by Cook prior to the act of sale, and those items that Cook agreed to monetarily compensate for in lieu of repair. The agreed upon list of repairs included:

1) Soffit and fascia (repair loose and dented/damaged per inspection)
2) Electrical system (repair per inspection)
3) Water heater re-installed (correctly install per inspection)
4) Air conditioner system mechanical problems (repair per inspection)
5) Roof and breeze-way concerns

The contract further provided that compensation was to be paid to the Royals for the installation of attic insulation and air conditioning ducts, including $400.00 to be paid by Cook after all repairs were completed, and $1,400.00 to be paid by Hallas to cover extra expenses following the act of sale. Also, the contract provided that Cook would transfer all warranties to the Royals, and supply information regarding the drain system repair.[3]

*161 Following representations by Cook that all of the agreed upon repairs had been completed, on 21 July 2003, the parties executed a cash sale for the price of $180,000.00, which included a waiver of redhibition. The Royals contend that after moving into the home, they discovered that Cook failed to properly repair the deficiencies agreed to in the 13 June 2003 contract. Additionally, they discovered a number of other defects in the property, which they claim were known to Cook, but were intentionally and/or fraudulently hidden from them or not disclosed at the time of signing the Agreement or prior to the closing.

On 19 July 2004, the Royals filed the instant suit against Cook and GNOHS[4] alleging redhibition, breach of contract, fraud, and damages arising out of the sale of the property. Following a two-day bench trial, the trial court rendered judgment in favor of the Royals and against Cook as follows: $20,244.00, with legal interest from date of judicial demand until paid, for rodent infestation and remediation; $7,545.00 for attorney's fees and court costs; and $8,432.00 for breach of contract. This appeal followed.

DISCUSSION

We first note that in Louisiana, a court of appeal should not set aside the factual findings of a trial court absent manifest error or unless clearly wrong. Arceneaux v. Domingue, 365 So.2d 1330 (La.1978).

Redhibition Claim

Cook sets forth four assignments of error relative to the Royals' redhibition claim: the trial court erred (1) by concluding that a rodent problem constitutes a redhibitory defect, and that the rodent problem was not apparent on ordinary inspection; (2) by concluding that Cook committed fraud; (3) in awarding damages for redhibitory defects where the Royals failed to meet their burden of establishing the measure of damages; and (4) by awarding attorney's fees.

In Louisiana, "[t]he seller warrants the buyer against redhibitory defects or vices in the thing sold." La. C.C. art. 2520. A defect is redhibitory when it "renders the thing useless, or its use so inconvenient that it must be presumed that the buyer would not have bought the thing had he known of the defect." Id. The existence of this type of redhibitory defect provides the buyer with the right to obtain rescission of the sale. Id. A thing can also contain a redhibitory defect when the defect "diminishes its usefulness or its value so that it must be presumed the buyer would still have bought it, but for a lesser price." Id. This type of redhibitory defect limits the right of a buyer to seek a reduction of the price. Id. Pursuant to La. C.C. art. 2530, the warranty extends only to defects that exist at the time of delivery, and there is a presumption that the defect existed at delivery if the defect appears within three days of delivery. Proof that a redhibitory defect existed at the time of sale can be made by direct or circumstantial evidence giving rise to a reasonable inference that the defect existed at the time of sale. Boos v. Benson Jeep-Eagle Co., Inc., 98-1424, p. 3 (La.App. 4 Cir. 6/24/98), 717 So.2d 661, 663. Further, under La. C.C. art. 2521, the seller owes no warranty for defects that were known to the buyer at the time of the sale or for defects that should have been discovered by a reasonably prudent buyer. La. C.C. art. 2522 requires that the buyer must give the seller notice of a redhibitory defect and allow time for the seller to repair the defect; however, if the seller has actual *162 knowledge of the defect, then no notice is required.

While the Royals' petition asserts a claim for a rescission of the sale, and in the alternative, a reduction in the purchase price, our review of the record indicates that the Royals' claim in redhibition is actually limited to a claim for a reduction in the purchase price.

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Cite This Page — Counsel Stack

Bluebook (online)
984 So. 2d 156, 2008 WL 1886058, Counsel Stack Legal Research, https://law.counselstack.com/opinion/royal-v-cook-lactapp-2008.