Royer v. VP Pierret Const. Co., Inc.

834 So. 2d 1078, 2002 La.App. 3 Cir. 263, 2002 La. App. LEXIS 3320, 2002 WL 31256450
CourtLouisiana Court of Appeal
DecidedOctober 28, 2002
Docket02-263
StatusPublished
Cited by2 cases

This text of 834 So. 2d 1078 (Royer v. VP Pierret Const. Co., 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
Royer v. VP Pierret Const. Co., Inc., 834 So. 2d 1078, 2002 La.App. 3 Cir. 263, 2002 La. App. LEXIS 3320, 2002 WL 31256450 (La. Ct. App. 2002).

Opinion

834 So.2d 1078 (2002)

Wayne and Priscilla ROYER
v.
V.P. PIERRET CONSTRUCTION COMPANY, INC., et al.

No. 02-263.

Court of Appeal of Louisiana, Third Circuit.

October 28, 2002.
Writ Denied January 31, 2003.

Gary McGoffin, Jacques E. deMoss, Durio, McGoffin & Stagg, Lafayette, LA, for Plaintiffs/Appellants Wayne and Priscilla Royer.

Charles M. Rush, Rush, Rush & Calogero, Lafayette, LA, for Defendant/Appellee K.O.O.L. Partnership.

Court composed of BILLIE COLOMBARO WOODARD, OSWALD A. DECUIR, and MICHAEL G. SULLIVAN, Judges.

SULLIVAN, Judge.

Wayne and Priscilla Royer appeal the trial court's dismissal of their redhibition suit after finding that the New Home Warranty Act, La.R.S. 9:3141-3150, provided their exclusive remedy against the remaining party in this litigation. For the following reasons, we affirm.

Facts and Procedural History

On May 31, 1996, the Royers executed an agreement with V.P. Pierret Construction Company (Pierret) and K.O.O.L. Partnership (K.O.O.L.) to purchase a home being constructed by Pierret on land owned by K.O.O.L.[1] Rae Elaine Pierret Maeso *1079 signed the purchase agreement as agent for both Pierret and K.O.O.L. On Line 78 of the agreement, the parties checked that the sale was to be with redhibition warranty, as opposed to "as is," but an addendum to the agreement provided that "New Home Warranty will be given by Builder." On September 3, 1996, an act of cash sale was executed between the Royers and K.O.O.L. only, who was the record owner of the land. Mrs. Maeso again signed, but only on behalf of K.O.O.L.

In the summer of 1997, the Royers discovered several cracks in the masonry and fireplace tiles and on the patio slab of their home. After assuring the Royers that the cracks were caused by common settlement conditions in Louisiana, Pierret performed some repairs. Notwithstanding these repairs, additional cracks began appearing throughout the home, prompting the Royers to consult two foundation repair experts in the fall of 1998. The experts concluded that the home's foundation had failed after they located a sheer crack approximately 1/4" wide that ran the from the front to the back of the slab. In February or March of 1999, Pierret had some soil samples taken, but thereafter attempted no further repairs.

On December 17, 1999, the Royers filed suit against Pierret, its insurer, and K.O.O.L. After settling their claims under the New Home Warranty Act against Pierret and its insurer, the Royers proceeded in redhibition against K.O.O.L., as the vendor, for general damages, moving expenses, temporary housing expenses, and attorney fees. After trial on the merits, the trial court found the relationship between Pierret and K.O.O.L. was a joint venture. Because the New Home Warranty Act defines "builder" to include a joint venture, the trial court found that the Act provided the exclusive remedy to the Royers. The Royers appeal, assigning four errors.

Opinion

In their first two assignments of error, the Royers contend that the trial court erred in finding (1) that the purchase agreement did not provide them with a remedy in redhibition against the seller and (2) that the identity of ownership between K.O.O.L. and Pierret relieved K.O.O.L. of its redhibition obligations. Because these two assignments are interrelated, we will discuss them together.

The New Home Warranty Act provides "the exclusive remedies, warranties, and prescriptive periods as between builder and owner relative to home construction and no other provisions of law relative to warranties and redhibitory vices and defects shall apply." La.R.S. 9:3150 (emphasis added). The New Home Warranty Act, however, is only exclusive between an "owner" and a "builder." Squyres v. Nationwide Hous. Sys., Inc., 98-8 (La.App. 3 Cir. 6/3/98); 715 So.2d 538. Under La.R.S. 9:3143(1), a "builder" is defined as "any person, corporation, partnership, limited liability company, joint venture, or other entity which constructs a home, or addition thereto, including a home occupied initially by its builder as his residence." (Emphasis added.)

In finding that K.O.O.L. met the definition of a "builder" because of its joint venture status with Pierret, the trial court summarized the facts in the record as follows:

V.P. Pierret Construction Company, Inc. is a closely held corporation engaged primarily in the business of constructing residential housing. The sole shareholders of this corporation have always been members of V.P. Pierret's family. He is now deceased, and his children run the business. K.O.O.L.

*1080 Partnership is also comprised of the late Mr. Pierret's children. This entity was organized for the sole purpose of holding real estate that was acquired by V.P. Pierret and transferred to his children.
One such acquisition was the Golden Meadow Subdivision in Scott, Louisiana, which had been partially developed in the 1960's as a residential neighborhood. V.P. Pierret acquired the land in the late 1970's, re-subdivided it and transferred it to the K.O.O.L. Partnership. Later, V.P. Pierret Construction Company, Inc. began building houses on the lots in the subdivision and selling them. Testimony at trial showed that K.O.O.L. Partnership has sold fifty lots with homes on them in that subdivision and that V.P. Pierret Construction has always been the contractor who constructed the homes.
....
For the following reasons the court agrees with the defendant that the relationship between K.O.O.L. Partnership and V.P. Pierret Construction Company was a joint venture. The testimony of Rae Elaine Pierret Maeso clearly established the close relationship between the two entities and the joint venture status. Maeso testified that the K.O.O.L. Partnership was formed to gain the greatest tax advantage for the transfer of property from V.P. Pierret to his children. The evidence presented at trial also established that the three partners of K.O.O.L. Partnership, the late V.P. Pierret's children, were also salaried employees of V.P. Pierret Construction Company.
The Agreement to Purchase and Sell and the addendum thereto also illustrate K.O.O.L. and V.P. Pierret Construction's joint venture status. Rae Elaine Pierret Maeso signed these documents and, underneath her signature she added the words, "K.O.O.L. Partnership/V.P. Pierret Const." Additionally, the check written by the Royers to K.O.O.L. Partnership in connection with the sale was endorsed by K.O.O.L. and then deposited into V.P. Pierret Construction's bank account.

Mrs. Maeso further explained that her family's "main goal" was to build homes for sale on the lots in Golden Meadow subdivision. To this end, K.O.O.L. owned the land and paid property taxes, while Pierret obtained construction permits and built the homes. According to Mrs. Maeso, all of K.O.O.L.'s activities flowed through Pierret, as K.O.O.L. did not sell any land unless a Pierret home had been constructed on it.

"A joint venture results from the undertaking by two or more persons to combine their efforts, knowledge, property or labor to engage in and carry out a single business venture for joint profit." Riddle v. Simmons, 589 So.2d 89 (La.App. 2 Cir.1991), writ denied, 592 So.2d 1316 (La.1992). Whether a joint venture exists is a question of fact to be decided according to the facts and circumstances of each case. Id. In the present case, we find no error in the trial court's decision that both K.O.O.L.

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Bluebook (online)
834 So. 2d 1078, 2002 La.App. 3 Cir. 263, 2002 La. App. LEXIS 3320, 2002 WL 31256450, Counsel Stack Legal Research, https://law.counselstack.com/opinion/royer-v-vp-pierret-const-co-inc-lactapp-2002.