Salard v. Jim Walter Homes, Inc.

563 So. 2d 1327, 1990 La. App. LEXIS 1653, 1990 WL 88867
CourtLouisiana Court of Appeal
DecidedJune 27, 1990
Docket89-175
StatusPublished
Cited by5 cases

This text of 563 So. 2d 1327 (Salard v. Jim Walter Homes, 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
Salard v. Jim Walter Homes, Inc., 563 So. 2d 1327, 1990 La. App. LEXIS 1653, 1990 WL 88867 (La. Ct. App. 1990).

Opinion

563 So.2d 1327 (1990)

Gary W. SALARD, et ux., Plaintiffs-Appellees,
v.
JIM WALTER HOMES, INC., Defendant-Appellant.

No. 89-175.

Court of Appeal of Louisiana, Third Circuit.

June 27, 1990.
Rehearing Denied August 8, 1990.

*1328 Van H. Kyzar, Natchitoches, for plaintiffs-appellees.

Jones, Tete, Nolen, Hanchey, Swift & Spears, Charles N. Harper, Lake Charles, for defendant-appellant.

Before DOUCET, LABORDE and KING, JJ.

LABORDE, Judge.

This is a suit by the plaintiffs, Gary W. Salard and Barbara Ann Salard, to rescind *1329 a contract for the construction of a residence. The plaintiffs also seek out-of-pocket expenses incurred as a result of the construction of the residence and tort damages for the intentional infliction of emotional distress through the malicious acts of the defendant's employees. The defendant, Jim Walter Homes, Inc., answered the suit and, in addition, filed a reconventional demand seeking to recover $37,872.96, the balance allegedly due on a promissory note executed by the plaintiffs. The trial judge, finding in favor of the plaintiffs, rescinded and set aside the building contract entered into between the parties and ordered the defendant to remove the structure from the plaintiff's property. The trial judge further awarded the plaintiffs $5,000.00 for out-of-pocket expenses and $15,000.00 for the tortious acts of the defendant's employees. The reconventional demand filed by the defendant was dismissed. From this judgment, the defendant now appeals. We reverse in part, affirm in part and render judgment.

FACTS

On October 6, 1986, Mr. and Mrs. Gary W. Salard entered into an agreement with Jim Walter Homes to construct a residence on property they owned near Black Lake in Natchitoches Parish, Louisiana. The Salards, who were first-time home buyers, selected a standard design home with an accompanying set of options. The agreed upon price of the home was $32,900.00, which was represented by a promissory note executed by the Salards on the same date that the building contract was entered into. The promissory note bears interest at the rate of 10% per annum and states that it is payable in 240 equal monthly installments of $317.40, with the total principal and interest payments amounting to $76,176.00. In addition, the note is secured by a mortgage affecting the Salards' property.

Construction began on the Salards' home shortly after the contract was signed. On December 16, 1986, Mrs. Salard signed a completion slip, with the understanding that there remained a certain degree of work to be done on the house. The Salards moved into their new home on December 23, 1986.

The evidence establishes that the plaintiffs experienced problems with their house from the outset. Mr. Salard testified that during the construction process he noticed that the builders were performing very shoddy labor. Shortly after the plaintiffs moved into their residence, they called the defendants' office to inform them of the problems they were having. A representative from defendant's office, Jerry Bergeron, was sent to examine the plaintiffs' home on January 22, 1987. After inspecting the house, Mr. Bergeron compiled a "punch list" of 24 defects. On February 6, 1987, Mr. Bergeron contacted the plaintiffs about performing the needed repairs. Mr. Salard informed Mr. Bergeron that they had employed the services of a lawyer and that any correspondence concerning the house would have to be directed to him. On April 4, 1987, Kenneth Bufford, a customer service specialist for the defendant, inspected the Salards' home. In a letter addressed to the Salards' attorney, Mr. Bufford represented that the defendant was willing to correct 30 defects which existed in the home. Mr. Bufford testified in his deposition that he never received any response to this letter.

The Salards filed a lawsuit on July 2, 1987, to rescind the sale of the house and for other damages. In their petition, the plaintiffs list 33 defects.[1] Despite the existence of these defects, the plaintiffs continued *1330 to inhabit the residence through the date of trial. It must also be noted that the plaintiffs have made no payments on the promissory note.

SUBSTANTIAL PERFORMANCE

On appeal, the defendant first contends that the trial court erred in rescinding the sale, as the evidence establishes that the contract was substantially performed. We agree.

It is implied in every building contract that the work of the builder is to be performed in a good workmanlike manner, free from defects in either materials or workmanship. Fortier v. Sessum, 441 So.2d 1238 (La.App. 5th Cir.1983); Neel v. O'Quinn, 313 So.2d 286 (La.App. 3d Cir.), writ denied, 319 So.2d 440 (La.1975). This rule of law is codified in article 2769 of the Louisiana Civil Code, which states:

"If an undertaker fails to do the work he has contracted to do, or if he does not execute it in the manner and at the time he has agreed to do it, he should be liable in damages for the losses that may ensue from his non-compliance with his contract."

Our jurisprudence has construed this codal provision to mean that when a contractor has substantially performed a building contract, despite the fact that certain defects are present, he is entitled to recover the contract price, and the owner is limited to having the price reduced by the amount necessary to perfect or complete the work. If the building contract has not been substantially performed, the contractor is limited to quantum meruit. However, if the defects cannot be corrected except by removing and replacing the construction, the owner may require the contractor to remove the object from his land and restore the premises to their prior condition. The owner is also entitled to damages in this last instance. Trahan v. Broussard, 399 So.2d 782 (La.App. 3d Cir.1981); Martin v. AAA Brick Co., Inc., 386 So.2d 987 (La. App. 3d Cir.1980); Neel, supra. Substantial performance exists when the thing constructed may be used for the purposes intended even though certain defects or omissions are present. It is a factual determination to be made on the basis of the extent of the defect or non-performance, the degree to which the purpose of the contract is defeated, the ease of correction and the use or benefit to the owner of the work performed. Riche v. Juban Lumber Co., Inc., 421 So.2d 318 (La.App. 1st Cir. 1982); Neel, supra. Finally, as was articulated by this court in the Neel case, "substantial performance by a contractor is readily found, despite the existence of a large number of defects in both material and workmanship, unless the structure is *1331 totally unfit for the purpose for which it was originally intended." Neel at 291. Accord, Campagna v. Smallwood, 428 So.2d 1343 (La.App. 4th Cir.1983). In Neel and Campagna, substantial performance was found, notwithstanding substantial defects existing in the buildings involved in those cases, where the evidence established that the owners of those buildings had occupied them through the date of trial.

Although we find that the house contained the defects alleged by the plaintiff and that the quality of workmanship was poor, we determine that the trial court erred in not holding that the contract had been substantially performed. The record clearly does not support a finding that the structure was totally unfit for its original intended purpose.

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Cite This Page — Counsel Stack

Bluebook (online)
563 So. 2d 1327, 1990 La. App. LEXIS 1653, 1990 WL 88867, Counsel Stack Legal Research, https://law.counselstack.com/opinion/salard-v-jim-walter-homes-inc-lactapp-1990.