Scheuermann v. Cadillac of Metairie, Inc.

112 So. 3d 1060, 12 La.App. 5 Cir. 828, 2013 WL 1442629, 2013 La. App. LEXIS 708
CourtLouisiana Court of Appeal
DecidedApril 10, 2013
DocketNo. 12-CA-828
StatusPublished

This text of 112 So. 3d 1060 (Scheuermann v. Cadillac of Metairie, 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
Scheuermann v. Cadillac of Metairie, Inc., 112 So. 3d 1060, 12 La.App. 5 Cir. 828, 2013 WL 1442629, 2013 La. App. LEXIS 708 (La. Ct. App. 2013).

Opinion

ROBERT A. CHAISSON, Judge.

12In this automobile repair suit, David Scheuermann, Jr. appeals a judgment enforcing a settlement agreement and dismissing his suit against Cadillac of Me-tairie and GMAC Service Agreement Corporation (GMAC). For the following reasons, we affirm the judgment.

FACTS AND PROCEDURAL HISTORY

Mr. Scheuermann bought a Cadillac automobile from Cadillac of Metairie in 2001, and bought a service warranty for it from GMAC in 2005. The service agreement was valid until September 29, 2008, or until the vehicle reached 83,025 miles, whichever occurred first. On August 8, 2008, shortly before the service warranty was due to expire, Mr. Scheuermann brought the car to Cadillac of Metairie with complaints of a “knocking” sound in the engine. Cadillac of Metairie made repairs to the vehicle; however, Mr. Scheuermann noted that the |3“knocking” noise was still present and again complained. By the time that the vehicle was returned to Mr. Scheuermann, the warranty had expired. When the dispute could not be resolved amicably, Mr. Scheuermann filed suit against Cadillac of Metairie and GMAC.

As the result of settlement negotiations, GMAC agreed to pay for a replacement engine to be installed in Mr. Scheuer-mann’s vehicle in exchange for dismissal from the suit of both GMAC and Cadillac of Metairie. A letter setting forth this agreement was sent to Michael A. Britt, Mr. Scheuermann’s counsel, and stated as follows:

Dear Mike:
This will confirm that under the warranty Mr. Scheuermann purchased, we will have the engine fixed at Best Chevrolet and we expect a signed release dismissing all defendants including the warranty company, GMAC Service Agreement Corporation, who was never named??
We also agree that the only consideration for settlement for General Motors, GMAC Service Agreement Corporation and the dealership, Cadillac of Metairie, Inc. is that we will reimburse the dealership where Mr. Scheuermann wants his vehicle fixed, which is Best Chevrolet, for all repairs that he is complaining about that relates to the lawsuit.
I would like this acknowledgment to be signed before the vehicle goes to Best Chevrolet for repairs and upon completion of the repairs that your client will sign a release releasing all defendants and sign a motion to dismiss dismissing all complaints.
Furthermore, as all contractual obligations to pay for repairs have now expired, if Mr. Scheuermann should have any more problems that relate to this repair this cause of action will be with Best Chevrolet which I assume will give him some kind of warranty on parts and labor.
If you are in agreement with the above, would you please sign the bottom of this letter and fax it back to me so we can set up the repairs for this Thursday or Friday.
As noted, according to the warranty agreement, I think Mr. Scheuermann gets a rental for at least five days, and I will have that |4set up at Best Chevrolet so when he brings in his vehicle for the repairs, he can have a rental.
With best regards, I remain Very truly yours, s/Stephen Elliott

[1062]*1062Michael Britt signed the letter, but added a hand-written addendum which stated that “[d]ismissal of case will be done after repairs completed by Best Chevrolet.”1

After Best Chevrolet replaced the engine in Mr. Scheuermann’s vehicle, counsel for defendants requested that Mr. Scheuermann comply with the settlement agreement and dismiss Cadillac of Metair-ie and GMAC from the suit. Mr. Scheuer-mann, claiming that the engine was still not operating properly, refused to dismiss these defendants. He further asserted that the “after repairs completed” language in the hand-written addendum was understood by him to mean “after repairs completed successfully.” Because he claimed that the repairs were not successful, there was, in his opinion, no valid agreement to dismiss the defendants.

GMAC and Cadillac of Metairie urged a motion to enforce the settlement agreement and dismiss the suit. The trial judge, finding that the defendants had complied with the settlement agreement, dismissed the suit as to GMAC and Cadillac of Metairie.2 This appeal followed.3

LAW AND DISCUSSION

The only issue on appeal is whether the trial court was correct in finding that the defendants complied with the settlement agreement and therefore were entitled to a dismissal of the lawsuit against them. The rules pertaining to compromises are contained in La. C.C. arts. 3071-3083. Article 3071 defines a compromise as a contract whereby the parties settle a dispute or uncertainty concerning an |sobligation or other legal relationship. Article 3072 provides that a compromise shall be made in writing, or recited in open court so that it may be reduced to writing. Article 3080 precludes any subsequent action on the claim.

In Hancock Bank of Louisiana v. Holmes, 09-1094 (La.App. 5 Cir. 5/25/10), 40 So.3d 1131, 1134, this Court summarized the law applicable to compromises as follows:

There are two essential elements of a compromise: (1) mutual intention of preventing or putting an end to litigation, and (2) reciprocal concessions of the parties to adjust their differences. Trahan v. Coca Cola Bottling Co., 04-0100 (La.3/2/05), 894 So.2d 1096. The parties’ intent in executing a compromise is normally discerned from the four corners of the document; extrinsic evidence is normally inadmissible to explain, expand or contradict the terms of the instrument. Brown v. Drillers Inc., 93-1019 (La.1/14/94), 630 So.2d 741. Nevertheless, when the parties to a compromise dispute its scope, they are permitted to raise factual issues regarding whether the unequivocal language of the instrument was intended to be truly unequivocal. Id. However, such latitude is granted only in the presence of some “substantiating evidence” of mistaken intent. Dimitri v. Dimitri, 00-2641 (La.App. 4 Cir. 1/30/02), 809 So.2d 481, 485.
In Brown v. Drillers Inc., supra, the Supreme Court held that “substantiating evidence” must establish: either (1) that [1063]*1063the releasor was mistaken as to what he or she was signing, even though fraud was not present; or (2) that the releasor did not fully understand the nature of the rights being released or that the releasor did not intend to release certain aspects of his or her claim. Brown v. Drillers Inc., supra, 630 So.2d at 749. In the absence of such evidence, the compromise is subject to the normal rules of contract analysis and enforced precisely as written. Id.
The trial court’s interpretation of an alleged compromise agreement is subject to manifest error/clearly wrong review. Kelly v. Owens, 29,613 (La.App. 2 Cir. 8/20/97), 698 So.2d 757, writ denied, 97-2311 (La.12/12/97), 704 So.2d 1193; Doyal v. Pickett, 25,247 (La.App. 2 Cir. 12/1/93), 628 So.2d 184. This is because the existence or validity of a compromise depends on a finding of the parties’ in: tent, an inherently factual finding.

In the present case, Mr.

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Related

Brown v. Drillers, Inc.
630 So. 2d 741 (Supreme Court of Louisiana, 1994)
Kelly v. Owens
698 So. 2d 757 (Louisiana Court of Appeal, 1997)
Doyal v. Pickett
628 So. 2d 184 (Louisiana Court of Appeal, 1993)
Dimitri v. Dimitri
809 So. 2d 481 (Louisiana Court of Appeal, 2002)
Trahan v. COCO COLA BOTTLING CO. UNITED
894 So. 2d 1096 (Supreme Court of Louisiana, 2005)
Hancock Bank of Louisiana v. Holmes
40 So. 3d 1131 (Louisiana Court of Appeal, 2010)
C. C. Elmer Tank Boiler Co. v. Art Cleaner & Dyers
118 So. 773 (Louisiana Court of Appeal, 1928)

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Bluebook (online)
112 So. 3d 1060, 12 La.App. 5 Cir. 828, 2013 WL 1442629, 2013 La. App. LEXIS 708, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scheuermann-v-cadillac-of-metairie-inc-lactapp-2013.