Tri-Parish Electrical Supply, Inc. v. Cypress Bend Investments, LLC

105 So. 3d 1036, 12 La.App. 3 Cir. 787, 2012 WL 6178191, 2012 La. App. LEXIS 1619
Louisiana Court of Appeal·Decided December 12, 2012·No. No. 12-787·Published·Cited by 4 cases

Opinion

SAUNDERS, Judge.

| iPlaintiff materials supplier filed suit against Defendant claiming certain amounts were due under an open account. Defendant asserted it entered into a fixed price contract rather than an open account contract and, as such, did not owe the balance of the account. The trial court held a valid open account was created and awarded Plaintiff the balance of the account, plus attorney fees. Defendant appeals. We affirm and award additional attorney fees.

FACTS AND PROCEDURAL HISTORY:

Monroe Thompson (“Thompson”) is the sole owner of Cypress Bend Investments, LLC (“Cypress Bend”). In the summer of 2004, Thompson decided to improve Cypress Bend’s vacant land in Iowa, Louisiana, by building an RV park. He sought the advice of a fellow RV park owner and operator, Lewis Sherman (“Sherman”). Sherman suggested that Thompson save money on the project by acting as his own general contractor for the electrical work-a large part of the project. Thompson agreed and assumed the duties and responsibilities of a general contractor to avoid the overhead and profit typically charged.

Thompson arranged to obtain the electrical materials directly from an electrical supplier. In August 2004, Sherman organized a meeting between Thompson, an electrician, and two electrical supply house salesmen. Thompson gave a set of RV park building and electrical plans to the electrician and both salesmen.

[1038] Ricky Neal (“Neal”), who was later hired as the electrician for the job, offered a labor and materials bid, estimating the total cost would be $234,000.00. He calculated an initial cost estimate for all electrical supplies for the job, totaling $184,000.00.

|j>Tri-Parish Electrical Supply, Inc. (“Tri-Parish”) through its salesman Merrick Aguillard (“Aguillard”) responded to Thompson’s request for a materials-only bid. Aguillard forwarded pricing information to Thompson in two faxes, reciting prices for various specific electrical parts from the materials list Thompson had for the job. Both materials lists included the word “estimate.” On the last page of a fax, Aguillard recapitulated the numbers reflecting a total of $90,365.75 and included a handwritten note, which read “cost for total material for job.”

Tri-Parish contends this “total material” price indicated the cumulative total of the totals from the two materials lists. Aguil-lard provided Cypress Bend with a total cost for the materials itemized on the two lists for the job. It contends the list was not complete.

Thompson contends the pricing information provided to him by Aguillard was an offer on behalf of Tri-Parish to provide all electrical materials required to complete construction for the Cypress Bend project — including the electrical supplies listed on the material list and electrical supplies that had yet to be identified or selected for the project.

After receipt of the faxes, Thompson called Aguillard to inform him that Cypress Bend would buy all electric materials for the RV park from Tri-Parish. Cypress Bend then ordered supplies for the project from Tri-Parish. Thompson regularly received and paid the invoices from Tri-Parish for the electrical supplies ordered and delivered to the Cypress Bend project site. He complied with the invoices from Tri-Parish until the cumulative amount paid approached, what he contends, the offer amount.

At the end of the project, Thompson subtracted what he already paid from what he contended was an offer (the $90,365.75). Cypress Bend then issued a check for the difference, or $10,321.16, payable to TriParish. Tri-Parish rejected lathe check because it contained a notation “Balance of Quote in Full.” Tri-Parish demanded Cypress Bend pay the balance due on the account, $82,515.71, for electrical supplies delivered and which formed part of the finished project.

When Cypress Bend refused to pay this amount, Tri-Parish filed and recorded a materialman’s lien against Cypress Bend in the mortgage records of Calcasieu Parish, Louisiana. Tri-Parish filed the instant suit on July 17, 2006, by filing a petition to enforce lien and for monies due on an open account. The trial court conducted a two-day bench trial in November of 2011. The trial judge awarded TriParish the balance on the account, $82,515.71, along with interest and attorney fees of $25,000.00.

Cypress Bend appeals.

ASSIGNMENTS OF ERROR:

On appeal, Cypress Bend sets forth the following assignments of error:

1. The trial court erred in finding TriParish submitted evidence sufficient to establish an open account contract with Cypress Bend.

2. The trial court erred in finding the parties’ contract was not for a fixed price of $90,365.75.

3. The trial court erred in finding TriParish was entitled under the law to recover $25,000.00 in attorney fees plus actual costs.

[1039] Tri-Parish answered the appeal seeking an increase in attorney fees for work done on appeal.

LAW AND ANALYSIS:

Standard of Review

This is an appeal challenging a finding by the trial court resolving a dispute on the intent and nature of an agreement reached by the party litigants. It is a Lfactual finding. As such, the standard of review is the manifest error standard. Miller v. Jackson, 11-773 (La.App. 3 Cir. 12/7/11), 80 So.3d 673.

1. Open account or fixed price contract

Because Cypress Bend’s first two assignments of error are interrelated, we address them together.

In proving an open account, plaintiff first must prove the account by showing that the record of the account was kept in the course of business and by introducing supporting testimony regarding its accuracy. Once a prima facie case has been established by a plaintiff-créditor, the burden shifts to the debtor to prove the inaccuracy of the account or to prove that the debtor is entitled to certain credits. Gen. Elec. Co. v. La. Elec. Supply, 460 So.2d 34 (La.App. 1 Cir.1984).

Louisiana Revised Statutes 9:2781(D) defines “open account” as including “any account for which a part or all the balance is past due, whether or not the account reflects one or more transactions and whether or not at the time of contracting the parties expected future transactions.” This court has previously defined an open account as “an account in which a line of credit is running and is open to future modification because of expectations of prospective business dealings.” Tyler v. Haynes, 99-1921, p. 5 (La.App. 3 Cir. 5/3/00), 760 So.2d 559, 563. Moreover, a defining characteristic of an open account is that “[s]ervices are recurrently granted over a period of time.” Id.

The open account requires that the total cost or price be “generally left open or undetermined.” Blanchard v. Cors & Bassett, 09-2236, p. 3 (La.App 1 Cir. 9/8/10), 2010 WL 3496263, unpub. In contrast, a fixed price contract is a contract where a total price is agreed upon by the parties at the outset and costs are limited to that price. See L.G.W., Inc. v. Redmann, 496 So.2d 384 (La.App. 4 Cir.1986).

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Tri-Parish Electrical Supply, Inc. v. Cypress Bend Investments, LLC, 105 So. 3d 1036, 12 La.App. 3 Cir. 787, 2012 WL 6178191, 2012 La. App. LEXIS 1619 (La. Ct. App. 2012).

105 So. 3d 1036 (Tri-Parish Electrical Supply, Inc. v. Cypress Bend Investments, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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