Vaughan Contractors, Inc. v. Cahn

629 So. 2d 1225, 1993 WL 492581
CourtLouisiana Court of Appeal
DecidedJanuary 14, 1994
Docket93-CA-0008
StatusPublished
Cited by9 cases

This text of 629 So. 2d 1225 (Vaughan Contractors, Inc. v. Cahn) 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
Vaughan Contractors, Inc. v. Cahn, 629 So. 2d 1225, 1993 WL 492581 (La. Ct. App. 1994).

Opinion

629 So.2d 1225 (1993)

VAUGHAN CONTRACTORS, INC.,
v.
Jules CAHN and Emile Cahn.

No. 93-CA-0008.

Court of Appeal of Louisiana, Fourth Circuit.

November 30, 1993.
Order Denying Rehearing January 14, 1994.

Robert H. Matthews, DeRussy, Bezou & Matthews, New Orleans, for plaintiff/appellee.

Gordon F. Wilson, Jr., Friend, Wilson, Draper, Hubbard & Bowling, New Orleans, for defendants/appellants.

*1226 Before CIACCIO, PLOTKIN and WALTZER, JJ.

PLOTKIN, Judge.

Defendants Jules and Emile Cahn ("the Cahn brothers") appeal a trial court judgment awarding plaintiff Vaughan Contractors, Inc. $30,000 in this demolition contract dispute. We affirm.

The Cahn brothers owned the property at 408 Howard Avenue in the City of New Orleans on December 24, 1989, when the building, which was leased to Pelican Ice Co., suffered serious fire damage during an unusually severe freeze. Thereafter, the City insisted that the building be demolished. Time was of the essence because of concern that some of the walls of the building which were left standing might collapse into the street and hit a passing vehicle or hit one of the homeless people who were known to inhabit the area. In fact, the street had to be closed until the building was demolished.

Jules Cahn's son, Jimmy, solicited bids from a number of demolitions contractors, including the plaintiff, Vaughan Contractors, which offered an initial oral bid of $46,000 to do the work; another contractor, L & M Demolition and Hauling, Inc., submitted the lowest bid of $40,000. Thereafter, the City indicated to the Cahns that it would prefer to have Vaughan Contractors do the work since City personnel were familiar with that company's work. After negotiations with Jules Cahn, H.P. Vaughan submitted a written bid from his company for $40,000.

Thereafter, Vaughan Contractors and the Cahn brothers entered a written contract on January 5, 1990. The contract was prepared by Vaughan and appeared on his company stationary. Among the provisions of the contract was the following: "All salvaged materials shall become the property of Vaughan Contractors, Inc. and shall be removed along with the trash and debris. Salvaged materials shall include contents, installed equipment as well as the complete building." Vaughan Contractors obtained a City permit to perform the demolitions operation on January 10, 1990.

Meanwhile, the federal Bureau of Alcohol, Tobacco, and Firearms (ATF) was conducting an arson investigation on the property. Therefore, when Vaughan Contractors workers reported to the site to perform the demolition on January 11, 1990, they were not able to begin operations. Vaughan testified at trial that they did some work at the request of ATF in an attempt to avoid losing money.

Moreover, the demolitions operations was further delayed by a dispute over ownership of some of the equipment in the building, which the Cahn brothers had told Vaughan would be part of the salvage. Although Pelican Ice personnel had reportedly initially told the Cahns that they did not want the equipment, they later changed their mind and decided they did want it. Vaughan Contractors originally disputed Pelican Ice's right to the property, but later gave up any claim to the equipment. However, the dispute and the resulting necessity to postpone the demolitions to allow removal of the equipment prevented Vaughan Contractors from commencing operations at least until January 24, 1990.

On that date, January 24, 1990, Jules and Jimmy Cahn met with Vaughan, Pelican Ice owner Arthur Renaudin, and City Inspector Eugene F. Higbee to discuss the situation. During the course of that meeting, Vaughan submitted a letter to Jules Cahn; that letter stated, in pertinent part, as follows:

Please be advised that due to the fact we are not allowed to work and the dangerous and deteriorating condition of the walls and steel work, our insurance is being removed as of January 24, 1990 as [sic] 12:00 p.m. We cannot assume any liability of any kind on this job. With the insurance adjustment not being completed and a salvage operation about to begin and not being allowed to continue the job, we have no alternative but to terminate our contract....
If at a later date you want to demolish this building we will be happy to re-bid this job.

Vaughan testified at trial that he wrote the letter in an attempt to avoid liability for injury to any of the people who were running around the site, especially to Pelican Ice workers, who Vaughan felt were engaged in *1227 some dangerous practices in attempting to remove Pelican's equipment. Vaughan said that all the parties understood that the letter was written in an attempt to avoid liability and that all the parties knew that he would return to the project at the original price after Pelican Ice's equipment had all been removed.

However, both Jules and Jimmy Cahn testified that the letter was a complete surprise to them, although Vaughan had previously threatened to quit the job several times and had in fact removed his workmen on a couple of different occasions. Both Jules and Jimmy Cahn said that Vaughan presented the letter, then immediately left the meeting; they insisted that the parties never had any understanding that Vaughan would be able to come back to the project at the original price once the equipment was removed.

Of course, the City was still anxious to have the building demolished. Therefore, according to the Cahns, Jimmy once again began soliciting bids. Meanwhile, the Cahns also continued to negotiate with Vaughan. For example, Jimmy Cahn secured a letter from Renaudin, in which Pelican Ice indemnified the Cahns and their "demolition contractor against damage to any equipment owned by Pelican Ice and presently remaining in the ... building; provided the contractor expends his best efforts to avoid additionally damaging said equipment...." Jimmy Cahn faxed that letter to Vaughan on January 30, 1990, but Vaughan still refused to return to the project, saying that he did not trust Pelican Ice and that the "best efforts" language concerned him.

Then, on the morning of Friday, February 2, 1990, Jules Cahn had a telephone discussion with Vaughan, in which he unquestionably told Vaughan that he could perform the job for the original $40,000 contract price; all parties agree that that conversation occurred. However, Vaughan was seeking $3,000 in standby charges, which Jules Cahn refused to pay. Therefore, Vaughan told Jules Cahn that he would call him back that afternoon to give him an answer.

Vaughan claims that he told Jules Cahn that he would call him back about 1 p.m. Further, he claims that he tried to call Jules Cahn several times, beginning about 1 p.m., but that he was unable to reach Jules Cahn until about 4 p.m. At that time, he told Jules Cahn that he would perform the work for the original contract price and that he was giving up his claim for standby charges. However, Jules Cahn told him that he had already let the contract to another company.

Jules Cahn testified that he did not believe that Vaughan would call him back, so he contacted someone named "Mitchell" from L & M Demolition. Mitchell came to the site immediately and submit a bid, which Jules Cahn accepted in writing on February 3.

Vaughan testified that he reported to the site on Monday, February 5, but could not perform any work because the gate was locked. The Vaughan Contractors crew reported again on Tuesday, February 6, found the gate open, and worked all day, Vaughan said.

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Cite This Page — Counsel Stack

Bluebook (online)
629 So. 2d 1225, 1993 WL 492581, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vaughan-contractors-inc-v-cahn-lactapp-1994.