Waddles v. LaCour

950 So. 2d 937, 2007 WL 403503
CourtLouisiana Court of Appeal
DecidedFebruary 7, 2007
DocketCA 2006-1245
StatusPublished
Cited by7 cases

This text of 950 So. 2d 937 (Waddles v. LaCour) 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
Waddles v. LaCour, 950 So. 2d 937, 2007 WL 403503 (La. Ct. App. 2007).

Opinion

950 So.2d 937 (2007)

Jerry A. WADDLES
v.
Danny R. LaCOUR, Sr., et al.

No. CA 2006-1245.

Court of Appeal of Louisiana, Third Circuit.

February 7, 2007.
Rehearing Denied March 21, 2007.

*939 Fred Andrew Pharis, Pharis Law Office, Alexandria, LA, for Plaintiff/Appellee, Jerry A. Waddles.

Michael Paul Bienvenu, Seale, Smith, Zuber & Barnette, Baton Rouge, LA, for Defendants/Appellants, Chicago Insurance Company, Fern Posey.

Court composed of OSWALD A. DECUIR, GLENN B. GREMILLION, and BILLY HOWARD EZELL, Judges.

EZELL, Judge.

Fern Posey and her insurer, Chicago Insurance Company, incorrectly named in the plaintiff's petition as, Interstate Fire and Casualty Insurance Company, appeal a trial court judgment finding that Ms. Posey violated her duty as a real estate agent. The trial court found that Ms. Posey failed to inform Jerry Waddles that she was told the house he intended to purchase had once been a mobile home. The allocation of fault and the amount of damages awarded were also appealed.

FACTS

On September 5, 2000, Joyce Pruitt got a call from Rosalyn and Danny LaCour about listing their home and ten acres at 176 Dewitt Lane in the Alexandria area for sale. Ms. Pruitt became sick, so Fern Posey became a co-agent on the listing.

After living in Denver, Colorado for the last thirty years, Jerry Waddles was in the *940 area looking for a home where he could retire. A friend showed him the LaCours' home. He called Ms. Posey that day, and they went to look at the house that night. A dual agency agreement was signed. An agreement to buy and sell was signed that same evening on February 5, 2001, because Mr. Waddles was leaving town the next day. A purchase price of $170,000 was agreed to.

Mr. Waddles testified that after moving into the home he received two phone calls from neighbors informing him that his house had once been a mobile home. Mr. Waddles stated that he initially ignored these calls until he received a call from a third person telling him that the home used to be a mobile home. He then called Ms. Posey to inquire about the situation. At trial, Ms. Posey admitted that she had received three phone calls asking whether the home used to be a mobile home. She questioned the LaCours about the situation who told her that there was a mobile home there when they bought the land but it was now gone.

Mr. Waddles hired an inspector, Kenneth Andrews, who found that the house was a combination of a site-built home and a mobile home. Mr. Andrews estimated that about twenty-five percent of the home consisted of mobile home components. The thicker part of the home was the existing mobile home with added standard stud walls, and a frame added around the entire outer part of it. He testified that the second wall hides all the exterior of the trailer. Mr. Andrews observed that the steel frame of the mobile home could be seen underneath the present house.

Mr. Waddles filed suit against Ms. Posey and her insurer, in addition to Ms. Pruitt and the LaCours. After the LaCours filed for bankruptcy, they were dismissed from the suit. The case proceeded to trial on February 7 and February 10, 2006, against the remaining Defendants alleging that they had falsely marketed the home as a custom home and failed to disclose the nature of the home as a mobile home.

The trial court found that Ms. Pruitt and Ms. Posey had a duty to inform Mr. Waddles about the three phone calls as his agents so that he could have been given the opportunity to negotiate more. The court then reduced the purchase price of the mobile home by twenty-five percent. It also awarded $10,000.00 in mental anguish damages. Fault was allocated two-thirds to Ms. Posey and one-third to Ms. Pruitt. Ms. Posey and her insurer appealed the judgment.[1] They assert several errors by the trial court. First they claim the trial court erred in finding that Ms. Posey breached any duty owed to Mr. Waddles and in imposing liability on her. Ms. Posey and her insurer also claim the trial court erred in finding that the breach of any duty owed by Ms. Posey caused Mr. Waddles any damage. Additionally, they allege that the trial court erred in not assessing any fault to Mr. Waddles, the LaCours, and Mr. James Vance, who performed an appraisal of the home for the sale. Finally, Ms. Posey and her insurer argue that the award of $10,000 for mental anguish damages is excessive.

DUTY

Louisiana Revised Statutes 9:3897 provides for a dual agency. Section A provides that a person can act as a dual agent with the informed consent of all the clients. Section A then lists the duties of a dual agent which should be provided in the dual agency disclosure form as follows:

(1) Treat all clients honestly.
*941 (2) Provide information about the property to the buyer or tenant.
(3) Disclose all latent material defects in the property that are known to the licensee.
(4) Disclose financial qualification of the buyer or tenant to the seller or landlord.
(5) Explain real estate terms.
(6) Help the buyer or tenant to arrange for property inspections.
(7) Explain closing costs and procedures.
(8) Help the buyer compare financing alternatives.
(9) Provide information about comparable properties that have sold so both clients may make educated decisions on what price to accept or offer.

In finding Ms. Posey breached a duty to Mr. Waddles, the trial court in written reasons for judgment, stated:

The two realtors clearly gave preference to the sellers, as, apparently, Ms. Pruitt believed she should. At trial, Ms. Pruitt testified she and Posey did not tell Waddles about the calls because "anything the seller says must be kept private unless the seller specifies that it may be disclosed." The court notes, first, that neither realtor testified that they asked for permission from the LaCours to disclose the calls to Waddles; but, Pruitt's position simply is not a correct understanding of the statute. In Paragraph B, the statute does provide there are three things that cannot be disclosed without permission from either client, the seller or buyer. The situations mentioned in Paragraph B are not present in this case but, in any event, they are not situational preferences for the seller. These provisions apply equally to both buyer and seller. With regard to the information about the calls, Pruitt and Posey did not have any greater duty toward the seller than they did to the buyer.
The obvious purpose of the statute is to increase honesty in real estate transactions through a duty imposed on the real estate agents. Pruitt and Posey expressed concern with their duty to the seller and with maintaining the sale. At no time did they express any concern with the buyer or any understanding of the dual agency agreement. Paragraph D.[sic] actually would have protected Posey and Pruitt from any liability for the disclosure to the buyer.
Posey and Pruitt seem to think they are entitled to rely on the denials of the LaCours, who filed for bankruptcy and are long gone. With one call, the court might agree; with two, it's doubtful; but, three? Absolutely not. Any reasonable person would have become sufficiently alerted to understand that the dual agency obligation required a disclosure.

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Cite This Page — Counsel Stack

Bluebook (online)
950 So. 2d 937, 2007 WL 403503, Counsel Stack Legal Research, https://law.counselstack.com/opinion/waddles-v-lacour-lactapp-2007.