Weeks v. TL James & Co. Inc.

626 So. 2d 420, 1993 La. App. LEXIS 3277, 1993 WL 437553
CourtLouisiana Court of Appeal
DecidedOctober 27, 1993
Docket92-508
StatusPublished
Cited by23 cases

This text of 626 So. 2d 420 (Weeks v. TL James & Co. 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
Weeks v. TL James & Co. Inc., 626 So. 2d 420, 1993 La. App. LEXIS 3277, 1993 WL 437553 (La. Ct. App. 1993).

Opinion

626 So.2d 420 (1993)

Grady C. WEEKS, et al., Plaintiffs-Appellants,
v.
T.L. JAMES & CO. INC., et al., Defendants-Appellees.

No. 92-508.

Court of Appeal of Louisiana, Third Circuit.

October 27, 1993.
Writ Denied January 28, 1994.

*421 Stephen Patrick Callahan, Houma, for Grady C. Weeks et al.

*422 Richmond Minor Eustis and W. Malcolm Stevenson, New Orleans, for T.L. James & Co. Inc., et al.

Nora Feibleman McAlister, New Orleans, for Ebasco Constructors, Inc.

Before STOKER, YELVERTON, THIBODEAUX, COOKS and SAUNDERS, Judges.

THIBODEAUX, Judge.

Plaintiffs seek damages growing out of a breach of an allegedly unambiguous contract entered into by Ebasco Constructors, Inc. and Dale Rogers & Sons, Inc. on November 7, 1988, which granted a servitude to Ebasco over property owned by Rogers & Sons. This servitude allowed Ebasco to lay a temporary 30 inch diameter discharge line across the property during the construction of a hydroelectric plant near Vidalia, Louisiana. The contract obligated Ebasco to put forth its best efforts to obtain a revised 404 permit from the Corps of Engineers to fill as many borrow pits and wetlands as economically possible.

Plaintiffs, Grady C. Weeks, et al (Weeks), the present owners of the property, appeal from the judgment of the district court which found that, although Ebasco failed to commit its best efforts to obtain a revised 404 permit which would have allowed it to fill the borrow pits to ground level with spoil from the dredged areas, it was impossible for Ebasco to fulfill its obligation as contemplated by the parties. The lower court determined that the intent of the parties was to fill the borrow pit to ground level or not at all. Because the Corps of Engineers' permit allowed the pit to be filled up to 18 inches below ground level, Ebasco's obligation was extinguished. Weeks also appeals the district court's finding of $21,000.00 in damages for curative work on the property due to Ebasco's failure to restore the property as the parties had contracted.

FACTS

On November 7, 1988, Bruce C. Bennett, the Ebasco Assistant Project Manager, entered into a written contract with Dale Rogers, the property owner representing Rogers & Sons. The contract is reproduced below:

AGREEMENT

The below listed parties hereby agree to the following;

Mr. Dale Rogers, agrees to permit Ebasco and their subcontractors the use of his property for the purpose of laying a temporary 30" diameter dredge discharge line between the Sidney A. Murray Jr. Hydroelectric Project and the Corps of Engineers Low Sill Structure Outflow.
As full and complete compensation for this permission Ebasco Constructors commits their best efforts to obtain a revised 404 permit from the Corps of Engineers and all other required permits to fill as many ponds and wetlands as economically possible.
Upon receipt of all approvals the above described ponds and/or wetlands will be filled to the limits permitted by the above mentioned permits.

The above agreement was signed by Dale Rogers (who could not read nor write the English language but could sign his name), Bennett, and a witness. This contract was incidental to the construction of the Sidney A. Murray, Jr. Hydro-Electric Plant located about thirty miles south of Vidalia, Louisiana. The project envisioned that water from the Mississippi River would be diverted through a constructed channel into the Red and Atchafalaya Rivers. The Mississippi waters would flow through the hydroelectric plant and generate electricity.

In addition to the obligations detailed in the agreement above, representatives of Ebasco acknowledge that Ebasco agreed to restore the property to its pre-construction condition.

Because the property involved in this litigation has been designated as "wetlands" by the United States Army Corps of Engineers, all work involving construction upon the property or the filling of pits must be permitted by the Corps of Engineers pursuant to Section 404 of the Clean Water Act; hence, the need for Ebasco to secure the 404 permit for the project. The permit issued to Ebasco *423 allowed the two borrow pits, designated as Z-11, to be filled to an elevation of 1.5 feet below surrounding ground level because of the Department of Interior's desire to maintain the area as a wetlands habitat. Ebasco and its subcontractors refused to fill the Z-11 borrow pits to the elevation permitted by the 404 permit. They successfully argued at trial that they were bound to fill to ground level only or not at all.

The trial court found that Ebasco's failure to commit its best efforts to obtain the revised 404 permit was insignificant since the permit restriction of the level at which the pits could be filled to 1.5 feet below ground level made performance impossible.

ISSUES

The issues are:

(1) Whether the trial court erroneously disregarded the language of the contract to determine the parties' intent;
(2) Whether Ebasco was in bad faith in not expeditiously pursuing the issuance of a revised 404 permit from the Corps of Engineers;
(3) What amount of damages were sustained by plaintiffs if the contract was breached?
(4) What amount of damages is appropriate for restoring the plaintiffs' property to its pre-construction condition?

For the following reasons, we find that Ebasco breached the agreement with the plaintiffs and award damages on the written agreement for $100,000.00. The judgment of the trial court is reversed on these two issues. In all other respects, the judgment appealed from is affirmed.

LAW AND DISCUSSION

I. The Contract

Ebasco's argument that its obligation to fill the pits was extinguished because it was subject to a suspensive condition of receiving a revised 404 permit allowing it to fill the pits to surface level is specious but ultimately untenable. We agree with the plaintiffs. The trial court's initial inquiry should have been whether the words of the contract clearly and explicitly set forth the intent of the parties. This methodology limits the interpretation of a contract to the internal language of the contract itself.

LSA-C.C. art. 2046 provides:

When the words of a contract are clear and explicit and lead to no absurd consequences, no further interpretation may be made in search of the parties' intent.

This court has long recognized that where the language of a contract is clear and unambiguous, it must be interpreted solely by reference to the four corners of that document. Tammariello Properties, Inc. v. Medical Realty Company, Inc., 549 So.2d 1259 (La.App. 3d Cir.1989). The agreement in this case, like other contracts, is the law between the parties, and no further interpretation may be made in search of the parties' intent when the words of the contract are clear and explicit and lead to no absurd consequences. Massachusetts Mutual Life Ins. Co. v. Nails, 549 So.2d 826 (La.1989). The courts are obligated to give legal effect to such contracts according to the true intent of the parties. Borden v. Gulf States Utilities Co., 543 So.2d 924 (La.App. 1st Cir.1989), writ denied, 545 So.2d 1041 (La.1989). Whether a contract is ambiguous or not is a question of law. Id.

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Cite This Page — Counsel Stack

Bluebook (online)
626 So. 2d 420, 1993 La. App. LEXIS 3277, 1993 WL 437553, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weeks-v-tl-james-co-inc-lactapp-1993.