Wirthman-TAG Construction Co. v. Hotard

176 So. 3d 429, 2015 WL 4940564
CourtLouisiana Court of Appeal
DecidedAugust 19, 2015
DocketNos. 2014-CA-1394, 2014-CA-1395
StatusPublished
Cited by1 cases

This text of 176 So. 3d 429 (Wirthman-TAG Construction Co. v. Hotard) 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
Wirthman-TAG Construction Co. v. Hotard, 176 So. 3d 429, 2015 WL 4940564 (La. Ct. App. 2015).

Opinions

DANIEL L. DYSART, Judge.

1 ⅜James Hotard, Jr., Jane Hotard, and James Hotard, Sr., appeal the September 2, 2014 judgment granting the Petition for Declaratory Judgment filed by Wirthman-TAG Construction Company, L.L.C.; dismissing, with prejudice, all claims against Thomas A. Gennusa, III, and Ronald Wirth, Jr., individually; awarding Wirth-man-TAG Construction Company, L.L.C., $11,200.00 for contractual amounts due from Jane and James Hotard, Jr., plus interest and costs; and, awarding Wirth-man-TAG Construction Company, L.L.C., $90,000 in damages against James Hotard, Sr. The trial court also awarded attorney fees and costs, which were to be determined at a later date. For the reasons that follow, we affirm the judgment of the trial court in part as to the individual liability of Thomas Gennusa, III, and Ronald Wirth, Jr. The remainder of the judgment is reversed, and judgment rendered in favor of defendants, James Hotard, Jr., Jane Hotard, and James Hotard, Sr.

I «.PROCEDURAL BACKGROUND:

Wirthman-TAG Construction Company, L.L.C. (“plaintiff’ or “Wirthman-TAG”) filed a Petition for Declaratory Judgment on September 9, 1999, seeking to declare Jane and James Hotard, Jr. (“the Ho-tards”), in breach of a construction agreement and subsequent settlement agreement, and to recover attorney fees, costs and interest. Additionally, in a separately filed suit, plaintiff sued Robert Anderson, Anderson Consulting, Inc.,1 and James Ho-tard, Sr., for damages incürred as a result of their involvement in the slab elevation problems which arose during construction of the house. The Hotards reconvened against plaintiff and filed a third-party demand against Thomas Gennusa, III (“Gen-nusa”), and Ronald Wirth, Jr. (“Wirth”), individually,- for damages associated with their alleged breach of the construction contract. The cases were consolidated for trial.2

[432]*432.The trial of this matter began on November 5, 2012, and'continued on November 7 and 13 of 2012. For reasons not evident from the record, the trial did not resume until June 2, .2014, continuing through June 5, 2014. The trial concluded on July 14, 2014. ; The court requested that the parties submit post-trial memo-randa by August 1, 2014. A judgment and written reasons were issued on September 2,2014. This appeal followed.

JjDISCUSSION:

These consolidated cases involve both questions of law and questions of fact. In the case filed by plaintiff against the Ho-tards, the trial court was asked to determine if the Hotards had breached the construction contract they entered into with plaintiff for the construction of their house. The other suit sought damages against Robert Anderson and Robert B. Anderson Consulting Engineers, Inc., for faulty house plans, and James Hotard, Sr., for his alleged involvement and interference with the construction of the house.

As the Louisiana Supreme Court explained .in Wooley v. Lucksinger, 09-0571, p. 49 (La.4/1/11), 61 So.3d 507, 553-55:

The Louisiana Constitution provides that the appellate jurisdiction of a court of appeal in a civil matter extends to both law and facts. La. Const. 1974, art. 5, § 10(B). Questions of law are reviewed de novo, with the judgment rendered “on the récord, without deference to the legal conclusions of the tribunals below.” Holly & Smith Architects, Inc. v. St. Helena Congregate Facility, Inc., 2006-0582 p. 9 (La.11/29/06), 943 So.2d 1037, 1045; citing Louisiana Municipal Association v. State, 2004-0227 p. 35 (La.1/19/05), 893 So.2d 809, 836. This constitutional provision has also “been interpreted as giving an appellate court the power to decide factual issues de novo.” Ferrell v. Fireman’s Fund Ins. Co., 1994-1252 p. 3 (La.2/20/95), 650 So.2d 742, 745. However, while a court of appeal may have the constitutional authority to make a de novo review of a factual finding, the exercise of this power has been limited by-the jurisprudential rule that a trial court’s factual findings will not be upset unless they are manifestly erroneous or clearly wrong. Brewer v. J.B. Hunt Transport, Inc., 2009-1408 p. 9 (La.3/16/10), 35 So.3d 230, 237.

LThus, as the question before this Court is whether the trial court erred in finding that the Hotards breached the construction contract, a question of law, we must conduct a de novo review of the record, being mindful that the factual findings of the trial court are examined for manifest error. Id.

As to the judgment rendered against James Hotard, Sr., because the judgment is founded in tort, we review that portion of the judgment applying the manifest error/clearly wrong standard. Rosell v. ESCO, 549 So.2d 840, 844 (La.1989).

The Hotards assert numerous assignments of error based on findings of fact by the trial court. They argue that the trial court erred in granting the declaratory judgment, on the basis of the [433]*433factual findings that they underpaid bank draws, prevented plaintiff from completing the work, and were in bad faith by intentionally breaching the construction contract. They also argue that the trial court erred in not finding that plaintiff breached the contract, and in not awarding them damages for the breach. The Hotards further argue that the trial court erred in not finding that Gennusa and Wirth were personally liable for their damages. Last, they argue that it was error to find James Hotard, Sr.,, negligent for his peripheral role in the construction of their home, as he owed no duty to plaintiff.

The trial court stated in its reasons for judgment that the contract price was $378,000, plus any change orders, and that the project would include five equal bank draws, each to be paid after completion of various stages of construction. | ¿The reasons further set forth that plaintiff would notify the Hotards that a draw was due.

The Hotards claim that there was no evidence to support a finding that they underpaid the bank draws requested by plaintiff or that their payments were late. The construction contract establishes that the cost of construction was $378,000, to be paid by bank draws. Although plaintiff claims that the contract provides for equal draws of $75,600 as stages of the construction were completed, a contention relied upon by the trial court, the contract does not so state.

The contract, which was entered into on June 26, 1998, provides for the total cost of the project, $378,000, and that the amount was to be paid by bank draws. Article 4 of the contract entitled “Progressive Payments,” ¿gain simply states “Bank'Draws.” There is no provision for payment of change orders. Under the General Provisions article, the contract states “In the event Owner shall fail to pay any periodic or installment payment due to hereunder. [sic] Contractor may cease work without breach pending payment or resolution of any dispute.” It is, axiomatic in our law that any lack of or ambiguity in a provision of a contract is construed against the party who- prepared the contract.. If the ambiguity “arises from lack of a necessary explanation that one party should have given ... the contract must be interpreted in a manner favorable to the other party.” La. Civ. Code art. 2057; Foshee v. Georgia Gulf Chemicals & Vinyls, L.L.C., 09-2477, pp. 3-4 (La.7/6/10), 42 So.3d 346, 348; Pollard v.

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176 So. 3d 429, 2015 WL 4940564, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wirthman-tag-construction-co-v-hotard-lactapp-2015.