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Don Smart & Assoc. v. Lanier Bus. Prod.

Citation: 551 So. 2d 665Docket: CA 88 1140

Court: Louisiana Court of Appeal; October 11, 1989; Louisiana; State Appellate Court

Narrative Opinion Summary

This case involves an appeal by Lanier Business Products against a trial court judgment favoring Don Smart Associates-Century 21, which rescinded a lease/sale agreement for copiers due to latent defects. The primary legal issues concern the existence of redhibitory defects, interruption of prescription, and liability for undisclosed defects under Louisiana Civil Code. The trial court found the copiers had defects rendering them unsuitable for use, justifying rescission and awarding damages and attorney's fees to Smart. Lanier's appeal contested the findings on defects, prescription, and the validity of awards against them as a non-manufacturing vendor. Additionally, procedural disputes included USLC's dismissed reconventional demand and their third-party claim against Lanier. The appellate court upheld the rescission based on error and defects, amended a judgment against USLC due to a mathematical error, and reversed an award for inconvenience damages. Overall, the court affirmed the trial court's findings, allocating appeal costs to Lanier and USLC.

Legal Issues Addressed

Amendment of Judgment for Mathematical Error

Application: The appellate court amended the judgment against USLC for a mathematical error in the award amount.

Reasoning: Upon review, it was concluded that the awarded sum was a mathematical error, and the judgment was amended to reflect $8,792.25 plus interest and costs.

Interruption of Prescription for Redhibition Claims

Application: The court determined that the prescriptive period for filing a redhibitory action had not expired due to ongoing repair attempts, which interrupted prescription.

Reasoning: Testimony revealed that the last repair attempts occurred within one year of the lawsuit filing, indicating that the prescriptive period had not expired for the defects in question.

Proof of Defects in Products

Application: The court found sufficient evidence to uphold the finding of defects, affecting the usability of the copiers and necessitating the use of external services.

Reasoning: The evidence was sufficient to infer latent defects at the time of purchase.

Redhibitory Defects under Louisiana Civil Code

Application: The court found that the copiers had latent defects at the time of sale, which justified rescission of the contract.

Reasoning: The trial court found evidence of latent defects in the machines at the time of purchase, which Lanier was aware of, leading to the rescission of the agreements and the awarding of damages, attorney's fees, and costs.

Rescission of Contract Due to Error

Application: The court found that Smart was entitled to rescind the contract due to a vice of consent stemming from error in the capabilities of the copiers as represented by Lanier.

Reasoning: Smart has established grounds for annulment of contracts due to a vice of consent stemming from error.

Seller's Liability for Known Defects

Application: The seller was held liable for not disclosing known defects, resulting in an award of attorney's fees and damages to the buyer.

Reasoning: The seller is liable for reasonable attorney's fees and damages if they fail to disclose known defects, as per Louisiana Civil Code (La. C.C.) art. 2545.