Court: Louisiana Court of Appeal; October 12, 1988; Louisiana; State Appellate Court
A 1983 Oldsmobile Cutlass owned by George Eddie Lee was damaged in a one-car accident on July 22, 1985, while driven by Lee's minor son. The vehicle was towed to Harper’s Auto Restorations, owned by William Harper Bailey, on June 23, 1985. Bailey provided repair estimates totaling $4,818.80, which included repairing the damaged frame instead of replacing it. Louisiana Farm Bureau Casualty Insurance Company negotiated to complete the repairs for $3,733.26, which were finished by September 27, 1985. After receiving the car, Lee noted ongoing issues and returned it to Bailey for additional repairs. Bailey submitted a supplemental estimate of $950.16 for hidden damages, which Farm Bureau approved. However, Lee continued to experience problems and subsequently sued Farm Bureau and Bailey for damages including loss of use, inconvenience, and depreciation. Following a trial, the court awarded Lee $6,000 against Farm Bureau, which was ordered to transfer the vehicle's ownership to Farm Bureau upon payment. The court also granted Farm Bureau a judgment against Bailey for $4,683.41. Farm Bureau appealed, claiming Lee failed to prove repair costs and that the vehicle was not a total loss. An independent appraisal by Gordon Black estimated the repair costs at $2,682.38, requiring a new frame and acknowledging additional unassessed damages. Farm Bureau, aware of ongoing vehicle issues, offered to pay the appraisal amount but did not confirm any commitment to restore the vehicle to its pre-accident condition. Bailey did not appeal the judgment against him, and Lee did not contest Farm Bureau's appeal, making those judgments final.
John B. McDonald, a former sales manager and current salesman for Coleman Oldsmobile, provided deposition testimony indicating the vehicle in question had no resale value, with a salvage value estimated between $800 and $1,000. He admitted he did not document all existing problems with the vehicle, stating the list would be too lengthy. When asked about the vehicle's safety, he expressed doubt about its drivability outside of his lot, indicating he would not drive it onto the highway.
The determination of a total loss for an automobile occurs when repair costs exceed its pre-accident value, as established in Roy v. Commercial Union Assurance Co. Farm Bureau did not dispute the vehicle's pre-accident value of $7,000. Repair costs totaling $4,683.41 were negotiated between Farm Bureau and Bailey, with an additional $1,222 required for frame replacement, which Farm Bureau had not covered. Further, repair costs not detailed in Black’s damage appraisal could be substantial. The evidence confirmed a salvage value of $1,000.
After reviewing the case's facts, the trial court's decision to declare the vehicle a total loss was deemed not manifestly erroneous and was affirmed. Consequently, the court upheld an award of $6,000 to Lee, reflecting the vehicle's value minus $1,000 for its continued use. Lee was ordered to transfer the vehicle title to Farm Bureau upon receipt of the payment, with the appellee responsible for all costs. The judgment was affirmed in its entirety.
