You are viewing a free summary from Descrybe.ai. For citation checking, legal issue analysis, and other advanced tools, explore our Legal Research Toolkit — not free, but close.

Organ v. Covington Heating & Air Conditioning

Citations: 552 So. 2d 759; 1989 La. App. LEXIS 2254; 1989 WL 140809Docket: No. CA 88 1604

Court: Louisiana Court of Appeal; November 13, 1989; Louisiana; State Appellate Court

Narrative Opinion Summary

In this case, the plaintiff filed a lawsuit against a heating and air conditioning company for breach of contract and fraud after the company installed a heat pump that did not meet the contract specifications. The contract stipulated the installation of a new air conditioning system for $3,068.55, but the defendant installed a shop-built unit using parts from the plaintiff's old system, which failed prematurely. The trial court found the defendant liable for breach of contract and awarded the plaintiff damages, interest, and costs. The court further determined that the defendant's actions constituted fraud under Article 1953 of the Louisiana Civil Code due to misrepresentation of the system's condition. As a result, the plaintiff was entitled to rescind the contract, recover the purchase price, and receive additional damages and attorney fees. The court rejected the defendant's defense based on the prescription period, affirming that fraud claims are not subject to the one-year limit. The judgment was amended to award the plaintiff a total of $3,568.55, plus interest from the date of judicial demand, affirming all findings in favor of the plaintiff.

Legal Issues Addressed

Attorney Fees in Fraud Cases

Application: The plaintiff was awarded attorney fees due to the finding of fraud in the case.

Reasoning: The plaintiff is also awarded $2,000.00 in reasonable attorney fees and is affirmed to receive $300.00 for expert witness fees.

Breach of Contract

Application: The defendant failed to perform as agreed under the contract by installing a non-conforming air conditioning system, leading to a finding of breach of contract.

Reasoning: The trial court found the defendant liable for breach of contract, awarding the plaintiff $800, plus interest and costs, including a $300 expert witness fee, while denying attorney fees.

Fraud under Louisiana Civil Code Article 1953

Application: The defendant's misrepresentation regarding the air conditioning system's specifications constituted fraud, justifying rescission of the contract.

Reasoning: Fraud is defined under Article 1953 of the Louisiana Civil Code as a misrepresentation or suppression of truth intended to gain an unjust advantage or cause loss to another party.

Prescription Period and Fraud Claims

Application: Fraud claims are not subject to the one-year prescription period, allowing the plaintiff's suit to proceed.

Reasoning: A defense based on the prescription period was rejected as the one-year limit does not apply to fraud claims, allowing the plaintiff's suit to proceed.

Rescission of Contract Due to Fraud

Application: The court allowed the plaintiff to rescind the contract and recover the purchase price and damages due to fraudulent misrepresentation by the defendant.

Reasoning: In the present case, the plaintiff is entitled to rescind the contract on fraud grounds, recover the purchase price of $3,068.55, and receive an additional $500.00 in damages.