1100 South Jefferson Davis Parkway, LLC v. Williams
165 So. 3d 1211
La. Ct. App.2015Background
- South and Williams entered a November 17, 2008 Agreement to Purchase for $875,000 for property in New Orleans.
- The Agreement included an inspection period and a handwritten 30-day due diligence provision, expiring December 18, 2008.
- The inspection period was extended to January 19, 2009 to obtain a flood elevation certificate; terms otherwise remained unchanged.
- Williams terminated the Agreement in January 2009 after flood-elevation concerns; the parties later cancelled and Williams was refunded his $10,000 deposit.
- The property later sold to a third party for $616,000 in December 2010.
- South filed suit in 2013 seeking damages reflecting the contract price difference and related costs; the trial court awarded $10,000 deposit plus $10,000 in attorney’s fees under the stipulated damages clause, which was affirmed on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Williams’ breach was in bad faith or fraud | South argues Williams acted in bad faith by not disclosing the true purpose. | Williams contends no duty to disclose and no bad faith occurred. | No manifest error; no bad faith or fraud found. |
| Whether the stipulated damages clause was enforceable | South claims the clause should be invalid for public policy reasons. | Williams argues the clause is enforceable unless manifestly unreasonable. | Stipulated damages properly enforced; not manifestly unreasonable. |
| Whether the trial court erred in awarding attorney’s fees | South asserts error due to lack of evidentiary hearing. | Williams contends fees were within trial court discretion and record supports it. | No abuse of discretion; $10,000 attorney’s fees affirmed. |
| Whether South is entitled to additional appellate costs and fees | South seeks additional appellate damages for frivolous appeal. | Williams opposes additional fees; appeal not frivolous. | Appellate costs/fees denied for lack of frivolousness or supporting evidence. |
Key Cases Cited
- Favrot v. Favrot, 68 So.3d 1099 (La.App. 4 Cir. 2011) (contract damages and misrepresentation considerations)
- Lombardo v. Deshotel, 647 So.2d 1086 (La.1986) (public policy/validity of stipulated damages)
- Wadick v. Gen. Heating & Air Conditioning, LLC, 145 So.3d 586 (La.App. 4 Cir. 2014) (Art. 2004; bad faith/fault and exclusions)
- White v. Strange, 80 So.3d 1189 (La.App. 3 Cir. 2011) (interpretation of damage provisions; public policy)