88 So. 3d 1209
La. Ct. App.2012Background
- Fontenot acted as general contractor to build Joshua and Cora Manuel's home in Evangeline Parish; no signed contract existed between Fontenot and the Manuels, but Cora negotiated and Fontenot proceeded under revised figures.
- Subcontractors (including Smith Plumbing, Smith A.C., and Concrete Service) provided labor and materials to Fontenot, billed Fontenot, and were not in direct contract with Joshua or Cora.
- The Plaintiffs had long-standing relationships with Fontenot and relied on his reputation; Fontenot, not the Manuels, controlled accounts and invoicing.
- The Plaintiffs asserted open accounts seeking payment, with liens filed by Smith Plumbing and Smith A.C. in October 2009; Concrete Service did not file a lien.
- Joshua and Cora paid or attempted to withhold payment through Fontenot, claiming overcharges by Fontenot and promising to pay the Plaintiffs, while litigation proceeded.
- The trial court awarded the Plaintiffs amounts on open accounts and attorney fees against Joshua and Cora, later partially amended to dismiss Fontenot; appellate court affirmed in part and reversed in part, including dismissal of claims against Fontenot and reconsideration of open-account status and lien issues.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Plaintiffs validly sued on open accounts against Joshua and Cora | Manuels contend open accounts exist with Plaintiffs | Accounts were between Fontenot and Plaintiffs, no contract with Manuels | No; open accounts did not exist between Manuels and Plaintiffs |
| Whether the liens were timely filed and enforceable against the Manuels | Liens were properly filed within statutory periods | Liens filed beyond 60-day window after substantial completion | Liens untimely; privilege extinguished; damages for untimely filing awarded; cancellation demand upheld |
Key Cases Cited
- Bieber-Guillory v. Aswell, 723 So.2d 1145 (La.App. 3 Cir. 1998) (necessity of contract to sustain an open-account claim)
- Credit Bureau Services v. Lundberg, 10 So.3d 883 (La.App. 3 Cir. 2009) (definition of open account under La. Rev. Stat. 9:2781(D))
- Roberson Adver. Serv., Inc. v. Winnfield Life Ins. Co., 453 So.2d 662 (La.App. 5 Cir. 1984) (agency must be clearly established; no presumed agency)
- Blackie’s Rental Tool & Supply v. Vanway, 563 So.2d 350 (La.App. 3 Cir. 1990) (contract prerequisite for open-account recovery; meeting of minds)
- Minyard v. Curtis Products, Inc., 205 So.2d 422 (La. 1967) (principles of subsidiarity and unjust enrichment limitations)
- G. Woodward Jackson Co., Inc. v. Crispens, 414 So.2d 855 (La.App. 4 Cir. 1982) (unjust enrichment not available where legal remedy exists)