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Palmer v. Vermillion Home Builders, LLC
134 So. 3d 1248
| La. Ct. App. | 2014
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Background

  • NHWA action to determine builder liability for Palmers' home defect claims.
  • Vermillion Home Builders, Hines, and Kamphuis entered 2007 stock and business interest exchange; Kamphuis received management and potential 2007 net income payments.
  • Agreement Paragraph 12: Kamphuis to manage Vermillion jobs to completion; compensation 20% of gross profit per job; Vermillion/VPC provide office space and services.
  • Paragraph 15: Indemnity clause—Vermillion/Hines/Vermillion Homebuilders indemnify Kamphuis for claims related to operation of Vermillion/Redman, except for Kamphuis's own legal fault.
  • The home (Lot 120) was a Vermillion job; Kamphuis managed that home; Palmers purchased it in March 2008 and alleged NHWA defects.
  • Trial court granted Kamphuis summary judgment; Palmers denied cross-motion; on appeal, court affirmed that no joint venture existed and Kamphuis was not a NHWA “builder.”

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Kamphuis and Vermillion formed a joint venture for the Palmers' home Palmers: there was a joint venture making Kamphuis a builder Kamphuis: no shared losses; arrangement not a joint venture; no personal liability No joint venture; Kamphuis not a NHWA builder
Whether Kamphuis is a NHWA “builder” under the agreement regardless of joint venture Palmer: agreement makes Kamphuis a builder Kamphuis: agreement shows only management role and no losses; not a builder Kamphuis not a builder under NHWA; affirmed

Key Cases Cited

  • Riddle v. Simmons, 589 So.2d 89 (La.App. 2d Cir.1991) (joint venture existence fact question; shared profits/losses approach)
  • Cajun Elec. Power Co-op., Inc. v. McNamara, 452 So.2d 212 (La.App. 1st Cir.1984) (joint venture analysis; no rigid rule; consider conduct and circumstances)
  • Schroeder v. Board of Sup’rs of La. State Univ., 591 So.2d 342 (La.1991) (summary judgment standard; de novo review)
  • King v. Illinois Nat. Ins. Co., 9 So.3d 780 (La. 2009) (summary judgment standard; de novo review)
Read the full case

Case Details

Case Name: Palmer v. Vermillion Home Builders, LLC
Court Name: Louisiana Court of Appeal
Date Published: Feb 26, 2014
Citation: 134 So. 3d 1248
Docket Number: No. 48,838-CA
Court Abbreviation: La. Ct. App.