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55 So. 3d 970
La. Ct. App.
2011
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Background

  • Condo Association sued for construction defects from converting a building into condos, including roof and exterior wall water intrusion.
  • Third supplemental petition added subcontractors (Schiro Del Bianco, Pontchartrain Mechanical, Royal Commercial) and alleged bathroom/shower defects.
  • Edifice Construction moved to peremptively dismiss under NHWA; trial court granted peremption and dismissed bathroom/shower claims; judgments were finalized.
  • Association sought reconsideration/new trial; trial court amended judgment to add other parties, which was found to be an absolute nullity due to improper procedure.
  • Court held peremption statute retroactive for the bathroom/shower claims; warranty commencement date governs the applicable warranty period; remanded to address whether ten-year major-structural-w defects warranty covers bathroom/shower claims.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Does NHWA peremption apply retroactively? Paragon asserts retroactivity divests vested rights. Edifice contends retroactivity proper under statute. Peremption retroactive; no vested right vested for these claims.
What is the governing warranty commencement date for NHWA claims? Commencement date is March 12, 2001. No dispute stated; focus on applicable warranty periods. Warranties in effect on commencement date control; ten-year major-structural warranty applies.
Did the amended judgment, adding new parties, constitute a substantive amendment? Amendment mischaracterized as phraseological; seeks dismissal of additional parties. Amendment appropriately incorporated by trial court if within procedures. Amended judgment was an absolute nullity; remanded for proper proceedings.
Is NHWA applicable to a condominium association that may not be an owner under the Act? NHWA could apply to association as owner under Act. NHWA warranties are between builder and owner; association may not qualify. Remanded to determine applicability; issue not resolved on appeal.

Key Cases Cited

  • Eiswirth v. Anthony L.Golemi, Contractor, Inc., 864 So. 2d 792 (La. App. 5th Cir. 2003) (retroactivity issues on peremption where action accrued before amendment)
  • Metairie III v. Poche' Construction, Inc., 49 So. 3d 446 (La. App. 4th Cir. 2010) (defines vested right accrual and retroactivity considerations)
  • Naghi v. Brener, 17 So. 3d 919 (La. 2009) (peremptive periods cannot be suspended or interrupted)
  • Lott v. Haley, 370 So. 2d 521 (La. 1979) (retroactivity of statutes generally permitted if vested rights unaffected)
  • Owens v. Martin, 449 So. 2d 448 (La. 1984) (accrual of cause of action requires fault, causation, damages)
  • Hutcherson v. Harvey Smith Construction, Inc., 7 So. 3d 775 (La. App. 1st Cir. 2009) (definition of warranty commencement and application of NHWA timelines)
  • Patriot American Hospitality Partnership, LP v. Mississippi Land Holdings, Inc., 948 So. 2d 249 (La. App. 4th Cir. 2006) (vesting and timing principles for statutory limitations)
Read the full case

Case Details

Case Name: Paragon Lofts Condominium Owners Ass'n v. Paragon Lofts, L.L.C.
Court Name: Louisiana Court of Appeal
Date Published: Jan 14, 2011
Citations: 55 So. 3d 970; 2011 WL 117862; 2010 La.App. 4 Cir. 0419; 2011 La. App. LEXIS 28; 2010-CA-0419
Docket Number: 2010-CA-0419
Court Abbreviation: La. Ct. App.
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