Provosty v. ARC Construction, LLC
119 So. 3d 23
La. Ct. App.2013Background
- Provostys contracted ARC-LA to build their Katrina-era home for $607,693.10; ARC-LA was formed by Missouri/New York interests including Icehouse and others.
- Jury awarded Provostys $213,984.16 costs plus $25,000 for disruption and $300,000 for emotional anguish; attorney’s fees were awarded later.
- Icehouse moved for JNOV/new trial on fraud verdict against it and on the $300,000 emotional-anguish award; court granted a new trial on fraud and vacated the $300,000 award, reducing emotional damages to $10,000 per plaintiff.
- Court later amended to delete Icehouse/Glasser as members of ARC-Missouri; final March 13, 2012 judgment included judicial interest and adjustments, with dismissal of Glasser and Kestenbaum on certain issues.
- Plaintiffs appealed March 13, 2012 judgment, challenging Glasser’s liability, future damages, attorney’s fees, sanctions, the JNOV on emotional damages, and Kestenbaum’s directed verdict.
- The appellate court held that the March 13, 2012 judgment is the final judgment; it reversed the JNOV reducing emotional damages and reinstated $300,000 per Plaintiff, affirming other aspects.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Glasser was properly dismissed from the judgment | Glasser was found liable by the jury; dismissal contradicts verdict | Jury found no fraud by Glasser; dismissal appropriate | Affirmed dismissal; no reversible error |
| Future damages for construction defects | Proof supports future damages via expert testimony | No timely or sufficient expert proof; denial proper | affirmed denial of future damages; no error |
| Attorney’s fees, costs, and sanctions | Court undervalued fees; sanctions warranted | Court properly exercised discretion; no sanctions | affirmed award of $314,014.56; no sanctions awarded |
| Emotional and mental anguish award | JNOV inappropriate; jury verdict should stand at $300,000 | JNOV appropriate; quantum insufficient | reversed JNOV; reinstated $300,000 per Plaintiff |
| Kestenbaum directed verdict | Kestenbaum liable through alter ego theory | Insufficient evidence of Kestenbaum’s involvement | affirmed directed verdict for Kestenbaum |
Key Cases Cited
- Riggins v. Dixie Shoring Co., Inc., 590 So.2d 1164 (La.1991) (alter ego factors; piercing veil only with proper evidence)
- Sea Tang Fisheries, Inc. v. You’ll See Sea Foods, Inc., 569 So.2d 992 (La.App.1 Cir.1990) (veil piercing requires individual analysis of shareholders)
- Bossier Millwork & Supply Co. v. D. & R. Constr. Co., 245 So.2d 414 (La.App.2 Cir.1971) (knowledge/use of fraud can pierce veil under alter ego doctrine)
- Doyle v. Picadilly Cafeterias, 576 So.2d 1143 (La.App.3 Cir.1991) (verdict form clarity may affect reversible error)
- Rivet v. State Dept. of Transp. & Development, 680 So.2d 1154 (La.1996) (ten-factor Rivet analysis for attorney’s fees considerations)