FREDERICKA HOMBERG WICKER, Judge.
Defendant-builder, Randy Sternberger, appeals the trial court's judgment awarding plaintiffs-homeowners $358,514.70 under the New Home Warranty Act for damages resulting from a major structural defect to their home. Because we find that the trial court improperly awarded damages for repair work specifically excluded under the New Home Warranty Act, we amend the trial court judgment accordingly. In all other respects, we affirm.
On April 30, 2010, plaintiffs, Sophia Matassa Campo, wife of/and James Anthony Campo, filed suit in the Twenty-Ninth Judicial District Court for the Parish of St. Charles under the New Home Warranty Act against defendant-builder herein, Randy Sternberger (d/b/a R.J. Construction), for damages to a newly constructed home they purchased from Craig and Tonya Hingle.
Following a three-day bench trial, the trial judge found that plaintiffs proved that the abnormal settlement of the home's foundation constituted a major structural defect and that the defendant-builder, Sternberger, breached his warranty that the house would remain free of major structural defects as required under the New Home Warranty Act. The trial judge awarded plaintiffs $358,514.70 in damages against Sternberger to repair the home.
Craig and Tonya Hingle purchased a vacant lot at 107 Cove Lane in North Ormond, Louisiana and retained Sternberger to construct the home.
The testimony and photographic evidence presented at trial reflect that the cracking to the east wall was substantial. Mr. Jules Guidry, a residential contractor, constructed the home directly next to plaintiffs' home in the spring of 2007. Prior to beginning construction, he noticed cracking along the east wall of the Hingles' home. Mr. Guidry decided to take photographs to document the damage to the Hingles' home prior to initiating pile driving for the residence he constructed next door. Those photographs were introduced into evidence at trial and reflect a significant, continuous crack down the east side of the home.
Ms. Chaney Murray, one of plaintiffs' neighbors, testified at trial that, at some time before the Campos moved into the home, she noticed a "significant crack on the east side of the house." She testified that she immediately spoke to her husband about it and inspected her home for similar findings, which were not present. Another neighbor, Ms. Donna Blanchard, recalled that, at some point in 2007, Mr. Hingle spoke to her about the cracking on the side of the house as well as the air conditioning pad leaning or tilting away from the house.
In June of 2007, within a couple of months after Sternberger repaired the cracking to the east wall, the Hingles listed the home for sale with a real estate agent. When they completed a residential disclosure form with their agent, the Hingles failed to disclose the repair of the cracking to the east wall of the house. Plaintiffs purchased the home on July 21, 2008. Within a few months of moving into the home, plaintiffs began experiencing plumbing problems.
In August of 2009, plaintiffs contacted Gator's Sand Pumping to pump sand under the house. According to Mrs. Campo, after Gator's Sand Pumping arrived at the house — but prior to pumping any sand — the workers noticed water pouring under the house from the bathroom, where Mr. Campo was showering at that time. Plaintiffs then realized that the plumbing problems were more serious than initially suspected. Plaintiffs retained Harold's Plumbing, who determined that the entire underslab sewer system needed to be repaired.
Harold's Plumbing tunneled under the slab of the home to repair the entire underslab sewer system. In addition to plumbing problems, plaintiffs also noticed cracks in their sheetrock throughout the home, including separations of moldings at or near windows and doors. Mrs. Campo testified that certain windows and doors throughout the home did not function properly. She testified that the windows in the master bedroom were "inoperable" and that she could no longer lock the kitchen window, which she claimed was a safety concern.
On September 1, 2009, plaintiffs sent a certified letter to Sternberger, informing him of various issues to the home, including sheetrock cracking and electrical and plumbing issues. The Plaintiffs attached to the letter a report issued by U.S. Forensic, LLC, which opined that the driveways and sidewalks at the home were placed on soil not approved for homesite development, resulting in significant subsidence. Plaintiffs sent subsequent letters to Sternberger by certified mail on February 2, 2010, and March 30, 2010. The third letter sent to Sternberger by certified mail also contained the March 9, 2010 report of Gurtler Bros. Consultants, LLC, which reported that plaintiffs' home was in "serious structural distress."
At trial, Michael Gurtler, of Gurtler Bros. Consultants, LLC, was accepted as an expert in engineering, contracting, general home inspections, moisture management, and thermographic imaging techniques and inspections. Mr. Gurtler testified that plaintiffs contacted him at some point in early 2010 to conduct an inspection of their home. He inspected the home on February 24, 2010, and found "numerous significant sways in the roof system" as well as cracking at the front porch, which he opined indicated that the front porch was pulling away from the house. He found that the "total settlement numbers" or the differential settlement figures were not of great concern, but that his observations of the physical
Mr. Gurtler inspected the entirety of the interior of the home. He found sheetrock cracking and separation of windows from trim work throughout various areas of the home. He inspected the attic and found that the attic framing had begun to separate due to abnormal foundation settlement. He further noticed that the attic floor joists were separating and that a roof rafter had separated from the ridge beam. Mr. Gurtler's March 2010 report indicated that the home was in "serious structural distress."
Mr. Gurtler testified that his first inspection was a "snapshot without the benefit of time." He conducted four inspections of the home over a three-year period.
As to the exterior of the home, Mr. Gurtler found significant changes to the brickwork cracking on the east wall of the home. He noticed exterior horizontal displacement of the brick, which he testified was extremely irregular. He found that some of the patchwork mortar had fallen out and the brickwork had separated from the exterior windows, allowing for rainwater intrusion.
As to the interior of the home, Mr. Gurtler conducted a thorough inspection and found additional sheetrock cracking that was not present in his previous inspections.
Mr. Gurtler and his brother, Friedrich Gurtler, a Louisiana licensed engineer, again inspected the home on May 13, 2013. During that fourth inspection, Mr. Gurtler
Gurtler Bros. issued a report on June 24, 2013.
Mr. Gurtler testified that the foundation for plaintiffs' home is a post-tension pile-supported concrete slab that, in his opinion, is continuing to settle and never completed its initial settlement. Mr. Gurtler testified that, in his opinion, the foundation of the home has failed. Mr. Gurtler provided somewhat inconsistent testimony concerning the role that the foundation design, if any, played in its failure. He stated that he could not testify as to whether the foundation design plans called for the correct number of piles or whether the home was built according to those plans. Mr. Gurtler explained that Eustis Engineering or a similar firm would be more capable of performing the pile calculations to determine if the foundation design for pile placement contributed to the foundation failure. Mr. Gurtler testified that he based his opinions contained in his reports on his physical inspections over a period of time and observations of the physical characteristics of the home.
Defendants presented the video deposition of their expert, Robert Anderson, a Louisiana licensed engineer. In the 1960s, Mr. Anderson participated in the design and development of the "Kelly system," which is the type of residential foundation used for plaintiffs' home, and has over 45 years of experience practicing as a structural engineer.
Mr. Anderson testified that he reviewed the plans for the home from J.E. Bruce Design Consultants and Lee Engineers and that he found no deficiencies in the plans. He, in fact, performed calculations of the pilings as designed and found that the piling plans complied with sound engineering practices and that the placement and number of piles called for in the plans were more than adequate for the area. He could not testify, however, as to whether the pilings were actually placed according to the plans during construction.
Mr. Anderson conducted one inspection of the home and issued his report on December 10, 2012. Mr. Anderson's inspection consisted of performing a floor level survey to determine the differential settlement reading. Mr. Anderson determined that the home had a differential settlement reading of 2.2 inches. He testified that the differential settlement
Mr. Anderson opined that the plumbing work performed by the Plaintiffs contributed to the settlement of the home. He testified that the elevation changes to the home, occurring near the master bedroom and bathroom, correlated with the plumbing work performed. He further stated that the filling of sand under the house could have contributed to additional foundation settlement. Mr. Anderson opined that many of the drywall and other defects, including the cracking of the exterior brick veneer, are purely cosmetic and do not indicate structural issues. In response to Mr. Gurtler's opinion that the home's foundation has failed, he stated that he does not consider a foundation to have failed unless it cannot be lifted and repaired. He opined that the foundation is performing "consistent with most of the homes [he is] familiar within that area."
Sternberger testified at trial that he constructed the home in accordance with the structural and engineering design plans. He testified that he personally verified that each of the 121 pilings was driven into the soil according to the plans. He further testified that he did not know the type of soil upon which he built the home. When he discovered the cracking to the east wall of the home, he contacted a bricklayer to patch the mortar. He stated that, at that time, he inspected a portion of the home's slab and did not see any cracking or issues to cause concern. After examination of the slab, he determined that the reason for the cracking of the brick veneer was expansion from heat.
Mr. Justin Roubion, with Roubion Construction, inspected the property at issue and prepared an estimate for $283,405.20 to perform shoring work to the home. His estimate included replacing existing soil, pumping new sand/fill under the home, lifting and re-aligning the home, and placing 201 concrete pilings. Mr. Stephen Fleishmann, a general contractor, also testified that he inspected plaintiffs' home in September and December of 2010. Mr. Fleishmann, the owner of Titan Construction, prepared an estimate to perform repairs to the home subsequent to the shoring work, stating that the shoring work will likely cause need for cosmetic repairs. Mr. Fleishmann prepared an estimate of $46,899.00 to repair the drywall cracks throughout the home, cracking in the east wall brick veneer, remedial paint and trim work, and to adjust interior doors and replace one exterior door.
Defendant-builder Sternberger appeals the trial court judgment against him, awarding plaintiffs $358,514.70 for damages under the New Home Warranty Act. First, Sternberger argues the trial court erred in qualifying and accepting Mr. Gurtler, who is not a licensed engineer, as an expert at trial in the field of engineering. Second, he contends that plaintiffs' claims for certain damages are perempted and/or excluded under the New Home Warranty Act. Third, he asserts that the trial court erred in dismissing his claims against third-party defendants, J.E. Bruce Design Consultants and Lee Engineers. Finally, Sternberger claims that the trial court erred in refusing to apply the statutory immunity provided to builders under La. R.S. 9:2771.
Upon our review, we find that Sternberger's assignments of error concerning the qualification of plaintiffs' expert and the dismissal of the third-party defendants
Sternberger first asserts that the trial court erred in accepting Mr. Gurtler as an expert in engineering. Sternberger contends that Mr. Gurtler is prohibited from practicing engineering, including the rendering of engineering opinions, under La. R.S. 37:681, which prohibits non-licensed persons from "practicing or offering to practice engineering." Sternberger argues that, because Mr. Gurtler is not a licensed engineer, he is prohibited from rendering any engineering opinions and should not have been accepted as an expert in that field.
Admissibility of expert testimony in Louisiana is governed by Louisiana Code of Evidence article 702. At the time of trial, La. C.E. art.702 provided:
The admissibility of expert testimony under La. C.E. art. 702 "turns upon whether it would assist the trier of fact to understand the evidence or to determine a fact in issue." Cheairs v. State, 03-0680 (La. 12/3/03), 861 So.2d 536, 542, quoting La. C.E. art. 702, Official Comment (c), citing 3 J. Weinstein & M. Berger, Weinstein's Evidence, P 702(02) (1981). A trial judge has "broad discretion in determining whether expert testimony should be held admissible and who should or should not be permitted to testify as an expert." Cheairs, 861 So.2d at 541.
The Louisiana Supreme Court recently adopted a three-part inquiry to determine whether expert testimony is admissible when the qualifications of the expert are challenged.
In this case, Sternberger challenges Mr. Gurtler's expert testimony solely on the basis of the first prong of the inquiry listed above — i.e., whether he "is qualified to testify competently regarding the matters he intends to address." The record reflects that Mr. Gurtler received a Bachelor of Science in Civil Engineering from Tulane University in 1978 and has been in the home inspection industry since the 1980s. He has inspected thousands of homes for resale purposes as well as with respect to damages from storms, defective construction, and moisture intrusion.
Mr. Gurtler testified that he has been previously accepted as an expert in civil engineering in multiple parishes throughout Louisiana as well as in other states and in federal court. He has also qualified as an expert in multiple Louisiana courts in general contracting, home inspection, moisture management, and construction management.
At trial, Mr. Gurtler testified to his thorough interior and exterior inspections of plaintiffs' home over a three-year period. He found that, at each inspection, the drywall cracking and trim work separations became more pronounced. He testified that, in his experience, the physical findings in plaintiffs' home, including nonfunctioning windows and doors, were extremely abnormal for a newly constructed home. In 2013, Mr. Gurtler and his brother, Friedrich Gurtler, inspected the home. Mr. Gurtler testified that he found the front porch columns were "displaced relative to their original positions" and that the front porch began to slope toward the front door of the home. During that inspection, he and Friedrich Gurtler performed floor level readings to measure differential settlement and compared those readings to those from the 2010 inspection. Considering the increased differential settlement, continuing several years after construction, Mr. Gurtler and Mr. Friedrich Gurtler opined that the home was in serious structural distress. Mr. Gurtler testified that he based his opinions primarily upon his observations and physical findings during the home's inspections, over a period of three years.
There is no requirement under La. C.E. art. 702 or under the three-prong inquiry adopted by the Louisiana Supreme Court in Cheairs that mandates that an expert be licensed in a field to provide expert testimony in that field. See Voth v. State Farm Fire & Cas. Ins. Co., 07-4393, 2009 WL 411459, 2009 U.S. Dist. LEXIS 18479 (E.D.La. 2/17/09). In qualifying an expert witness, "the emphasis is on learning and skill rather than on possession of a license in a particular field." Malcomb v. Humphries, 347 So.2d 1, 3 (La.App. 3 Cir.1977); see also Cheairs, 861 So.2d at 542. In fact, formal education or training in a particular field is not always necessary to qualify as an expert in a particular field. Mistich v. Volkswagen of Germany, 95-0939 (La. 1/29/96), 666 So.2d 1073. Experience alone is normally sufficient to qualify a witness as an expert. Cheairs, supra.
The lack of a license in a field does not carte blanche prohibit the qualification of that expert or the admissibility of his
A trial judge has broad discretion in both the qualification of an expert witness as well as in determining the admissibility of that expert's testimony. Based upon Mr. Gurtler's education, knowledge, and experience, we find that the trial judge did not abuse her discretion in accepting Mr. Gurtler as an expert in the field of engineering. This assignment lacks merit.
On appeal, Sternberger asserts that the trial judge erred in awarding plaintiffs damages under the New Home Warranty Act. First, Sternberger claims that plaintiffs' claims for reimbursement for plumbing repairs are perempted under the two-year warranty period provided under La. R.S. 9:3144. Second, he asserts that plaintiffs are precluded from receiving reimbursement for plumbing repairs because they failed to provide him the statutorily required notice under La. R.S. 9:3143. Third, he asserts that the trial judge erred in awarding plaintiffs damages for flatwork repairs, including repairs to the home's driveways and sidewalks, asserting that those damages are specifically excluded under La. R.S. 9:3143.
The Louisiana Supreme Court has recently discussed the purpose and scope of The New Home Warranty Act (NHWA). In Shaw v. Acadian Builders & Constrs., LLC, 13-0397 (La. 12/10/13), 130 So.3d 914, 917, the Court stated:
The NHWA provides the exclusive remedies, warranties, and prescriptive periods as between the builder and owner relative to new home construction. Stokes v. Oster Dev., Inc., 01-780 (La.App. 5 Cir. 1/15/02), 807 So.2d 987, 990. Louisiana jurisprudence has consistently held that the NHWA is the exclusive remedy when the cause of action arises from construction defects, violations of the building code, or poor workmanship. Thorn v. Caskey, 32,310 (La.App. 2 Cir. 9/22/99), 745 So.2d 653; Sowers v. Dixie Shell Homes of Am., Inc., 33,390 (La.App. 2 Cir. 5/15/00), 762 So.2d 186, writ denied, 00-1770 (La. 9/22/00), 768 So.2d 1286; Prestridge v. Elliott, 847 So.2d 789, 793 (La.App. 3 Cir. 6/4/03).
The New Home Warranty Act provides the following express warranties:
La. R.S. § 9:3144.
The warranty commencement date is the date when legal title is conveyed to the initial purchaser or the date the home is first occupied, whichever occurs first. Id; Shaw v. Acadian, 130 So.3d at 917; La. R.S. 9:3143(7). Concerning the five-year warranty provided under La. R.S. 9:3144, the NHWA defines "major structural defect" as "... any actual physical damage to the following designated load-bearing portions of a home caused by failure of the load-bearing portions which affects their load-bearing functions to the extent the home becomes unsafe, unsanitary, or is otherwise unlivable[.]" The statute lists the following designated load-bearing portions:
See La. R.S. 9:3143.
The NHWA also provides the following relevant exclusions to the warranty:
La. R.S. 9:3144.
Sternberger asserts that plaintiffs' claims for reimbursement for plumbing repairs as well as for flatwork repairs are perempted and/or excluded under the NHWA. Sternberger first asserts that the trial judge erred in awarding damages for plumbing repairs because plaintiffs did not provide him with the statutorily required notice of the plumbing defects under La. R.S. 9:3145 prior to performing the sewer line repairs. The NHWA provides that, before undertaking any repair himself, the owner shall give notice to the builder of the alleged defects, advising the builder of all defects and giving him a reasonable opportunity to comply with the Act and to make repairs. La. R.S. 9:3145; Stokes, supra. Further, as stated above, La. R.S. 9:3144(B)(16) specifically excludes compensation for any defect not reported in writing to the builder with sufficient opportunity to repair.
The record reflects that plaintiffs did not provide notice to Sternberger prior to initiating the plumbing repairs. However, plaintiffs do not allege that the plumbing itself was defective. Rather, plaintiffs claim, as the trial judge found, that the plumbing issues were a result of the failing foundation. The notice requirement under the NHWA is notice of the alleged defect for which one seeks damages. In this case, the alleged defect is the failing foundation as a major structural
Sternberger also asserts that plaintiffs' claims for plumbing repairs are perempted pursuant to the two-year peremptive provided under La. R.S. 9:3144. As discussed above, plaintiffs do not claim, and the trial court did not find, that the plumbing system itself was defective, necessitating repairs. Rather, the trial judge found that the abnormal settlement of the newly constructed home caused the resulting plumbing damages. Therefore, under the facts of this case, we find that the five-year warranty period applicable to major structural defects under La. R.S. 9:3144 applies.
The applicable warranty commencement date in this case is the date on which the home was first occupied. See Shaw, supra; La. R.S. 9:3143(7). Further, plaintiffs had thirty days after the warranty period expired to initiate suit. See La. R.S. 9:3146. Mr. Reese Kinler, an employee with the St. Charles Parish Department of Planning and Zoning, testified that the Parish did not release the home for purposes of electricity connection until May of 2005 and did not issue a permit for occupancy until August 1, 2005. At trial, the previous owners, the Hingles, testified that they first occupied the home in April of 2005. In her reasons for judgment, the trial court relied on the Parish employee's testimony concerning occupancy. However, the trial judge acknowledged that, even if she believed the Hingles' testimony that they first occupied the home in April of 2005, plaintiffs' suit was timely fax-filed on April 30, 2010, within the thirty-day period following expiration of the five-year warranty period for claims arising out of major structural defects. We find the trial judge was correct in finding that plaintiffs' claims are not preempted under the facts of this case.
Sternberger also contends that the trial court erred in awarding plaintiffs damages for the entire amount of the Titan Construction estimate, which included $15,720.00 for repairs to concrete sidewalks and driveways as well as $400.00 for a fence repair, asserting that those damages are specifically excluded under the NHWA.
La. R.S. 9:3144 specifically excludes from the NHWA "[f]ences, landscaping, including, but not limited to, sodding, seeding, shrubs, existing and new trees, and plantings, as well as off-site improvements, all driveways and walkways, or any other improvement not a part of the home itself." Plaintiffs argue to this Court that the damages awarded for flatwork were not awarded under the NHWA; rather, plaintiffs contend that the trial court awarded damages for the flatwork and fence repair under general theories of negligence. The NHWA is the exclusive remedy to a homeowner against a builder for damages related to construction defects. Stokes, supra. We find the trial judge erred in awarding plaintiffs damages for the fence repair as well as repairs to the driveways and sidewalks, which are specifically excluded under the NHWA. Accordingly, we amend the trial court judgment to deduct the $15,720.00 awarded
Sternberger also assigns as error the trial judge's denial of his statutory immunity defense under La. R.S. 9:2771, which, in pertinent part, provides:
A contractor is not the guarantor of the sufficiency of plans and specifications drawn by another. Morgan v. Lafourche Recreation District No. 5, 01-1191 (La.App. 1 Cir. 06/21/02), 822 So.2d 716, writ denied, 02-1980 (La. 10/25/02), 827 So.2d 1156. If a contractor proves that he complied with plans and specifications drawn by another, he is entitled to immunity under La. R.S. 9:2771. Id. There is no immunity, however, when a contractor does not follow plans and specifications. Cupit v. Hernandez, 45,670 (La.App. 2 Cir. 9/29/10), 48 So.3d 1114, 1119; Paragon Lofts Condominium Owners Association, Inc. v. Paragon Lofts, L.L.C., 09-0943 (La. App. 4 Cir. 02/10/10), 32 So.3d 303; Wilkinson v. Landreneau, 525 So.2d 617 (La. App. 5 Cir.1988). Further, there is no immunity if a contractor cannot show that the alleged defect is the result of insufficient plans or specifications. See La. R.S. 9:2771.
At trial, John Bruce, the structural designer, testified that he designed the home's structure and that Lee Engineers designed the home's foundation. He stated that the structural and foundation plans
At trial, Sternberger testified that he complied with the engineering and foundation design plans provided by J.E. Bruce Design Consultants and Lee Engineers. First, the trial judge, in her reasons for judgment, found that Sternberger's conclusory testimony on this issue was not credible.
In his final assignment of error, Sternberger asserts that the trial court erred in dismissing his third-party demands against J.E. Bruce Design Consultants and Lee Engineers. The trial judge found that Sternberger failed to meet his burden to prove that the alleged defect at issue was the result of insufficient or faulty structural or foundation design plans. As discussed above, Sternberger presented no expert testimony to show that the plans designed by J.E. Bruce Designs or Lee Engineers were insufficient or defective in any way. To the contrary, Sternberger's expert testified that he observed no deficiency in the third-party defendants' plans. Accordingly, we find no error in the trial court's judgment dismissing Sternberger's claims against third-party defendants J.E. Bruce Design Consultants and Lee Engineers.
Accordingly, for the reasons provided herein, we amend the trial court judgment in favor of plaintiffs against Sternberger to deduct $16,120.00, the amount awarded pursuant to the Titan Construction estimate for flatwork and fence repairs specifically excluded under the NHWA. In all other respects, we affirm the trial court judgment in favor of plaintiffs and against Sternberger.
Mr. Gurtler further rejected Mr. Anderson's theory that the plumbing work performed by Harold's Plumbing and the pumping of sand fill under the house caused the differential settlement at issue. Mr. Gurtler testified that, because Harold's Plumbing and Gator's Sand Pumping removed the soil/fill from under the house and air dry-pumped the same amount of sand/fill back underneath the house, it could not have caused the abnormal settlement to this home. Mr. Gurtler testified that the effect of those actions, if any, would be negligible. He testified that tunneling out sand and dry-pumping it back underneath a house after sewer repairs "happens every day of the week" and is "standard operating procedure[] in sewer repairs."
Upon our review of the record in this case, we cannot say that the trial judge was manifestly erroneous in her factual finding that a major structural defect existed in this case.