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Gaston v. Bobby Johnson Equipment Co.11/3/2000
t have determined that Johnson was a manufacturer under La. C.C. art. 2545 because recovery was allowed for loss of profits. Therefore, the trial court erred in failing to also award attorney fees. This argument has merit.
The trial court did not specifically state in reasons for judgment that Johnson was a manufacturer of the engine or that he knew of the defect. However, the trial court did make an award for loss of profits. The liability of a bad faith seller, that is one who knew of the defect or was a manufacturer who is deemed to know of the defect, is governed by La. C.C. art. 2545, discussed above. The jurisprudence construing these provisions holds that while a bad faith seller is liable for damages, including loss of profits and attorney fees, a good faith seller is not. When the thing sold has a redhibitory defect, the seller who knew not of the vices of the thing is only liable for the return of the price and the expenses of the sale.
A manufacturer is conclusively presumed to have knowledge of defects in the object it produces. Since the manufacturer's knowledge is conclusively presumed, the manufacturer is deemed to be in bad faith in selling a defective product and is liable to the buyer for damages and attorney fees, in addition to the purchase price and expenses occasioned by the sale. Recovery for lost profits is an element of damages which is only allowed against a bad faith seller or manufacturer. Frentress v. Howard, 31,609 (La. App. 2d Cir. 2/24/99), 728 So. 2d 1019.
In the present case, it was not shown that Johnson knew that the engine was defective. The trial court allowed recovery to Gaston for lost profits, apparently finding that Johnson was a manufacturer. That conclusion is supported by the record. After its purchase from McCoy, Johnson further modified the engine by installing additional parts on it to make it compatible with Gaston's truck. It then sold the modified engine to Gaston. Therefore, Johnson falls within the definition of a manufacturer contained in La. R.S. 9: 2800.53. Accordingly, we find that the trial court erred in failing to make an award to Gaston for attorney fees.
An award of attorney fees must be reasonable, based upon the degree of skill and work involved in the case, the number of court appearances, the depositions, and the office work involved. Frentress v. Howard, supra.
Gaston's attorney submitted an affidavit and documentation outlining the hours expended and the expenses charged in the prosecution of this case. Time was spent in client and witness interviews, gathering evidence, researching the law, preparing pretrial briefs, trial preparation and actual litigation of this case. Gaston's counsel has submitted documentation supporting an attorney fee award of $9,096.00 and expenses of $883.52. We find that in light of the work involved in this case, the charges are reasonable and accordingly we award these amounts to the plaintiff.
CONCLUSION
For the reasons stated above, we affirm that portion of the trial court judgment awarding the plaintiff, Lawrence Gaston, recovery of $4,500.00 for the purchase price of the engine, $700.00 in labor, $400.00 for parts, $1,000.00 for a new engine block and crankshaft, and $10,080.00 in loss of profits.
We reverse that portion of the trial court which failed to award attorney fees to Gaston. We award attorney fees to the plaintiff in the amount of $9,096.00 and expenses in the amount of $883.52. Costs in this court are assessed to the defendant, Bobby Johnson Equipment Company, Inc.
AFFIRMED IN PART, REVERSED IN PART AND RENDERED.
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