Opinion ID: 1100512
Heading Depth: 2
Heading Rank: 1

Heading: The City's Summary Judgment Motion on the Plaintiff's Breach of Contract, Detrimental Reliance, and Expropriation Claims

Text: The City argues that the court of appeal erred in reversing the trial court's grant of summary judgment in the City's favor on the plaintiff's breach of contract claim. This claim involves Mr. Suire's allegations that, before construction began on the Belle Terre Coulee project, representatives of the City walked through his neighborhood and promised him that any damage to his property would be repaired and/or restored. Specifically, in deposition, the plaintiff stated that nine persons approached his home and represented to him that portions of his patio, decking, and landscaping would have to be removed to accommodate the impending construction, but that everything would be taken care of, and that they all ... would be liable for repairing these damages. [14] The plaintiff conceded that, although he asked for documentation of these representations, none was provided. These representations created an oral contract between the plaintiff and the City, the plaintiff claimed, and the City breached this contract by failing to repair the damage to his property when asked to do so. Suire, as the party who is demanding performance of an obligation, must prove the existence of the obligation. La. Civ.Code art. 1831; Kilpatrick v. Kilpatrick, 27,241 (La.App. 2 Cir. 8/23/95), 660 So.2d 182, 185, writ denied, 95-2579 (La.12/15/95), 664 So.2d 444. And, as the plaintiff has claimed that the City was obligated to repair damages to his property that exceeded five hundred dollars, proof of this obligation is governed by La. Civ.Code art. 1846, which requires that an oral contract with price or value in excess of five hundred dollars ... must be proved by at least one witness and other corroborating circumstances. Kilpatrick, 660 So.2d at 185. The plaintiff himself may serve as the witness to establish the existence of the oral contract. Gulf Container Repair Servs., Inc. v. FIC Bus. & Fin. Ctrs., Inc., 98-1144 (La.App. 5 Cir. 3/10/99), 735 So.2d 41, 43. The other corroborating circumstances need only be general in nature; independent proof of every detail of the agreement is not required. Kilpatrick, 660 So.2d at 185. But, the other corroboration must come from a source other than the plaintiff. Gulf Container Repair Servs., Inc., 735 So.2d at 43 (finding that a compilation of the plaintiff's expenses, prepared at the plaintiff's direction and based on the plaintiff's memory, could not serve as other corroborating circumstances showing that the defendant had agreed to an oral contract to reimburse the plaintiff). We find that the plaintiff has failed, as a matter of law, to establish the existence of an oral contract under article 1846. The only proof that the plaintiff has provided in this case to establish the existence of such a contract between him and the City has consisted of his own uncorroborated deposition testimony. See, e.g., Lakewood Estates Homeowner's Ass'n, Inc. v. Markle, XXXX-XXXX (La.App. 4 Cir. 4/30/03), 847 So.2d 633, 637-38 (affirming the trial court's judgment that no oral contract was established under article 1846 where the only proof offered was the uncorroborated testimony of the party seeking to prove the contract), writ denied, XXXX-XXXX (La.9/26/03), 854 So.2d 362. The plaintiff has not offered any other proof to show that the City, through the plaintiff's asserted nine individuals, agreed to repair any and all damages to the plaintiff's home, without limit. Although the plaintiff identified some of the nine individuals who were present for the meeting in his backyard, see supra, at note 14, he has not produced testimony by any of these persons confirming the substance of the meeting. Under these circumstances, where the plaintiff has failed to offer even general corroborating proof, we find that the plaintiff has failed, as a matter of law, to establish the existence of or breach of an oral contract. Thus, the court of appeal erred in reversing the trial court's grant of summary judgment for the City on this claim.
On the basis of the same facts giving rise to his breach of contract claim, the plaintiff has argued that he is entitled to relief under the doctrine of detrimental reliance. The City asserts that the court of appeal erred in reversing the trial court's pro-City grant of summary judgment disposing of the plaintiff's detrimental reliance claim. The theory of detrimental reliance is codified at La. Civ.Code art.1967: A party may be obligated by a promise when he knew or should have known that the promise would induce the other party to rely on it to his detriment and the other party was reasonable in so relying. Recovery may be limited to the expenses incurred or the damages suffered as a result of the promisee's reliance on the promise. Reliance on a gratuitous promise made without required formalities is not reasonable. The doctrine of detrimental reliance is `designed to prevent injustice by barring a party from taking a position contrary to his prior acts, admissions, representations, or silence.' Babkow v. Morris Bart, P.L.C., XXXX-XXXX (La.App. 4 Cir. 12/16/98), 726 So.2d 423, 427 (quoting Orr v. Bancroft Bag, Inc., 29,046 (La.App. 2 Cir. (1/22/97), 687 So.2d 1068, 1070)). To establish detrimental reliance, a party must prove three elements by a preponderance of the evidence: (1) a representation by conduct or word; (2) justifiable reliance; and (3) a change in position to one's detriment because of the reliance. Lakeland Anesthesia, Inc. v. United Healthcare of La., Inc., XXXX-XXXX (La.App. 4 Cir. 3/17/04), 871 So.2d 380, 393, writ denied, XXXX-XXXX (La.6/25/04), 876 So.2d 834; Babkow, 726 So.2d at 427. Significantly, to prevail on a detrimental reliance claim, Louisiana law does not require proof of a formal, valid, and enforceable contract. Babkow, 726 So.2d at 429 (citing Morris v. People's Bank & Trust Co., 580 So.2d 1029 (La.App. 3 Cir.), writ denied, 588 So.2d 102 (La.1991)). The City argues, initially, that Suire's detrimental reliance claim must fail, as a matter of law, because there was no contract between Suire and the City. But, as noted above, proof of a detrimental reliance claim does not require proof of an underlying contract. This is so because detrimental reliance is not based upon the intent to be bound. Morris, 580 So.2d at 1036 (quoting A Student Symposium, The 1984 Revision of the Louisiana Civil Code's Articles on Obligations: Detrimental Reliance, 45 LA. L.REV. 747, 765-66 (1985)). Rather, the basis of detrimental reliance is the idea that a person should not harm another person by making promises that he will not keep. Id. Thus, the focus of analysis of a detrimental reliance claim is not whether the parties intended to perform, but, instead, whether a representation was made in such a manner that the promisor should have expected the promisee to rely upon it, and whether the promisee so relies to his detriment. Id. Therefore, we reject the City's argument that Suire's detrimental reliance claim should be dismissed as a matter of law because Suire cannot establish a valid, enforceable contract. The City also argues that Suire cannot show that he actually relied to his detriment on alleged representations that any damage to his property would be repaired, because Suire immediately consulted a lawyer and the City-Parish President's office to attempt to confirm the truth of the representations. However, to establish reliance to his detriment, Suire need only show that he suffered damages not adequately compensated by the defendant. Babkow, 726 So.2d at 428 (finding adequate proof of reliance where it was undisputed that the defendant owed a balance of $2,256 on the plaintiff's chiropractic bills) (citing Autin's Cajun Joint Venture v. Kroger Co., 93-0320 (La.App. 1 Cir. 2/16/94), 637 So.2d 538, writ denied, 94-0674 (La.4/29/94), 638 So.2d 224). Here, it is undisputed that the plaintiff allowed access to his property, and that the City has not paid to repair the damage to the property, as the plaintiff alleges that the City promised to do. Thus, the plaintiff has presented adequate summary judgment proof of this element of his detrimental reliance claim. Because we find that the City has failed to show that it is entitled to judgment as a matter of law on the plaintiff's detrimental reliance claim, we affirm the court of appeal's reversal of summary judgment on this claim.
The City contends that the court of appeal erred in reversing the trial court's grant of summary judgment in the City's favor on the plaintiff's expropriation claim. In this claim, the plaintiff alleges that a drainage bin was placed on his property, three feet beyond the boundaries of the twenty-foot servitude. [16] Placement of the bin in this manner constituted an improper taking of his property, the plaintiff claims, as the City should have obtained a permit or right-of-way agreement to conduct operations outside of the servitude. The plaintiff also claims that he continues to lose topsoil from his yard because of the construction project. [17] Article 1, section 4(B) of the Louisiana Constitution provides authority for the bringing of an inverse condemnation claim: Property shall not be taken or damaged by the state or its political subdivisions except for public purposes and with just compensation paid to the owner or into the court for his benefit. La. Const. art. I, § 4(B); Howard v. Parish of Jefferson, 03-482 (La.App. 5 Cir. 9/30/03), 857 So.2d 1203, 1206, writ denied, 2003-2999 (La.1/30/04), 865 So.2d 77. To establish inverse condemnation, a party must show that (1) a recognized species of property right has been affected; (2) the property has been taken or damaged in a constitutional sense; and (3) the taking or damaging was for a public purpose under La. Const. art. I, § 4. Avenal v. State, XXXX-XXXX (La.10/19/04), 886 So.2d 1085, 1105 (citing State Through Dep't of Transp. & Dev. v. Chambers Inv. Co., 595 So.2d 598, 603 (La.1992)). The City argues before this court that it is entitled to judgment as a matter of law, because Suire cannot establish that a taking occurred in this case based on his allegations of placement of a drainage bin outside of the City's servitude and continuing topsoil loss. Suire relies on Simmons v. Board of Commissioners, 624 So.2d 935 (La.App. 2 Cir.1993) to support his contention that a cognizable taking of his property occurred in this case. In Simmons, the plaintiffs, owners of residential lots in Bossier City, sued several defendants, including the State and the Board of Commissioners of the Bossier Levee District, alleging that the dredging of a drainage canal behind their lots resulted in a taking of their property. Id. at 938. The plaintiffs claimed that, soon after the dredging was completed, the banks of the newly dredged canal developed crevices and dropped off in large sections into the canal. Id. This process continued intermittently for more than six years after the dredging ended, the Simmons plaintiffs asserted. Id. In addition, each plaintiff estimated a loss of around 25-150 trees from the rear of his or her lot due to the bank failures. Id. at 943. The trial court found that the plaintiffs had demonstrated a taking, and awarded damages accordingly. Id. at 949. Considering the issue of whether a taking of the plaintiffs' property had occurred, the court of appeal reasoned that a taking occurs where there is a substantial interference with the free use and enjoyment of property. Id. at 951. It is not necessary to show an actual divestiture of title, the court explained, so long as substantial interference is established. Id. The Simmons court concluded that the trial court's finding that a taking had occurred was unquestionably supported. Id. Although Suire is correct that Simmons suggests that allegations of soil loss resulting from public dredging activities may support an inverse condemnation claim, the interference with property Suire has alleged in this case is not as extreme as the interference demonstrated in Simmons. However, we cannot find, as a matter of law, that the interference Suire has alleged does not rise to the level of a constitutional taking or damage. We find that the City has not demonstrated its entitlement to judgment as a matter of law on the plaintiff's expropriation claim, and we affirm the court of appeal's reversal of summary judgment in the City's favor.