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Roman Catholic Church of the Archdiocese of New Orleans v. Louisiana Gas Service Co.
Louisiana Supreme Court
618 So. 2d 874 (1993)
The Roman Catholic Church of the Archdiocese of New Orleans (plaintiff) purchased a 13-building apartment complex from the Department of Housing and Urban Development (HUD) on the condition that the Church use the entire complex as low-income rental housing for 200 families. Louisiana Gas Service Company (defendant) supplied the complex with gas. Louisiana Gas’s equipment malfunctioned, causing a fire in one of the buildings in the complex. The Church restored the building to its pre-fire condition and brought suit against Louisiana Gas to recover the renovation costs. The trial court found in favor of the Church. The court found that the restoration costs exceeded the value of the building prior to the fire. As a result, the trial court limited the Church’s damages to the amount necessary to restore the building to the condition it was in before the fire, reduced by depreciation. The court of appeal affirmed. The Louisiana Supreme Court granted certiorari.
Rule of Law
Holding and Reasoning (Dennis, J.)
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