Am. Eagle, Inc. v. EMPLOYERS'LIABILITY ASSUR. CORP.

389 So. 2d 1339
CourtLouisiana Court of Appeal
DecidedJuly 7, 1980
Docket13501
StatusPublished
Cited by26 cases

This text of 389 So. 2d 1339 (Am. Eagle, Inc. v. EMPLOYERS'LIABILITY ASSUR. CORP.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Am. Eagle, Inc. v. EMPLOYERS'LIABILITY ASSUR. CORP., 389 So. 2d 1339 (La. Ct. App. 1980).

Opinion

389 So.2d 1339 (1980)

AMERICAN EAGLE, INC.
v.
The EMPLOYERS' LIABILITY ASSURANCE CORPORATION, LTD., et al.

No. 13501.

Court of Appeal of Louisiana, First Circuit.

July 7, 1980.
Rehearing Denied November 10, 1980.

*1340 Robert E. Leake, Jr., and T. Michael Masterson, New Orleans, for defendant and appellant The Employers' Liability Assurance Corp., Ltd.

Ted J. Borowski, Houma, for plaintiff and appellee American Eagle, Inc.

Frederick R. Bott, New Orleans, for third party defendant Maryland Cas. Co.

Kenneth Watkins, Houma, for third party plaintiff Marliwood Const. Co.

Robert L. Morris, Houma, for plaintiff.

Before COVINGTON, LOTTINGER and COLE, JJ.

COLE, Judge.

In 1966, appellant Marliwood Construction Co., Inc., agreed to build for appellee American Eagle, Inc., a building to house the American Bank & Trust Company of Houma. This suit arises out of certain defects in the exterior and interior wall paneling of that building.

Marliwood subcontracted the installation of the interior vinyl wall covering to Nathan Leathers. The contract between Marliwood and American Eagle originally called for use of an exterior paneling known as Alumaglass; after the contract was let, however, the specifications were changed to provide for a paneling designated as Lyn-Pan and manufactured exclusively by Construction Corporation Systems, Inc. Marliwood subcontracted the installation of the exterior paneling to Metropolitan South Construction Co., Inc. (Metso).

By the time the building was completed in 1968, defects in the interior and exterior wall paneling had begun to appear. American Eagle accepted the building, with reservation of its claims for the defective paneling, and sued Marliwood and its surety, Employers Liability Assurance Corp., Ltd. (ELAC). The latter two filed third party *1341 demands against Metso and its surety, and against Leathers. Metso's surety, Maryland Casualty, filed a reconventional demand against Marliwood and ELAC, claiming $6,000 in retainage allegedly due to Metso and assigned by Metso to Maryland Casualty. Maryland Casualty also filed a fourth party demand against Construction System.

The trial judge found the defects in the paneling were caused by improper storage at the job site and improper handling of the paneling while it was being transported to the job site and while it was being installed as part of the building. He rendered judgment in favor of American Eagle and against Marliwood and its surety in the amount of $75,607.04, and in favor of Marliwood and its surety against Metso's surety, Employers' Liability Assurance Corporation, in the amount of $38,495.65. No answers to the third and fourth party demands were filed by Metso, Leathers and Constructions Systems, and Marliwood and ELAC did not answer Maryland's reconventional demand. The record does not indicate that default judgments were taken against these defendants, and the claims against them were omitted from the final judgment. Appeal by Marliwood and its surety followed.

DISMISSAL FOR FAILURE TO PROSECUTE

Appellants urge that plaintiff-appellee's action should be dismissed as abandoned by the failure of any party to take any step in the prosecution or defense in the trial court for five years, pursuant to La.Code Civ.P. art. 561. The unusual setting in which this defense rests necessitates a brief discussion of the post-trial history of the action.

The case was tried on the merits on February 14-18, 1972. At the conclusion of the trial on the latter day, the following minute entry was made:

"The Court then directed that Briefs be submitted, and, after discussion, it was ordered that the transcript of oral testimony be given to counsel prior to the writing of such briefs. Counsel for plaintiff is to be allowed a delay of forty-five (45) days after receipt of the transcript within which to file his briefs, and thereafter, counsel for defendants are to be allowed a delay of forty-five (45) days (collectively) to file reply briefs.
"Further, with regard to the deposition of Charles Lynch, one of the witnesses herein, the ruling on which was made by this Court on February 17, 1972, counsel for the plaintiff is to be allowed a delay of fifteen (15) days from February 17, 1972, and counsel for defendants are to be allowed a delay of fifteen (15) days (collectively) to reply.

"The matter will then be taken under advisement by the Court." (Emphasis supplied.)

Thereafter, the court and the parties discovered that the court reporter who recorded the testimony during the trial was unable to transcribe the testimony.[1] After that reporter was discharged, the judge's secretary attempted to "re-construct" the testimony from the tapes and from the judge's trial notes. When this was only partially successful, the court, on December 30, 1976, issued an order calling for a post-trial conference for January 13, 1977. A subsequent order issued by the court on January 10, 1977, set the conference for February 2, 1977. After this conference, the aid of another court reporter in preparing the transcript was sought. Apparently the transcript was completed in 1978, because on September 1, 1978, another post-trial conference was held at which the parties were assigned new time schedules for post-trial briefing. On July 16, 1979, the judge rendered his reasons for judgment.

If the post-trial conference was a "step in the prosecution" by a party, the motion to dismiss the action as abandoned should be denied. The term "step in the *1342 prosecution" consistently has been defined by Louisiana courts as some formal action before the court intended to hasten the suit to judgment. DeClouet v. Kansas City Southern Railway Company, 176 So.2d 471 (La.App.3d Cir. 1965), writs denied 248 La. 383, 178 So.2d 662; Marchand v. Gene Thorpe Finance, Inc., 225 So.2d 485 (La. App. 4th Cir. 1969), writs denied 254 La. 848, 227 So.2d 592; Evergreen Plantation, Inc. v. Zunamon, 272 So.2d 414 (La.App.2d Cir. 1973), writ denied La., 274 So.2d 708; Melancon v. Wood, 303 So.2d 222 (La.App. 4th Cir. 1974). A post-trial conference whose purpose is to facilitate completion of a transcript so that briefs could be filed and a decision rendered most certainly is a "step in the prosecution" of the matter.

It is arguable, however, that a post-trial conference called by the judge is not a step taken by "the parties," and thus not sufficient to interrupt the five-year peremption provided by Article 561. We reject that argument. When the conference was called, it was a step in the prosecution or defense which inured to the benefit of all of the parties; to hold otherwise would produce the absurdity of requiring a party to make a formal motion for relief which already has been granted by the court. More importantly, however, the purpose of Article 561 is at war with such a contention. The article is not designed to dismiss actions on technicalities, but to dismiss actions which in fact have been abandoned. As Justice (then Judge) Lemmon observed in Kanuk v. Pohlmann, 388 So.2d 757 (La.App. 4th Cir. 1977), at 758:

"The purpose of the C.C.P. art. 561 is to dismiss actions which have been abandoned, and the article provides for dismissal of those cases in which a plaintiff's inaction during a legislatively ordained period has clearly demonstrated his abandonment of the case.

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389 So. 2d 1339, Counsel Stack Legal Research, https://law.counselstack.com/opinion/am-eagle-inc-v-employersliability-assur-corp-lactapp-1980.