Amer. Bank & Tr. Co. v. Marbane Investments, Inc.

337 So. 2d 1209, 1976 La. App. LEXIS 4518
CourtLouisiana Court of Appeal
DecidedSeptember 20, 1976
Docket5492
StatusPublished
Cited by17 cases

This text of 337 So. 2d 1209 (Amer. Bank & Tr. Co. v. Marbane Investments, Inc.) 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
Amer. Bank & Tr. Co. v. Marbane Investments, Inc., 337 So. 2d 1209, 1976 La. App. LEXIS 4518 (La. Ct. App. 1976).

Opinion

337 So.2d 1209 (1976)

AMERICAN BANK & TRUST COMPANY, Plaintiff-Appellee,
v.
MARBANE INVESTMENTS, INC., et al., Defendants-Appellants.

No. 5492.

Court of Appeal of Louisiana, Third Circuit.

July 6, 1976.
On Rehearing September 20, 1976.

John Levy, Metairie, for defendants-appellants.

Charles N. Wooten, Ltd., by Robert P. Brenham, Lafayette, for plaintiff-appellee.

Before CULPEPPER, GUIDRY and BERTRAND, JJ.

GUIDRY, Judge.

Plaintiff-Appellee, American Bank and Trust Company, filed suit on a promissory note in the principal amount of $30,000.00 against Defendants-Appellants, Marbane Investments Inc. and Marvin Poole. The suit was filed on January 20, 1975. On February 6, 1975 plaintiff was granted a preliminary default judgment which was entered in the minutes of court. On February 11, 1975 defendants appeared, through counsel, and filed an exception of no right of action, which exception has never been disposed of. On February 12, *1210 1975 plaintiff proceeded to confirm the preliminary default judgment and on that date the trial court rendered and signed a judgment in favor of plaintiff and against defendants in the principal sum of $30,000.00. Plaintiff's counsel asserts in brief to this court that although he did receive in the U.S. mail an unsigned, undated copy of what purported to be a peremptory exception of no right of action on the morning of February 12, 1975, the official court file did not contain this filing so he proceeded to confirm the preliminary default previously entered. In any event, the record does now contain an exception of no right of action filed on behalf of defendants with a notation duly signed by a deputy clerk of court evidencing that same was received and filed on February 11, 1975.

On November 10, 1975 defendants appeared through counsel and caused a rule to issue requiring plaintiff to show cause why the default judgment of February 12, 1975 should not be annulled for having been improvidently granted. In response to this rule plaintiff filed an exception objecting to defendant's alleged improper use of summary procedure, which exception was filed on November 20, 1975. The matter was heard, plaintiff's exception was maintained and defendant's rule seeking nullity of the judgment of February 12, 1975, was dismissed at defendant's cost. Defendants then filed an application for new trial which was denied. Defendants prosecute this devolutive appeal from the judgment of the trial court which dismissed their rule for nullity of the default judgment of February 12, 1975.

We believe that the trial court erred in refusing to annul the final judgment of February 12, 1975 and in sustaining plaintiff's exception of "unauthorized use of summary procedure".

The following articles of our Code of Civil Procedure are pertinent to the matter at issue:

LSA-C.C.P. Article 927:

"The objections which may be raised through the peremptory exception include, but are not limited to, the following:
(1) Prescription;
(2) Res judicata;
(3) Nonjoinder of an indispensable party;
(4) No cause of action; and
(5) No right of action, or no interest in the plaintiff to institute the suit.
The court cannot supply the objections of prescription and res judicata, which must be specially pleaded. The nonjoinder of an indispensable party, or the failure to disclose a cause of action or a right or interest in the plaintiff to institute the suit, may be noticed by either the trial or appellate court of its own motion."

LSA-C.C.P. Article 928:

"The declinatory exception and the dilatory exception shall be pleaded prior to answer or judgment by default. When both exceptions are pleaded, they shall be filed at the same time, and may be incorporated in the same pleading. When filed at the same time or in the same pleading, these exceptions need not be pleaded in the alternative or in a particular order.
The peremptory exception may be pleaded at any stage of the proceeding in the trial court prior to a submission of the case for a decision."

LSA-C.C.P. Article 1001:

"A defendant shall file his answer within fifteen days after service of citation upon him, except as otherwise provided by law.
When an exception is filed prior to answer and is overruled or referred to the *1211 merits, or is sustained and an amendment of the petition ordered, the answer shall be filed within ten days after the exception is overruled or referred to the merits, or ten days after service of the amended petition.
The court may grant additional time for answering."

LSA-C.C.P. Article 1002:

"Notwithstanding the provisions of Article 1001, the defendant may file his answer at any time prior to confirmation of a default judgment against him."

LSA-C.C.P. Article 1701:

"If a defendant in the principal or incidental demand fails to answer within the time prescribed by law, judgment by default may be entered against him. The judgment may be obtained by oral motion in open court or by written motion, either of which shall be entered in the minutes of the court, but the judgment shall consist merely of an entry in the minutes."

LSA-C.C.P. Article 1702:

"A judgment of default must be confirmed by proof of the demand sufficient to establish a prima facie case. If no answer is filed timely, this confirmation may be made after two days, exclusive of holidays, from the entry of the judgment of default.
When the sum due is on an open account, promissory note or other negotiable instrument, an affidavit of the correctness thereof shall be prima facie proof. When the demand is based upon a promissory note or other negotiable instrument, no proof of any signature thereon shall be required."

LSA-C.C.P. Article 1843:

"A judgment by default is that which is rendered against a defendant who fails to plead within the time prescribed by law."

LSA-C.C.P. Article 2001:

"The nullity of a final judgment may be demanded for vices of either form or substance, as provided in Articles 2002 through 2006."

LSA-C.C.P. Article 2002:

"A final judgment shall be annulled if it is rendered:
(1) Against an incompetent person not represented as required by law;
(2) Against a defendant who has not been served with process as required by law and who has not entered a general appearance, or against whom a valid judgment by default has not been taken; or
(3) By a court which does not have jurisdiction over the subject matter of the suit.
Except as otherwise provided in Article 2003, an action to annul a judgment on these grounds may be brought at any time."

The defendant concedes as it must that the preliminary judgment of default entered on the 6th day of February, 1975 was valid, defendant having failed to answer within the time prescribed by law.

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Bluebook (online)
337 So. 2d 1209, 1976 La. App. LEXIS 4518, Counsel Stack Legal Research, https://law.counselstack.com/opinion/amer-bank-tr-co-v-marbane-investments-inc-lactapp-1976.