American Bank v. Red Diamond Supply Co.

472 So. 2d 155, 1985 La. App. LEXIS 8955
CourtLouisiana Court of Appeal
DecidedJune 3, 1985
DocketNo. 85-CA-107
StatusPublished
Cited by2 cases

This text of 472 So. 2d 155 (American Bank v. Red Diamond Supply Co.) 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
American Bank v. Red Diamond Supply Co., 472 So. 2d 155, 1985 La. App. LEXIS 8955 (La. Ct. App. 1985).

Opinion

BOWES, Judge.

This suit originated on April 4, 1978 when American Bank instituted proceedings against defendants, Red Diamond Supply Company, Inc. and John R. Pertuit, to recover $94,064.00, together with interest and attorney’s fees, as the holder and owner of a promissory note in the amount sued upon. The note, dated February 11, 1977, was executed by both defendants and was secured by the pledge of three mortgage notes, to wit:

1. A collateral mortgage by Red Diamond Supply Co., Inc. and John R. Pertuit dated October 11, 1971 in favor of the American Bank in the amount of sixty-two thousand dollars ($62,000.00) by the following property:
(a) Lots 1813, Block 1 of Mozella Town-site and,
(b) Lots 9, 10, 11, and 12, Block 1 of Mozella Townsite
2. A collateral mortgage note dated October 11, 1971 in the amount of thirty-three thousand dollars ($33,000.00) by John R. Pertuit in favor of the American Bank secured by property in the Monsanto subdivision, namely the family home.
3. A collateral mortgage note dated September 1, 1976 in the amount of fifty thousand dollars ($50,000.00) by John R. Pertuit in favor of the American Bank secured by property in the Monsanto Subdivision, namely the family home.

Judgment was rendered in the suit on November 12, 1979, recognizing all three collateral mortgages and granting American Bank a judgment for Ninety-four thousand sixty-four dollars (94,064.00) with the three mortgages as security. That judgment was appealed by the defendants (and appellants herein) on April 10, 1980.

The Fourth Circuit Court of Appeal rendered judgment on July 7, 1981 (see 402 So.2d 729), affirming the trial court judg[157]*157ment. Rehearing was refused September 17, 1981 and writs to the Supreme Court were refused on December 14, 1981 (see 407 So.2d 747), thereby rendering this judgment final in every legal sense.

Between the time the order for appeal was granted, April 10, 1980, and the date the Louisiana Supreme Court denied writs, December 14, 1981, a number of documents were filed, accepted and acted upon by the trial court. This series of events began on June 4, 1980 when the State filed a document styled “Petition for Intervention and for Injunctive Relief.” This “petition” precipitated a multitude of subsequent filings, including, but not limited to, answers, re-conventional demands, third party demands, supplemental petitions and answers, exceptions, motions for summary judgment and finally concluded with a motion to set for trial, which was signed October 29, 1981.

The trial on the foregoing pleadings, some of which directly or indirectly dealt with the judgment rendered November 12, 1979, took place over an extended period of time, beginning on February 11, 1982; with the case formally being considered under advisement June 4, 1984. The judgment, which is the basis of this appeal, was finally rendered September 28, 1984, with reasons for the judgment following on October 19,1984. That judgment reads in pertinent part as follows:

After hearing the evidence, argument of counsel and consideration of the briefs, as well as the law, it is the judgment of the Court that:
1.The American Bank has sufficiently carried the burden of proof insofar as its demand against the Red Diamond Supply Company, and/or John R. Pertuit, and there is, therefore, Judgment in favor of American Bank and against Red Diamond Supply Co. and/or John R. Pertuit in the full sum and amount of $34,180.00, in addition to interest called for in the note of said Bank, interest to begin on date of said note; namely, November 14, 1975 (Note # 3130), until paid.
2. This Court finds as a matter of fact that the Office of the Clerk of Court, Parish of St. Charles, although negligent in its failure to record certain documents is not indebted unto the State of Louisiana.
3. The land in question purchased by the Department of Highways, State of Louisiana, is hereby declared the property of the State of Louisiana, free and clear of any mortgage, encumbrance or lien, and all allegations by the Clerk of Court, as well as the American Bank, to the contrary are dismissed, and the Clerk of Court, Parish of St. Charles is hereby Ordered to amend the records of that office so as to coincide with this Judgment.

Only the defendants, Red Diamond and John R. Pertuit, have appealed this judgment devolutively (and no party has answered the appeal), assigning the following as errors:

1. The trial judge erred in granting the American Bank judgment in the amount of thirty-four thousand one hundred eighty ($34,180.00) dollars without indicating what effect said judgment would have on previous judgment in favor of the American Bank in the amount of ninety-four thousand sixty-four ($94,064.00) dollars.

2. The trial judge erred in finding the maker date of note 3130 to be November 14,1975 without indicating what effect said finding would have on the previous judgment for ninety-four thousand sixty-four ($94,064.00) dollars.

3. The trial court erred in failing to find the promissory note in the amount of ninety-four thousand sixty-four ($94,064.00) dollars was invalid for failure of consideration.

4. The trial court erred in failing to find the mortgage promissory note for ninety-four thousand sixty-four ($94,064.00) dollars was invalid because of material alteration.

5. The trial court erred failing to find that the collateral mortgage in the amount of fifty thousand dollars ($50,000.00) [158]*158signed on September 1, 1976 was invalid as it is in violation of LA.Civil Code, Art. 2334.

6. The trial court erred in failing to find the promissory note in the amount of ninety-four thousand sixty-four ($94,064.00) dollars and its ancillary pledges were invalid due to fraud.

7. The trial judge erred in not finding that the clerk of court of St. Charles Parish was negligent and therefore liable for failure to indicate a mortgage on the mortgage certificate.

8. The trial judge erred in ruling the Department of Transportation and Development was [not] an indispensable party to the original action filed on April 4, 1978.

During the period of time all the pleadings subsequent to the original judgment were filed, Louisiana Code of Civil Procedure Article 2088 read as follows:

The jurisdiction of the trial court over all matters in the case reviewable under the appeal is divested, and that of the appellate court attaches, on the granting of the order of appeal and the timely filing of the appeal bond, in the case of a suspensive appeal or on the granting of the order of appeal, in the case of a devolutive appeal. Thereafter, the trial court has jurisdiction in the case only over those matters not reviewable under the appeal, including the right to:
(1) Allow the taking of a deposition, as provided in Article 1437:
(2) Extend the return day of the appeal, as provided in Article 2125;
(3) Make, or permit the making of, a written narrative of the facts of the case, as provided in Article 2131;

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Related

Schnatz v. Schnatz
501 So. 2d 318 (Louisiana Court of Appeal, 1987)
American Bank v. Red Diamond Supply Co.
475 So. 2d 360 (Supreme Court of Louisiana, 1985)

Cite This Page — Counsel Stack

Bluebook (online)
472 So. 2d 155, 1985 La. App. LEXIS 8955, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-bank-v-red-diamond-supply-co-lactapp-1985.