Bagert v. Goldsmith

504 So. 2d 648
CourtLouisiana Court of Appeal
DecidedMarch 16, 1987
DocketCA-3235, CA-3759
StatusPublished
Cited by10 cases

This text of 504 So. 2d 648 (Bagert v. Goldsmith) 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
Bagert v. Goldsmith, 504 So. 2d 648 (La. Ct. App. 1987).

Opinion

504 So.2d 648 (1987)

Brod BAGERT and Frank D. Farrar
v.
Kerry Maybee GOLDSMITH.
Consolidated With
Brod BAGERT
v.
Kerry Maybee GOLDSMITH.

No. CA-3235, CA-3759.

Court of Appeal of Louisiana, Fourth Circuit.

March 16, 1987.
Rehearing Denied April 15, 1987.
Writs Denied June 12, 1987.

*650 Bruce G. Reed, Reed & Reed, New Orleans, for plaintiffs-appellees and appellants.

Gary A. Bowers, Bowers & Bowers, Shreveport, for defendant-appellant.

Before REDMANN, C.J., and WARD and WILLIAMS, JJ.

WILLIAMS, Judge.

This decision addresses two consolidated appeals. Defendant Kerry Goldsmith appeals the issuance of writs of attachment and injunctive relief prohibiting her from removing money from two banks. She is also appealing a decision of the jury finding plaintiffs Brod Bagert and Frank D. Farrar were entitled to recover attorney's fees from her. Plaintiffs have also appealed, alleging that the trial court awarded an insufficient amount of expert witness fees and that they should have been allowed to recover attorney's fees pursuant to La.R.S. 9:2781.

Defendant hired plaintiffs to represent her in domestic matters: she wanted to set aside a community property settlement that she previously had entered into with her former spouse, and she needed counsel for a child custody case. A contract was entered into by plaintiffs and defendant wherein plaintiffs were to represent defendant in exchange for a contingency fee which was set forth in the contract. The contract was signed on July 30, 1983. On April 25, 1984, the parties entered into an addendum to the employment contract. This addendum required plaintiffs to itemize their time and expenses and begin billing defendant on an hourly basis. Defendant acknowledged that the value of services rendered by the attorneys until that date was $55,000.00. Defendant eventually discharged plaintiffs. On October 3, 1984, plaintiffs filed suit on open account against defendant seeking $82,000.00 in legal fees. At that time plaintiffs sought and were granted a writ of attachment seizing all funds defendant had in the Colonial Bank of New Orleans. Defendant also was enjoined from removing any funds from Orleans Parish. One week later plaintiffs requested a writ of attachment be issued to First Financial Bank where defendant had funds on deposit. Defendant filed an answer and reconventional demand and sought to dissolve the previous writ of attachment and the temporary restraining order. A hearing was held on a preliminary injunction requested by plaintiffs and on the motion to dissolve that defendant had filed. The trial court maintained the writs of attachment and issued a preliminary injunction that prohibited defendant from removing funds from the banks to the extent that her accounts in either bank would be reduced below $42,000.00.

Defendant appeals this decision alleging that the trial court improperly issued the writs of attachment and that injunctive relief should not have been granted. Plaintiffs argue that defendant's appeal is moot.

WRONGFUL ISSUANCE

In requesting the writ of attachment, plaintiffs made the following allegations in their petition:

(a) Defendant has and is in the process of disposing of her property and removing same from the State of Louisiana with the intent to defraud petitioners' rights by defeating their just claims for compensation, and to thereby give an unfair preference to other creditors; and,
(b) Defendant has taken steps for the purpose of placing her money beyond the reach of petitioners, who are her lawful creditors; and,
(c) Defendant is about to leave the State of Louisiana permanently before a judgment *651 can be obtained and executed against her.

Article 3501 of the Louisiana Code of Civil Procedure provides that a writ of attachment shall be issued only if it is clear from the facts of the petition or a separate affidavit that one is warranted. Mere conclusory allegations are insufficient to form the basis of the issuance of a writ of attachment. Yorkwood Savings & Loan Ass'n v. Thomas, 379 So.2d 798, 799 (La.App. 4th Cir.1980), citing Hancock Bank v. Alexander, 256 La. 643, 237 So.2d 669 (1970). The allegations contained in plaintiffs' petition are simply restatements of the code provisions contained in Article 3541 of the Louisiana Code of Civil Procedure. There are no specific allegations contained in the petition for the issuance of the writs of attachment, and the trial court was in error both in ordering the issuance of the writs of attachment and in refusing to grant defendant's motion to dissolve. Evidence introduced at the hearing did not form a sufficient basis for the issuance of the writs. Once a defendant has filed an opposition to the issuance of a writ of attachment, the burden of proof is on the plaintiff to establish the facts that constitute the grounds for issuance of the writ. Yorkwood Savings & Loan, supra. The evidence presented at the hearing was clearly insufficient to sustain the issuance of the writs.

We have also reviewed the granting of injunctive relief (a temporary restraining order and preliminary injunction) which prohibited defendant from full enjoyment of the use of her money. We further disagree with the trial court that, as a matter of law, plaintiffs were entitled to injunctive relief on their assertions that they would suffer irreparable injury unless a temporary restraining order were issued. Injunctive relief is appropriate when a party cannot be compensated for damages monetarily or in a situation in which the damages are non-pecuniary. La.C.Civ.Pr. art. 3601. The petition and the evidence presented at the hearing below do not substantiate plaintiffs' claim of irreparable injury. This is a case in which the damages are certainly monetary in nature and plaintiffs could be compensated in the event they were successful at a trial on the merits. Plaintiffs' vague and unsubstantiated allegations of defendant's intent to defraud them are insufficent grounds for the issuance of injunctive relief.

Defendant is entitled to damages and attorney's fees for the issuance of the writs of attachment and the granting of injunctive relief. La.C.Civ.Pr. arts. 3506 and 3608. She has requested that this court make an award. Defendant has been prohibited from using her money since October 3, 1984. Defendant's testimony at the hearing appears to indicate that one of the banks has frozen all of the funds that she had on deposit there, not just $42,000.00. Even assuming that this were true, defendant should not be allowed to recover damages from plaintiffs for more than the court ordered amount. Because defendant makes no other specific allegations of damages sustained as a result of the erroneous attachments and injunctive relief, we feel that defendant is entitled to legal interest on $84,000.00 from October 3, 1984 until present. We also have awarded defendant $5,000.00 in attorney's fees in connection with work done on the dissolution of the writs of attachment and injunctive relief, both in the court below and on appeal. This award does not include attorney's fees for work done on any other matter. We also award all costs to defendant because of lack of amicable demand and because plaintiffs' unjustified attachment denied her the opportunity to pay any fees with the attached funds.

We reject plaintiffs' claim that this issue is moot.

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504 So. 2d 648, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bagert-v-goldsmith-lactapp-1987.