BOLLINGER MACH. SHOP v. US Marine, Inc.

595 So. 2d 756, 1992 WL 36382
CourtLouisiana Court of Appeal
DecidedMarch 18, 1992
Docket91-CA-0989
StatusPublished
Cited by27 cases

This text of 595 So. 2d 756 (BOLLINGER MACH. SHOP v. US Marine, 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
BOLLINGER MACH. SHOP v. US Marine, Inc., 595 So. 2d 756, 1992 WL 36382 (La. Ct. App. 1992).

Opinion

595 So.2d 756 (1992)

BOLLINGER MACHINE SHOP AND SHIPYARD, INC.
v.
UNITED STATES MARINE, INC.

No. 91-CA-0989.

Court of Appeal of Louisiana, Fourth Circuit.

February 25, 1992.
On Rehearing March 18, 1992.

*757 Gregory F. Gambel, Mark W. Smith, Gambel, Calvert and Smith, New Orleans, for appellant.

David C. Treen, Charles K. Reasonover, Duris L. Holmes, Deutsch, Kerrigan & Stiles, New Orleans, and L. Clifton Dickerson, III, Lockport, for appellee.

Before SCHOTT, CIACCIO and PLOTKIN, JJ.

CIACCIO, Judge.

This is an appeal from a judgment of the trial court granting plaintiff's request for preliminary injunction. For the following reasons, we affirm in part and remand the case for further proceedings consistent with this opinion.

This lawsuit arose out of a contract dispute between Bollinger Machine Shop and Shipyard, Inc. (hereinafter "Bollinger") and United States Marine, Inc. (hereinafter "U.S. Marine"). In November of 1989, Bollinger contracted with the U.S. Navy to build eight fiberglass vessels known as landing craft personnel large or LCPLs. Pursuant to this agreement, Bollinger subcontracted with U.S. Marine to fabricate some of the tooling, known as plugs and molds, to be used in the construction of these boats. Bollinger had contracted with U.S. Marine on previous occasions for other projects which are not part of the present dispute.

The initial contract between Bollinger and U.S. Marine for the LCPL project consisted of a verbal agreement between Bollinger and U.S. Marine for the construction of plugs and molds for a fixed price of $88,307.00. This figure was based on the number of manhours necessary for U.S. Marine to complete the plugs and molds, which were to be used in the fabrication of the vessels. Pursuant to this agreement, U.S. Marine billed Bollinger for the contract price, and Bollinger remitted $78,307.00 as payment on the contract.

While the construction of the molds was in progress, Bollinger drafted a written contract for the actual construction of the vessels by U.S. Marine for a fixed price of $667,056.00, but this document was never signed by U.S. Marine.

In August of 1990, Bollinger became dissatisfied with the progress of the work performed by U.S. Marine and decided to terminate all contracts then in existence with U.S. Marine, including the LCPL project. Bollinger requested the return of all equipment and materials in the possession of U.S. Marine in conjunction with these projects. U.S. Marine eventually turned over all materials relating to other *758 projects, but refused to release the LCPL equipment, i.e. the plugs and molds which were under construction and necessary for the completion of the LCPLs.

On August 20, 1990, Bollinger filed a "Petition for Temporary Restraining Order and Injunctive Relief or Alternatively for a Writ of Sequestration" alleging irreparable injury because of U.S. Marine's failure to surrender the LCPL plugs and molds. On the same date, the trial court signed an order stating that U.S. Marine was "hereby temporarily restrained, enjoined, and prohibited from denying Bollinger Machine Shop and Shipyard, Inc. access to any equipment and materials relating to the project known as the LCPL project for any purpose, including transportation of such equipment and materials...."

Pursuant to this order, Bollinger took possession of the plugs and molds for the LCPL project by removing them from the U.S. Marine premises and transporting them to another site. Bollinger subsequently dismissed its petition for writ of sequestration as the equipment sought had been obtained. The restraining order provided that it would expire ten days from the date of issuance; however, the parties agreed to continue the effect of the restraining order until the hearing on the preliminary injunction had taken place.

This matter was then referred to the commissioner's office by the trial judge, and a hearing on the preliminary injunction was commenced on September 11, 1990. On September 20, the commissioner rendered a report recommending "that a preliminary injunction issue in the form and substance of the temporary restraining order." This recommendation was made the judgment of the trial court on January 28, 1991. This appeal followed.

Appellant, United States Marine, asserts that the temporary restraining order and the subsequent preliminary injunction were erroneously issued by the trial court. They argue that Bollinger failed to prove its ownership of the equipment sought or that irreparable injury would result without issuance of injunctive relief. Appellant also argues that the injunction issued was in mandatory form and required a full trial on the merits prior to issuance. Finally, appellant claims damages and attorney's fees for the wrongful issuance of the injunctive relief.

The Preliminary Injunction

The preliminary injunction in this case continued in form and substance the temporary restraining order which prohibited U.S. Marine from denying Bollinger access to the plugs and molds for the LCPL project. Article 3602 of the La. C.C.P. provides that a preliminary injunction shall not issue unless notice is given to the adverse party and an opportunity had for a hearing. Further, a preliminary injunction may issue merely on a prima facie showing by the plaintiff that he is entitled to the relief sought and that he would suffer irreparable injury if such relief is not granted, since it is designed only to preserve the status quo until a full trial on the merits can be had. The issuance of a permanent injunction, on the other hand, takes place only after a trial on the merits in which the burden of proof is a preponderance of the evidence rather than a prima facie showing. Werner Enterprises v. Westend Development Co., 477 So.2d 829 (La.App. 5th Cir.1985), citing New Orleans Federal Savings & Loan Association v. Harry Lee, 425 So.2d 947 (La.App. 5th Cir.1983).

Appellant argues that the injunctive relief issued by the trial court was in mandatory form, i.e., commands the doing of something, and therefore had the effect of a permanent injunction. Bollinger, on the other hand, contends that the order was not mandatory as it only prohibited U.S. Marine from denying Bollinger access to the equipment, and did not require appellant's return or delivery of the items sought.

Louisiana jurisprudence had generally held it improper for a trial court to grant a mandatory injunction upon a prima facie showing at the hearing of a preliminary injunction. Werner Enterprises v. Westend Development Co., supra. However, our courts have held that an injunction in mandatory form may be properly issued in summary proceedings where all *759 parties had an opportunity to present their case in an evidentiary hearing. Dore v. Jefferson Guar. Bank, 543 So.2d 560 (La. App. 4th Cir.1989); Kliebert Educ. Trust v. Watson Marine Services, 454 So.2d 855 (La.App. 5th Cir.), writ denied, 457 So.2d 682 (La.1984). Further, the standard of proof to show entitlement to relief sought at such an evidentiary hearing is by a preponderance of the evidence, rather than a prima facie showing. Maestri v. Destrehan Veterinary Hosp., 554 So.2d 805 (La. App. 5th Cir.1989); Gurvich v. New Orleans Private Patrol Service, Inc., 578 So.2d 195 (La.App. 4th Cir.1991).

Although the language of the injunctive relief granted in this case purports to merely restrain or enjoin U.S.

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Bluebook (online)
595 So. 2d 756, 1992 WL 36382, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bollinger-mach-shop-v-us-marine-inc-lactapp-1992.