Bridgeman & Conway v. Korner Realty Co., Inc.

405 So. 2d 344, 1981 La. App. LEXIS 5301
CourtLouisiana Court of Appeal
DecidedSeptember 23, 1981
Docket11665
StatusPublished
Cited by4 cases

This text of 405 So. 2d 344 (Bridgeman & Conway v. Korner Realty Co., 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
Bridgeman & Conway v. Korner Realty Co., Inc., 405 So. 2d 344, 1981 La. App. LEXIS 5301 (La. Ct. App. 1981).

Opinion

405 So.2d 344 (1981)

BRIDGEMAN & CONWAY, et al.
v.
The KORNER REALTY CO., INC., et al.

No. 11665.

Court of Appeal of Louisiana, Fourth Circuit.

September 23, 1981.

*345 Lemle, Kelleher, Kohlmeyer & Matthews, James R. Conway, III, New Orleans, for plaintiffs-appellees.

Babovich, McDowell & Bukaty, Thomas E. McDowell, New Orleans, for Gloria Korner, defendant-appellant.

Mollere, Flanagan & Arceneaux, James T. Flanagan, Metairie, for Floral Enterprises, Inc., garnishee, defendant-in-rule.

Before SAMUEL, REDMANN, GULOTTA, CHEHARDY and KLIEBERT, JJ.

CHEHARDY, Judge.

Defendant Gloria Korner appeals an April 21, 1980 judgment dismissing her Motion to Discontinue Garnishment in favor of the plaintiffs, Bridgeman & Conway, a partnership, and Ben Daly Bridgeman and James R. Conway, III, individually.

The decision also recited that the judgment of that court rendered on October 17, 1979 ordering the garnishee, Floral Enterprises, Inc., to pay the garnishable portion of the earnings of Gloria Korner would be maintained and should remain in full force and effect. It was also decreed that there would be reserved unto Gloria Korner the right to seek reimbursement for one-half of all amounts garnished from her salary after January 1, 1980 out of the community assets and/or to seek reimbursement from Fred D. Korner, personally.

The record of the case indicates The Korner Realty Co., Inc., employed the law firm of Bridgeman & Conway for legal services in connection with its real estate business. Subsequently, Fred D. Korner, as president of the company, and individually, signed a note in an effort to settle a claim for attorney's fees. On January 18, 1978, plaintiffs obtained a judgment against The Korner Realty Co., Inc., and Fred D. Korner for the sum of $1,501.99, plus 8% interest thereon from October 24, 1977 through November 7, 1977, plus legal interest thereon from November 8, 1977 until paid, and for 25% attorney's fees on the aggregate amount of principal and interest, and for all costs, subject to a credit of $600 already paid by Mr. Korner.

On August 20, 1979, that judgment was made executory and on October 17, 1979, it was ordered that Floral Enterprises, Inc., garnishee, pay to plaintiffs, through their attorney, 25% of the disposable earnings of Gloria Korner, said deductions to continue as long as Gloria Korner was employed by the garnishee or until the judgment was paid in full plus all interest, attorney's fees and court costs.

It is uncontroverted that on November 14, 1979, Fred and Gloria Korner availed themselves of Louisiana Act 709 of 1979 *346 and agreed that after January 1, 1980 they would be separate in property.

The sole question presented to this court is whether the earnings of Gloria Korner after January 1, 1980, were rendered exempt from seizure by the plaintiffs due to the separation of property executed between her and her husband, which became effective on that date, and due to the provisions of Acts 1979, No. 707, which also became effective January 1, 1980.

LSA-C.C. art. 2357 states:

"An obligation incurred by a spouse before or during the community property regime, may be satisfied after termination of the regime from the property of the former community and from the separate property of the spouse who incurred the obligation.
"If a spouse disposes of property of the former community for a purpose other than the satisfaction of community obligations, he is liable for all obligations incurred by the other spouse up to the value of that community property.
"A spouse may by written act assume responsibility for one-half of each community obligation incurred by the other spouse. In such case, the assuming spouse may dispose of community property without incurring further responsibility for the obligations incurred by the other spouse." (Emphasis ours.)

A reasonable interpretation of this statute can only lead to the conclusion that its purpose was to exempt from seizure all separate property of the nonincurring spouse in satisfaction of obligations incurred by the other spouse during the existence of the community regime.

Regarding the retroactive application of statutes, the court said in Bostick v. Intern. Minerals & Chemical Corp., 360 So.2d 898, 900 (La.App. 2d Cir. 1978):

"Our general rule of statutory construction is that a law can prescribe only for the future; it can have no retrospective operation. C.C. Art. 8. This general rule excepts those instances where the statute specifically provides for retroactive application or where the statute does not affect a substantive right, but is only procedural or remedial. Young v. Staman, 200 So. 187 (La.App., 2d Cir. 1940); American Finance Corporation of Coushatta, Inc. v. Small, 250 So.2d 768 (La. App., 2d Cir. 1971)."

The plaintiffs contend that to discontinue the garnishments on the defendant's salary after January 1, 1980 would, in effect, be giving a retroactive application of LSA-C.C. art. 2357. Although the judgment of garnishment was rendered against Gloria Korner before she and her husband became separate in property, both their separation of property and the provisions of LSA-C.C. art. 2357 came into effect on January 1, 1980. It would seem, at first glance, therefore, that any salary earned by the defendant after that date was her separate property and therefore not subject to seizure by creditors for community debts incurred by her husband during the community property regime.

However, the court said in the case of Sun Sales Co. v. Hodges, 256 La. 687, 237 So.2d 684, 687 (1970):

"The garnishee strongly contends here, as it did in the Court of Appeal, that the seizure affects no future wages, relying upon the decision of this Court in Humphrey v. Midkiff, 122 La. 939, 48 So. 331. The decision relied upon is no longer controlling. The Wage Garnishment Law (LSA-R.S. 13:3921 et seq.), enacted after the decision, brought future earnings within the grasp of the wage seizure."

The court also said in the case of American Finance Corp. of Coushatta, Inc. v. Small, 250 So.2d 768, 774 (La.App. 2d Cir. 1971), in considering a statute which enlarged garnishment exemptions:

"In the case now before this court, the debt was created, reduced to judgment, and executed through garnishment proceedings prior to the enactment of the amending statute of 1970. If the 1970 statute were to be applied retroactively in this instance, the creditor's rights under the pre-existing contract and judgments would be substantially and materially impaired. * * *"

*347 The Supreme Court, however, considered the constitutionality of the retroactive application of the identical exemption law discussed in American Finance, supra, in Hooter v. Wilson, 273 So.2d 516 (La.1973), and, in effect, overruled the holding of American Finance, supra, at page 522:

"If we were to examine the legislation and the contract affected by it in light of whether the legislation impairs the contract or merely impairs a remedy, we would, of course, say that the right of garnishment is no more than a remedy. We would also be forced to say, as did Justice Holmes in Pittsburg Steel Co. v. Baltimore Equitable Society, 226 U.S. 455, 33 S.Ct. 167, 57 L.Ed.

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Bluebook (online)
405 So. 2d 344, 1981 La. App. LEXIS 5301, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bridgeman-conway-v-korner-realty-co-inc-lactapp-1981.