Bugalee, LLC v. Pizzolato

700 So. 2d 1106, 97 La.App. 5 Cir. 311, 1997 La. App. LEXIS 2320, 1997 WL 598390
CourtLouisiana Court of Appeal
DecidedSeptember 30, 1997
DocketNo. 97-CA-311
StatusPublished

This text of 700 So. 2d 1106 (Bugalee, LLC v. Pizzolato) 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
Bugalee, LLC v. Pizzolato, 700 So. 2d 1106, 97 La.App. 5 Cir. 311, 1997 La. App. LEXIS 2320, 1997 WL 598390 (La. Ct. App. 1997).

Opinion

|2DALEY, Judge.

Eddie M. Taylor, a/k/a Eddie A. Taylor, appeals the trial court’s dismissal of his Motion for Temporary Restraining Order, Preliminary Injunction and Permanent Injunction. We affirm.

In 1974, Eddie Taylor executed a promissory note to Pan American Life Insurance Company (Pan American) and executed a mortgage affecting certain immovable commercial property in Gretna, Louisiana. On October 31, 1978, Taylor and his wife Rita Bova Taylor executed an Act of Sale and Assumption in favor of Joan and Anthony Pizzolato on the same property.

On November 22,1993, Pan American filed a Verified Petition to Enforce Promissory Note and Mortgage by Ordinary Process with Sequestration and Appointment of Keeper, which is the first pleading in this appellate record, and from which we glean the background of this ease. Pan American’s petition alleged that the mortgage went into default sometime in 1990. The petition also alleged that the |3Pizzolatos filed Chapter 11 bankruptcy proceedings on June 15, 1990. The automatic stay in the Pizzolatos’ bankruptcy was lifted on August 30,1993, to allow Pan American to foreclose on the mortgaged property. The petition further alleged that the amount due on the mortgage as of October 30, 1993 was $255,330.04. The petition prayed for judgment against Eddie Taylor, Rita Bova Taylor, and Joan Pizzolato individually and as Testamentary Executrix of the Succession of Anthony Pizzolato.1

Service was made upon Rita Taylor and Joan Pizzolato, but service could not be made upon Eddie Taylor. On January 7,1994, Pan American moved the court for and the court appointed a special process server to serve Eddie Taylor. The record contains an Affidavit of Service of Citation and Petition by the appointed special process server as proof that personal service was made upon Eddie Taylor on February 26,1994.

Rita filed an answer in the proceedings, alleging among other things that the debt represented by the promissory note and mortgage was not a community debt. Both Rita Taylor and Joan Pizzolato filed Acknowledgments of Receipt of Petition. The record does not contain an answer by Eddie Taylor.

On July 21,1994, Pan American and Buga-lee filed a Motion to Substitute Party Plaintiff and Counsel of Record, informing the court therein that on July 5,1994, Pan American sold its interest in the promissory note [1108]*1108and mortgage to Bugalee, L.L.C. On the same date, Bugalee moved for a preliminary default judgment against Eddie. The preliminary default judgment was confirmed on September 12,1994.

On September 8, 1994, Rita Taylor and Bugalee entered into an Agreement of Conn promise, Settlement, Waiver, and Release,, which was filed into the record. This Uagreement acknowledged Rita’s indebtedness to Bugalee for $265,993.30, representing the sum due on the promissory note and mortgage executed by Eddie Taylor in 1974 in favor of Pan American. Among other things, the agreement compromised the litigation between Rita Taylor and Bugalee, acknowledged that the parties shall enter into a consent judgment in rem whereby the property shall be seized and sold, the proceeds applied to the existing debt, that Rita Taylor is released from any further personal liability regarding the debt and that Bugalee would not seek a deficiency judgment against her if the proceeds were not sufficient to satisfy the indebtedness. The agreement specifically reserved Bugalee’s rights against the other defendants, Eddie Taylor and Mrs. Pizzolato, personally and in her representative capacity in her husband’s succession.

On December 19, 1994, Bugalee and Mrs. Pizzolato entered into an Agreement of Compromise, Settlement, Waiver, and Release, which was filed into the record. It is substantially the same as the one between Rita Taylor and Bugalee. In that agreement, Bu-galee released Pizzolato from any further personal liability once the property is seized and sold, and agreed that it would not seek a deficiency judgment against Pizzolato. ■ Bu-galee also specifically reserved its rights against the other defendants, Rita Taylor and Eddie Taylor.

On December 19, 1994, two Consent Judgments in Rem were entered into the record, both signed by the trial court. The parties to the first consent judgment were Bugalee and Rita Taylor. The consent judgment recognized the agreement between Rita Taylor and Bugalee. The parties to the second consent judgment was Mrs. Pizzolato and Buga-lee. That consent judgment recognized the agreement between Mrs. Pizzolato and Buga-lee.

IsOn January 23,1995, Bugalee filed a Motion to Examine Judgment Debtor Eddie Taylor. The record contains a minute entry dated February 21, 1995, indicating that counsel for Bugalee and Eddie Taylor were present, and the judgment debtor examination was satisfied. In February and March of 1995, the record contains notices of the fixing for sale of the Gretna property.

The next record entry is one year later on March 5, 1996, when Eddie Taylor, individually as Trustee of E & R Taylor Trust, filed an Application for Temporary Restraining Order, Preliminary Injunction, and Permanent Injunction. In his memorandum in support thereof, he alleged that Bugalee had caused to be issued a Writ of Seizure and Sale2 of property described therein, all of which is located in Metairie and none of which was the subject of the promissory note and mortgage to Pan American/Bugalee. He alleged that the Consent Judgments in Rem reduced the original mortgage to an in rem judgment since Bugalee did not reserve its rights against him and did not acknowledge its default judgment against him. He plead specifically under the provisions of LSA-C.C.P. art. 2751 that the debt had been extinguished against him. He further alleged that the trust, whose immovable property was the subject of Bugalee’s writ of fieri facias, had never been cited to appear and answer Bugalee’s claims. Attached to his application were the documents setting up the trust, dated September 3,1987.

A Bond of Injunction is found in the record, dated March 5, 1996. Bugalee filed a Motion to Dissolve the TRO and for Sanctions, Damages, Attorney’s Fees, and Forfeiture of Bond on March 14, 1996. In the motion to dissolve, Bugalee represented that it had obtained a judgment against Eddie Taylor in the trial court on|6October 5,1994,3 that a previous writ of fieri facias issued to the Sheriff of Jefferson Parish to sell immov[1109]*1109able property in Jefferson Parish in satisfaction of that judgment. After the sale of that property on March 1,1995 did not satisfy the judgment, the writ was returned “unsatisfied.” Thereafter, Bugalee caused to be issued a second writ of fieri facias whereby the Sheriff was requested to seize and sell “movable” property belonging to the judgment debtor Eddie Taylor. The description of this movable property is:

Any and all rights, title and interest which Eddie M. Taylor a/kla Eddie A. Taylor has in and to that certain irrevocable inter vivos trust known as the E & R Taylor trust, including but not limited to the use of all the income of the trust, the right to recognized as an income beneficiary of the trust, and any and all rights as Settler [sic] of the trust.

Bugalee argued that LSA-R.S. 9:2004 authorized a creditor to seize a trust beneficiary’s interest in income from a trust, and as such the seizure and sale of Eddie Taylor’s interest in income from the trust was clearly authorized.

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Bluebook (online)
700 So. 2d 1106, 97 La.App. 5 Cir. 311, 1997 La. App. LEXIS 2320, 1997 WL 598390, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bugalee-llc-v-pizzolato-lactapp-1997.