canal/claiborne, Limited v. Stonehedge Development, LLC

156 So. 3d 627, 2014 La. LEXIS 2618
CourtSupreme Court of Louisiana
DecidedDecember 9, 2014
Docket2014-C -0664
StatusPublished
Cited by8 cases

This text of 156 So. 3d 627 (canal/claiborne, Limited v. Stonehedge Development, LLC) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
canal/claiborne, Limited v. Stonehedge Development, LLC, 156 So. 3d 627, 2014 La. LEXIS 2618 (La. 2014).

Opinions

GUIDRY, Justice.

_JjThe Louisiana Constitution of 1974 provides for the waiver of sovereign immunity from suits in contract or tort against the state, a state agency, or a political subdivision. La. Const. art. XII, Sect. 10(A). In all “other suits against the state, a state agency, or a political subdivision,” the legislature “may authorize” such suits by a “measure ... waiving] immunity from suit and liability.” La. Const. art. XII, Sect. 10(B). Following Hurricane Katrina, the defendant state agency for a period of time failed to remove its partially damaged movable property from the premises of the plaintiffs building. During this time, the defendant state agency also failed to remit rental payments to plaintiffs lessee, who had in turn subleased the premises to the defendant state agency. The plaintiff sought remuneration for lost rental income. The issue presented in this case is whether the plaintiffs quasi-contractual claim of unjust enrichment, based on the lost rental income, falls within the scope of that waiver of sovereign immunity. For the reasons set forth below, we find the plaintiffs unjust enrichment claim does not fall within the scope of the waiver of sovereign immunity in contract or tort. We also find the plaintiffs suit asserting a claim of unjust enrichment has not been otherwise permitted by the legislature in a “measure authorizing ... immunity from suit and liability.”

| .FACTS and PROCEDURAL HISTORY

Canal/Claiborne, Limited (hereinafter “Canal/Claiborne”) is the owner of property located at 1661 Canal Street in New Orleans. In January 1995, Canal/Claiborne entered into a lease with Stonehedge Development, L.L.C. (hereinafter “Stonehedge”). Stonehedge, in the business of leasing properties to governmental entities, entered into a sublease in June 1995 with the State of Louisiana, Department of Children and Family Services (hereinafter “Department”). The Department occupied the premises, remitting monthly rent payments of about $53,000.00 to Stonehedge, which in turn remitted monthly payments of about $86,000.00 to Canal/Claiborne until Hurricane Katrina struck the city in 2005.

The premises were significantly damaged, rendering the building uninhabitable. Canal/Claiborne repaired the building and reopened it in November 2005, except those areas occupied by the Department, which had initially not allowed removal of its damaged furniture, supplies, and sensitive files. Canal/Claiborne continued to invoice Stonehedge for the monthly rentals as they accrued. By December 2005, the Department had authorized Canal/Claiborne to clean out the Department’s property from the first floor, and by March 2006, the Department had removed a major portion of its property on the second floor. The Department made no rental payments from November 2005 until the middle of June 2006, when the Department entered into an emergency procurement lease directly with Canal/Claiborne and began remitting payments to Canal/Claiborne.

Canal/Claiborne filed a petition for sums due under the lease in January 2006, alleg[631]*631ing Stonehedge was in default under the lease and that the Department, by not removing its property, was continuing to occupy the building. In July 2007, Stone-hedge filed a third party demand against the Department, incorporating all of lathe allegations contained in the original petition. In June 2010, Canal/Claiborne amended and supplemented its original petition to add a direct claim against the Department, asserting the terms of the sublease between Stonehedge and the Department and seeking additional rentals or other damages without pleading a specific legal theory. The Department filed a dilatory exception of prematurity asserting Canal/Claiborne “failed to adhere to La. R.S. 39:1673 and acquire a decision from the chief procurement officer of the Department of Administration prior to the commencement of an action in court...1 The trial court overruled the exception on two grounds: Canal/Claiborne did not directly contract with the Department and the Department had effectively waived the administrative remedy when it voluntarily withdrew a previous dilatory exception against Stonehedge and by its ongoing participation in the litigation.

Eventually the matter proceeded to a bench trial in October 2012 against the Department only, Canal/Claiborne having settled with Stonehedge; In November 2012, the trial court entered judgment in favor of Canal/Claiborne and against the Department, awarding $188,066.24 in damages with legal interest from the date of judicial demand. The judgment did not expressly state a legal theory underlying the Department’s liability, merely awarding “damages suffered ... as a result of the ... occupancy of 1661 Canal Street....”

The court of appeal affirmed the trial court’s judgment, finding no error in the denial of the Department’s exception of prematurity under La.Rev.Stat. 39:1673. The appellate court found no error in the trial court’s conclusion that Canal/Claiborne was not a contractor with the Department and that Canal/Claiborne’s suit “is for unjust enrichment or damages for trespass.” Canal/Claiborne, Limited v. Stonehedge Development, LLC, 13-641 (La.App. 5 Cir. 2/26/14), 136 So.3d 326, 328.

The Department applied for writs of review in this court and, at the same time, filed a declinatory exception of lack of subject matter jurisdiction and a peremptory exception of prescription. The Department has for the first time in any court raised the issue of subject matter jurisdiction, arguing that Canal/Claiborne has asserted a quasi-contractual unjust enrichment claim against the Department for storing items on Canal/Claiborne’s property for a certain period of time. The Department asserts that, under La. Const. art. XII, Sect. 10(A), “[njeither the state, a state agency, nor a political subdivision shall be immune from suit and liability in contract or for injury to a person or property.” Because sovereign immunity has not been waived as to suits asserting claims for unjust enrichment, and because Canal/Claiborne’s claim is a quasi-contractual claim for unjust enrichment, the Department contends the judgment of the trial court is a nullity under La.Code Civ. Proc. art. 2002(A)(3) because the court lacked jurisdiction over the subject matter of the claim.

We granted the writ application to determine whether the plaintiff’s unjust enrichment claim falls within the scope of the [632]*632waiver of immunity “from suit and liability in contract” for purposes of La. Const. art. XII, Sect. 10. Canal/Claiborne, Limited v. Stonehedge Development, LLC, 14-0664 (La.06/20/14), 141 So.3d 275.

ANALYSIS

Although not raised in the lower courts, we find the Department’s exception of subject matter jurisdiction is properly raised in this court. Louisiana courts have recognized that such an exception may be raised at any stage of the proceedings, including at the appellate level. Piper v. Olinde Hardware & Supply Co., 288 So.2d 626 (La.1974); Colacurcio v. Ledet, 94-1798 (La.App. 4 Cir. 9/28/95), 662 So.2d 65. The jurisdiction of a court over the subject matter of an action or proceeding cannot be conferred by consent of the parties. La.Code Civ. Proc. art. 3. Thus, a judgment rendered by a court with no jurisdiction over the subject matter of the action or proceeding is void. Id.

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Bluebook (online)
156 So. 3d 627, 2014 La. LEXIS 2618, Counsel Stack Legal Research, https://law.counselstack.com/opinion/canalclaiborne-limited-v-stonehedge-development-llc-la-2014.