Custom-Bilt Cabinet v. Quality Built Cab.

748 So. 2d 594, 1999 WL 1140392
CourtLouisiana Court of Appeal
DecidedDecember 8, 1999
Docket32,441-CA
StatusPublished
Cited by31 cases

This text of 748 So. 2d 594 (Custom-Bilt Cabinet v. Quality Built Cab.) 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
Custom-Bilt Cabinet v. Quality Built Cab., 748 So. 2d 594, 1999 WL 1140392 (La. Ct. App. 1999).

Opinion

748 So.2d 594 (1999)

CUSTOM-BILT CABINET & SUPPLY, INC., Plaintiff-Appellee,
v.
QUALITY BUILT CABINETS, INC., Larry Wayne Hattaway and David Randal Peters, Defendants-Appellants.

No. 32,441-CA.

Court of Appeal of Louisiana, Second Circuit.

December 8, 1999.

*596 Burnett, Walker & Baker by Glen Walker, Shreveport, Counsel for Appellant David Peters.

Simon, Fitzgerald, Cooke, Reed & Welch by Chatham H. Reed, Shreveport, Counsel for Appellant Larry Hattaway.

Byram & McCarthy by John McCarthy, Counsel for Appellee.

Before GASKINS, KOSTELKA and DREW, JJ.

GASKINS, Judge.

David Randal Peters appeals from a city court judgment finding him liable on a continuing guaranty for a debt owed by Quality Built Cabinets, Inc. to the plaintiff, Custom-Bilt Cabinet & Supply Company, Inc. For the following reasons, we affirm the trial court judgment.

FACTS

In 1994, David Peters and Larry Wayne Hattaway opened a business known as Quality Built Cabinets, Inc. (Quality Built). *597 They frequently purchased supplies and materials from Custom-Bilt Cabinet and Supply Company Inc. (Custom-Bilt) on open account. Peters and Hattaway executed a continuing guaranty to Custom-Bilt to secure payment for the purchases. In 1996, Peters thought his family would be required to relocate out of state due to his wife's employment. Hattaway purchased Peters' interest in Quality Built. However, Peters did not leave the state and opened his own personal account at Custom-Bilt to purchase materials. He did not resume his co-owner relationship with Hattaway at Quality Built. Later, Quality Built fell into arrears in payment of its debt to Custom-Bilt.

On May 28, 1998, Custom-Bilt filed suit on open account against Quality Built, Hattaway, and Peters, contending that Quality Built purchased $8,766.40 in materials from December 3, 1997 to February 23, 1998 and failed to pay. Custom-Bilt sought to recover against Peters and Hattaway personally by virtue of the continuing guaranty. Peters and Hattaway answered the petition, but Quality Built did not. On July 13, 1998, a default judgment was taken against the corporation, ordering it to pay Custom-Bilt $8,766.40, with legal interest and attorney fees in the amount of $1,250.

Peters argued that he was not liable on the continuing guaranty. In his answer to the petition, Peters contended that in May 1996, Hattaway purchased his share of Quality Built. The sale was memorialized in a document executed August 9, 1996. Peters also alleged that after the sale of his interest in the corporation, he worked on his own and not with Hattaway. According to Peters, at the time he sold his interest in Quality Built to Hattaway, he contacted Custom-Bilt and learned that the credit balance for Quality Built was zero. He also alleged that he told those working in the financial department of Custom-Bilt that he was no longer responsible for any debts owed by Quality Built. Peters claimed that his responsibility on the continuing guaranty was canceled by the sale of his interest in Quality Built to Hattaway.

On the day of trial, October 29, 1998, Peters filed a cross-claim against Hattaway and Quality Built. Peters denied personal liability on the debt, but in the event he should be found liable on the debt, he sought to recover against Quality Built as the principal obligor and sought indemnity and/or contribution against Hattaway. It was noted that Hattaway was in the process of filing personal bankruptcy. After hearing the evidence adduced, the trial court determined that there was a continuing guaranty which was clear and unambiguous. The court also found that there was no clear and unequivocal showing that the continuing guaranty had been revoked. At the close of the hearing, the court stated on the record that, regarding the cross-claim by Peters, Hattaway would be liable on the debt, but a specific judgment against Hattaway was not pronounced. No mention was made as to whether Peters should have been entitled to indemnity from Quality Built. On October 30, 1998, Hattaway filed for bankruptcy, instituting an automatic stay as to other court proceedings involving him.

Peters objected to the ruling of the trial court and several letters were passed between counsel for the parties and the court. A judgment was signed on November 4, 1998, granting recovery to Custom-Bilt against Peters for $8,766.40, with legal interest from the date of default and attorney fees in the amount of 25% of the amount to be collected, plus costs. The rights of Custom-Bilt and Peters against Hattaway were reserved. Also, Peters' rights against Quality Built were reserved.

Peters filed a motion for written reasons for judgment and findings of fact. The court took no action on this motion. Peters also filed a motion to reopen the case, to take evidence on Hattaway's bankruptcy filing and evidence on the attorney fee issue. In addition, Peters filed a motion for new trial, claiming that the judgment *598 in this case was contrary to the law and the evidence. Peters also alleged in the alternative that Hattaway's filing for bankruptcy would affect the form of judgment and a new trial was necessary to address that issue. The motion for new trial bears a handwritten notation that it was denied, but it does not contain the trial judge's signature or initials.

On November 19, 1998, Peters filed a motion for appeal. He claims that the trial court erred in finding that there was a binding continuing guaranty agreement in this case and that the trial court erred in finding that the guaranty agreement had not been revoked. He also claims that the trial court erred in awarding attorney fees and erred in failing to file written reasons for judgment, as requested. Peters claims that the trial court issued an improper partial final judgment by failing to rule upon the cross-claim against Hattaway and Quality Built. He further contends that because the trial court did not rule on his motion for new trial, this matter is more properly considered as a writ application and not an appeal.

WRIT OR APPEAL

Peters first raises a procedural issue as to whether this matter should be considered as an appeal or a writ application. The judgment in this case was signed, but the denial of the motion for new trial was not. Someone merely wrote the word "denied" on the order and filed it with the clerk's office. Peters contends that this raises the issue of whether the appeal delays have actually commenced. He contends that if the delays have not commenced, this matter may be more properly termed a writ application, rather than an appeal. However, Peters conceded that under either theory, the matter is properly before this court for review. Custom-Bilt contends that this is a "non-issue" and there is no need to discuss whether this is an appeal or a writ.

We find that the lack of a judge's signature on the denial of the motion for new trial is of no moment. The denial of a motion for new trial may be made by minute entry and does not require a signed judgment. La. C.C.P. art. 1914; Chamberlain v. Burcham, 624 So.2d 20 (La.App. 2d Cir.1993), writ denied, 629 So.2d 1175 (La.1993); Gregory v. D & H Enterprises, 97 1039 (La.App. 3d Cir.10/9/97), 702 So.2d 927, writ denied, 97-2844 (La.1/30/98), 709 So.2d 714; Ducote v. Smith, 527 So.2d 75 (La.App. 3d Cir.1988).

CONTINUING GUARANTY

Peters argues that the trial court erred in finding that the continuing guaranty in this case is clear and unambiguous.

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Bluebook (online)
748 So. 2d 594, 1999 WL 1140392, Counsel Stack Legal Research, https://law.counselstack.com/opinion/custom-bilt-cabinet-v-quality-built-cab-lactapp-1999.