Design Associates, Inc. v. Charpentier

537 So. 2d 1233, 1989 La. App. LEXIS 17, 1989 WL 2787
CourtLouisiana Court of Appeal
DecidedJanuary 17, 1989
Docket88-CA-0703
StatusPublished
Cited by5 cases

This text of 537 So. 2d 1233 (Design Associates, Inc. v. Charpentier) 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
Design Associates, Inc. v. Charpentier, 537 So. 2d 1233, 1989 La. App. LEXIS 17, 1989 WL 2787 (La. Ct. App. 1989).

Opinion

537 So.2d 1233 (1989)

DESIGN ASSOCIATES, INC.
v.
John J. CHARPENTIER, et al.

No. 88-CA-0703.

Court of Appeal of Louisiana, Fourth Circuit.

January 17, 1989.
Writ Denied March 30, 1989.

Charles F. Gay, Jr., Lisa D. Newman, Adams & Reese, New Orleans, for appellees.

Phillip A. Wittmann, Kyle Schonekas, Stone, Pigman, Walther, Wittmann & Hutchinson, New Orleans, for appellants.

Charles A. Verderame, Giraud, Cusimano & Verderame, New Orleans, for intervenors/appellees Amato & Creely.

Before GARRISON, KLEES, CIACCIO, LOBRANO and ARMSTRONG, JJ.

LOBRANO, Judge.

This is an appeal from the trial court judgment which set aside a default judgment taken in a previous action.

In the previous matter, Design Associates, Inc. (Design) filed a suit on open account against Dawn Offshore Towing, Inc. (Dawn) and John Charpentier. That suit was filed on October 16, 1984. Charpentier was personally served on January 30, 1985, and Dawn was served on February 1, 1985.

On February 26, 1985 Gayle A. Reynolds of the law firm of Amato and Creely filed an ex parte motion for a forty-five day extension of time to file responsive pleadings. That motion was granted the next day, February 27th.[1]

When that motion for time was received by William Treeby and C. Lawrence Orlansky, attorneys for Design, they filed a motion to vacate the February 27th order, and alternatively, a rule to show cause why the defendants should not file responsive pleadings within five days. This motion was set for hearing on March 8, 1985. Two copies were sent to Reynolds, one which was mailed on February 28, 1985, and received by her on March 4th, the other which was served on March 7, 1985.

On March 7, 1985, Reynolds telephoned Treeby in an effort to avoid the hearing scheduled the next day. Reynolds testified that she had a prior commitment the next day, and that it was Treeby's suggestion that pleadings be filed within ten days, but that no mention was made that a default would be taken. Treeby testified that Reynolds agreed she would file responsive pleadings no later than March 18, 1985, and that he specifically warned her that her failure to do so would result in a default judgment.

Pursuant to that telephone agreement, Reynolds received by hand delivery on the same date a copy of a motion and order to vacate the previous forty-five day extension, and that responsive pleadings would be filed by March 18, 1985. The order specifically stated "under penalty of default". The motion also stated that Reynolds had no opposition. Reynolds acknowledges receiving this document on March 7th and that she did not voice an objection. The next day, March 8th, the trial judge signed the order.

No responsive pleadings were filed by the deadline, March 18th. On March 19th, a preliminary default was entered, and on March 26, 1986, the default judgment in *1235 favor of Design and against Dawn and Charpentier was confirmed. On March 28, 1985, ten days after the deadline had passed, Reynolds filed responsive pleadings asserting affirmative defenses. Treeby received a copy of those pleadings on the same date.

There was no further contact between the attorneys until mid-June 1985 when Reynolds, as attorney of record for Dawn and Charpentier, was served with a judgment debtor rule.

On October 28, 1985, Reynolds filed a petition to nullify the judgment and enjoin its execution. All counsel agree that on October 29, 1985 they met in Chambers with the trial judge and, apparently it was pointed out that a separate action for annulment had to be filed, and that it was improper to file it in the same proceedings. On October 31, 1985, the matter was dismissed without a hearing on the merits.

On November 12, 1985 the instant action was filed by Dawn and Charpentier against Design seeking to annul the default judgment on the grounds of fraud and ill practice under Code of Civil Procedure Article 2004. Design filed an exception of res judicata which was denied. The matter was tried on December 2nd, 3rd and 10th, 1987. The trial court concluded that there was no fraud or ill practice in the confirming of the default judgment, but held that Design's attorneys had an obligation to notify Reynolds of the judgment when they received a copy of her answer and affirmative defenses. The court reasoned that since the appeal period had not lapsed when Treeby and Orlansky became aware of the asserted defenses, their failure to tell Reynolds that they had obtained a judgment constituted ill practice under Article 2004. Design appeals that ruling.

ARGUMENTS

Design sets forth two arguments. First they argue that the October 31, 1985 judgment of the trial court dismissing plaintiffs' petition for injunction and annulment is res judicata as to the present proceedings. Second, they assert the trial court erred in the legal conclusion that failure to notify Dawn and Charpentier (thru their attorney, Reynolds) subsequent to obtaining the default judgment constitutes an ill practice within the meaning of Code of Civil Procedure Article 2004. In particular they urge that that article applies to the "obtaining" of a judgment, not to actions taken subsequent to the judgment. They argue that no obligation was created by the untimely pleadings filed by Reynolds, nor was there an agreement to notify her of the default judgment. Defendant relies on the expert testimony of Mr. Curtis Boisfontaine, and distinguishes Kent Search, Inc. v. Sheffield, 434 So.2d 1067 (La.1983) relied on by plaintiffs.

Dawn and Charpentier argue that had they been advised of the default judgment they would have been able to assert their defenses by way of motion for new trial and/or appeal. They urge that once Treeby and Orlansky learned Reynolds was asserting defenses, an obligation arose on their part to notify her of the judgment, and failure to do so deprived them of their "legal right to a defense." In support of their arguments, plaintiffs rely on the expert testimony of Mr. Harold Lamy and the Kem Search, Inc. case, supra.

ISSUE

We have reviewed the arguments, evidence and the trial judge's oral reasons and conclude that the issue is whether, upon receiving responsive pleadings from plaintiffs' attorney subsequent to obtaining a default judgment, (but before that judgment became definitive)[2] defendant had an obligation to notify plaintiff of the judgment, and whether failure to do so constitutes a "fraud or ill practice" within the meaning of Code of Procedure Article 2004.

RES JUDICATA

R.S. 13:4231 sets forth the essential elements of res judicata as follows:

"The authority of the thing adjudged takes place only with respect to what *1236 was the object of the judgment. The thing demanded must be the same; the demand must be between the same parties and formed by them against each other in the same quality."

The principal purposes of precluding relitigation of matters which have already been adjudicated include prevention of the unfairness which would result if a litigant were required to defend twice the merits of a single claim against him. Ward v. Pennington, 523 So.2d 1286 (La.1988).

Here the trial court denied the defendant's petition for injunction and petition to annul in the original action without stating reasons and without a hearing on the merits of the claim. Presumably, the trial court denied the petition to annul on strictly procedural grounds, that a separate action to annul the judgment is required. C.C.P. Art. 2004. Viso v. Favie, 502 So.2d 1130 (La.App.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Alexander v. State
249 So. 3d 95 (Louisiana Court of Appeal, 2018)
STATE, DEPT. OF SOCIAL SERVICES v. Robinson
718 So. 2d 609 (Louisiana Court of Appeal, 1998)
Jones v. United States Fidelity
596 So. 2d 834 (Louisiana Court of Appeal, 1992)
Homer Nat. Bank v. Nix
566 So. 2d 1071 (Louisiana Court of Appeal, 1990)
Design Associates, Inc. v. Charpentier
540 So. 2d 340 (Supreme Court of Louisiana, 1989)

Cite This Page — Counsel Stack

Bluebook (online)
537 So. 2d 1233, 1989 La. App. LEXIS 17, 1989 WL 2787, Counsel Stack Legal Research, https://law.counselstack.com/opinion/design-associates-inc-v-charpentier-lactapp-1989.