First South Prod. Cr. v. Georgia-Pacific

585 So. 2d 545, 1991 WL 173249
CourtSupreme Court of Louisiana
DecidedSeptember 9, 1991
Docket91-C-0405
StatusPublished
Cited by40 cases

This text of 585 So. 2d 545 (First South Prod. Cr. v. Georgia-Pacific) 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
First South Prod. Cr. v. Georgia-Pacific, 585 So. 2d 545, 1991 WL 173249 (La. 1991).

Opinion

585 So.2d 545 (1991)

FIRST SOUTH PRODUCTION CREDIT ASSOCIATION
v.
GEORGIA-PACIFIC and Rex Timber, Inc.

No. 91-C-0405.

Supreme Court of Louisiana.

September 9, 1991.

*546 Marc Stephen Whitfield, Taylor, Porter, Brooks & Phillips, for plaintiff-applicant.

Vance A. Gibbs, Brian F. Blackwell, Kean, Miller, Hawthorne, D'Armond, McCowan & Jarman, for defendants-respondents.

CALOGERO, Chief Justice.

Plaintiff, First South Production Credit Association, seeks recovery of damages sustained as a result of the cutting and removal of timber from land subject to its mortgage. The cutting was performed by the defendants, Georgia-Pacific Corp. and Rex Timber, Inc., pursuant to valid timber contracts executed by the owner of the property, Del-Mar Properties, Inc., through its president, W. Lee Overton.

We granted plaintiff's writ to review the lower courts' conclusion that La.R.S. 9:5382 and La.R.S. 3:4278.1 do not allow a mortgagee to recover treble damages against a timber cutter whose operations are authorized by the landowner. Because we find that to be correct, we affirm the judgment granting defendant's motion for summary judgment, but only regarding the asserted claim for treble damages. For the reasons specified hereafter, however, we remand to the court of appeal for further proceedings to consider whether plaintiff's general claim for damages, implicitly asserted in its petition, included in its general prayer for damages, argued in the district court and court of appeal, but not addressed by either the district court or the court of appeal, is one which survives dismissal of the statutory claim for treble damages.

On April 4, 1985, W. Lee Overton, president and sole director and shareholder of Del-Mar Properties, executed a timber contract, which was unrecorded, with Georgia-Pacific Corp. on land owned by Del-Mar. Shortly thereafter, Georgia-Pacific began to cut and remove timber from the property, continuing its operations until approximately May 15, 1985. Meanwhile, on April 23, 1985, Overton, acting both as president of Del-Mar and in his individual capacity, granted to First South a collateral mortgage on the same property that was under contract to Georgia-Pacific. That mortgage was recorded in East Feliciana Parish where the property is located.

On June 10, 1986, Overton executed a second unrecorded timber contract with Rex Timber on the property subject to First South's mortgage. Consistent with that contract, Rex Timber cut and removed timber from approximately July 2, 1986 to September 3, 1986. First South claims that it became aware of the cutting conducted by Rex Timber some time in August or September of 1986. During settlement negotiations, it also learned of the earlier cutting by Georgia-Pacific.

On June 3, 1987, First South filed suit against Georgia-Pacific and Rex Timber *547 seeking damages for all timber cuttings performed without its written consent after its mortgage was recorded on April 23, 1985. In their answer, the defendants asserted that their operations were conducted pursuant to valid contracts with the owner of the property. They also filed a third party demand against Overton and Del-Mar demanding indemnity and/or contribution. Overton and Del-Mar raised an exception of no cause of action which was granted.[1] Thereupon, Georgia-Pacific and Rex Timber filed a motion for summary judgment. The district court granted the motion, and the court of appeal affirmed, 572 So.2d 218. First South now asks this Court to reverse the lower court ruling dismissing its suit.

In its petition, First South alleged that under the provisions of La.R.S. 9:5382 and La.R.S. 56:1478.1 (now 3:4278.1), it was entitled to recover three times the fair market value of the timber cut by the defendants. La.R.S. 9:5382 provides:

The holder of a conventional mortgage shall have the same rights, privileges, and actions as the mortgagor land owner to recover against any person who, without the written consent of the mortgagee, buys, sells, cuts, removes, holds, disposes of, changes the form of, or otherwise converts to the use of himself or another, any trees, buildings, or other immovables covered by the mortgage.
Recovery by the mortgagee may not be for more than the unpaid portion of the secured indebtedness, plus interest, advances, court costs, and attorney's fees, provided such recovery may be had severally or jointly with the mortgagor land owner.

La.R.S. 3:4278.1 provides in part:

A. It shall be unlawful for any person to cut, fell, destroy or remove any trees, or to authorize or direct his agent or employee to cut, fell, destroy or remove any trees, growing or lying on the land of another, without the consent of the owner or legal possessor.
B. Whoever willfully and intentionally violates the provisions of Subsection A shall be liable to the owner or legal possessor of the trees for civil damages in the amount of three times the fair market value of the trees cut, felled, destroyed or removed, plus reasonable attorney's fees.
C. Whoever violates the provisions of Subsection A in good faith shall be liable to the owner or legal possessor of the trees for three times the fair market value of the trees cut, felled, destroyed or removed. However, the provisions of this Section shall apply only to trees cut or removed across ownership lines, marked boundary lines, or outside of designated cutting area lines, and no provision herein shall apply to cutting operations within an area covered by a contract or agreement with the owner.
D. If a good faith violator of Subsection A fails to make payment under the requirements of this Section within thirty days after notification and demand by the owner or legal possessor, the violator shall also be responsible for the reasonable attorney fees of the owner or legal possessor. (Emphasis added).

These statutes have been construed together only once prior to this case. In Mangham v. B & C Wood Co., Inc., 561 So.2d 822 (La.App. 2d Cir.), writ denied, 566 So.2d 984 (La.1990), the Second Circuit Court of Appeal applied the provisions to a similar situation, in which the owner of property subject to a recorded mortgage had authorized timber cutting on the property. The timber company conducted cutting operations in accord with the owner's authorization, but failed to obtain the consent *548 of the mortgagee. The court held that under the provisions of La.R.S. 9:5382 and La.R.S. 3:4278.1, the mortgagee was entitled to recover treble damages (limited to the unpaid portion of the mortgage plus attorney's fees and costs) against the timber cutter. The plaintiff urges us to follow that decision here.

In the absence of clearer evidence of legislative intent to create such an action, we do not agree that the wording of the two statutes can be read to allow a mortgagee to recover treble damages against a timber cutter whose actions are authorized by the owner of the property. La.R.S. 3:4278.1 and La.R.S. 9:5382 are punitive statutes. In Gibbs Constr. v. Dept. of Labor, 540 So.2d 268 (La.1989), this Court stated that "statutes which authorize the imposition of a penalty are to be strictly construed" and "not construe[d] ... as extending powers not authorized by the letter of the law...." Id. at 269; see also Subdivision Planning Eng'rs, Inc. v. Manor Devel. Corp., 349 So.2d 247 (La. 1977); Morgan v. Fuller, 441 So.2d 290, 296 (La. App. 2d Cir.), writ denied,

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Bluebook (online)
585 So. 2d 545, 1991 WL 173249, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-south-prod-cr-v-georgia-pacific-la-1991.