FIRST WISCONSIN NAT. BANK OF MILWAUKEE v. Novem, Inc.

349 So. 2d 370, 1977 La. App. LEXIS 4087
CourtLouisiana Court of Appeal
DecidedJune 30, 1977
Docket8270
StatusPublished
Cited by7 cases

This text of 349 So. 2d 370 (FIRST WISCONSIN NAT. BANK OF MILWAUKEE v. Novem, Inc.) 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
FIRST WISCONSIN NAT. BANK OF MILWAUKEE v. Novem, Inc., 349 So. 2d 370, 1977 La. App. LEXIS 4087 (La. Ct. App. 1977).

Opinion

349 So.2d 370 (1977)

FIRST WISCONSIN NATIONAL BANK OF MILWAUKEE
v.
NOVEM, INC.

No. 8270.

Court of Appeal of Louisiana, Fourth Circuit.

June 30, 1977.
Rehearing Denied September 9, 1977.

*371 Bridgeman & Conway, James R. Conway, III, Metairie, for First Wis. Nat. Bank of Milwaukee and Pioneer Nat. Title Ins. Co., plaintiffs-appellants.

Mmahat, Gagliano, Duffy & Giordano, Nicholas J. Gagliano, Metairie, for Mark A. Oswald, d/b/a Interior Trim Co., appellant.

Gerald P. Webre, Metairie, for Reverend C. T. "Preacher" Walker, appellant.

Bernhardt C. Heebe, New Orleans, for Nu-Way Steel & Supply, Inc. appellee.

Hoppe, Kelly & Dupepe, Henry B. Hoppe, Jr., and Don J. Dupepe, Metairie, for C. J. Christina, Inc., Advanced Painting, Inc., and H. C. Seals, Jr., appellees.

Cronvich & Wambsgans, Richard M. Michalczyk, Metairie, for Gats, Inc., appellee.

Joseph N. Naccari, New Orleans, for Louis Jordano, Jr., d/b/a Jordano Const. Co., appellee.

Mmahat, Gagliano, Duffy & Giordano, Nicholas J. Gagliano, Metairie, Dodge, Friend, Wilson & Spedale, Joseph E. Friend, William J. Oberhelman, Jr., New Orleans, for Crane Supply Co., Inc.; Cancienne Const. Co., Inc.; Mark A. Oswald, d/b/a Interior Trim Co., Tulane Hardwood Lumber Co., Inc. and Hill-Behan Lumber Co., appellees.

Sidney D. Torres, III, and George N. Bischof, Jr., Chalmette, for Custom Painting Contractors, Inc., and C. J. Kerner, d/b/a Kerner Builders, appellees.

Harold E. Kytle, Kenner, for Rite-Way Plumbing, Inc., appellee.

Jospeh S. Russo, Jefferson, for Dowdy Bros. Concrete Co., Inc., intervenor-appellee.

Before REDMANN, STOULIG and MORIAL, JJ.

STOULIG, Judge.

This appeal involves the ranking of claims by creditors of Novem, Inc. (Novem), a corporation that failed in an attempt to complete construction of a motel. The building contract was not recorded.

This litigation began on December 2, 1974 when the First Wisconsin National Bank of Milwaukee (bank) filed a petition to foreclose via executiva on a mortgage it held on property at 2731 Causeway Boulevard, Metairie, for Novem's failure to pay the amounts due on a $1,850,000 note. At this *372 time construction on the partially completed motel was at a standstill because Novem could not obtain funding to complete the job. Meanwhile, numerous liens had been filed against the property on behalf of unpaid laborers and/or materialmen for services rendered or materials used in the partial construction. Because the lienholders claimed a preference over the mortgage creditor, the bank and its mortgage insurer, Pioneer National Title Insurance Company, filed several rules to rank privileges with the object of having its mortgage adjudicated as priming the liens of the numerous creditors cited.

From a judgment giving priority to the lienholders whose affidavits were filed long after recordation of the mortgage, the bank and its title company have appealed. Although several lienholders also appealed, they are not before us because their appeals were either dismissed as untimely or voluntarily because of compromise. By answer to the appeal, the demand for an increased judgment by Dowdy Bros. Concrete Co., Inc., is before us.

Appellants claim the priority of the mortgage on either of two theories: (1) that it was recorded before any work was done or material delivered to the building site; and/or (2) appellees failed to file their respective lien affidavits within 60 days of the last work performed on the motel.

In this case the ranking of competing claims is governed by that section of the Private Works Act dealing with unrecorded building contracts, R.S. 9:4812, et seq. We quote the portion of that statute relevant to the issues before us:

"When the owner * * * undertakes * * * construction * * * for which no contract has been entered into, or when a contract has been entered into but has not been recorded, as and when required, the owner or his authorized agent may file an affidavit that the work has been completed, then any person furnishing service or material or performing any labor on the said building or other work may record in the office of the clerk of court or recorder of mortgages in the parish in which the said work is being done or has been done, an affidavit of his claim, which recordation, if done within sixty days after the date of the affidavit of completion or if no affidavit of completion is filed within sixty days after the date of the last delivery of all material upon the said property or the last furnishing of services or the last performance of labor upon the same, by the said furnisher of material or services or the said laborer, shall preserve a privilege upon the building or other structure and upon the land upon which it is situated, in favor of any such person who shall have furnished service or material or performed any labor in connection with the said work or improvement, as his interest may appear. The said claim, recorded as aforesaid, shall preserve a privilege against the property for a period of one year from the date of its recordation, and may be enforced by a civil action in any court of competent jurisdiction in the parish in which the land is situated and such cause of action shall prescribe within one year from the date of the recordation of the claim in the mortgage records of the office of the clerk of court or the office of the recorder of mortgages. * *
* * * * * *
"The said privilege shall be superior to all other claims against the land and improvements except taxes, local assessments for public improvements, a bona fide mortgage, or a bona fide vendor's privilege, whether arising from a sale or arising from a sale and resale to and from a regularly organized homestead or building and loan association, if the vendor's privilege or mortgage exists and has been duly recorded before the work or labor is begun or any material is furnished. * * *" (Emphasis added.)

A pivotal issue is whether the mortgage was recorded before any construction was begun or any materials furnished. R.S. 9:4819(A)(1) sets the criteria by which this determination may be made. We quote:

*373 "(A) The phrase, `before the work or labor is begun or any material is furnished', as used in R.S. 9:4801-9:4817, both inclusive, shall be defined as follows:
(1) In the event that the work or construction is new, then `work or labor is begun or material is furnished' is defined as having begun when either excavation has been started so that it can be observed on inspection, or material has been furnished and delivered to the job site which is visible upon inspection and which material when delivered had a value in excess of one hundred dollars provided, however, that test piling shall be excluded from this definition."

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

Related

Evangeline Brokerage Co. v. Lewis
539 So. 2d 1311 (Louisiana Court of Appeal, 1989)
Frank L. Beier Radio v. Black Gold Marine
437 So. 2d 1196 (Louisiana Court of Appeal, 1983)
West Cash & Carry Building Materials of New Orleans, Inc. v. Bohrer
409 So. 2d 386 (Louisiana Court of Appeal, 1982)
Stanley v. Cambias
398 So. 2d 1240 (Louisiana Court of Appeal, 1981)
Clegg Concrete, Inc. v. Kel-Bar, Inc.
393 So. 2d 178 (Louisiana Court of Appeal, 1980)
Jonesboro State Bank v. Tucker
381 So. 2d 578 (Louisiana Court of Appeal, 1980)
George Kellett & Sons, Inc. v. Dickerson
380 So. 2d 758 (Louisiana Court of Appeal, 1980)

Cite This Page — Counsel Stack

Bluebook (online)
349 So. 2d 370, 1977 La. App. LEXIS 4087, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-wisconsin-nat-bank-of-milwaukee-v-novem-inc-lactapp-1977.