Guidry v. First Nat. Bank of Commerce

755 So. 2d 1033, 2000 WL 310370
CourtLouisiana Court of Appeal
DecidedMarch 1, 2000
Docket98-CA-2383
StatusPublished
Cited by8 cases

This text of 755 So. 2d 1033 (Guidry v. First Nat. Bank of Commerce) 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
Guidry v. First Nat. Bank of Commerce, 755 So. 2d 1033, 2000 WL 310370 (La. Ct. App. 2000).

Opinion

755 So.2d 1033 (2000)

Robert J. GUIDRY
v.
FIRST NATIONAL BANK OF COMMERCE and Bank of Laplace.

No. 98-CA-2383.

Court of Appeal of Louisiana, Fourth Circuit.

March 1, 2000.

*1034 Arthur A. Lemann, III, Arthur A. Lemann, IV, Arthur A. Lemann, III & Assoc., Inc., New Orleans, Louisiana, Attorneys for Plaintiff/Appellant, Robert J. Guidry.

John J. Weigel, R. Patrick Vance, Thomas K. Potter, III, Amy L. Landry, Jones, Walker, Waechter, Poitevent, Carrere & Denegre, New Orleans, Louisiana, Attorneys for Defendant/Appellee, First National Bank of Commerce.

B. Franklin Martin, III, Stephen W. Rider, Edward L. Fenasci, McGlinchey Stafford A Professional Limited Liability *1035 Company, New Orleans, Louisiana, Attorneys for Defendant/Appellee, Bank of Laplace.

Court composed of Judge PATRICIA RIVET MURRAY, Judge JAMES F. McKAY, III, and Judge MICHAEL E. KIRBY.

MURRAY, Judge.

Plaintiff, Robert J. Guidry, appeals the dismissal of his petition to annul a judgment for failure to state a cause of action. We affirm.

FACTS AND PROCEDURAL HISTORY:

In 1989, Robert Guidry filed suit against First National Bank of Commerce (FNBC) and Bank of Laplace (BOL), as well as other individual defendants not relevant to this action.[1] A jury returned a verdict in favor of Mr. Guidry, and judgment was rendered in May 1994 casting each financial institution for $681,000 in damages. FNBC and BOL appealed. After determining that improper jury instructions necessitated a de novo review, this Court reversed that judgment in pertinent part, finding no basis in the law for imposing liability on either of the financial institutions. Guidry v. Bank of LaPlace, 94-1758 (La.App. 4th Cir.9/15/95), 661 So.2d 1052, writs denied, 95-2477, 95-2490, 95-2498 (La.1/5/96), 666 So.2d 295-96.

Some time after this Court's decision had become final, Mr. Guidry's counsel learned that the author of the appellate opinion was an FNBC customer and that his son-in-law and family had acquired stock in FNBC's parent corporation, First Commerce Corporation (FCC), in 1995. Based on this information, Mr. Guidry filed the instant petition on March 23, 1998, seeking to annul the judgment that had reversed his favorable jury verdict. He asserted that the recently discovered information was grounds for the recusal of the appellate judge, and that the failure to disclose the relationships constituted fraud or ill practice as contemplated by Article 2004 of the Code of Civil Procedure.

FNBC and BOL filed declinatory, dilatory and peremptory exceptions to the Petition for Nullity, and Mr. Guidry opposed the exceptions.[2] After a hearing, the trial court issued a Judgment with reasons dismissing Mr. Guidry's petition for failure to state a cause of action. The court subsequently signed an Amendment of Judgment in order to comply with Article 1918 of the Code of Civil Procedure, which requires that the judgment be set out separately from the court's reasons for same, and to clarify that the petition was dismissed with prejudice. This appeal followed.

DISCUSSION:

The standards for evaluating an exception of no cause of action are well established in the law:

The function of an exception of no cause of action is to test the legal sufficiency of the petition by determining whether the law affords a remedy on the facts alleged in the pleading. Danville v. Texaco, Inc., 447 So.2d 473 (La.1984). No evidence may be introduced to support or controvert the objection that the petition fails to state a cause of action. La.Code Civ. Proc. art. 931. Therefore, the court reviews the petition and accepts well pleaded allegations of fact as true, and the issue at the trial of the exception is whether, on the face of the petition, the plaintiff is legally entitled to *1036 the relief sought. Hero Lands Co. v. Texaco, Inc., 310 So.2d 93 (La.1975); Kuebler v. Martin, 578 So.2d 113 (La. 1991).

Everything on Wheels Subaru, Inc. v. Subaru South, Inc., 616 So.2d 1234, 1235 (La.1993) (footnote omitted). In applying this standard, the nonmoving party must be given the benefit of all reasonable inferences, and the exceptor has the burden of showing that no cause of action exists on the facts alleged. City of New Orleans v. Bd. of Directors of La. State Museum, 98-1170, p. 9 (La.3/2/99), 739 So.2d 748, 755.

Article 2004 of the Code of Civil Procedure specifies that "[a] final judgment obtained by fraud or ill practices may be annulled." Under this article, the party seeking annulment must show both that the challenged judgment resulted from a deprivation of a legal right and that its enforcement would be "unconscionable and inequitable." Kem Search, Inc. v. Sheffield, 434 So.2d 1067, 1070 (La.1983), and cases cited therein. Thus, in the instant case, we must determine whether the facts alleged in Mr. Guidry's petition would entitle him to nullify this Court's 1995 judgment under this standard.

Mr. Guidry's petition alleges that at the time his appeal was pending, FNBC held five collateral mortgages, executed in 1984-85, on property owned by Judge Landrieu, the author of the opinion, and members of his immediate family. One of these collateral mortgages had been accepted for FNBC by the same loan officer whose conduct was at issue in the underlying suit, two were cancelled during the period between the trial court and appellate judgments, and two were cancelled in 1997. The petition further asserts that in June 1995, one of Judge Landrieu's sons-in-law inherited stock in a bank holding company that had agreed a month earlier to merge with FCC, FNBC's holding company. When this merger was completed in October 1995, Judge Landrieu's son-in-law, and the son-in-law's two siblings, allegedly received FCC stock valued at more than $3.3 million.

According to Mr. Guidry's petition, these facts, as well as "[o]ther acts which may be discovered," would have entitled him to recuse Judge Landrieu under Civil Procedure article 151 B(4) and (5), under several Canons of the Louisiana Code of Judicial Conduct, and under the due process provisions of the federal and state constitutions. Asserting that the failure to disclose Judge Landrieu's partiality and interest in the outcome of the case constitutes an "ill practice," Mr. Guidry prays for a judgment annulling the Fourth Circuit opinion and reinstating the jury verdict.[3]

The trial court held that the facts alleged by Mr. Guidry established, at most, the appearance of impropriety, and that, absent any allegation that Judge Landrieu was in fact biased or prejudiced in favor of FNBC, Mr. Guidry could not establish any "fraud or ill practice" within the intendment of Article 2004. In addition, the court noted that the allegations did not mandate Judge Landrieu's recusal under any subsection of Civil Procedure article 151, and, although a violation of the Judicial Code would justify disciplinary action by the Supreme Court, there was nothing in the law suggesting that a judge's failure to recuse would be grounds to nullify a judgment. Finding that the petition failed to state a cause of action, the trial court dismissed Mr. Guidry's action with prejudice.

In his challenge to this dismissal, Mr. Guidry first asserts that on the facts alleged, a timely motion to recuse would have had to have been granted based upon the appearance of impropriety. In support of this argument, he contends that the Supreme Court's application of Civil Procedure *1037

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