Guillory v. Terra Intern., Inc.

613 So. 2d 1084, 1993 La. App. LEXIS 305, 1993 WL 25682
CourtLouisiana Court of Appeal
DecidedFebruary 3, 1993
Docket92-63
StatusPublished
Cited by13 cases

This text of 613 So. 2d 1084 (Guillory v. Terra Intern., 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
Guillory v. Terra Intern., Inc., 613 So. 2d 1084, 1993 La. App. LEXIS 305, 1993 WL 25682 (La. Ct. App. 1993).

Opinion

613 So.2d 1084 (1993)

Randall R. GUILLORY, Plaintiff-Appellee,
v.
TERRA INTERNATIONAL, INC., Defendant-Appellant.

No. 92-63.

Court of Appeal of Louisiana, Third Circuit.

February 3, 1993.
Rehearing Denied March 22, 1993.

*1086 Blake Deshotels, Ville Platte, for plaintiff/appellee.

Pat F. Willis, Jr. and Robert Voitier, Jr., Opelousas, for defendant/appellant Terra.

C. Brent Coreil, Ville Platte, for defendant/appellee Guaranty Bank of Mamou.

Before YELVERTON, KNOLL and SAUNDERS, JJ.

SAUNDERS, Judge.

Terra International, Inc. (hereinafter "Terra") appeals the judgment granted in favor of Randall R. Guillory (hereinafter "Guillory") on the basis that Terra wrongfully seized certain funds in an account with Guaranty Bank of Mamou (hereinafter "Guaranty Bank"). We affirm.

Terra obtained judgment against Guillory for $15,591.89 on its suit on open account for the purchase of supplies provided by Terra to Guillory in 1988. Terra, as judgment creditor of Guillory, obtained a writ of fieri facias and served garnishment on the garnishee bank, Guaranty Bank, on May 16, 1990. Consequently, the bank froze two checking accounts and suspended Guillory's crop production loan for 1990.

However, on May 30, 1990, Terra authorized Guaranty Bank to release the proceeds obtained through the crop production loan. For months thereafter, the attorney for Guillory filed various rules and motions, all of which were met with exceptions and sustained by the trial court. Finally, on January 30, 1991, Guillory filed a petition for damages. In his petition, Guillory alleged:

4.
Between the time of May 14, 1990 and the day that defendants, Terra International, Inc. and Pat F. Willis, Jr., released *1087 the seizure of petitioner's credits, petitioner was in dire need of his financial resources to irrigate, fertilize, and plant his rice and soybean crops. Due to the lack of his ability to draw on his pre-approved crop loan, petitioner was unable to adequately flood his rice at a critical stage in the rice plant's growth. In addition, petitioner was unable to fertilize his crop at a critical stage in the growth of his rice. Last but not least, petitioner was delayed in planting his soybean crop which said delay on a day-by-day basis decreased petitioner's yield and also increased the severity of the drought due to the failure of the rainfall to occur subsequent to the release of the funds.
5.
The foregoing circumstances have caused petitioner a tremendous loss in his crop for the year of 1990. The loss was a direct result of petitioner being unable to utilize his pre-approved crop loan.
6.
Defendants, Terra International, Inc. and Pat F. Willis, Jr., are liable unto your petitioner for this wrongful seizure as they knew or should have known that crop loans for the year of 1990 could not be used to pay or extinguish any debt which arose as a result of a previous year's crop production. Even after acquiring said knowledge from counsel for Randall R. Guillory and the garnishee, Guaranty Bank of Mamou, they persisted in withholding their permission to allow petitioner to draw on his pre-approved crop loan.
7.
As a result, petitioner's financial condition has severely deteriorated. The mental anguish and worry which petitioner has endured during this past year watching his farming operation going down the tubes because of this wrongful seizure has caused and will cause serious permanent mental trauma and suffering. Petitioner is entitled to be compensated for such mental worry and trauma as a result of this wrongful seizure. Petitioner at the time of the filing of this petition has been denied the approval of his crop loan from his customary lender, Guaranty Bank of Mamou. The worry and mental anguish in attempting to find another lender willing to take the chance on petitioner has also caused your petitioner much mental anguish.

In that suit, he names not only Terra but also Pat F. Willis, Jr., counsel for Terra, as a defendant. The suit ends with a default judgment taken against Terra alone. Subsequently, on June 18, 1991, Terra successfully had that judgment annulled.

Terra and Willis answered the initial petition and brought a third party demand against Guaranty Bank. In its answer, Terra asserted the affirmative defense of set-off of the $15,591.89 judgment it had against Guillory.

Guaranty Bank filed a motion for summary judgment and an exception of no cause of action. After hearings, the trial court granted the motion for summary judgment and dismissed Guaranty Bank.

The matter went to trial on November 27, 1991. The trial court rendered judgment in favor of Guillory and against Terra in the amount of $49,360.00, plus legal interest and attorney's fees, subject to a set-off of $15,591.89, plus accrued interest and late charges. The trial court further dismissed Pat F. Willis, Jr. from the suit and finally, assessed all costs against Terra. Terra appeals, contending:

1. The trial court erred in ruling that there was a wrongful seizure.
2. The trial court erred in ruling that any action by Terra was the cause of any damages suffered by Guillory.
3. The trial court erred in awarding Guillory any damages and/or in setting the amount of the damage based upon Guillory's failure to carry his burden of proof.
4. The trial court erred in failing to give Terra a credit for the amount received *1088 by Guillory from the Crop Insurer.
5. The trial court erred in granting the Bank's Motion for Summary Judgment and Exception of No Cause of Action.

Guaranty Bank answered the appeal seeking attorney's fees and penalties against Terra and Pat F. Willis, Jr., which were denied by the trial court in its judgment granting the motion for summary judgment.

Guillory did not submit a brief to this court, nor did he answer the appeal, therefore, the judgment is final as to the set-off.

DISCUSSION

The account in question was a $105,717.00 line of credit extended by Guaranty Bank, secured by a crop pledge. This initial loan was an FHA guaranteed crop loan. The loan proceeds were disbursed and placed into an account with Guaranty Bank entitled account number HHH. Advances were made to Guillory to facilitate his crop production for the present year. Each advance was in the form of a promissory note secured by the mortgage executed for the crop loan. The advances were earmarked for the particular purpose of growing the present year's crops. Each advance was subject to certain contractual conditions between Guillory and Guaranty Bank.

In J.L. Cargill v. B.C. Otwell, 3 La.App. 197 (2d Cir.1925), a nearly identical factual case, involving the same issue, the court determined the loan proceeds from a crop pledge were not subject to garnishment proceedings. Otwell, the debtor, had money on deposit with the garnishee bank that had been loaned to him by the garnishee to enable him to plant, cultivate, and gather agricultural products, on which the bank would have a privilege for the loan. The court held that the money on deposit constituted a trust fund that could not be diverted from the purpose to which it was dedicated by seizure at the instance of a third person, and that the judgment debtor's interest in it could not be subject to garnishment.

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Bluebook (online)
613 So. 2d 1084, 1993 La. App. LEXIS 305, 1993 WL 25682, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guillory-v-terra-intern-inc-lactapp-1993.