Gulf Shipping Co. v. McQuilling

430 So. 2d 1322, 1983 La. App. LEXIS 8208
CourtLouisiana Court of Appeal
DecidedApril 11, 1983
Docket82-CA-185
StatusPublished
Cited by7 cases

This text of 430 So. 2d 1322 (Gulf Shipping Co. v. McQuilling) 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
Gulf Shipping Co. v. McQuilling, 430 So. 2d 1322, 1983 La. App. LEXIS 8208 (La. Ct. App. 1983).

Opinion

430 So.2d 1322 (1983)

GULF SHIPPING CO.
v.
Andrew T. McQUILLING, et al.

No. 82-CA-185.

Court of Appeal of Louisiana, Fifth Circuit.

April 11, 1983.
Rehearing Denied May 18, 1983.

The Aaron Law Firm, Ltd., William D. Aaron, Jr., New Orleans, for defendants-appellants.

Jones, Walker, Waechter, Poitevent, Carrere & Denegre, Edward H. Bergin, New Orleans, for plaintiff-appellee.

*1323 Before CHEHARDY, CURRAULT and DUFRESNE, JJ.

DUFRESNE, Judge.

This appeal involves the applicability and validity of an executory process. The case comes before us on appeal from the trial court allowing Gulf Shipping Company (Plaintiff) the opportunity to commence proceedings against Andrew T. McQuilling, et al. (defendant) to foreclose a debt evidenced by a promissory note and secured by an act of mortgage via executory process, notwithstanding the existence of an in personam money judgment.

The source of this litigation can be traced back to April of 1976, when a dispute arose between the plaintiff and its then employee, Andrew T. McQuilling, III. The controversy concerned the alleged misuse of company funds entrusted to the defendant. Subsequent to this discovery, a resolution to the problem was perfected; whereupon the defendant agreed to pay the plaintiff the sum of $13,834.05. On April 22, 1976, the defendant evidenced the agreement to pay the subject amount by executing the following documents:

1. A demand note dated April 22, 1976, payable to the order of Gulf Shipping Company, in the principal amount of $13,834.05, and providing for conventional interest at the rate of 8% per annum from date of note until paid; and,
A document dated April 22, 1976, entitled "Confession of Judgment by Andrew T. McQuilling, III to Gulf Shipping Company" and providing for a confession of judgment in favor of Gulf Shipping Company in the amount of $13,834.05 plus conventional interest at the rate of 8% per annum plus all costs of court.

The demand (promissory) note was paraphed for identification with the act of mortgage. In the mortgage document, the defendant admitted indebtedness and further confessed judgment in favor of the plaintiff. Furthermore, the defendant's wife also executed the mortgage instrument so that the homestead exemption could be waived. The immovable property covered by the mortgage was the McQuilling residence located in Kenner, Louisiana.

On April 30, 1976, a suit was instituted in Jefferson Parish by the plaintiff involving the exact described indebtedness against the defendant. Concurrent on the date this lawsuit was commenced, the defendant filed an answer confessing judgment, and as a consequence the trial judge rendered judgment in favor of the plaintiff and against the defendant in the amount of $13,834.05 plus legal interest from date of judicial demand together with all costs of court.

Subsequent to the rendition of April 30th judgment, the president of the plaintiff corporation advised the defendant that Gulf Shipping Company would be willing to accept payments in monthly installments in amounts of $100.00 from May 15, 1976 through September 15, 1976 and thereafter in the amount of $200.00 per month. The following is a breakdown of the schedule of monthly payments tendered by the defendant:

May 19, 1976                    $100.00
June 14, 1976                   $100.00
July 16, 1976                   $100.00
October 1, 1976                 $ 50.00
October 8, 1976                 $ 25.00
October 15, 1976                $ 25.00
October 22, 1976                $ 25.00
                                _______
Total:                          $425.00

No payment has been received by the plaintiff from the defendant since October 22, 1976.

With regard to these seven payments there exists a dispute as to whether they were made in contemplation of liquidating the April 30th judgment or were instead made as consideration for the plaintiff keeping the defendant and his family covered on the company hospitalization insurance.

After several years, on September 28, 1981, the plaintiff commenced another proceeding to foreclose on the promissory note and mortgage dated April 22, 1976 via executory process. Pursuant to the Petition for *1324 Executory Process, the trial court signed an order of executory process and a writ of seizure and order was issued to the sheriff of Jefferson Parish directing him to seize the property described in the act of mortgage dated April 22, 1976. The property was seized and was originally scheduled for sale by the sheriff on December 9, 1981.

However, on November 25, 1981, the defendant filed a petition for a temporary restraining order, preliminary injunction, permanent injunction and damages and attorney's fees. Pursuant to this petition, a temporary restraining order was issued restraining the sheriff from proceeding with the sale of the encumbered immovable property.

On December 4, 1981, a preliminary injunction hearing was held and the trial court subsequently rendered judgment on February 22, 1982 denying the defendant's request for a preliminary injunction, terminated the temporary restraining order previously in effect, and ruled in favor of the plaintiff as to the matters of the permanent injunction, damages and attorney's fees for wrongful seizure. It is from this judgment that the defendant has appealed.

On appeal the defendant raises the following issues for our consideration:

A. The Appellee waived its right to enforce the demand note and mortgage dated April 22, 1976 by obtaining an in personam money judgment against the Appellant, Andrew T. McQuilling, III on April 30, 1976 and based on his answer confessing judgment. The obtaining of said judgment barred the subsequent enforcement of the aforesaid mortgage via an ordinary proceeding as well as via an executory proceeding because;
1. The consent judgment dated April 30, 1976 constituted a novation of the note dated April 22, 1976, and hence the said note and the mortgage given as security therefor are both unenforceable. The said judgment also had the effect of voiding and superceding the "confession of judgment" contained in the mortgage of April 22, 1976, and hence said mortgage was not an authentic act importing a valid confession of judgment at the time the defendant's executory proceeding was commenced.
2. The mortgage dated April 22, 1976 was voluntarily renounced by the Appellee by its failure to have same recognized and maintained in the judgment of April 30, 1976, and hence the said mortgage was extinguished by operation of law and no longer susceptible to enforcement.
3. Enforcement of the demand note dated April 22, 1976 and the conventional mortgage given as security therefor is barred by the doctrine of Res Judicata.
4. Enforcement of the demand note dated April 22, 1976 and the conventional mortgage given as security therefor is barred by the doctrine of Election of Remedies.
B. Prescription had run on the demand note dated April 22, 1976 and hence neither it nor the mortgage of even date could have been enforced.
C. The seizure of the Appellants' residence was clearly unlawful, and damages and attorney's fees should have been awarded by the court below. The said court should have also granted a permanent injunction with respect to the enforcement of the note and mortgage dated April 22, 1976.

With respect to the first issue on appeal, we hold that it is without merit.

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

Related

Manuel Tire Co., Inc. v. JW Herpin, Inc.
620 So. 2d 526 (Louisiana Court of Appeal, 1993)
Dodge & Ringer v. Salazar
556 So. 2d 1357 (Louisiana Court of Appeal, 1990)
American Acceptance Corp. v. Elmer G. Gibbons, III, Inc.
704 F. Supp. 684 (E.D. Louisiana, 1988)
Bertucci v. Augustine
518 So. 2d 1164 (Louisiana Court of Appeal, 1988)
State, Department of Transportation & Development v. Nassar
512 So. 2d 1221 (Louisiana Court of Appeal, 1987)
Anders Productions, Inc. v. Stream Farms, Inc.
502 So. 2d 175 (Louisiana Court of Appeal, 1987)
Dunaway v. Spain
468 So. 2d 771 (Louisiana Court of Appeal, 1985)

Cite This Page — Counsel Stack

Bluebook (online)
430 So. 2d 1322, 1983 La. App. LEXIS 8208, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gulf-shipping-co-v-mcquilling-lactapp-1983.