Holly & Smith v. St. Helena Cong. Facility

943 So. 2d 1037, 2006 WL 3423210
CourtSupreme Court of Louisiana
DecidedNovember 29, 2006
Docket2006-C-0582
StatusPublished
Cited by86 cases

This text of 943 So. 2d 1037 (Holly & Smith v. St. Helena Cong. Facility) 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
Holly & Smith v. St. Helena Cong. Facility, 943 So. 2d 1037, 2006 WL 3423210 (La. 2006).

Opinion

943 So.2d 1037 (2006)

HOLLY & SMITH ARCHITECTS, INC.
v.
ST. HELENA CONGREGATE FACILITY, INC. and St. Helena Parish Hospital.

No. 2006-C-0582.

Supreme Court of Louisiana.

November 29, 2006.

*1039 Kean, Miller, Hawthorne, D'Armond, McCowan & Jarman, Maxwell G. Kees, Sr., Charles L. Patin, Jr., Baton Rouge, Scott M. Perrilloux, District Attorney, Clifton Thomas Speed, Assistant District Attorney, Sullivan, Stolier & Resor, Jack M. Stolier, New Orleans, Matthew K. Brown, for Applicant.

Macaluso & Jordan, Ronald S. Macaluso, for Respondent.

Paul A. Holmes, John A. Gallaher, Baton Rouge, for Amicus Curiae, Louisiana Municipal Association.

Patrick S. Ottinger, Lafayette, for Amicus Curiae, Lafayette City-Parish Police Jury.

John F. Weeks, New Orleans, for Amicus Curiae, Louisiana Sheriff's Association.

Roland J. Dartez, Dannie P. Garrett, III, Baton Rouge, for Amicus Curiae, Louisiana Police Jury Association.

Allen L. Smith, Jr., Lake Charles, for Amicus Curiae, Calcasieu Parish Police Jury.

Gwendolyn K. Brown, Larry D. Book, Baton Rouge, for Amicus Curiae, City of Baton Rouge and the Parish of Baton Rouge.

Tina V. Grant, for Amicus Curiae, State of Louisiana.

TRAYLOR, Justice.

We granted certiorari in this case in order to determine whether a judicial mortgage is effective as to third parties when that judicial mortgage purportedly encumbers the property of a political subdivision of the State. Plaintiff secured three separate judgments against Defendant, and further, Plaintiff filed these judgments in the mortgage records for the applicable parish. Defendant is a political subdivision of the State of Louisiana, and as such, Defendant argues that these recorded *1040 judgments should be erased from the mortgage records. Defendant maintains that a judicial mortgage cannot be effective against the State and/or its political subdivisions because certain constitutional and statutory provisions set forth the method by which these judgments must be paid. Plaintiff, however, suggests that these constitutional and statutory provisions do not proscribe the recordation of judgments against the State and/or its political subdivisions. Defendant argues that Plaintiff is trying to circumvent the constitutional and statutory mandates by securing judicial mortgages affecting potential third party purchasers, thereby prompting the State and/or political subdivisions to pay the judgments in an effort to keep the property unencumbered. For the reasons that follow, we affirm the ruling of the appellate court only as to its result.

FACTS AND PROCEDURAL HISTORY

Plaintiff Holly & Smith Architects, Inc. ("Holly & Smith") obtained three judgments against Defendants St. Helena Congregate Facility, Inc. and St. Helena Parish Hospital Service District No. 1 ("St. Helena Hospital"),[1] and each of these judgments was recorded in the mortgage records for St. Helena Parish.[2] Holly & Smith filed a motion to examine judgment debtor on June 10, 2004; however, on August 3, 2004, St. Helena Hospital filed a petition for writ of mandamus in hopes of securing an order directing the St. Helena Parish Clerk of Court to erase said judgments from the mortgage records. Further, St. Helena Hospital sought a declaration that the recorded judgments did not create liens and/or encumbrances against its property. Also on August 3, 2004, St. Helena Hospital filed a motion to quash or for protective order (with respect to Holly & Smith's intention to conduct a judgment debtor examination). Holly & Smith filed its petition for writ of mandamus on August 16, 2004, as Holly & Smith sought to have St. Helena Hospital immediately pay the three prior-recorded judgments. On August 18, 2004, Holly & Smith moved to have the above-mentioned actions consolidated. A hearing was conducted regarding these matters on September 3, 2004.

On September 3, 2004, the trial court allowed the consolidation of the above-referenced actions. The trial court granted St. Helena Hospital's motion to quash or for protective order regarding the judgment debtor examination, and the trial court denied Holly & Smith's petition for writ of mandamus. Further, the trial court denied St. Helena Hospital's petition for writ of mandamus. The trial court stated:

However, what I'm saying is is that I think you've got a right to record your judgment. As I appreciate it, the recordation of a judgment in the conveyance records constitutes a judicial mortgage or lien — whatever you want to call it. Beyond that, which is the execution part, I don't think the plaintiff can do. I don't think he can do that. So if you're asking me what does that mean, yes, I think it means there is a judicial mortgage on all of the property which cannot be executed upon. What effect does it have when it goes to third parties, as I appreciate that's the testimony here, I think it probably goes with the property, and it's something that's got to be dealt with. And I *1041 think that that is the — perhaps one area that the Legislature left open for possible collection or execution of judgments. (Emphasis added).

The trial court signed this judgment on October 29, 2004, and St. Helena Hospital appealed this decision to the First Circuit Court of Appeal.

On February 10, 2006, the First Circuit Court of Appeal majority affirmed the trial court's decision. In its opinion, the appellate court found:

Article XII, § 10 and LSA-R.S. 13:5109 B provide a method by which judgments rendered against the state or its political subdivisions may be paid. Foreman v. Vermilion Parish Police Jury, 336 So.2d 986, 989 (La.App. 3 Cir.), writ refused, 339 So.2d 846 (La.1976). Although the judgment against St. Helena Hospital is not exigible and payable without St. Helena Hospital first appropriating the funds, neither the constitution nor the statutory scheme prohibits the filing in the mortgage records of a judgment against a hospital service district such as St. Helena Hospital. Nor does the constitution or the statutory scheme entitle St. Helena Hospital to a declaration that the judicial mortgages on its property are without effect on third party purchasers.[3] (Emphasis added).

From this decision, Judge Downing dissented and assigned reasons. Judge Downing stated:

"It is an axiom of the law that no one can do indirectly what he cannot do directly." Central Louisiana Elec. Co. v. Louisiana Public Service Commission, 253 La. 553, 563, 218 So.2d 592, 596 (La.1969). The majority's ruling allows a plaintiff to indirectly make judgments against the State's political subdivisions exigible and payable without the political subdivision first appropriating the funds. Here, the St. Helena Congregate Facility, Inc., and St. Helena Parish Hospital are undisputedly political subdivisions of the State. And to accomplish the sale of their immovable property, they will be forced to either pay the judgment liens or accept a price reduced to account for the value of the liens. Either way, while a seizure and sale of public property is not technically ordered here, the political subdivision effectively is required to pay off the liens. As such, the majority authorizes violation of La. Const. art. XII, § 10 C and La. R.S. 13:5109 B(2). This is beyond our authority.[4]

St.

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Cite This Page — Counsel Stack

Bluebook (online)
943 So. 2d 1037, 2006 WL 3423210, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holly-smith-v-st-helena-cong-facility-la-2006.