JR KEENAN CO. v. White House Apartments

517 So. 2d 1141, 1987 WL 3316
CourtLouisiana Court of Appeal
DecidedDecember 8, 1987
Docket87-CA-440
StatusPublished
Cited by5 cases

This text of 517 So. 2d 1141 (JR KEENAN CO. v. White House Apartments) 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
JR KEENAN CO. v. White House Apartments, 517 So. 2d 1141, 1987 WL 3316 (La. Ct. App. 1987).

Opinion

517 So.2d 1141 (1987)

JOSEPH R. KEENAN COMPANY, Joseph R. Keenan and William T. Brookman
v.
WHITE HOUSE APARTMENTS—DONALD S. MOFFATT and Donald S. Moffatt.

No. 87-CA-440.

Court of Appeal of Louisiana, Fifth Circuit.

December 8, 1987.
Rehearing Denied January 15, 1988.
Writ Denied March 11, 1988.

*1142 John E. Seago, Baton Rouge, and Don Gardner, Harahan, for defendants-appellants.

Frederick R. Bott, Terrence L. Brennan, Joseph L. McReynolds, New Orleans, for plaintiffs-appellees.

Before KLIEBERT, GRISBAUM and DUFRESNE, JJ.

DUFRESNE, Judge.

This is an appeal from a judgment making a foreign judgment executory in Louisiana. Three issues are raised:

1.) Did the trial judge err in striking defendants' reconventional demand filed in response to the petition to make the foreign judgment executory?
2.) Was the trial judge's finding that there was no extrinsic fraud in procurement of the foreign judgment manifestly erroneous?
3.) Did the trial misinterpret the foreign judgment as it pertains to judicial interest?

This dispute arose over a contract to install heating and air conditioning equipment in an apartment building in Atlanta, Georgia. Donald S. Moffatt-White House Apartments, a Louisiana limited partnership whose general partner is Donald S. Moffatt, is the owner of the Atlanta building which contracted for the work with Joseph R. Keenan Company and Joseph R. Keenan. When problems arose between White House and Keenan over performance of the contract, Keenan initiated an arbitration proceeding.

In the demand for arbitration Keenan recited that White House had failed to make payments on the contract, and sought further damages for breach of contract and financing expenses. In its answer to this demand, White House alleged that Keenan had breached the contract in failing to properly install a workable system meeting the specifications of the contract, and sought damages from Keenan for expenses occasioned by the defective work. After a full hearing at which all parties appeared, the arbitration panel awarded Keenan $481,850 in full settlement of all claims submitted for arbitration, and relieved Keenan from any further work on the premises.

The arbitration award was rendered on September 27, 1985, and was received by White House on October 9, 1985. On October 28, 1985, White House filed a Request for Clarification, Reconsideration and Modification with the arbitration panel, which request was denied on December 28, 1985.

Meanwhile, on November 12, 1985, Keenan filed in the Superior Court of Fulton County, Georgia, a Motion for confirmation of the arbitration award, and the court set a hearing on the matter for January 13, 1986. On the day of the hearing, White House appeared and urged a Motion to Vacate or Modify [the] arbitration award, again alleging breach of contract and failure to properly complete the work on Keenan's part. It was further alleged that the arbitration award was defective in that it did not comply with the law and evidence, and that the panel was biased. The trial judge ruled that this motion to vacate or *1143 modify the award was untimely under Georgia law in that it came more than three months after receipt of the original award by White House. He therefore issued a judgment, confirming the award in Keenan's favor. White House then requested a new trial in the matter which was denied by a second judgment of February 27, 1986. White House did not appeal or seek further review of the matter in the Georgia courts.

On September 2, 1986, Keenan filed in the Louisiana district court an ex parte petition to enforce the Georgia judgment, pursuant to La.R.S. 13:4242. By way of answer, White House urged that the judgment sought to be enforced was invalid on due process and equal protection grounds. In support of this claim, it contended that the arbitrators were biased and went beyond the law and evidence in making the award. It also alleged fraud in the procurement of the judgment confirming the award. Finally, by way of a reconventional demand, it sought damages from Keenan for failure to properly complete the work as per the contract.

In response to these pleadings Keenan filed an exception of res judicata, as well as a motion to strike the answer and reconventional demand on the grounds that these pleadings were improper procedural responses to a petition to have a foreign judgment made executory under La.R.S. 13:4241 et seq.

At commencement of trial of the matter, the trial judge struck the reconventional demand as being an unauthorized pleading under La.R.S. 13:4241 et seq. He denied the exception of res judicata as to the answer, however, apparently reasoning that under the "full faith and credit" clause, U.S. Const. art. 4, § 1, a foreign judgment may be attached for extrinsic fraud in the procurement of that judgment. After conclusion of the trial, the trial judge found that there was no showing of extrinsic fraud and therefore, judgment was entitled to full faith and credit. White House now appeals.

The first issue is whether the trial judge erred in striking the reconventional demand of White House. Appellant argues that the procedure established by La.R.S. 13:4241 et seq., is an ordinary proceeding, and therefore that a reconventional demand is permissable as in any other ordinary proceeding, relying on Stephens Photo, Inc. v. Southern Portraits, Inc., 424 So.2d 1100 (La.App. 1st Cir.1982). In that case, the action to enforce the foreign judgment was brought under La.Code Civ.Pro. art. 2541, which provides an alternative procedure to that provided in the more recently enacted Uniform Enforcement of Foreign Judgments Act (UEFJA), La.R.S. 13:4241, et seq. That court reasoned that because art. 2541 actions are ordinary proceedings, no legal bar exists to the filing of a reconventional demand, "provided the matters therein alleged were not litigated in the [foreign state] proceeding" (at 1101). White House urges that by analogy, reconventional demands should likewise be permitted in actions brought under La.R.S. 13:4241 et seq.

Kennan urges to the contrary that proceedings brought under the Louisiana version of the UEFJA are sui generis, being neither ordinary, summary nor executory. He urges therefore, that the only procedural devices available to a defendant in such an action are those set forth in the statute itself, and that a reconventional demand is not among them. Appellee urges alternatively, that even if reconventional demands are permitted, the instant pleading was nonetheless barred by res judicata.

Because we agree that the matters urged in the reconventional demand were litigated in the Georgia proceeding, and are thus res judicata here, we need not resolve the question of whether such a demand would otherwise be permitted under our version of the UEFJA. It has long been established that the full faith and credit clause of the federal constitution is based on the principal of res judicata. As stated by the United States Supreme Court, in Magnolia Petroleum Co. v. Hunt, 320 U.S. 430, 64 S.Ct. 208, 88 L.Ed. 149 (1943):

From the beginning this court has held that these provisions [the full faith and credit clause and 28 U.S.C. 1738] have

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Cite This Page — Counsel Stack

Bluebook (online)
517 So. 2d 1141, 1987 WL 3316, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jr-keenan-co-v-white-house-apartments-lactapp-1987.