Kaplan v. University Lake Corp.

394 So. 2d 782
CourtLouisiana Court of Appeal
DecidedFebruary 5, 1981
Docket11934, 11935
StatusPublished
Cited by6 cases

This text of 394 So. 2d 782 (Kaplan v. University Lake Corp.) 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
Kaplan v. University Lake Corp., 394 So. 2d 782 (La. Ct. App. 1981).

Opinion

394 So.2d 782 (1981)

Sol KAPLAN et al.
v.
UNIVERSITY LAKE CORP. et al.
GUARANTY SAVINGS ASSURANCE COMPANY
v.
NATIONAL AMERICAN BANK OF NEW ORLEANS as Executor of the Succession of Seymour Weiss.

Nos. 11934, 11935.

Court of Appeal of Louisiana, Fourth Circuit.

February 5, 1981.

*783 Avant, Wall, Thomas, Riche & Falcon, Floyd J. Falcon, Jr., T. A., Baton Rouge, for Guaranty Savings Assurance Co., plaintiffs-appellants.

Stewart & Preis, Ashton L. Stewart, Baton Rouge, Burke & Mayer, Charles Mayer, New Orleans, for National American Bank of New Orleans, As Executor of The Succession of Seymour Weiss, defendant-appellee.

Before SAMUEL, GULOTTA and CHEHARDY, JJ.

GULOTTA, Judge.

In these consolidated suits, Guaranty Savings Assurance Company (G.S.A.) appeals from a judgment enjoining its execution of a Writ of Fieri Facias and a garnishment directed against the National American Bank of New Orleans as executor for the Succession of Seymour Weiss,[1] and also from a judgment, in a separate proceeding, maintaining an exception of lis pendens dismissing G.S.A.'s separate suit for the proceeds of a judicial sale. We affirm the judgment granting the preliminary injunction in one of the two consolidated suits and reverse the judgment maintaining the exception of lis pendens.

BACKGROUND

University Lake Corporation borrowed funds from the American Bank for the purchase of 15.19 acres of land in East Baton Rouge Parish. The loan was evidenced by a $144,000.00 hand note and secured by a collateral mortgage note and mortgage. The note was apparently pledged to the bank. Thereafter, on June 24, 1966, Seymour Weiss purchased the hand note and collateral mortgage. G.S.A. then purchased the property from University Lake on June 15, 1971 and assumed the mortgages, judgments and liens extant against the property. Following default on the notes on November 15, 1974, suit was filed by Kaplan and the National American Bank (the Bank), as executors of the Succession of Seymour Weiss. A judgment was rendered in favor of the executor and against University Lake Corporation, International Speedways, Inc. and Guaranty Savings Assurance Company, in solido, in the sum of $132,000.00 and enforcement of the collateral mortgage bearing against the property *784 was ordered. This judgment was rendered on June 6, 1978. Only G.S.A. took a devolutive appeal from that judgment. Pending the appeal, in satisfaction of the judgment, the property owned by G.S.A. was seized and sold for the sum of $242,458.18.

The Louisiana Supreme Court in Kaplan v. University Lake Corp., 381 So.2d 385 (La.1979), reversing the trial court's judgment, held that the collateral mortgage note bearing against G.S.A.'s property had prescribed and the mortgage was unenforceable. In the original Supreme Court opinion, the court had concluded that the hand note and the original obligation which G.S.A. assumed in its act of sale had "legal validity." However, on rehearing, the Supreme Court set aside that part of its original holding that had made G.S.A. liable upon the hand note and exonerated G.S.A. from any liability. The effect of the Supreme Court decision, on rehearing, is that the mortgage is unenforceable and G.S.A. is not liable either under the mortgage or under the hand note. Unfortunately, however, at the time of the rendition of the Supreme Court judgment reversing the trial court's judgment, G.S.A.'s property had been sold in execution of the trial court's decree.

Following the Supreme Court judgment, G.S.A. in one of the two consolidated suits, now before us on appeal, petitioned the Civil District Court in New Orleans to make the Supreme Court judgment executory in Orleans Parish,[2] and sought a fifa and garnishment of funds in possession of National American Bank belonging to the Succession of Weiss in an amount to satisfy payment to G.S.A. of the $242,458.18 realized from the seizure and sale of the property. At this point G.S.A. had not filed suit against the Weiss succession to recover the amount realized from the sale but sought to execute against the National American Bank as executor solely on the basis of the Supreme Court's judgment annulling and setting aside the trial court's judgment.

G.S.A.'s petition for garnishment against National American Bank as executor of the Weiss' succession was met by a petition for injunctive relief filed by the Bank. The trial judge on May 7, 1980 enjoined G.S.A. and the sheriff for the Parish of Orleans from proceeding with the execution with a Writ of Fieri Facias and revoked the garnishment against the Bank. In written reasons for judgment the trial judge stated:

"Guaranty Savings Assurance Company must proceed to obtain a money judgment against National American Bank of New Orleans, as executor of the Succession of Seymour Weiss, for a specific amount before they can proceed by Writ of Fieri Facias and garnishment."[3]

G.S.A. devolutively appealed from that judgment. This appeal is one of the two consolidated appeals now before us.

Two days following the trial court's judgment revoking the garnishment and enjoining the execution of the fifa, G.S.A., in a separate suit, apparently in response to the reasons for judgment assigned in the earlier suit, filed a petition against National American Bank as executor for the sum of $242,-458.18, the proceeds of the sheriff's sale. A declinatory exception of Lis Pendens was maintained in the trial court and G.S.A.'s suit was dismissed. In written reasons the trial judge stated, in pertinent part,

"... Considering the facts and evolution of this matter, this court believes that Guaranty is entitled to recover these proceeds by virtue of the Supreme Court's Judgment. A bond in an amount sufficient has been posted by the Executor in the garnishment proceedings to support the injunction. That matter is on appeal to the Fourth Circuit.
The pendency of that proceeding, and the existence of a sufficient bond, satisfied the Court that the Exception should be maintained in order to avoid a multiplicity of suits." *785 G.S.A. has appealed from that judgment. This appeal is the second of the two consolidated appeals now before us.

Claiming the judgments rendered by two different trial judges are contradictory, G.S.A. seeks relief from either or both of those judgments.

APPEAL FROM JUDGMENT ENJOINING EXECUTION OF FIFA AND REVOKING GARNISHMENT

At the outset, we find merit in the Bank's argument that G.S.A. is required to obtain a judgment against the Bank as executor in the amount of $242,458.18 before a Writ of Fieri Facias and garnishment can be issued. We do not interpret, as claimed by G.S.A., that the Supreme Court judgment can serve as the basis for the issuance of a fifa and garnishment without the filing of a separate suit and obtaining a judgment for the amount claimed. The Supreme Court decree did not adjudge G.S.A. as a creditor but merely opened the door for the filing of a suit by G.S.A. to obtain a judgment for the amounts claimed.

LSA-C.C.P. art. 2252 provides:

"A judgment creditor may proceed with the execution of a judgment only after the delay for a suspensive appeal therefrom has elapsed."

Footnote "d" under this Codal provision states:

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Related

Walsh Bros. v. Celeron Corp.
501 So. 2d 307 (Louisiana Court of Appeal, 1987)
Robinson v. Robinson
474 So. 2d 46 (Louisiana Court of Appeal, 1985)
Eskine v. Eskine
428 So. 2d 1194 (Louisiana Court of Appeal, 1983)
Klein v. RECORDER OF MTG. FOR ORLEANS PARISH
430 So. 2d 1047 (Louisiana Court of Appeal, 1983)
Guaranty Sav. Assur. Co. v. NATIONAL AM. BK.
407 So. 2d 795 (Louisiana Court of Appeal, 1981)
Kaplan v. University Lake Corp.
399 So. 2d 608 (Supreme Court of Louisiana, 1981)

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Bluebook (online)
394 So. 2d 782, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kaplan-v-university-lake-corp-lactapp-1981.