Kim v. Kim

970 So. 2d 1158, 2007 WL 3172752
CourtLouisiana Court of Appeal
DecidedOctober 30, 2007
Docket07-CA-318
StatusPublished
Cited by9 cases

This text of 970 So. 2d 1158 (Kim v. Kim) 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
Kim v. Kim, 970 So. 2d 1158, 2007 WL 3172752 (La. Ct. App. 2007).

Opinion

970 So.2d 1158 (2007)

Myung Soo KIM
v.
Esther S. KIM.

No. 07-CA-318.

Court of Appeal of Louisiana, Fifth Circuit.

October 30, 2007.

*1160 Thomas E. Dunn, Attorney at Law, Mandeville, LA, for Plaintiff/Appellant.

Derrick D.T. Shepherd, Attorney at Law, Marrero, LA, for Defendant/Appellee.

Panel composed of Judges EDWARD A. DUFRESNE, JR., SUSAN M. CHEHARDY, and WALTER J. ROTHSCHILD.

WALTER J. ROTHSCHILD, Judge.

Plaintiff, Myung Soo Kim ("Mr. Kim"), appeals a trial court judgment dismissing his lawsuit against defendant, Esther Kim ("Ms. Kim"), and awarding damages to Ms. Kim on her reconventional demand. For the reasons which follow, we reverse and remand for further proceedings.

FACTS AND PROCEDURAL HISTORY

On November 3, 2004, Mr. Kim filed a "Suit on Promissory Notes" against Ms. Kim. Mr. Kim alleges that Ms. Kim is indebted to him on a promissory note dated June 1, 1999 in the amount of $42,000 plus interest. He asserts that she is indebted to him on a promissory note dated August 1, 1999 in the sum of $41,330 plus interest. On January 10, 2005, Ms. Kim filed an "Answer and Reconventional Demand to Suit on Promissory Notes," denying Mr. Kim's allegations against her and asserting that Mr. Kim is liable to her for damages for failing to comply with their agreement to be business partners and for failing to provide $50,000 for equipment and supplies, as agreed.

Trial of this matter began on July 6, 2006, and Ms. Kim was called to the stand. However, after just a few questions and some discussion between the attorneys and the trial judge, plaintiff's counsel moved for a continuance, and the trial judge continued the matter to August 10, 2006.

When trial resumed on August 10, 2006, Esther Kim testified that she opened a beauty supply business called Beauty Avenue in 1999. She stated that Mr. Kim had agreed to be her business partner, but he did not comply with their agreement. She stated that she used $50,000 of her own money to buy equipment and supplies to open and operate the business, and that she never received any money from Mr. Kim. She further stated that she did not sign any promissory notes.

Myung Soo Kim testified that Ms. Kim signed both the June 1, 1999 and the August 1, 1999 promissory notes at his home in the presence of his wife. He stated that he loaned Ms. Kim $100,000 because she had filed for bankruptcy, she had no credit, her husband was his friend, and Ms. Kim was his wife's friend. He stated that he gave her the money in cash and checks, but he was not able to produce copies of the checks because his bank no longer kept them. He indicated that the promissory notes were for less than $100,000, because Ms. Kim had agreed to pay back some of the money from insurance proceeds that she expected to receive. He asserted that she repaid $5,000 or $10,000, though he did not have evidence of these payments. He further stated that he never agreed to be Ms. Kim's business partner.

*1161 At the conclusion of his testimony, plaintiff, Mr. Kim, rested his case. At that time, Ms. Kim's attorney moved for dismissal of plaintiff's case on the grounds that no evidence had been submitted into the record. Plaintiff's attorney immediately requested that the trial judge allow him to introduce into evidence the exhibits that had been referred to in the previous testimony, asserting that it had "slipped his mind." The trial judge denied plaintiff's request to admit the documents into evidence, granted defendant's motion, and dismissed plaintiff's lawsuit.

Thereafter, testimony was heard on the reconventional demand. Ms. Kim testified that the Korean community is "close-knit" and that she had a good reputation before plaintiff filed this lawsuit, but she had a terrible reputation afterward. She also stated that because Mr. Kim did not comply with his agreement to provide money to start the business, she had to work at the business six days a week. She stated that she would have bought more supplies, hired help, and advertised if he had provided the money as agreed. Ms. Kim admitted that she had filed for bankruptcy prior to opening Beauty Avenue.

Mr. Kim was then called to the stand and requested that the court accept his testimony from the main demand in defense of the reconventional demand. In addition, he testified that he authorized Ms. Kim to open one credit card to help with her business, but she opened three additional credit cards, so he reported her to the police. He also stated that Ms. Kim never told him how much money she made from Beauty Avenue because they were not partners.

At the conclusion of trial on the reconventional demand, the trial court took the matter under advisement. On September 1, 2006, the trial court issued a judgment in favor of Ms. Kim on the reconventional demand, awarding her $6,000 in damages. Myung Soo Kim appeals.

DISCUSSION

On appeal, Mr. Kim sets forth five assignments of error. In his first assignment of error, he contends that "[t]he court erred by interpreting Defendant's reconventional demand as the affirmative defense and specific denial of signature on a negotiable instrument required by a defendant charged with making a promissory note." By this assignment, Mr. Kim argues that Ms. Kim should not have been able to argue at trial that she did not sign the promissory notes at issue, because signing someone else's name on a note is fraud, which is an affirmative defense that must be specifically plead in defendant's answer. He claims that Ms. Kim never specifically plead this defense and that there is no evidence that, prior to trial, he was put on notice that Ms. Kim was claiming she had not signed the promissory notes. Mr. Kim further contends that he was surprised by this defense at trial and thus, he was unable to secure additional witnesses such as a handwriting expert.

In Ms. Kim's answer to Mr. Kim's lawsuit, she set forth general denials of plaintiff's claims. In her reconventional demand, after asserting that she and Mr. Kim had an agreement to enter into business together and that Mr. Kim agreed to provide $50,000 for equipment and supplies, she asserts, "no documents were ever signed or authentication [sic] by either party." Mr. Kim contends that this statement logically means that no documents were signed concerning the alleged partnership agreement only, not the promissory notes. Ms. Kim responds that this assertion indicates that no documents related to the business were signed at all, including promissory notes.

*1162 An affirmative defense is a defense to an action which will have the effect of defeating a plaintiff's claim on its merits. Abadie v. Markey, 97-684 (La. App. 5 Cir. 3/11/98), 710 So.2d 327, 332. In the instant case, Ms. Kim contends that she did not sign the promissory notes at issue, so the signatures on these notes must be fraudulent. Fraud is an affirmative defense that must be specifically pled, and failure to do so will result in waiver of defendant's right to argue the issue. LSA-C.C.P. art. 1005; Blanchard v. Rental Service Corp., U.S.A., 05-460 (La.App. 5 Cir. 1/17/06), 920 So.2d 911, 916. However, failure to plead an affirmative defense in defendant's answer does not automatically preclude application of the defense. Zulli v. Coregis Ins. Co., 05-155 (La.App. 5 Cir. 7/26/05), 910 So.2d 437, 440, writ denied, 05-2226 (La.2/17/06), 924 So.2d 1017. LSA-C.C.P. art. 1005 provides that if a party mistakenly designates an affirmative defense as an incidental demand and if justice so requires, the court shall treat the pleading as if there had been a proper designation.

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Cite This Page — Counsel Stack

Bluebook (online)
970 So. 2d 1158, 2007 WL 3172752, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kim-v-kim-lactapp-2007.