Lake Charles Nissan, Inc. v. State Farm Mutual Automobile Insurance Co.

590 So. 2d 614, 1991 La. App. LEXIS 2749, 1991 WL 215359
CourtLouisiana Court of Appeal
DecidedOctober 24, 1991
DocketNo. 90-218
StatusPublished
Cited by3 cases

This text of 590 So. 2d 614 (Lake Charles Nissan, Inc. v. State Farm Mutual Automobile Insurance Co.) 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
Lake Charles Nissan, Inc. v. State Farm Mutual Automobile Insurance Co., 590 So. 2d 614, 1991 La. App. LEXIS 2749, 1991 WL 215359 (La. Ct. App. 1991).

Opinions

LABORDE, Judge.

This is a suit for the amount of repairs plaintiff-appellee, Lake Charles Nissan, Inc. (Nissan) performed on a car damaged by flood waters and insured by defendant-appellant, State Farm Mutual Automobile Insurance Company (State Farm). The trial court ruled in favor of Nissan and State Farm now appeals. We find no error on the part of the trial court and affirm its ruling except to amend the judgment to reflect a credit of $2,700.00 representing the amount already paid by State Farm.

FACTS

On November 16, 1987, a 1984 Nissan 300 ZX automobile owned by George McKeiver was delivered to Lake Charles Nissan, Inc., the plaintiff-appellee in this action, for repairs made necessary as a result of water damage caused by a flood. This automobile was insured for property damage by the defendant-appellant, State Farm Mutual Automobile Insurance Company.

After Nissan performed some of the certain repairs, they discovered more extensive repairs were needed. Eventually, the cost of these repairs exceeded the value of the car less its salvage value, and State Farm decided to total out the car and asked Nissan to cease repairing it. A dispute then arose as to exactly how much of the repair work done on the car was authorized by appellant. Nissan filed suit contending that State Farm owed them $6,606.30. In addition, appellee sought storage fees in the amount of $4.00 per day until the sums owed to them were paid in full. The trial court ruled in favor of Nissan and State Farm now appeals this ruling asserting six assignments of error.

ASSIGNMENT OF ERROR NUMBER ONE

In this first assignment of error, appellant contends that the trial court erred in awarding storage fees in this case because the plaintiff did not judicially assert a lien against the automobile as provided in La.R.S. 9:4501. This statute governs a repairman’s privilege for the repair of motor vehicles. Appellee contends that Nissan is entitled to a privilege for storage fees under La.C.C. art. 3224. This article provides:

He who, having in his possession the property of another, whether in deposit or on loan or otherwise, has been obliged to incur any expense for its preservation, acquires on this property two species of rights.

Other circuits have held that an automobile repair shop is entitled to storage fees under this article as long as evidence is presented at trial which affords a basis to levy such charges and the storage time is reasonable. See Mills v. Martin, 506 So.2d 117 (La.App. 5th Cir.1987); Babington v. [616]*616Stephens Imports, Inc., 421 So.2d 275 (La.App. 4th Cir.1982); Milam Realty Company v. Jones, 7 So.2d 405 (La.App. 2d Cir.1942). Likewise, we believe that an auto repair shop is entitled to storage fees under this article as long as the amount is ascertainable from the record and the storage time is reasonable. The facts of this case indicate State Farm told Nissan to cease working on the vehicle after it became known that the costs of the repairs would exceed the value of the car. Nissan then removed the vehicle from its workshop area and into storage. State Farm and Nissan attempted to work out their differences regarding the bill for an extended period of time, but State Farm refused to pay. According to the record, State Farm knew at all times that Nissan was storing this vehicle and charging $4.00 per day in storage fees. Furthermore, the record includes the total amount of accrued storage fees, thus the amount is ascertainable. We also find the length of storage time to be reasonable given the extensive period of time Nissan and State Farm attempted to negotiate a solution to this dispute. Accordingly, this assignment of error lacks merit.

ASSIGNMENT OF ERROR NUMBER TWO

In its second assignment of error, State Farm contends that the city court lacks subject matter jurisdiction because appellee requested storage fees for an indefinite period of time by seeking such fees until the amounts owed to them were paid. State Farm contends that this demand includes a potential for an award exceeding $10,000.00, the jurisdictional limitation in a city court. State Farm is incorrect in its contention. The mere possibility that the amount demanded could exceed $10,000.00 is not enough to vacate the city court of its jurisdiction. La.C.C.P. art. 4841 states that subject matter jurisdiction is limited by the amount in dispute as well as by the nature of the proceeding. This article further states that the amount in dispute is determined by the amount demanded or value asserted in good faith by the plaintiff. La. C.C.P. art. 4843 further provides that the civil jurisdiction of a city court is concurrent with the district court in cases where the amount in dispute does not exceed ten thousand dollars. In this case, the appellee demanded $6,606.30 for repairs of the car as well as $4.00 per day in storage fees. The amount demanded for city court jurisdictional purposes is to be calculated at the time of filing the petition. This is especially true given that city court dockets are not as congested as other court dockets. Plaintiffs attorney undoubtedly knew that once the petition was filed, a final resolution to the dispute could be obtained rather quickly. Here, the petition was filed on February 28, 1989. As of this date $8,166.30 was the amount demanded, calculated as follows:

$6,606.30 amount for repairs

1,560.00 $4 per day X 390 days1

$8,166.30

This $8,166.30 is well under the $10,000 requisite for city court subject matter jurisdiction. Even if the language in the petition regarding the storage fee is ambiguous enough to extend the amount demanded for the $4.00 per day storage fee to the time a judgment was actually rendered in appellee’s favor, such an amount would equal $8,906.30 calculated as follows:

2,300.00 $4.00 per day X 575 days 2

$8,906.30

This amount is still within the subject matter jurisdiction of city court. The fact that a mere possibility exists that the amount demanded may exceed the ten thousand dollar jurisdictional limit is not enough to deny the city court subject matter jurisdiction over this dispute. The only way for the storage fee provision in appellee’s peti-[617]*617tioir to cause this dispute to exceed the jurisdictional limitations of city court is for the accumulation of these fees to make the demand exceed ten thousand dollars. Given the length of time a case remains on a city court docket before final resolution, such an accumulation was not probable in this case. In fact, after the petition was filed on February 28, 1989 a trial was held and a judgment rendered on August 25, 1989; barely a six month period. Given this, it is likely that plaintiffs good faith demand included an amount well under ten thousand dollars. This position is further strengthened by the fact that appellee submitted a Proposed Findings of Fact and Conclusions of Law following the trial requesting a total amount of $8,791.30 ($6,606.30 for repairs and $2,188.00 for storage fees). This request constitutes the amount demanded in good faith by the plaintiff at the time of its submission. Because this amount is clearly within the jurisdictional limits of city court, the Lake Charles City Court has subject matter jurisdiction over this dispute.

ASSIGNMENT OF ERROR NUMBER THREE

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Bluebook (online)
590 So. 2d 614, 1991 La. App. LEXIS 2749, 1991 WL 215359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lake-charles-nissan-inc-v-state-farm-mutual-automobile-insurance-co-lactapp-1991.