Leake & Andersson, L.L.P. v. Loo-Hernandez

704 So. 2d 924, 97 La.App. 4 Cir. 1077, 1997 La. App. LEXIS 2885, 1997 WL 762703
CourtLouisiana Court of Appeal
DecidedDecember 10, 1997
DocketNo. 97-CA-1077
StatusPublished
Cited by2 cases

This text of 704 So. 2d 924 (Leake & Andersson, L.L.P. v. Loo-Hernandez) 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
Leake & Andersson, L.L.P. v. Loo-Hernandez, 704 So. 2d 924, 97 La.App. 4 Cir. 1077, 1997 La. App. LEXIS 2885, 1997 WL 762703 (La. Ct. App. 1997).

Opinion

hLANDRIEU, Judge.

Plaintiff law firm, Leake & Andersson, L.L.P., filed suit on an open account against its former chent, Margaret Raziano, and Os-kar A. Loo-Hernandez. After a trial on the merits conducted on March 11,1997, the trial court ruled in favor of the law firm and against Raziano and Loo-Hernandez in the amount of $4,000.00, plus interest and costs. Raziano and Loo-Hernandez appeal.

In September of 1994, Raziano became aware of her former husband’s interest in the succession of his deceased parents and [925]*925sought enforcement of a 1987 judgment against her former husband for unpaid child support in the amount of $10,226.39, plus any interest. On the recommendation of Loo-Hernandez, Raziano engaged Leake & An-dersson to represent her. Loo-Hernandez was a family Mend of Raziano and later became her son-in-law. At the time, Leake & Andersson had represented Loo-Hernandez and his company, I.C.C.I., for several years. I.C.C.I. became defunct in November of 1994.

When Leake & Andersson requested payment of a $1,000.00 retainer, Raziano informed the law firm that she was concerned about costs. Although the retainer was not paid, the firm commenced representation of Raziano. Leake & |2Andersson believed that Loo-Hernandez had personally guaranteed payment of any and all costs associated with Raziano’s enforcement action. Eventually, her account incurred bills totalling $9,668.20, but the firm was unsuccessful in obtaining enforcement of the child support judgment.1 In November of 1995, Leake & Andersson advised Raziano that an appeal would cost $5,000.00. Noting that neither she nor Loo-Hernandez had paid anything on the account, the firm informed Raziano that it was withdrawing as her counsel and not pursuing an appeal on her behalf.

In January of 1996, Raziano informed the law firm that she might be able to pay her legal bills with all or part of her tax refund, for which she would file in February of 1996. When the firm did not hear from Raziano, it filed suit on the open account on March 6, 1996.

At trial, Guy Perrier, the attorney handling Raziano’s ease, testified that he had represented Loo-Hernandez in a number of matters. He stated that, when Raziano indicated she had no money to pay the retainer, he informed Loo-Hernandez of the firm’s reluctance to take her case without the retainer. Perrier testified that Loo-Hernandez agreed to pay all costs, “whatever it takes.” According to Perrier, two letters written by him to Raziano, and copied to Loo-Hernandez, confirmed the existence of Loo-Hernandez’s obligation to pay Raziano’s retainer and future legal fees.

Loo-Hernandez testified that he had no memory of promising Perrier that he would pay any part of Raziano’s litigation costs. He also had no memory of receiving the letters sent by the firm regarding Raziano’s legal bills, noting that he received many letters and bills from the firm for I.C.C.I. He acknowledged that the firm may have been under the impression that he had agreed to pay Raziano’s Rretainer. He testified, however, that, in June of 1995, he signed, and eventually paid, two promissory notes to Leake & Andersson for all legal services provided to him. At the time, Perrier assured him that the notes, totalling $9,000.00, satisfied any and all outstanding amounts owed by him to the firm.

Raziano testified that she informed Perrier in several telephone conversations and by two letters, one of which was admitted in evidence and dated January, 1996, that Loo-Hernandez was not responsible for any part of her bill.

In its Reasons for Judgment, the trial court found that Loo-Hernandez was “a guarantor of Ms. Raziano’s obligation” to the law firm.

Raziano and Loo-Hernandez first assert the trial court erred in finding that Loo-Hernandez was responsible for any of Razi-ano’s debt to the law firm. Alternatively, they assert that, if the court finds Loo-Hernandez was obligated to pay Raziano’s debt, the promissory note fulfilled by Loo-Hernandez extinguished Raziano’s debt.

La. Civ.Code art. 3035 defines a suretyship as an accessory contract by which a person binds himself to a creditor to fulfill the obligation of another upon the failure of the latter to do so. Suretyship must be express and in writing. La. Civ.Code art. 3038. Suretyship is established upon receipt by the creditor of the writing evidencing the surety’s obligation. La. Civ.Code art. 3039.

Initially, we note that Loo-Hernandez did not become Raziano’s surety pursuant to La. Civ.Code art. 3035, as no agreement to [926]*926do so was ever reduced to writing. See La. Civ.Code art. 3038. Instead, Leake & An-dersson characterizes Loo-Hernandez’s agreement as a “promise to pay” Raziano’s debt. Raziano and Loo-Hernandez argue that the trial court erred in admitting parol evidence to prove the existence of the promise to pay and that the remaining evidence fails to establish any such promise.

|4Under La. Civ.Code art. 1832, when the law requires a contract to be in written form, the contract may not be proved by testimony or presumption, unless the written instrument has been destroyed, lost, or stolen. Here, there is no allegation by plaintiff that a written agreement ever existed. Additionally, La. Civ.Code art. 1847 provides in pertinent part that “[pjarol evidence is inadmissible to establish ... a promise to pay the debt of a third person.” There is an exception to this rule, however, as we explained in Marmedic, Inc. v. Int’l Ship Management & Agency Services, Inc., 425 So.2d 878 (La.App. 4th Cir.1983):

... If the agreement to pay is not made primarily to answer for another but is impelled from the pecuniary or business motives of the promissor, then the promise to pay is, in effect, a new and independent agreement and parol evidence is admissible to establish same.
We must determine whether defendant’s promise to pay constituted a primary or collateral obligation. The decisive question which must be answered is: to whom was the credit extended? In order to determine to whom the credit was extended we must examine the relationship of the parties and the motive and pecuniary interest of the party making the promise. If credit was extended to the defendant, then parol evidence is admissible to prove the defendant’s promise to pay, because the promise to pay constituted a primary obligation.
... The question of whether the obligation is primary or collateral is factual. As such, the finding of the trial court will not be disturbed in the absence of manifest error.

425 So.2d at 880 (citations omitted).

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704 So. 2d 924, 97 La.App. 4 Cir. 1077, 1997 La. App. LEXIS 2885, 1997 WL 762703, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leake-andersson-llp-v-loo-hernandez-lactapp-1997.