Leija v. Gathright

211 So. 3d 592, 2016 La. App. LEXIS 2316
Louisiana Court of Appeal·Decided December 21, 2016·No. No. 51,049-CA·Published·Cited by 6 cases

Opinion

CARAWAY, J.

liThe plaintiff appeals from a trial court’s grant of a summary judgment in favor of the intervenor bank which sought to have the plaintiffs Private Works Act lien and privilege ruled null and void. We affirm.

Facts

On June 29, 2009, Remijio Leija filed suit against John and Wendi Gathright seeking recognition of a privilege under the Private Works Act and $174,154.34 in damages, plus interest and costs. Leija asserted that he had entered into a verbal contract with the Gathrights to construct a home for them on their property in West Monroe, Louisiana, for the price of labor and materials for the home plus a ten percent fee. Construction of the home began in March of 2008, and Leija provided materials and labor for the project [594] throughout the construction process. Other subcontractors, hired by either Leija or the Gathrights, also performed certain tasks periodically during the construction process.

On October 24, 2008, the Gathrights recorded an affidavit of substantial completion which certified that work on the home was substantially complete. Leija contended that the affidavit was false and that construction continued until January of 2009. In support of this argument, he offered “punch lists” detailing tasks to be performed after the affidavit was filed. Leija later recorded his lien under the Private Works Act on February 10, 2009, when he claims it became apparent he was not going to be paid the remaining amount due on the contract.

The Gathrights responded to Leija’s petition and asserted reconventional demands, arguing that Leija had defaulted on the contract |?,and abandoned the construction project. In addition, the answer requested the lien be cancelled because Leija was the general contractor and he had failed to record the contract as required by the Act. The answer also stated that the lien was untimely filed because more than 60 days had passed since the affidavit of substantial completion was filed.

Regions Bank filed a motion for leave to intervene on October 1, 2012, asserting that it was the holder of a promissory note executed by the Gathrights and secured by a mortgage recorded on October 8, 2008, encumbering the immovable property in dispute. Regions Bank sought to have Lei-ja’s lien declared legally unenforceable because it was not properly perfected.

On March 6, 2015, Regions filed a motion for partial summary judgment1 claiming that, because Leija was an unlicensed contractor, any agreement that he had with the Gathrights was null and void, thereby rendering his lien invalid and unenforceable. Further, Regions contended that Leija had never recorded a construction contract as required to assert a valid lien, and his lien filing was untimely as it occurred more than 60 days after the Gathrights’ recordation of the affidavit of substantial completion. Attached to the motion were Leija’s answers to Regions Bank’s requests for admissions in which he admitted he was not a licensed Louisiana contractor during the time work was being performed on the house. In addition, Lei-ja’s deposition was attached to the motion. In his deposition, Leija admitted that Rhis contractor’s license was dormant at the time the home was being constructed. Lei-ja also asserted that he was a “general supervisor” for the construction project rather than the “general contractor.” However, he admitted that his responsibilities included supervising the overall construction, coordinating with subcontractors and suppliers, and ordering materials for the construction. In fact, Leija admitted to “handling] all the subs.” He stated that regardless of whether he or the Gathrights hired the subcontractors, he was responsible for paying them and was then reimbursed by the Gathrights.

A hearing on the motion was held on May 6, 2015. On October 19, 2015, the trial [595] court issued reasons for its judgment granting summary judgment and explained that because Leija did not have a valid contractor’s license at the time he entered into his verbal contract with the Gath-rights, the contract was null and void under Louisiana law. Further, the trial court held that in light of the contract being null and void, Leija’s lien was also null and void. The trial court took special care to note that Leija was not entirely precluded from any recovery; rather, he could recover the costs of his labor, materials, and services under a quantum meruit theory.

On November 10, 2015, the district court issued a written judgment which granted Regions Bank’s motion for summary judgment, declared Leija’s lien invalid, and ordered the cancellation and erasure of the lien from the Ouachita Parish mortgage records. Leija now appeals this ruling.

Summary Judgment

A de novo standard of review is required when an appellate court considers rulings on summary judgment motions, and the appellate court Ruses the same criteria that governed the district court’s determination of whether summary judgment was appropriate. Bank of New York Mellon v. Smith, 15-0530 (La. 10/14/15), 180 So.3d 1238, 1243. A court must grant a motion for summary judgment if the pleadings, depositions, answers to interrogatories, and admissions, together with the affidavits, if any, show that there is no genuine issue as to material fact, and that the mover is entitled to judgment as a matter of law, pursuant to La. C.C.P. art. 966. See Catahoula Parish Sch. Bd. v. Louisiana Machinery Rentals, LLC, 12-2504 (La. 10/15/2013), 124 So.3d 1065, 1071.

The burden of proof on a summary judgment motion remains with the movant. However, if the moving party will not bear the burden of proof on the issue at trial and points out that there is an absence of factual support for one or more elements essential to the adverse party’s claim, action, or defense, then the nonmoving party must produce factual support sufficient to establish that he will be able to satisfy his evidentiary burden of proof at trial. If the opponent of the motion fails to do so, there is no genuine issue of material fact and summary judgment should be granted. See La. C.C.P. art. 966(D)(1).

Discussion

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Leija v. Gathright, 211 So. 3d 592, 2016 La. App. LEXIS 2316 (La. Ct. App. 2016).

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