Morgan v. Earnest Corp.

704 So. 2d 272, 1997 WL 722791
CourtLouisiana Court of Appeal
DecidedNovember 7, 1997
Docket97 CW 0869
StatusPublished
Cited by23 cases

This text of 704 So. 2d 272 (Morgan v. Earnest 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
Morgan v. Earnest Corp., 704 So. 2d 272, 1997 WL 722791 (La. Ct. App. 1997).

Opinion

704 So.2d 272 (1997)

Keith S. MORGAN and Barbara B. Morgan
v.
The EARNEST CORPORATION and Beau Chene Homeowners Association, Inc.
Cecilia H. Best, Wife of/and James P. BEST
v.
BEAU CHENE HOMEOWNERS ASSOCIATION, INC., The Earnest Corporation, Morgan Earnest, Barry Ripple, Waldemar S. Nelson & Co., Inc., and the Louisiana Department of Transportation and Development.

No. 97 CW 0869.

Court of Appeal of Louisiana, First Circuit.

November 7, 1997.
Writ Denied February 20, 1998.

*273 Theresa D. Bewig, Lacombe, and Edward J. Deano, Mandeville, for Plaintiffs-Respondents Cecilia H. Best and James P. Best.

John I. Hulse, IV and J. Ashley Inabnet, New Orleans, for Defendants-Relators Beau Chene Homeowners Association, Inc., The Earnest Corporation and Morgan G. Earnest, Individually.

Before LOTTINGER, C.J., SHORTESS, CARTER, LeBLANC, FOIL, GONZALES, WHIPPLE, FOGG, PARRO, FITZSIMMONS and KUHN, JJ., and TYSON[1] and CHIASSON[2], JJ. Pro Tem.

PER CURIAM.

WRIT DENIED WITH ORDER.

Relators, defendants Beau Chene Homeowners Association, Inc. (hereinafter called the "Association"), The Earnest Corporation (hereinafter called the "Corporation"), and Morgan G. Earnest (hereinafter called "Earnest"), seek writs from the trial court's March 21, 1997, denial of the motions for summary judgment filed by the Corporation and Association, and its dismissal without prejudice of Earnest, who had joined in one of the motions for summary judgment.

Plaintiffs Cecilia and James Best filed a petition for damages and injunctive relief against the Association, the Corporation, Earnest, and the Louisiana Department of Transportation and Development (hereinafter called "DOTD").[3] They alleged that the further development of their street by Earnest and/or the Corporation and the widening of Highway 22 by DOTD adversely affected drainage, thereby causing the flooding of their residence in the Beau Chene subdivision. They further alleged that the Association breached its contractual and fiduciary obligations to provide adequate drainage. Plaintiffs Keith and Barbara Morgan filed a separate suit naming the Association and the Corporation as defendants and alleged that the defendants' actions in connection with "constructing, maintaining and/or modifying the drainage control systems" caused or exacerbated flooding at their residence in the Beau Chene subdivision. They also alleged that the defendants breached their contractual and fiduciary obligations to them. These lawsuits were consolidated.

In the action involving the Best plaintiffs, the Association, the Corporation, and Earnest filed a motion for summary judgment. In the Morgans' suit, the Association and the Corporation filed a motion for summary judgment. The basis for the motions for summary judgment as to the Corporation and the Association was a provision in the "Act of Dedication of Servitudes, Privileges and Restrictions Made by Beau Chene, Inc." which encumbers BeauChene subdivision, including the plaintiffs' properties.[4] The provision is entitled "Limitation of Liability" and reads as follows:

Neither the Association nor the Developer [Beau Chene Incorporated, predecessor to the Corporation] shall be liable for any failure of any services to be obtained by the Association or paid for out of the common expense funds, or for injury or damage to person or property caused by the elements or resulting from water which may leak or flow from any portion of the common areas and community facilities or from any wire, pipe, drain, conduit or the like.

(Emphasis added.)

The basis for the motion for summary judgment as to Earnest was that he was not *274 personally liable for the obligations of the Corporation or the Association.

In response to the motion for summary judgment filed in their suit, the Morgan plaintiffs submitted their affidavit stating that their act of sale did not clearly express on its face the intent to release all liability due to flood or other waters and that there was no verbal or written communication to them by any party to this action or any other person disclosing that such a release was a condition of the sale. They also stated that it was never their intent to grant such a release from liability to the defendants and that they would not have purchased any home that had such a condition of sale.

The trial court granted the motion for summary judgment as to Earnest, dismissing the Bests' suit against him without prejudice, and denied the motions for summary judgment as to the Association and the Corporation. In reasons for judgment, the trial court stated that there was no proof in the record that Earnest acted in his individual capacity rather than in a representative capacity for the Corporation. As to the Association and the Corporation, the trial court stated that, while it recognized the provision at issue was in the restrictive covenants which were themselves enforceable, it had "serious doubts" as to whether a developer and a homeowners' association could limit their liability with a restrictive covenant. The court also noted that "[s]ince the suits are still in their infancy," it was unable to determine the cause of the damage or to determine whether the covenant, if valid, would apply. The court stated that the allegations of breach of contractual and fiduciary duties to provide adequate drainage, the allegations of strict liability and detrimental reliance, and the request for injunctive relief might not fall within the purview of the limitation of liability clause.

In the writ taken by Earnest as to the trial court's judgment of March 21, 1997, dismissing the Best plaintiffs' action against him without prejudice, Earnest contends that the court should have dismissed the action against him with prejudice. The rule prior to July 1, 1997, was that a judgment of involuntary dismissal without prejudice was appealable. People of Living God v. Chantilly Corp., 251 La. 943, 207 So.2d 752, 754-755 (1968).

However, pursuant to 1997 La. Acts No. 483, § 2, La.Code Civ. P. art.1915 was amended to provide, in pertinent part, that:

(B)(1) When a court renders a partial judgment or partial summary judgment or sustains an exception in part, as to one or more but less than all of the claims, demands, issues, theories, or parties, whether in an original demand, reconventional demand, cross-claim, third party claim, or intervention, the judgment shall not constitute a final judgment unless specifically agreed to by the parties or unless designated as a final judgment by the court after an express determination that there is no just reason for delay.
(2) In the absence of such a determination and designation, any order or decision which adjudicates fewer than all claims or the rights and liabilities of fewer than all the parties, shall not terminate the action as to any of the claims or parties and shall not constitute a final judgment for the purpose of an immediate appeal. Any such order or decision issued may be revised at any time prior to rendition of the judgment adjudicating all the claims and the rights and liabilities of all the parties.

(Emphasis added.)[5]

Because the judgment in this case was signed prior to the effective date of Act 483, *275 which was July 1, 1997, it is not specifically designated as a final judgment. The writ was also taken prior to the effective date of this Act.

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Bluebook (online)
704 So. 2d 272, 1997 WL 722791, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morgan-v-earnest-corp-lactapp-1997.