Northshore Ins. Agency, Inc. v. Farris

634 So. 2d 867, 1993 WL 539613
CourtLouisiana Court of Appeal
DecidedDecember 29, 1993
DocketCA 93 0121
StatusPublished
Cited by13 cases

This text of 634 So. 2d 867 (Northshore Ins. Agency, Inc. v. Farris) 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
Northshore Ins. Agency, Inc. v. Farris, 634 So. 2d 867, 1993 WL 539613 (La. Ct. App. 1993).

Opinion

634 So.2d 867 (1993)

NORTHSHORE INSURANCE AGENCY, INC.
v.
Darnell R. FARRIS and Randall S. Farris.

No. CA 93 0121.

Court of Appeal of Louisiana, First Circuit.

December 29, 1993.

*868 Thomas H. Gray, Slidell, for defendants-appellants.

Irl R. Silverstein, Gretna, for plaintiff-appellee.

Before CARTER, GONZALES and WHIPPLE, JJ.

WHIPPLE, Judge.

This is an appeal from a judgment which awarded plaintiff $37,500.00, representing the balance due on a promissory note, together with interest and attorney fees, and dismissed appellant's reconventional demand. For the following reasons, we modify the award of attorney's fees and affirm.

PROCEDURAL HISTORY

On September 5, 1991, Northshore Insurance Agency, Inc. (Northshore) filed suit against Darnell R. Farris and Randall S. Farris (appellants) to collect the balance due on a promissory note. In its petition, Northshore alleged that it was the holder of a promissory note executed by appellants on February 23, 1990, for the sum of $75,000.00, which provided for thirty monthly installments of $2,500.00. The note was given for the balance due on the sale of the assets of an insurance agency purchased by appellants from Northshore. Northshore further alleged in its petition that appellants had become delinquent in the installment payments on the note, and therefore, owed the full balance of $37,500.00, together with twenty-five percent attorney fees.

On October 29, 1991, appellants filed an answer, setting forth various affirmative defenses, and a reconventional demand, seeking rescission of the sale underlying the promissory note, return of the price paid, or reduction of the sale price. No answer to the reconventional demand was filed; nor was a preliminary default entered.

On October 30, 1991, Northshore filed a Motion to Set Trial on the Merits, and on December 27, 1991, the trial court set the trial for February 13, 1992. On February 4, 1992, appellants, through their attorney of record, filed a motion to continue the trial. Although the trial court initially denied the motion for continuance, on March 4, 1992, the trial court reassigned the trial for June 9, 1992. Notice of the June 9, 1992 trial date was issued to all parties through their respective counsel of record on March 4, 1992.

Thereafter, on March 12, 1992, appellants' attorneys moved to withdraw as counsel of record. An order permitting the attorneys to withdraw was signed by the trial court on March 17, 1992.

On the June 9, 1992 trial date, appellants did not appear. The trial court allowed Northshore to present its case. Northshore introduced into evidence the promissory note, the contract of sale underlying the promissory note, and a demand letter sent to appellants by certified mail, in which Northshore, through its attorney, demanded full payment of the balance on the promissory note. Barbara Doherty, president of Northshore, testified at trial that although both written and oral demand for payment had been made, appellants had not paid any installments on the note since June of 1991. Fannie Pichon, secretary-treasurer of Northshore, testified that her testimony would corroborate Doherty's testimony.

After Northshore presented its case, the trial court orally granted judgment in favor of Northshore and against appellants in the amount of $37,500.00, together with interest, attorney fees of twenty-five percent of principal *869 and interest, and costs of the proceedings. The trial court also dismissed appellants' reconventional demand with prejudice. A judgment to this effect was signed by the trial court on June 16, 1992.

On June 23, 1992, appellants, through newly obtained counsel, filed a motion for new trial. A hearing on the motion was originally set for August 17, 1992, but was subsequently reset for September 14, 1992. On the morning of the hearing, appellants' attorney attempted to file an amending and supplemental motion for new trial with a supplemental affidavit and memorandum. Appellants' attorney also requested a continuance to allow Northshore time to prepare a counter memorandum. The trial court denied the motion for a continuance and the filing of the amending and supplemental motion.

Following the hearing on appellants' motion for new trial, the motion was denied in open court. A judgment was signed on September 17, 1992. Appellants then filed a "Motion For Reconsideration Of Denial Of Motion For New Trial," which was also denied by the trial court.

This appeal followed, in which appellants raise the following assignments of error:

(1) The trial court erred in setting the case for trial before Northshore filed an answer to appellants' reconventional demand.
(2) The trial court erred in rendering judgment against appellants on Northshore's principal demand and in dismissing, with prejudice, appellants' reconventional demand when Northshore had not answered appellants' reconventional demand.
(3) The trial court erred in rendering judgment against appellants without sufficient evidence presented by Northshore to establish a prima facie case.
(4) The trial court erred in awarding excessive attorney's fees where Northshore's counsel stipulated he had only spent 25 hours on the case.
(5) The trial court erred in refusing to allow appellants' counsel to file an amending and supplemental motion for new trial, with supplemental affidavit and memorandum.
(6) The trial court erred in denying appellants' oral motion to continue the hearing on the motion for new trial.
(7) The trial court erred in denying appellants' motion for new trial.
(8) The trial court erred in denying appellants' motion for reconsideration of the denial of their motion for new trial.

PROCEDURAL OBJECTIONS TO TRIAL COURT'S JUDGMENT

(Assignments of Error Nos. 1 and 2)

Appellants contend that the trial court erred in setting this matter for trial and in rendering judgment before Northshore had filed an answer to appellants' reconventional demand. Thus, appellants argue, any judgment resulting therefrom is null and must be reversed. LSA-C.C.P. art. 1571 states, in pertinent part, as follows:

A.(1) The district courts shall prescribe the procedure for assigning cases for trial, by rules which shall:
(a) Require adequate notice of trial to all parties; and
(b) Prescribe the order of preference in accordance with law.
(2) These rules shall not allow the assignment of ordinary proceedings for trial except after answer filed.

(Emphasis added.)

In the instant case, it is undisputed that Northshore did not file an answer to appellants' reconventional demand. Generally, no valid judgment may be rendered against a party with whom issue has not been joined by way of answer, default, or waiver. (Emphasis added). Malbrough v. Wheat, 428 So.2d 1110, 1112 (La.App. 1st Cir.1983). Thus, the issue before this Court is whether there was a waiver by Northshore of the right to answer and the delays for answering the claims asserted against it by appellants.

Initially, we note that the record shows that appellants' attorney, Tom W. Thornhill, received notice of the trial date prior to his withdrawal from the case; and Mr. Farris conceded, at the hearing on the motion for *870 new trial, that he likewise had been notified of the trial date.

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Cite This Page — Counsel Stack

Bluebook (online)
634 So. 2d 867, 1993 WL 539613, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northshore-ins-agency-inc-v-farris-lactapp-1993.