On Leong Chinese Merchants Ass'n v. AKM Acquisitions, L.L.C.

185 So. 3d 80, 15 La.App. 5 Cir. 122, 2015 La. App. LEXIS 2698, 2015 WL 9433746
CourtLouisiana Court of Appeal
DecidedDecember 23, 2015
DocketNo. 15-CA-122
StatusPublished

This text of 185 So. 3d 80 (On Leong Chinese Merchants Ass'n v. AKM Acquisitions, L.L.C.) 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
On Leong Chinese Merchants Ass'n v. AKM Acquisitions, L.L.C., 185 So. 3d 80, 15 La.App. 5 Cir. 122, 2015 La. App. LEXIS 2698, 2015 WL 9433746 (La. Ct. App. 2015).

Opinions

STEPHEN J. WINDHORST, Judge.

| aPlaintiff appeals ’from the trial court’s ruling granting defendahts’ exceptions ’ of no cause of action and dismissing its petition with prejudice. For the following reasons, we affirm the judgment of the trial court.

This is. plaintiffs second appeal. Plaintiff, On Leong Chinese Merchants Association (“On Leong”), a Louisiana non-profit corporation, filed a possessory action against defendants, AKM Acquisitions, L.L.C. (“AKM”). Aaron Motwani, and Marcus Guisti, contending that defendants had disturbed its peaceable possession of three, tracts of immovable property which it had peacefully possessed for more than one year.

' In its petition,- On Lé'ong contended that defendants entered into a fraudulent and invalid Act of Sale of the property at issue, which defendahts knew or should have known, was invalid,1 and that the defen[82]*82dants recorded this invalid Act of |4Sale, which wrongfully disturbed On Leong’s possession of the property. On Leong sought to have its right of possession restored and to have AKM assert its adverse claim of ownership of the immovable property in a separate petitory action. On Leong also sought damages for defendants’ disturbance of its peaceable possession. In an amended petition, On Leong specifically sought the nullification of the Act of. Sale.2

Thereafter, AEM and Mr. Motwani filed numerous peremptory and dilatory exceptions, including exceptions of no cause :of action, nonjoinder of a party, lack of procedural capacity, vagueness and/or ambiguity, nonconformity with the- formalities of the petition, and improper cumulation of actions, while Mr. Guisti filed an answer to the petition and amending petition. The trial court maintained all the exceptions, and dismissed On Leong’s petition and amended petition. On appeal, this court determined that the exception of improper cumulation was properly maintained. However, this court concluded that the trial court erred in dismissing the matter in its entirety, as the petition substantively asserted a petitory action. As such, On Leong had improperly cumulated a posses-sory action and a petitory action in the same suit in violation of La. C.C.P. art. 3657, and thus waived its claimed posses-sory action. This court therefore found the exception of no cause of action to be moot, and we remanded the matter for prosecution of the petitory action. This court further vacated the trial court’s rulings on the remaining exceptions, reserving to defendants the right to reurge-these ■exceptions on remand within the context of the petitory action. On Leong Chinese Merchants Association v. AKM Acquisitions, LLC, 13-658 (La.App. 5 Cir. 2/12/14), 136 So.3d 92.

[fiOn writ of review, the Louisiana Supreme Court reversed this court’s decision, stating that:

Plaintiff in this matter has carefully not asserted title or pleaded the petitory action. Plaintiff claims possession and alleges its possession has been disturbed by the'filing in the püblic records of an Act of Sale which it alleges should not be give'n legal effect. Plaintiff is entitled to have its possessory action heard on the merits. (Emphasis in original.)

The Court decreed that “Accordingly, the rulings of the lower courts are reversed, and the defendants’ exceptions, including that of improper cumulation, of actions, are denied, and the matter is remanded to the trial court for further proceedings.” On Leong v. AKM Acquisitions, LLC, 14-533 (La.5/2/14), 137 So.3d 1205, 1205-6 (per curium). A rehearing was granted to allow the Supreme Court to clarify “that only the exception of improper cumulation of actions was before [the] court.” The Supreme Court'again decreed that “The rulings of the lower courts are reversed, the-exception [of improper cumulation of actions] is denied, and the matter is remanded to the trial court for further proceedings.” Id.

After the case was reipanded, On Leong filed a second amending petition, alleging that defendants recorded the Act of Sale in both- the Jefferson Parish and Orleans Parish conveyance records. On Leong as[83]*83serted that AKM and Mr. Motwani took physical possession of one tract of land immediately after recordation by changing the locks. They took possession of another tract by threatening On Leong’s lessees with eviction if they failed to pay rent to AKM instead of On Leong. On Leong also clarified its cause of action 'against Mr. Guisti by contending that he prepared a fraudulent Unanimous Board Consent which contained forged signatures, and that he drafted and filed unauthorized amended Articles of Incorporation on behalf of On Leong.

|fiBoth AKM and Mr. Motwani filed exceptions of no cause of action; Each exception was heard separately, and the trial court granted each exception, dismissing On Leong’s claims, with prejudice. In its second judgment, rendered in favor of Mr. Motwani, the trial court stated that “The underlying issue in this case has been the validity of the Act of Saie that transferred ownership between the parties. As such, a possessory action is inappropriate, and there lies no cause of action for such claim.” This appeal followed.

On Leong’s sole assignment of error on appeal is that the trial court erred in sustaining the exceptions of no cause of action filed by AKM and Mr. Motwani, dismissing all claims raised in its petitions. On Leong argues that the Louisiana Supreme Court stated that it was entitled to have its possessory action heard on the merits. On Leong also argues that -its petition clearly states a cause of action in that it pleads facts that establish the four elements of a possessory action under La. C.C.P. art. 3658, or alternatively that it states a cause of action for nullification of the Act of Sale under La. C.C. art. 2029.

The purpose of the exception of no cause of action is to test the legal sufficiency of a pleading by determining whether the law affords. a remedy on the facts alleged in the pleading. Kinchen v. Livingston Parish Council, 07-478 (La.10/16/07), 967 So.2d 1137, 1138. No evidence may be introduced to support or controvert the objection- that the petition fails to state a 'cause of action. La. C.C.P. art. 931. The exception is triable on the face-of the petition, with the well-pleaded facts in the petition, any exhibits attached to the petition, accepted as true for the purpose of determining the issues raised by the exception. Donnaud’s Inc. v. Gulf Coast Bank & Trust Co., 03-427 (La.App. 5 Cir. 9/16/03), 858 So.2d 4, 6.

Every, reasonable interpretation must be accorded the language of the petition in favor of maintaining its sufficiency and. affording to the plaintiff the ^opportunity of presenting evidence at trial. . Paternostro v. Ocean Tech. Servs., 04-515 (La.App. 5 Cir. 10/26/04), 887 So.2d 543, 545. A petition should not be dismissed for failure to state a cause of action unless it appears beyond doubt that the plaintiff can prove no set of facts in support of any claim which would entitle him to relief. Kinchen, supra. The ruling on an exception of no cause of action is subject to a de novo review, because the exception raises a question of law and the trial court’s decision is based only on the sufficiency of the petition. Kinchen, supra.

La. C.C.P. art.

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185 So. 3d 80, 15 La.App. 5 Cir. 122, 2015 La. App. LEXIS 2698, 2015 WL 9433746, Counsel Stack Legal Research, https://law.counselstack.com/opinion/on-leong-chinese-merchants-assn-v-akm-acquisitions-llc-lactapp-2015.