Orleans Onyx, Inc. v. Buchanan

428 So. 2d 841
CourtLouisiana Court of Appeal
DecidedFebruary 7, 1983
Docket5-407
StatusPublished
Cited by4 cases

This text of 428 So. 2d 841 (Orleans Onyx, Inc. v. Buchanan) 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
Orleans Onyx, Inc. v. Buchanan, 428 So. 2d 841 (La. Ct. App. 1983).

Opinion

428 So.2d 841 (1983)

ORLEANS ONYX, INC. d/b/a Ortega Onyx, Inc.
v.
Charles BUCHANAN, Lacisco, Inc. and Edward G. Brennan.

No. 5-407.

Court of Appeal of Louisiana, Fifth Circuit.

February 7, 1983.
Rehearing Denied April 18, 1983.

Laurence D. Rudman, New Orleans, for plaintiff-appellant.

*842 Irl R. Silverstein, Gretna, for defendantsappellees.

Before KLIEBERT, BOWES and CURRAULT, JJ.

CURRAULT, Judge.

This appeal arises from a judgment dismissing a lien claim filed by plaintiff, Orleans Onyx, Inc. against property owned by defendant, Edward G. Brennan.

Mr. Brennan, appellee and the owner of the premises at # 8 Chateau Haut Brian, Kenner, Louisiana, entered into an oral agreement in March, 1980, with Mr. Charles Buchanan for the sale of the said property for the price of Four Hundred Thirty Thousand and 00/100 Dollars ($430,000) cash. As part of that agreement, Mr. Brennan agreed to allow certain alterations to the residence.

On or about June 2, 1980, after extended negotiations in preparation of design and drawings, the prospective purchaser, Mr. Buchanan, entered into a contract with appellant, Orleans Onyx, Inc., d/b/a Ortega Onyx of New Orleans, for the furnishing and installation of certain cultured onyx products in the bathrooms of the premises. That contract contains the following verbiage:

"Mr. Charles Buchanan, a person of the full age of majority, who warrants by these presents that he is the owner of the premises designated in paragraph 1 below, hereinafter referred to as `Owner'...." (Orleans Onyx 2, pg. 1)

The contract between the parties provided for a 50 percent deposit prior to the commencement of work, which was satisfied by Mr. Buchanan's payment of the sum of Nine Thousand Nine Hundred and 00/100 Dollars ($9,900) on June 11, 1980.

On or about July 25, 1980, upon completion of the installation, Orleans Onyx, Inc. invoiced Mr. Buchanan for the balance due and received his company's check in the sum of Ten Thousand Two Hundred Nineteen and 50/100 Dollars ($10,219.50). This check was dishonored by the drawee bank by reason of an "informal signature," and was never redeemed by Mr. Buchanan.

Thereafter, counsel for appellant notified Mr. Buchanan and Mr. Brennan of the filing of a lien and privilege affidavit, by letter dated September 3, 1980. The lien affidavit was recorded in the mortgage records for the Parish of Jefferson on September 4,1980, within 60 days after the completion of the installation, all in accordance with the provisions of LSA-R.S. 9:4801, et seq.

Mr. Buchanan never completed the sale of the residence from appellee and is presently serving a sentence in the Federal penitentiary on unrelated fraud charges.

On November 6,1980, appellant filed suit against Charles Buchanan, Lacisco, Inc. and Edward G. Brennan, to preserve its materialman's lien and privilege, and for damages for breach of contract, and any other equitable relief. Appellant sought the remaining balance owed in the amount of Ten Thousand Two Hundred Twenty-Four and 50/100 Dollars ($10,224.50), with legal interest thereon from judicial demand until paid, 25 percent attorney's fees and all costs of the proceedings. Edward Brennan reconvened against appellant for damages in the amount of Four Thousand Five Hundred and 00/100 Dollars ($4,500).

Ultimately, default judgments were confirmed against defendants, Charles Buchanan and Lacisco, Inc., in the above amounts which remain unpaid.

After trial against the remaining defendant, Edward G. Brennan, the trial judge held that appellant's lien against Mr. Brennan was unenforceable for lack of privity, authorization or consent. Further, Mr. Brennan's reconventional demand was dismissed with prejudice, and appellant's suit against Mr. Brennan was dismissed at appellant's costs.

Appellant now appeals the honorable trial court's judgment.

ISSUES

(1) The trial court erred in holding the lien in favor of appellant unenforceable; and that

*843 (2) Appellee was unjustly enriched at the expense of appellant.

The first issue presented for our consideration is the enforceability of appellant's lien filed under the prior Public Works Act.[1] The Act creates a privilege, for certain claimants as prescribed, on immovable property upon which the claimant labored, supplied skills, materials or equipment, or furnished machinery, in connection with the erection, construction, repair or improvement of the property. The Act also protects the owner of the immovable property from the operation of privileges by requiring the contractor to execute a bond. It further operates to subject a non-owner, who has work done thereon, to all the obligations placed on the owner, in which case the privileges operate on whatever right the non-owner has to the use of the land. Fruge v. Muffoletto, 137 So.2d 336 (La. 1962).

Appellant herein filed a lien affidavit pursuant to the requirements for preservation and ranking of lien rights elucidated in prior LSA-R.S. 9:4802. In the affidavit he asserted his rights under LSA-R.S. 9:4811, but at time of trial and in brief to this court seeks to rely on LSA-R.S. 9:4801, claiming an error was made in the numbering of the Articles. Presupposing the error does not affect his rights under the Act, he thereafter presented argument based on LSA-R.S. 9:4801 and cases reviewing "consent" of the owner under the article. He presents two further arguments: (1) That where two innocent parties are involved in a loss to one, the party most likely to have protected against the harm should bear the loss[2]; and (2) That appellee was unjustly enriched at appellant's expense.

Appellee conversely argues that appellant's rights are determined by the article upon which the claim is based, thereby limiting his claim to the rights elucidated in LSA-R.S. 9:4811. His argument is based on the concept that the Act is a derogation of common rights and must be strictly construed in favor of the person in whose common rights are favored, i.e., the owner of the property.[3]

The technical error of citing the incorrect article in the affidavit does not abrogate the lien claim. The proper procedures for preserving privileges require a sworn statement[4] describing the property and the debt. There is nothing sacramental in the format.

"The purpose of the sworn statement is to give notice to the owner (and contractor) of the existence of the claim and to give notice to persons who may deal with the owner that privilege is claimed on the property." LSA-R.S. 9:4822, Revision of 1981, Comment (g) at page 191. See also Mercantile Nat. Bank of Dallas v. Thos. Driscoll, Inc., 194 La. 935, 195 So. 497 (La.1940); Hughes v. Will, 35 So.2d 241 (Orl.App.1948); Paul F. Riviere v. Universal Excavator, Inc., 358 So.2d 670 (La.App. 1st Cir.1978).

The theory relied on by appellee refers to the interpretation of a claim under the articles, i.e., the articles themselves are stricti juris.

A review of appellant's affidavit indicates that it is sufficiently constructed to give notice as required. With that issue *844 disposed of, we turn now to decide whether appellant's claim falls within any article of the Act.

In Fruge, the Supreme Court had certified to it questions of law in a matter regarding the Act. In its opinion, the court discussed at great length the purposes, policies and obligations imposed by the Act.[5]

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Related

Domengeaux's Lumber Depot, Inc. v. Speyrer
498 So. 2d 1091 (Louisiana Court of Appeal, 1986)
Orleans Onyx, Inc. v. Buchanan
472 So. 2d 598 (Louisiana Court of Appeal, 1985)
Lake Forest, Inc. v. Cirlot Co.
466 So. 2d 61 (Louisiana Court of Appeal, 1985)
Orleans Onyx, Inc. v. Buchanan
434 So. 2d 1096 (Supreme Court of Louisiana, 1983)

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Bluebook (online)
428 So. 2d 841, Counsel Stack Legal Research, https://law.counselstack.com/opinion/orleans-onyx-inc-v-buchanan-lactapp-1983.