Pinnacle Construction Group, L.L.C. v. Devere Swepco Jv, L.L.C., Liberty Mutual Insurance Company and Unity Village Homes, L.L.C.

CourtSupreme Court of Louisiana
DecidedFebruary 6, 2025
Docket2024-C-00406
StatusPublished

This text of Pinnacle Construction Group, L.L.C. v. Devere Swepco Jv, L.L.C., Liberty Mutual Insurance Company and Unity Village Homes, L.L.C. (Pinnacle Construction Group, L.L.C. v. Devere Swepco Jv, L.L.C., Liberty Mutual Insurance Company and Unity Village Homes, L.L.C.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Pinnacle Construction Group, L.L.C. v. Devere Swepco Jv, L.L.C., Liberty Mutual Insurance Company and Unity Village Homes, L.L.C., (La. 2025).

Opinion

FOR IMMEDIATE NEWS RELEASE NEWS RELEASE #004

FROM: CLERK OF SUPREME COURT OF LOUISIANA

The Opinions handed down on the 6th day of February, 2025 are as follows:

BY Griffin, J.:

2024-C-00406 PINNACLE CONSTRUCTION GROUP, L.L.C. VS. DEVERE SWEPCO JV, L.L.C., LIBERTY MUTUAL INSURANCE COMPANY AND UNITY VILLAGE HOMES, L.L.C. (Parish of St. Landry)

REVERSED AND REMANDED. SEE OPINION.

Hughes, J., additionally concurs for the reasons assigned by Crain, J. Crain, J., concurs and assigns reasons. McCallum, J., concurs in the result. Guidry, J., concurs in the result. SUPREME COURT OF LOUISIANA

No. 2024-C-00406

PINNACLE CONSTRUCTION GROUP, L.L.C.

VS.

DEVERE SWEPCO JV, L.L.C., LIBERTY MUTUAL INSURANCE COMPANY AND UNITY VILLAGE HOMES, L.L.C.

On Writ of Certiorari to the Court of Appeal, Third Circuit, Parish of St. Landry

GRIFFIN, J.*

We granted this writ to determine whether the actions of the parties resulted

in the matter being abandoned. For the reasons that follow, defendants’ action in

moving to continue and reset a hearing date constituted a step in the resolution of

the case and therefore waived their defense of abandonment.

FACTS AND PROCEDURAL HISTORY

Pinnacle Construction Group, LLC (“Pinnacle”) filed suit in 2013 against

Unity Village Homes, Inc. (“Unity”), Devere Swepco JV, LLC (“Devere”), and

Devere’s insurer, Liberty Mutual Insurance Company (“Liberty Mutual”). Pinnacle,

a sub-contractor, claimed it was not paid for work performed for Devere, the

contractor, in the development of Unity’s subdivision in Eunice, Louisiana. Devere

and Liberty Mutual answered the suit and filed a reconventional demand against

Pinnacle and a cross-claim against Unity. Pinnacle answered the reconventional

demand. In March 2015, Pinnacle confirmed a default judgment against Unity in the

amount of $198,000.00. In November 2015, Unity filed a petition to annul the

* Justice Jeannette Theriot Knoll, retired, appointed Justice Pro Tempore, sitting for the vacancy

in Louisiana Supreme Court District 3.

* Chief Judge John Michael Guidry, was appointed Justice ad hoc, sitting for Justice Scott J. Crichton for oral argument. He sits as an elected Justice at the time this opinion is rendered.

1 default judgment on the grounds that, when it was noticed of Pinnacle’s lien, it

deposited into the registry of the court a bond securing the lien. Unity argued that

under La. R.S. 9:4835, the filing of this bond extinguished its obligation to Pinnacle.

Prior to the hearing on Unity’s petition, Pinnacle sought leave of court to

amend and supplement its petition. The trial court set the hearing dates for Unity’s

petition for annulment and Pinnacle’s motion for leave to amend for May 19, 2016.

Unity then sought to amend its petition to annul. Pinnacle filed an opposition to that

amendment on May 16, 2016, which was not set for hearing by the trial court until

March 17, 2017. At the March 17 hearing, the trial court fixed the foregoing motions

for hearing on September 25, 2017.

The court minutes of that day state:

Attorney Skip [Phillips] present in court on behalf of the Plaintiffs. Attorney John Seago present in court on behalf of Devere Swepco. Attorney Vallerie Gotch Garrett present in court on behalf of Unity Village Homes, Inc. Matter before the Court is a Petition to Annul Judgment. This matter is passed without date. Attorney Skip [Phillips] to submit letter informing the Court of the various matters that are pending.

The record discloses no further action in the case until September 25, 2020, when

Pinnacle filed a motion to have the hearing reset. The trial court did not address that

motion until August 18, 2021, when it ordered that the prior motions be heard on

October 25, 2021. Unity filed a motion to enroll new counsel of record, and the

hearing was continued to March 7, 2022.

On March 3, 2022, Devere and Liberty Mutual moved to continue the hearing

as their counsel of record needed an emergency nephrectomy surgery (“the surgical

continuance”). The motion to continue included an accompanying order requesting

the hearing be reset for another date, and a May 23, 2022, hearing date was set; that

hearing was not held, either.

On December 16, 2022, Liberty Mutual filed an ex parte motion to dismiss

asserting that “no step in the prosecution or defense of the matter of the nature to

2 overcome abandonment was taken from at least July 19, 2016, for a period of more

than three years.” The trial court granted the ex parte motion. Pinnacle then moved

to set aside the dismissal. The motion was denied, and Pinnacle appealed. Affirming,

the court of appeals found the appearance at the September 25, 2017 hearing did not

constitute a step in the prosecution equating it to an unopposed motion to continue

without date. The court of appeal also rejected Pinnacle’s argument that defendants

waived the right to assert abandonment finding the surgical continuance did not

constitute a step in the defense of the matter. Pinnacle Constr. Grp., L.L.C. v. Devere

Swepco JV, L.L.C., 23-0551, p. 10 (La.App. 3 Cir. 2/28/24), 380 So.3d 878, 887.

Pinnacle’s writ application to this court followed, which we granted. Pinnacle

Constr. Grp., L.L.C. v. Devere Swepco JV, L.L.C., 24-0406 (La. 9/4/24), 391 So.3d

676.

DISCUSSION

The issue before this Court is whether the lower courts erred in granting

Liberty Mutual’s ex parte motion to dismiss on the grounds of abandonment. In Bd.

Of Supervisors of Louisiana State Univ. & Agric. & Mech. Coll. v. Bickham, 23-

1364, pp. 5-6 (La. 10/25/24), 395 So.3d 792, 798, this Court recently observed that:

[a] suit is considered abandoned when the parties fail to take a step in its prosecution or defense for a period of three years. La. C.C.P. art. 561 A (1). “Abandonment occurs automatically upon the passing of three years without either party taking a step in the prosecution or defense of the action.” Wilkerson v. Buras, 13-1328, p. 6 (La. App. 1 Cir. 8/12/14), 152 So.3d 969, 974-75 (citing La. C.C.P. art. 561 A (1) and (3)). As a question of law, the issue of whether a lawsuit is abandoned is subject to de novo review. Felo v. Ochsner Med. Ctr.-Westbank, LLC, 15-459, p. 5 (La. App. 5 Cir. 12/23/15), 182 So.3d 417, 420.

This Court recently reiterated that, for purposes of Article 561, a “step” in the prosecution or defense of a suit is either “a formal action before the court intended to hasten the suit towards judgment” or “the taking of formal discovery.” Williams v. Montgomery, 20-01120, p. 5 (La. 5/13/21), 320 So.3d 1036, 1041.

3 Under this framework, we turn to the matter at hand.

Pinnacle’s primary argument is that Liberty Mutual waived its right to assert

abandonment as the waiver exception has been applied only where, after the

abandonment period has accrued, a defendant has taken steps that facilitated a

judicial resolution of the dispute on the merits and were an expression of the

defendant’s willingness or consent to achieve judicial resolution of the dispute. See

Wilkerson v. Buras, 13-1328 p. 7 (La. App. 1. Cir. 8/12/14), 152 So.3d 969, 975.

Pinnacle, therefore, maintains that the surgical continuance constituted a waiver of

abandonment by the defendants.

Liberty Mutual counters that it did not waive the right to assert abandonment

as the motion for the surgical continuance did not request a specific date; thus, it did

not constitute a step in the defense of the case. See Taylor v.

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