Ponderosa Associates, Ltd. v. Verret

714 So. 2d 956, 1998 WL 349469
CourtLouisiana Court of Appeal
DecidedJuly 1, 1998
Docket97-1184
StatusPublished
Cited by3 cases

This text of 714 So. 2d 956 (Ponderosa Associates, Ltd. v. Verret) 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
Ponderosa Associates, Ltd. v. Verret, 714 So. 2d 956, 1998 WL 349469 (La. Ct. App. 1998).

Opinion

714 So.2d 956 (1998)

PONDEROSA ASSOCIATES, LIMITED, Plaintiff-Appellant,
v.
Wendell VERRET and Haik and Minvielle, P.L.C., Defendants-Appellees.

No. 97-1184.

Court of Appeal of Louisiana, Third Circuit.

July 1, 1998.
Rehearing Denied August 5, 1998.

*957 Craig A. Gentry, New Orleans, for Ponderosa Associates, Limited.

Theodore Michael Haik, Jr., New Iberia, for Wendell Verret and Haik and Minvielle, P.L.C.

Wendell Verret, pro se.

Wendell Verret, for Haik and Minvielle, P.L.C.

Before YELVERTON, THIBODEAUX, COOKS, SAUNDERS and PETERS, JJ.

PETERS, Judge.

Ponderosa Associates, Ltd. (Ponderosa), a Colorado engineering consulting firm, obtained a judgment in Colorado against Wendell Verret, a Louisiana lawyer, and his employer, the Louisiana law firm of Haik and Minvielle. Ponderosa then sought to have the judgment recognized and made executory in Louisiana. The trial court dismissed Ponderosa's Louisiana action based on its conclusion that Verret and Haik and Minvielle did not have sufficient contacts with Colorado to have been subject to personal jurisdiction in that forum. For the following reasons, we reverse.

While some facts are in dispute, those necessary to dispose of the issue before us are not. Shortly before May 28, 1993, Verret was involved in products liability litigation and in need of expert advice. He telephoned the Colorado office of Ponderosa and spoke with Herbert Newbold, an engineer employed by Ponderosa. As a result of that conversation, on May 28, 1993, Verret forwarded certain documents to Newbold for his review. Other communication thereafter took place between Verret and Newbold concerning the payment of a retainer fee and the execution of a written contract between the parties. No contract was ever signed, and no retainer was ever paid to Ponderosa. Additionally, no work product was ever received by Verret. However, Verret and his employer began to receive bills for services allegedly rendered by Ponderosa pursuant to an oral agreement between Ponderosa and Verret on behalf of Haik and Minvielle.

In 1995, Ponderosa filed suit in the County Court for the County of Boulder, Colorado, for payment of services allegedly rendered pursuant to the oral agreement. In response, Verret and Haik and Minvielle filed a motion to dismiss the suit, asserting that the Colorado court lacked personal jurisdiction over them. The Colorado court denied the motion upon finding that the contacts with Colorado were sufficient to subject them to personal jurisdiction. Verret and Haik and Minvielle did not seek review of this ruling and took no additional steps to defend the Colorado action. Thereafter, a default judgment was rendered against them in the Colorado court.

Verret and Haik and Minvielle then filed a petition in the Sixteenth Judicial District Court for the Parish of Iberia, State of Louisiana, to annul the Colorado judgment. Subsequently, Ponderosa filed its petition to make the Colorado judgment executory in Louisiana, and the cases were consolidated for trial. After a contradictory hearing, the trial court ruled in favor of Verret and Haik and Minvielle and denied Ponderosa's request to make the foreign judgment executory. Ponderosa appeals.

Louisiana is required to give full faith and credit to judgments of courts in sister states. U.S. Const. art. 4, § 1. "It is hornbook law that a Louisiana court cannot deny a foreign judgment full faith and credit within Louisiana unless the foreign forum lacked jurisdiction over the litigants or over the subject matter involved in the controversy." E & L Lumber Co. v. Ashy Enters., Inc., 594 So.2d 948, 949 (La.App. 3 Cir.1992). Further, if a defendant raises the jurisdiction issue in the foreign forum, is given the opportunity to pursue it, and fails to do so, he is precluded from collaterally attacking jurisdiction in the future. See Essex Crane Rental Corp. v. D & L Mach. Works, 93-1656 (La.App. 3 Cir. 10/5/94); 643 So.2d 913, writ denied, 94-2742 (La.1/6/95); 648 So.2d 932. Additionally, where a party enters an appearance and has the opportunity to litigate the jurisdiction question, the Full Faith and Credit Clause applies. See Boudreaux v. Welch, 249 La. 983, 192 So.2d 356 (1966).

*958 In this case, Verret and Haik and Minvielle raised the jurisdiction issue in Colorado, were given the opportunity to pursue it, and did pursue it. Thus, we find that our decision in Essex, 643 So.2d 913, is dispositive of the issue before us. In Essex, a Louisiana defendant was sued in Texas and filed pleadings in the Texas court that placed the question of personal jurisdiction directly at issue. He was properly notified and given the opportunity by the Texas court to litigate the jurisdiction issue but failed to appear for trial on that issue. A default judgment was then taken against him. This court concluded that under those circumstances, he was not entitled to collaterally attack the Texas judgment on jurisdictional grounds. Essex differs from the case before us only in that Verret and Haik and Minvielle herein actually litigated the personal jurisdiction exception in the Colorado court.

In Boudreaux, 249 La. 983, 192 So.2d 356, which was cited in Essex, the issue was whether the Full Faith and Credit Clause precluded courts of this state from entertaining a collateral attack on a judgment of divorce rendered in Mississippi when the validity of that judgment could not be challenged in the courts of Mississippi. In that case, the defendants sought to prevent Mrs. Boudreaux, the plaintiff and alleged widow of Mr. Boudreaux, from collecting wrongful death damages on the ground that she was not the surviving spouse of Mr. Boudreaux because she had never been legally divorced from her first husband, Mr. Mire. Mrs. Boudreaux, who had sought and obtained a divorce from Mr. Mire in Mississippi, never actually resided in Mississippi but visited there for only a few days to testify in the divorce proceedings. Mr. Mire executed a waiver of service and entry of appearance in the divorce proceedings. The supreme court found that Mr. Mire's waiver of service and entry of appearance were sufficient to foreclose the jurisdiction question as res judicata in the wrongful death proceedings. The court stated: "In other words, by his entry of appearance he had an opportunity to litigate the jurisdictional question and this is all that is necessary in order for the Full Faith and Credit Clause to apply. It was not obligatory ... for Mire to have resisted the granting of the divorce.... On the contrary the basic element which bars collateral attack here is that the rendering State will not permit such an attack and considers the matter res judicata." Id., 192 So.2d at 359 (emphasis added).

While Boudreaux is distinguishable from the instant case in that Mr. Mire entered a general appearance, thereby failing to timely object to the jurisdiction of the Mississippi court, and in the instant case Verret and Haik and Minvielle entered only a special appearance by raising the jurisdiction issue, the result in both cases was that issue was joined, rendering any subsequent collateral attack res judicata. Thus, as in Boudreaux and Essex, the opportunity to litigate the jurisdiction issue rendered the Colorado judgment on that issue res judicata and thus unassailable in that court. Because the Colorado judgment is unassailable in the courts of that state, as in Boudreaux and

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Bluebook (online)
714 So. 2d 956, 1998 WL 349469, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ponderosa-associates-ltd-v-verret-lactapp-1998.