Rountree v. Forsythe Holdings, Inc.

196 So. 3d 52, 2016 WL 2908025
CourtLouisiana Court of Appeal
DecidedMay 18, 2016
DocketNos. 50,569-CA, 50,570-CA
StatusPublished

This text of 196 So. 3d 52 (Rountree v. Forsythe Holdings, Inc.) 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
Rountree v. Forsythe Holdings, Inc., 196 So. 3d 52, 2016 WL 2908025 (La. Ct. App. 2016).

Opinions

DREW, J.

| tin these consolidated lawsuits, James Rountree appeals a judgment that awarded attorney fees, denied his motion for new trial, and dismissed his lawsuit when he refused to amend his petition after the trial court had earlier sustained an exception of nonjoinder.

We reverse the judgment insofar as it dismissed his claim against the Claiborne Parish Clerk of Court for allegedly mistakenly cancelling a mortgage securing a debt owed to Rountree. In all other respects, the judgment is affirmed.

FACTS

James Rountree extended credit to Fred Bayles (“Fred”) and Joanne Caldwell-Bayles (“Joanne”) that was secured by property located in Claiborne Parish and owned by Forsythe Holdings, Inc.1 Joanne is Forsythe’s president. The mortgage was executed by the Bayleses on November 7, 2006, and recorded in Claiborne Parish on November 15, 2006, with the property described as: “The NW 1/4 of the SE 1/4 of Section 31, Township 19, Range 7 West, Claiborne Parish, Louisiana.”

The mortgage was amended on February 13, 2008, to exclude a tract located in Ouachita Parish. The amendment was [55]*55signed by Rountree, Fred, and Joanne, individually and as agent for Forsythe. The amendment was filed -in Claiborne Parish on March 7, 2008.

The mortgage arose out of an earlier case in which Rountree had represented Fred, who owned ScenicLand Construction Corporation. 12ScenicLand had sued St. Francis Medical Center in Ruston' alleging that the medical center defaulted on a contract to renovate patient rooms. ScenicLand Const. Co., LLC v. St. Francis Med. Ctr., Inc., 41,147 (La.App.2d Cir.7/26/06), 936 So.2d 247. The court awarded damages, of $218,000.00 to Scenic-Land. Rountree purchased the judgment for $200,000.00,' less $50,000,00 that he was owed for legal services rendered.

G & Y Limited Partnership (“G & Y”) and John and Susan Merritt became interested in purchasing the property in Claiborne Parish that was purportedly subject to the mortgage. They retained attorney Daniel Newell, whose title examination done in the course of this sale detected the existence of the 2006 mortgage, though it was in the name of the Bayleses, who,had not owned the property for close to two decades. Newell then advised G & Y and the Merritts that the mortgage needed to be canceled.

On May 7, 2009, the Bayleses presented an affidavit of lost promissory note to the clerk of court and had the above mortgage canceled. The property was sold to G & Y and the' Merritts approximately, a week later by a cash deed for $50,000.00. The deed was signed by Joanne, as president of Forsythe Holdings.

On November 17, 2011, Rountree filed a petition against Forsythe Holdings in which he prayed for a money judgment of $200,000.00, interest, attorney fees of 25% of the principal, and court costs. The petition did not seek recognition, validation, or enforcement of the-mortgage granted by the Bayleses to Rountree in 2006 and amended in 2008. Forsythe Holdings did not respond to the petition. A preliminary default judgment was entered on [¡¡September 6, . 2012. On September IS, Rountree filed a motion to confirm the default -judgment. Among the documents attached to Rountree’s motion were the collateral mortgage note and the hand note. Rountree’s motion referred to the mortgage, but not to the 2008 amended mortgage.

The default judgment was granted, allowing relief not prayed for in the petition, namely that of recognizing and maintaining the mortgage from the Bayleses. A notice of judgment was sent by the Claiborne Parish Clerk of Court to Forsythe through Joanne, its agent for service of process.

On November 15, 2012, Rountree filed a motion for sale without appraisal of the affected tract of land, specifically requesting that the property be sold under a writ of fieri facias. On January 4, 2013, a notice of seizure pursuant to a writ of fieri facias was entered and signed by a deputy sheriff.

G & Y and the Merritts became aware of the judgment and pending sheriff’s sale2 and retained, Newell to protect their interests. On April 17, 2013, Newell emailed Rountree, asking him to voluntarily cancel the sheriff’s sale, or otherwise Newell would be forced to seek an injunction. Rountree’s response was to let the courts decide the issue. .Newell then sent a certified letter, which Rountree-received [56]*56on April 19, 2013, outlining the deficiencies in Rountree’s case and again attempting to persuade Rountree to voluntarily cancel the sale of the property. .

. On May 10, 2013, G & Y and the Mer-ritts filed a petition for intervention claiming that the sheriffs sale of the property at issue should |4be enjoined because they are the record -owners of the property. The trial court issued a temporary restraining order to halt the sheriffs sale scheduled for May 15, 2013.

On May 30, 2013, the trial court heard the interveners’ rule to show causé why a preliminary injunction should not be issued. The trial court concluded that the default judgment was legally defective because the original petition failed to name the Bayleses and the interveners, and because the default judgment included , relief not prayed for in the petition, namely that of recognizing and maintaining the Bayles-es’ mortgage.

The court concluded that since the default judgment was defective, the sheriffs sale could not be allowed to proceed. Accordingly, the court enjoined the sale. Rountree appealed.

This court affirmed the judgment, finding that the trial court did not abuse its discretion in granting injunctive relief because the default judgment was absolutely null. Rountree v. Forsythe Holdings, Inc., 48,983 (La.App.2d Cir.6/25/14), 144 So.3d 1126. This court stated:

[N]ot only was the default judgment defective as a matter of law for granting relief not prayed for in the petition, but it was also absolutely null because the interveners were not put on notice of the adverse claim to their property. Moreover, the mortgage had been granted by Fred Bayles and Joanne Caldwell-Bayles, not. Forsythe Holdings. The 2008 amendment to the mortgage did not state in the act.why Forsythe appeared in the amendment. . Because Forsythe Holdings’ appearance is not explained on the face of the instrument, it was not sufficient to'.put interveners on notice. In addition, the original petition also failed to name the Bayleses as defendants even though Rountree was asserting rights, against their mortgage.

Id., 48,983 at pp 6-7, 144 So.3d at 1130.

|aOn September 2, 2014, Rountree filed another suit against Forsythe, G & Y, the Merritts, and James Gladney,' in his capacity as Clerk of Court for Claiborne Parish.3 Rountree alleged that the Bayleses’ discharges in bankruptcy precluded any action against the Bayleses. He further alleged that Forsythe had ratified and confirmed the mortgage in February of 2008. Rountree prayed for' a judgment against Forsythe for the balance remaining due on the hand note, plus interest and enforcement of the mortgage as amended, -or alternatively, a judgment against Gladney for the damages caused by cancellation of the mortgage.4

Gladney raised the exceptions of prescription and nonjoinder of the Bayleses.

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Cite This Page — Counsel Stack

Bluebook (online)
196 So. 3d 52, 2016 WL 2908025, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rountree-v-forsythe-holdings-inc-lactapp-2016.