Rozas v. Montero

916 So. 2d 444, 2005 WL 2864653
CourtLouisiana Court of Appeal
DecidedNovember 2, 2005
Docket2005-484
StatusPublished
Cited by3 cases

This text of 916 So. 2d 444 (Rozas v. Montero) 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
Rozas v. Montero, 916 So. 2d 444, 2005 WL 2864653 (La. Ct. App. 2005).

Opinion

916 So.2d 444 (2005)

Nicholas ROZAS And Betty Rozas
v.
Keith MONTERO and Montero Builders, Inc.

No. 2005-484.

Court of Appeal of Louisiana, Third Circuit.

November 2, 2005.

*445 Bruce A. Gaudin, Opelousas, Louisiana, for Defendants/Appellants Keith Montero and Montero Builders, Inc.

G. Douglas Dean, Opelousas, Louisiana, for Plaintiffs/Appellees Nicholas Rozas and Betty Rozas.

Court composed of GLENN B. GREMILLION, J. DAVID PAINTER, and JAMES T. GENOVESE, Judges.

GENOVESE, Judge.

Defendants appeal the trial court's granting of a default judgment in favor of the Plaintiffs, and the lifting of a stay order pending arbitration. For the following reasons, we vacate the default judgment and remand for further proceedings.

STATEMENT OF THE CASE

Plaintiffs, Nicholas and Betty Rozas (hereinafter collectively referred to as "Rozas"), filed suit against Keith Montero and Montero Builders, Inc. (hereinafter collectively referred to as "Montero"), alleging breach of contract for the construction of the Rozas residence. Montero filed an exception of prematurity seeking arbitration pursuant to the construction contract. By judgment dated October 16, 2003, the trial court ordered a stay of the proceedings pending the completion of arbitration between the parties with the condition that "if arbitration proceedings are not initiated by Keith Montero and/or Montero Builders, Inc. on or before the 18th of November, 2003, then this stay shall be lifted, and the defendants shall then file responsive pleadings on or before the 3rd day of December, 2003."

On November 17, 2003, Montero Builders, Inc. filed for arbitration. Rozas filed a motion to lift the stay asserting that the demand for arbitration failed to comply with the trial court's judgment since the *446 demand was (1) made solely by Montero Builders, Inc. and not by Keith Montero individually, and (2) because the demand asserted only that Montero Builders was due $10,000.00 on its lien claim against Rozas without any mention of Rozas' claim for breach of the construction contract against Montero. On January 8, 2004, the trial court granted Rozas' motion to lift the stay and ordered Montero to file an answer to Rozas' petition within ten (10) days of January 6, 2004. No appeal or writ application was taken by Montero from that ruling.

Though no answer by Montero is recorded in the file of these proceedings, an answer to Montero's reconventional demand was filed by Rozas on February 9, 2004. In mid-April of 2004, Rozas moved to compel discovery due to Montero's alleged failure to answer interrogatories and produce documents which had been requested since March 3, 2004. Pursuant to stipulation by counsel for the parties, the trial court ordered Montero to answer in full all interrogatories and requests for production of documents on or before June 3, 2004.

When Montero failed to timely answer the court-ordered discovery, Rozas filed a motion for default judgment, or sanctions, requesting that the trial court grant an award of $84,855.30 for damages and $30,000.00 for attorney fees, plus all costs of court and interest on all sums awarded from the date of judicial demand until paid. On September 24, 2004, a hearing on Rozas' motion for default judgment was held wherein the following stipulation was entered into the record:

BY MR. DEAN: [Plaintiffs' Counsel] We have agreed to a stipulation, Your Honor, which will basically provide that Mr. Keith Montero of Montero Builders, Inc. will have fifteen days from today's date to produce himself at my office in Opelousas, Louisiana for his deposition at his cost and will also fully answer all outstanding interrogatories and requests for production which have not yet been answered as shown in the memorandum attached to our motion for today, and of that within fifteen days, failing which the court has instructed us that the court will rule today that a judgment will be rendered, failing the appropriate remedies of this problem by Mr. Montero and Montero Builders, for $80,000, plus $20,000 and [sic] attorney fees, plus accrued interest and all cost of these proceedings if this agreement is not complied with — if the judgment is not complied with.
BY THE COURT: Yes. And that is the agreement between the parties?
BY MR. McMAHON: [Defendants' Counsel] Paul McMahon, Your Honor. Yes, sir.
BY MR. DEAN: It's also the ruling of the court, Your Honor.
BY THE COURT: Yes. Based on that agreement, I will issue a judgment ordering Mr. Montero and Montero Builders to comply as previously stated. Failure to comply, a judgment will be rendered in favor of the plaintiffs in the amounts stipulated.
BY MR. McMAHON: Thank you, Judge.
BY MR. DEAN: And all costs of these proceedings will be cast on Mr. Montero?
BY THE COURT: Yes.

As a result of the September 24, 2004 hearing, the trial court signed a judgment on October 6, 2004, which ordered Montero to respond in full to Rozas' discovery. The judgment further provided:

[U]pon presentation of an affidavit attesting that KEITH MONTERO or MONTERO BUILDERS, INC. have *447 failed to comply with any of the requirements of this Judgment, this court shall enter a judgment in favor of NICHOLAS ROZAS and BETTY ROZAS ... in the sum of Eighty Thousand ... dollars plus attorney fees of Twenty Thousand... dollars, judicial interest on all sums awarded ... and dismissing the counter claims of KEITH MONTERO and MONTERO BUILDERS, INC. against NICHOLAS ROZAS and BETTY ROZAS, with prejudice and at the cost of KEITH MONTERO and MONTERO BUILDERS, INC. Said Judgment shall issue without the necessity of any proof other than violation of any of the provisions thereof.

On November 8, 2004, subsequent to the deposition of Keith Montero, counsel for Rozas filed an affidavit asserting that Montero had not responded to discovery in full and attached as an exhibit a copy of the transcript of Keith Montero's deposition. Counsel for Rozas also submitted a proposed judgment. The trial court signed the judgment on November 9, 2004.

ISSUES

Montero appeals and presents the following issues for review:

(1) The trial court abused its discretion by granting a default judgment in favor of Rozas and by dismissing the reconventional demand of Rozas for the alleged failure of Montero to comply with court ordered discovery where there is no evidence in the record that Montero was in bad faith, or that Montero was aware of the pending sanctions, or that the failure to comply with the court order was the fault of Montero rather than the fault of Montero's counsel at the time;
(2) The trial court erred in granting the default judgment in favor of Rozas in the amount of $80,000.00 plus $20,000.00 in attorney's fees, and that said award is both excessive and not supported by the evidence; and
(3) The order signed by the trial court on January 8, 2004, which lifted the stay and required the parties to proceed in the district court despite a pending arbitration of the dispute, is clearly wrong.

LAW AND DISCUSSION

Standard of Review

"Trial courts have broad discretion in ruling on discovery matters that are presented during the course of litigation, including the scope of discovery." Trahan v. State ex rel. Dept. Health and Hospitals, 04-743, p. 2 (La.App. 3 Cir. 11/10/04), 886 So.2d 1245, 1248 (citing Moak v. Ill.

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Cite This Page — Counsel Stack

Bluebook (online)
916 So. 2d 444, 2005 WL 2864653, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rozas-v-montero-lactapp-2005.