Russellville Steel Sales & Service, Inc. v. National Supermarkets, Inc.

542 So. 2d 600, 1989 La. App. LEXIS 670, 1989 WL 36899
CourtLouisiana Court of Appeal
DecidedApril 12, 1989
DocketNo. 88-CA-889
StatusPublished

This text of 542 So. 2d 600 (Russellville Steel Sales & Service, Inc. v. National Supermarkets, 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
Russellville Steel Sales & Service, Inc. v. National Supermarkets, Inc., 542 So. 2d 600, 1989 La. App. LEXIS 670, 1989 WL 36899 (La. Ct. App. 1989).

Opinion

GRISBAUM, Judge.

This appeal relates to the granting of a summary judgment in favor of defendant National Supermarkets, Inc. (National). Plaintiffs’ claims under the Louisiana Private Works Act, La.R.S. 9:4801 et seq. arose out of the construction of one of National supermarkets. We affirm.

ISSUE

Where no bond was filed with the initial filing of the construction contract, whether the filing of lien bonds by the general contractor subsequent to plaintiffs’ perfection of materialman’s liens relieves the work’s owner of personal liability as a matter of law such that summary judgment in favor of the owner — sought to be held personally liable under the Private Works Act —was proper.

PROCEDURAL HISTORY

On March 2, 1988, plaintiffs Russellville Steel Sales and Service, Inc., and Searcy Steel Co. filed against National Supermarkets, Inc., Brice Building Co., Inc., (Brice) and J.B. Construction Products (J.B. Construction) a suit on open account that sought also to enforce a materialman’s lien. National is alleged to be owner of property on which the work in dispute — a Real Superstore — was built. Brice is alleged to be the general contractor, and J.B. Construction, the immediate entity (subcontractor) to whom plaintiffs delivered materials. Plaintiffs support their claims with affidavits verifying their circumstances and amounts.

On April 12, 1988, defendant J.B. Construction filed a motion to stay the proceedings as to it because it had filed Chapter 11 bankruptcy proceedings. On May 16,1988, defendant Brice filed an answer, reconven-tional demand, and claim for set-off. On the same date, defendant National moved for summary judgment, alleging that Brice “has filed proper bonds and has caused the erasure and cancellation of the liens which were originally filed by plaintiffs herein, and consequently, plaintiffs no longer have any legal basis for proceeding against Na[601]*601tional.” National supports its motion with an affidavit executed by a Mr. Carl J. Caf-farel, attested to be vice-president of Brice. The affidavit states that Brice has obtained two lien bonds from the United States Fidelity and Guaranty Company (USF & G) and has filed same in the Office of Clerk of Court, Parish of Jefferson, thereby causing the erasure of plaintiffs’ liens from the mortgage and conveyance records. Accompanying the affidavit are Certificates of Cancellation apparently issued by the Clerk of Court. Also accompanying the affidavit are various bond and surety documents treating the USF & G bonds. Defendant National further supported its motion with a memorandum, which asserts that, upon Brice’s filing the bonds, all claims as to National by plaintiffs became extinguished by operation of La.R.S. 9:4823(E).

LAW

In Lewis v. USA Transport, 518 So.2d 539 (La.App. 5th Cir.1987), we observed that

The mechanism of summary judgment in civil proceedings is provided for by La.C.C.P. art. 966, which states:
A. The plaintiff or defendant in the principal or any incidental action, with or without supporting affidavits, may move for a summary judgment in his favor for all or part of the relief for which he has prayed. The plaintiff’s motion may be made at any time after the answer has been filed. The defendant’s motion may be made at any time.
B. The motion for summary judgment shall be served at least ten days before the time specified for the hearing. The adverse party may serve opposing affidavits prior to the date of the hearing. The judgment sought shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to material fact, and that mover is entitled to judgment as a matter of law.
C.A summary judgment may be rendered on the issue of liability alone although there is a genuine issue as to the amount of damages.
The jurisprudence interpreting this provision makes clear that summary judgment should be granted only when reasonable minds must conclude that there is no genuine issue of material fact and that mover is entitled to judgment as a matter of law. Chaisson v. Domingue, 372 So.2d 1225, 1227 (La.1979). A decision on the motion necessarily involves an examination of the merits of the case as they appear through the pleadings and supporting documents submitted on trial of the motion.1 Jones v. City of Kenner, 442 So.2d 1242, 1245 (La.App. 5th Cir.1983).
As should be obvious from the rationale of summary judgment principles, any decision as to the propriety of a grant of the motion must be made with reference to the substantive law applicable to the case. Only in the context of the applicable substantive law can issues of material fact be ascertained.

Id., at 541-52 (footnote omitted).

The substantive law in question is derived from Act 724 of 1981, entitled La.R.S. 9:4823, which, in part, states: “E. A claim against the owner and the privilege securing it granted by this Part are extinguished if a bond is filed by the contractor as provided by R.S. 9:4835.”

ANALYSIS

The trial court, in its oral Reasons for Judgment, stated:

The Court is going to grant the motion for summary judgment insofar as it pertains to National Supermarkets. My interpretation of the arguments that I have just heard is that R.S. 9[:]4802 providing a performance bond be filed along with the contract is an opportunity for an owner to exonerate himself from liability for sure, guaranteed, before the private work starts. And that is the only way he can do it with any certainty, to have this performance bond filed with the contract. When we get to the scenario that we have here today where liens are filed, [602]*602then the owner conceivably has a problem because there is no way he can force the contractor at that stage to file a lien bond. So, there is that opportunity for the owner, before the work even starts, to exonerate himself from liability. But, a lien bond that is filed during construction serves the same purpose and I think that all 4802 is is an opportunity for an owner to assure himself, with no reservations, that he will have no liability because he has filed a performance bond before the work has started. But, I don’t think that precludes freeing him from liability in the event a subsequent lien bond is filed. That would certainly stand in and do everything that the performance bond would do and even more. I think it does more than a performance bond, because under a performance bone [sic] conceivably he would have to go through a concursus. These lien bonds are very specific. They are there for your clients and nobody else. Nobody else can impinge upon those lien bonds. So, for those reasons, the Court will grant the motion for a summary judgment with regard to National Supermarkets.

We agree.

Since no cases have yet construed § 4823(E) of the revised Private Works Act, we look to the accompanying Comments. See Morgan v. Audubon Constr. Corp., 485 So.2d 529, 521 (La.App. 5th Cir.1986). The Comments to La.R.S. 9:4823, as they appear in West’s Louisiana Revised Statutes, state:

(a) This section incorporates the substance of the prior law requiring the timely filing of notices of claims and the institution of suits for their enforcement.

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Related

Jones v. City of Kenner
442 So. 2d 1242 (Louisiana Court of Appeal, 1983)
Morgan v. Audubon Const. Corp.
485 So. 2d 529 (Louisiana Court of Appeal, 1986)
Chaisson v. Domingue
372 So. 2d 1225 (Supreme Court of Louisiana, 1979)
Lewis v. USA Transport
518 So. 2d 539 (Louisiana Court of Appeal, 1987)

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Bluebook (online)
542 So. 2d 600, 1989 La. App. LEXIS 670, 1989 WL 36899, Counsel Stack Legal Research, https://law.counselstack.com/opinion/russellville-steel-sales-service-inc-v-national-supermarkets-inc-lactapp-1989.