Security Nat. Trust v. Kalmback

613 So. 2d 664, 1993 WL 7939
CourtLouisiana Court of Appeal
DecidedJanuary 20, 1993
Docket24,346-CA
StatusPublished
Cited by17 cases

This text of 613 So. 2d 664 (Security Nat. Trust v. Kalmback) 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
Security Nat. Trust v. Kalmback, 613 So. 2d 664, 1993 WL 7939 (La. Ct. App. 1993).

Opinion

613 So.2d 664 (1993)

SECURITY NATIONAL TRUST, a Limited Partnership, Plaintiff-Appellant,
v.
Charles D. KALMBACK, IV, et al., Defendants-Appellees.

No. 24,346-CA.

Court of Appeal of Louisiana, Second Circuit.

January 20, 1993.

*665 Jack J. Mendheim, Michael S. Tudor, Alexandria, for plaintiff-appellant.

*666 Davidson, Nix, Arceneaux Jones & Askew by M. Thomas Arceneaux, Shreveport, for defendants-appellees.

Before SEXTON, LINDSAY and STEWART, JJ.

LINDSAY, Judge.

The plaintiff, Security National Trust, appeals from a trial court decision granting a motion for summary judgment in favor of one of the defendants, Charles D. Kalmbach, IV.[1] For the following reasons, we reverse the trial court judgment.

FACTS

Security National Trust filed suit against the defendants, Charles D. Kalmbach, IV, Mark Ford and the succession of William Phillips, to recover the unpaid balance of a promissory note. The note, in the original principal amount of $72,620.14, payable to the order of National Fidelity Bank of Shreveport, or Bearer, was executed on February 28, 1988. The maker of the note was the accounting firm of Phillips, Post and Kalmbach and it was signed by William Phillips, Gary Post and Mark Ford. Charles D. Kalmbach, IV did not sign the note.

In its petition, the plaintiff,[2] contended that, despite amicable demand, the note had not been paid. The unpaid balance of the note was $69,710.16. Attached to the plaintiff's petition was a copy of the partnership account agreement with National Fidelity Bank, dated January 30, 1987, indicating that William J. Phillips, Gary D. Post, Charles D. Kalmbach, IV and Mark Ford were members of a general partnership d/b/a Phillips, Post and Kalmbach, and that either William J. Phillips or Gary D. Post was authorized to borrow money on behalf of the partnership.

On July 24, 1991, the defendant, Charles D. Kalmbach, IV filed an answer, claiming that the partnership of Phillips, Post and Kalmbach ceased to exist in October, 1987. He asserted that the note could not be a partnership obligation because, at the time it was executed, the partnership no longer existed.

Along with the answer, the defendant also filed interrogatories and a request for admission of facts, pursuant to LSA-C.C.P. Art. 1467. The defendant requested admission of the following facts:

1. The accounting partnership known as Phillips, Post & Kalmbach ceased doing business in October, 1987.
2. Charles D. Kalmbach, IV, withdrew as a partner in the partnership Phillips, Post & Kalmbach in September, 1987.
3. In October, 1987, William Phillips and Gary Post began practicing accounting in a professional corporation, formed in October, 1987, under the name of Phillips, Post & Company.
4. On February 28, 1988, neither William Phillips, Gary Post nor Mark Ford were authorized to bind C. Dennis Kalmbach, IV to any financial obligation, directly or indirectly, and including specifically any purported debt on behalf of Phillips, Post & Kalmbach.
5. William Phillips, Gary Post and Mark Ford executed continuing guaranties dated on or about February 28, 1988, to secure payment of that certain Promissory Note dated February 28, 1988, which is the subject matter of this action.
6. C. Dennis Kalmbach, IV did not execute a continuing guaranty on or about February 28, 1988, or otherwise in connection with the note described in the preceding paragraph.
7. C. Dennis Kalmbach, IV had no interest in the accounting corporation known as Phillips, Post & Company.

The request for admission of facts was mailed to plaintiff's counsel on July 23, *667 1991. No answer was filed within the 15 days provided by LSA-C.C.P. Art. 1467.

On August 9, 1991, Kalmbach filed a motion for summary judgment, arguing that because the plaintiff failed to timely answer the request for admission of facts, the matters contained therein were deemed admitted. Therefore, Kalmbach argued that there was no genuine issue of material fact, that he was not liable on the note and that he was entitled to judgment as a matter of law. Mr. Kalmbach did not file any other documentation in support of his motion for summary judgment.

On August 21, 1991, the plaintiff filed its own motion for summary judgment. The plaintiff argued that Kalmbach failed to show any revocation of authority of the partnership account agreement. In addition, although untimely, the plaintiff attached answers to the request for admission of facts, denying all items.

On August 26, 1991, a hearing was held on the defendant's motion for summary judgment. At the hearing, the trial court found that the failure to answer the request for admission of facts within the time period set forth in the statute required that those facts be deemed admitted. The trial court found that, because the partnership of Phillips, Post and Kalmbach ceased to exist prior to the execution of the note, Kalmbach could not be found liable for the debt of a nonexistent partnership. Accordingly, the trial court granted Kalmbach's motion for summary judgment and dismissed the plaintiff's suit against him.

The plaintiff appealed, arguing that the trial court "erred in rendering a summary judgment in favor of Kalmbach on the sole basis of automatically admitted facts by failing to give effect to the plaintiff's untimely motion for summary judgment and answers to the request for admission of facts." The plaintiff also argued that the trial court erred in rendering summary judgment based on an admission of fact (No. 4) which called for a conclusion of law. It was further contended that the trial court erred in granting summary judgment without considering the pleadings and exhibits filed by the plaintiff.

REQUEST FOR ADMISSION OF FACTS

The plaintiff contends that the trial court erred in finding that, because it failed to timely answer the defendant's request for admission of facts, those facts were deemed admitted. We agree.

Admissions may be used to establish either uncontradicted facts or contradicted issues which constitute the crux of the matter in litigation. Succession of Rock, 340 So.2d 1325 (La.1976) Requests for admission of facts are governed by LSA-C.C.P. Arts. 1466 through 1468. LSA-C.C.P. Art. 1466 specifies that a party may serve on any other party a written request for the admission, for purposes of the pending action only, of the truth of any matters within the scope of the discovery articles, 1422 through 1425.

LSA-C.C.P. Art. 1467 provides:

Each matter of which an admission is requested shall be separately set forth. The matter is admitted unless, within fifteen days after service of the request, or within such shorter or longer time as the court may allow, the party to whom the request is directed serves upon the party requesting the admission a written answer or objection addressed to the matter, signed by the party or by his attorney, but, unless the court shortens the time, a defendant shall not be required to serve answers or objections before the expiration of thirty days after service of the petition upon him. If objection is made, the reasons therefor shall be stated. The answer shall specifically deny the matter or set forth in detail the reasons why the answering party cannot truthfully admit or deny the matter.

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Bluebook (online)
613 So. 2d 664, 1993 WL 7939, Counsel Stack Legal Research, https://law.counselstack.com/opinion/security-nat-trust-v-kalmback-lactapp-1993.