Starns v. Emmons

538 So. 2d 275, 1989 WL 6037
CourtSupreme Court of Louisiana
DecidedJanuary 30, 1989
Docket88-C-1575
StatusPublished
Cited by93 cases

This text of 538 So. 2d 275 (Starns v. Emmons) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Starns v. Emmons, 538 So. 2d 275, 1989 WL 6037 (La. 1989).

Opinion

538 So.2d 275 (1989)

Donald P. STARNS, Receiver for Leasing Services, Inc.
v.
Stanley EMMONS, Tommy R. Emmons and Continental Contractors, Inc.

No. 88-C-1575.

Supreme Court of Louisiana.

January 30, 1989.

Francis T. Moore, Jr., for applicants.

Claude C. Lightfoot, Jr., New Orleans, Roy S. Lilley, Metairie, for respondent.

*276 DIXON, Chief Justice.

This breach of lease action presents the narrow issue of whether the three year liberative prescription of C.C. 3494 prevents recovery of rent arrearages, including late charges and attorney fees based on those arrearages, in an action for breach of lease timely filed under C.C. 3499. At the outset, it is important to note that the parties have taken no evidence in this case. The lower courts denied the defendants' exceptions of prescription solely on the briefs and the arguments presented.

On April 16, 1987, Donald P. Starns, Receiver for Leasing Services, Inc., filed a petition for breach of lease and rule for possession against defendants Continental Contractors, Inc., Stanley Emmons, and Tommy R. Emmons, alleging that they had breached three equipment leases. According to the petition, Continental leased a 160 CFM air compressor from Leasing Services on February 5, 1980 (lease one). The lease terms called for 36 monthly payments of $500.00 per month, beginning February 1, 1980, and included a provision for a late charge of $25.00 per month for each payment received more than five days after its due date. The total amount of the lease was $18,000.00. The lease also required that Continental notify Leasing Services in writing within thirty days of the end of the lease term if it wanted to cancel the lease. Without such notification, the lease was automatically renewed. Finally, the lease contained an acceleration clause and provisions for 20% attorney fees on the principal and interest subject to collection.

Because Continental never provided written notice of termination, Starns asserts that the lease was reconducted until January 1, 1988, even though the last payment Continental made to Leasing Services under this lease was dated May 6, 1982. Starns now demands that Continental pay Leasing Services the balance of the rent due under the lease, a total of $36,125.00, plus late charges and attorney fees. Continental contends, however, that the theft of the leased compressor from its work site during the lease terminated the lease under C.C. 2728,[1] eliminating the need for Continental to notify Leasing Services in writing in order to prevent reconduction of the lease. Continental also claims that the three year liberative prescription of article 3494 bars Starns' attempts to collect alleged arrearages under this lease.

On October 8, 1980, Leasing Services and Continental entered into the two other equipment leases involved in this suit. One lease was for a Ditch Witch R40 trencher with a digging attachment (lease two), and one was for a 1980 Ditch Witch trailer (lease three). The terms of lease two provided for 36 monthly payments of $902.00, with a late charge of $45.00 per month for each payment received more than five days after its due date. Lease three provided for 36 monthly payments of $115.00, with a late charge of $5.75 per month for each payment received more than five days after its due date. Both leases contained provisions for 20% attorney fees. Additionally, Stanley Emmons and Tommy R. Emmons executed surety agreements for the second and third leases.

Continental returned the Ditch Witch and the trailer to Leasing Services on July 5, 1982, terminating leases two and three by plaintiff's own admission. Nevertheless, Leasing Services contends that Continental still owes balances under lease two of $5,698.33 and under lease number three of $1,553.00, plus attorney fees. Continental again pleads the liberative prescription of three years as a bar to Starns' attempt to collect any balances owed Leasing Services under these leases.

The trial court rejected the defendants' exceptions of three years liberative prescription, and the court of appeal affirmed. The appellate court characterized the action stated on the face of the petition as being one in contract and thus subject to the ten year liberative prescription of article 3499. Starns v. Emmons, 524 So.2d 251 (La.App. 5th Cir.1988). This court granted writs to determine whether the three year prescription of article 3494 limits the demands recoverable in a breach of *277 lease action when that action, although timely filed under article 3499 (ten year prescription for a "personal action"), is filed more than three years after the termination of the lease. Starns v. Emmons, 532 So.2d 106 (La.1988). We hold that the three year liberative prescription of article 3494 limits the demands that can be made in a personal action brought more than three years after the cause of action arose. Accordingly, the case is reversed and remanded for further proceedings.

PRESCRIPTION

Article 3499 of the Louisiana Civil Code provides that "[u]nless otherwise provided by legislation, a personal action is subject to a liberative prescription of ten years." (Emphasis added). Comment (b) of that article states that articles 3492-3498 of the Code establish shorter prescriptive periods and that numerous other articles establish longer ones. Article 3494 provides that "an action for arrearages of rent and annuities" is subject to a liberative prescription of three years. Thus, as authorized by the introductory phrase of article 3499, article 3494 constitutes a legislative limitation on the remedies available to a plaintiff who brings certain enumerated personal actions more than three years after the cause of action arose.

The character of an action disclosed in the pleadings determines the prescriptive period applicable to that action. Duer & Taylor v. Blanchard, Walker, O'Quin & Roberts, 354 So.2d 192 (La.1978); Federal Insurance Co. v. Insurance Company of North America, 262 La. 509, 263 So.2d 871 (1972); Importsales, Inc. v. Lindeman, 231 La. 663, 92 So.2d 574 (1957). Both Federal Insurance and Importsales involved parties who were damaged by conduct arising out of contractual relationships. Each plaintiff had a choice between suing in contract or in tort. This court analyzed the allegations in the petitions and the damages sought to determine whether the actions sounded in tort or in contract and what the applicable prescriptive periods were. Similarly, in Duer & Taylor, this court analyzed the nature of the contract at issue before rejecting the plea of a Louisiana law firm that the claim of a New York law firm for professional fees had prescribed. In that case, a New York firm had associated a Louisiana firm to pursue a succession claim for one of its clients. Four years later the New York firm sought its portion of the fee generated. This court held that the relationship between the two firms constituted a special partnership rather than an attorney-client relationship and that it was not subject to the three year liberative prescription applicable to demands for professional fees.

In Shepard Realty Co. v. United Shoe Stores Co., 193 La. 211, 190 So. 383 (1939), a case involving very similar facts and presenting essentially the same issue as the case at bar, this court held that the three year liberative prescription prevented plaintiff Shepard Realty from collecting $130,000.00 of the $149,699.94 it had demanded under a lease contract with United Shoe Stores. The $130,000.00 constituted rent arrearages that had prescribed prior to the action's having been brought.

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Bluebook (online)
538 So. 2d 275, 1989 WL 6037, Counsel Stack Legal Research, https://law.counselstack.com/opinion/starns-v-emmons-la-1989.