Stegall v. Orr Motors of Little Rock, Inc.

165 So. 3d 264, 2015 La. App. LEXIS 716, 2015 WL 1652313
CourtLouisiana Court of Appeal
DecidedApril 15, 2015
DocketNo. 49,765-CA
StatusPublished

This text of 165 So. 3d 264 (Stegall v. Orr Motors of Little Rock, 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
Stegall v. Orr Motors of Little Rock, Inc., 165 So. 3d 264, 2015 La. App. LEXIS 716, 2015 WL 1652313 (La. Ct. App. 2015).

Opinion

CARAWAY, J.

bln a prior lawsuit, the plaintiff obtained a favorable wage judgment against his former employer, which included an award of attorney fees. During the pendency of a devolutive appeal, the plaintiff was granted an order allowing him to withdraw funds on deposit in the registry of the court in full payment of the judgment. After the judgment was reduced in part on appeal, the plaintiff filed a motion seeking a determination of the amount due under the judgment. The former employer filed a reconventional demand seeking recovery of the amount paid in excess of the final judgment against the former employee and his attorney, in solido. After the trial court granted the attorney’s exception of no cause of action, this appeal by the former employer ensued. We affirm.

Facts

The underlying action from which the present dispute arises was addressed by this court in Stegall v. Orr Motors of Little Rock, Inc., 48,241 (La.App.2d Cir.6/26/13), 121 So.3d 684, writs denied, 13-2106, 13-2107 (La.11/22/13), 126 So.3d 486, 13-2402 (La.11/22/13), 126 So.3d 493. (hereinafter “Stegall /”). In that action, Jeffrey Ste-gall obtained a judgment against his former employer, Orr Motors of Little Rock, Inc. d/b/a/ Sparks Nissan, Kia Real Estate, L.L.C. (hereinafter “Orr”), for back wages of $30,000, penalty wages totaling $25,439 and attorney fees of $15,000.1 On | ?appeal, penalty wages were reduced to $10,226.70 and the attorney fees to $10,861.21.2

During the pendency of the appeal in Stegall I, Stegall obtained a ruling in the trial court dismissing Orr’s suspensive appeal and converting it to a devolutive appeal. Orr had attempted to secure a sus-pensive appeal by depositing the full judgment sum of $77,347.33 into the registry of the Monroe City Court. Prior to our ruling in Stegall I, on December 18, 2012, Stegall obtained an order directing [266]*266the Clerk of Monroe City Court to “pay unto Plaintiff, Jeffrey K. Stegall, through his attorney of record, said funds on deposit in the Registry of the Court.” On December 20, 1012, a check made payable to the order of “Atty. Anthony Bruseato” in the amount of $77,347.33 was issued from the Monroe City Court judicial fund.

On November 26, 2013, Stegall filed a motion seeking a determination of the total amount due on the judgment after this court’s modification on appeal. On February 14, 2014, Orr filed a reconventional demand against Stegall and his attorney of record, Anthony Bruseato, seeking judicial return of the overpayment on the original judgment removed from the registry of the court. The asserted basis of recovery of those amounts was “as a payment of a thing not due and a windfall.” Orr sought a judgment against both Stegall and Brus-cato, in solido, in the amount of $20,447.94, plus costs and interest from the date of withdrawal of the funds from the court’s registry.

| .-¡Attorney Bruseato filed a Peremptory Exception of No Cause of Action on February 14, 2014, arguing that Orr’s claim against him had “no factual or legal basis for liability of an attorney representing his client at every step in the proceedings.”

On April 11, 2014, Orr filed a Motion for Summary Judgment seeking judgment against Stegall and Bruseato on the grounds of return of a thing not due and unjust enrichment. At the hearing on both the exception of no cause of action and summary judgment motion, all parties admitted that an overpayment of the judgment occurred, although each side disputed the amount owed in repayment. In argument, Orr conceded that it did not know if Bruseato kept any of the funds disbursed to his client from the court registry.

On May 30, 2014, the trial court granted Orr’s Motion for Summary Judgment against Stegall in the amount of $19,712.33. The trial court granted Bruscato’s exception of no cause of action.

Orr has appealed the court’s denial of the motion for summary judgment against Bruseato and the granting of the exception of no cause of action, arguing that it is entitled to a judgment as a matter of law against Bruseato. Orr also contends that the trial court erred in granting Bruscato’s exception of no cause of action based upon jurisprudence and the fact that the funds withdrawn (which included amounts representing attorney fees) from the registry of the court were made payable solely to Bruseato. Orr contends that the reduction of those attorney fees on appeal in Stegall I further supports a cause of action.

| Juaw

A peremptory exception of no cause of action questions whether the law extends a remedy to anyone under the factual allegations of the petition. Rangel v. Denny, 47,381 (La.App.2d Cir.8/8/12), 104 So.3d 68. The purpose of the peremptory exception of no cause of action is to determine the sufficiency in law of the petition. City of New Orleans v. Board of Directors of Louisiana State Museum, 98-1170 (La.3/2/99), 739 So.2d 748; Villareal v. 6494 Homes, LLC, 48,302 (La.App.2d Cir.8/7/13), 121 So.3d 1246.

A court of appeal reviews a lower court’s ruling sustaining an exception of no cause of action de novo because the exception raises a question of law and the lower court’s decision is generally based only on the sufficiency of the petition. The question is whether, in the light most favorable to the plaintiff, the petition states any valid cause of action for relief. Id.

A final judgment is conclusive between the parties except on direct review. Tolis v. Board of Sup’rs of Louisiana State University, 95-1529 (La.10/16/95), [267]*267660 So.2d 1206. Nevertheless, a judgment creditor may proceed with the execution of a judgment after the delay for a suspen-sive appeal therefrom has elapsed. La. C.C.P. art. 2252, Official Revision Comment (d).

A person who has received a payment or a thing not owed to him is bound to restore it to the person from whom he received it. La. C.C. art. 2299. Funds paid in satisfaction of a judgment on appeal which is | ^subsequently reversed must be refunded as receipt of a payment not owed under Civil Code Article 2299. Goo-tee Const. Inc. v. Amwest Sur. Ins. Co., 03-0144 (La.10/10/03), 856 So.2d 1203. Implicit in the rules that authorize the execution on a judgment appealed devolu-tively is the obligation of the judgment creditor to return voluntary payments made by a judgment debtor in the event the judgment is reversed or modified. Gootee, supra, citing Orgeron v. Security Indus. Funeral Homes, Inc., 96-2127 (La.App. 4th Cir.2/26/97), 690 So.2d 243.

A person who has been enriched without cause at the expense of another person is bound to compensate that person. The term “without cause” is used in this context to exclude cases in which the enrichment results from a valid juridical act or the law. The remedy declared here is subsidiary and shall not be available if the law provides another remedy for the impoverishment or declares a contrary rule. La. C.C. art. 2298.

Discussion

The statutory attorney fees awarded in Stegall I are provided under La. R.S. 23:632(C) as follows in relevant part:

Reasonable attorney fees shall be allowed the laborer or employee by the court which shall be taxed as costs to be paid by the employer.

From our review of Stegall I,

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Related

Blanchard v. Bergeron
489 U.S. 87 (Supreme Court, 1989)
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25 So. 3d 889 (Louisiana Court of Appeal, 2009)
Louisiana Health Service & Indem. Co. v. Cole
418 So. 2d 1357 (Louisiana Court of Appeal, 1982)
City of New Orleans v. Bd. of Dir. of State Museum
739 So. 2d 748 (Supreme Court of Louisiana, 1999)
Gootee Const., Inc. v. Amwest Sur. Ins. Co.
856 So. 2d 1203 (Supreme Court of Louisiana, 2003)
Bailey v. Haynes
856 So. 2d 1207 (Supreme Court of Louisiana, 2003)
Great American Indemnity Company v. Dauzat
157 So. 2d 308 (Louisiana Court of Appeal, 1963)
Tolis v. Board of Sup'rs of Louisiana State University
660 So. 2d 1206 (Supreme Court of Louisiana, 1995)
Rangel v. Denny
104 So. 3d 68 (Louisiana Court of Appeal, 2012)
Villareal v. 6494 Homes, LLC
121 So. 3d 1246 (Louisiana Court of Appeal, 2013)
Stegall v. Orr Motors of Little Rock, Inc.
121 So. 3d 684 (Louisiana Court of Appeal, 2013)

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Bluebook (online)
165 So. 3d 264, 2015 La. App. LEXIS 716, 2015 WL 1652313, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stegall-v-orr-motors-of-little-rock-inc-lactapp-2015.