Stranco, Inc. v. Greater New Orleans Landfill, Inc.

822 So. 2d 791, 2002 La.App. 5 Cir. 213, 2002 La. App. LEXIS 2165, 2002 WL 1378659
CourtLouisiana Court of Appeal
DecidedJune 26, 2002
DocketNo. 02-CA-213
StatusPublished
Cited by1 cases

This text of 822 So. 2d 791 (Stranco, Inc. v. Greater New Orleans Landfill, 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
Stranco, Inc. v. Greater New Orleans Landfill, Inc., 822 So. 2d 791, 2002 La.App. 5 Cir. 213, 2002 La. App. LEXIS 2165, 2002 WL 1378659 (La. Ct. App. 2002).

Opinion

JgTHOMAS F. DALEY, Judge.

The plaintiff has appealed the trial court’s dismissal of its petition and dissolution of its Writ of Attachment. For the reasons which follow, we affirm in part and reverse in part.

FACTS:

Plaintiff, Stranco, Inc., filed a Petition on Open Account and Request for Attachment on September 10, 2001. Named as defendants were Greater New Orleans Landfill, Inc., (GNOL), Southern Recovery Management, Inc., (Southern), Joseph Marcello, and S. Joseph Segreto. The petition alleged that the plaintiff had performed certain work to Segreto and Southern related to the closure of GNOL, and had not been paid despite amicable demand for payment. The petition also alleged that Southern had been utilizing the assets and equipment of GNOL and that the two were being operated as a single business. The petition further alleged that assets of GNOL |3were being sold and the funds from the sale of such assets were being converted to the personal use of Marcello. A Writ of Attachment seeking to attach the bank accounts of GNOL and Southern was attached to the petition. The attachment stated the attachment would be issued upon posting of the appropriate bond and was signed by the trial judge on September 11, 2001. Although the notation on the petition requested service on all defendants, no attempt at service was made. Plaintiff was notified on September 19, 2001 that a bond must be posted prior to the petition and attachment being issued. On September 26, 2001, plaintiff filed a Motion to Appoint a Special Process Server to serve the defendants and banks. On that same date, plaintiff filed a Writ of Attachment having posted the appropriate bond. The motion and attachment were signed by the trial judge on September 26, 2001. All defendants and the banks were served that same date by a Special Process Server.

On October 11, 2001, defendants filed an Exception and Motion to Dissolve the Attachment. The defendants alleged that service was improper and there were no grounds for attachment. The defendants prayed for costs and attorney fees. A hearing was held on November 2, 2001. At the conclusion of the hearing, the trial judge granted the motion dissolving the attachment and dismissed the entire proceeding. Plaintiff sought supervisory review from this court1, but was instructed that because this judgment dismissed the action as to all defendants, it was a final appealable judgment, and the appropriate remedy was by appeal. This appeal followed.

^DISCUSSION:

On appeal, the plaintiff argues the trial court erred in dismissing its petition and dissolving the Writ of Attachment. Plaintiff argues that no Motion to Dismiss was filed and that plaintiff should have been granted leave to cure the defect in service. The defendants respond that they did indeed pray for dismissal of the entire petition in their Motion to Dissolve the Attachment.

[793]*793A review of the record shows that at the conclusion of the hearing, the trial judge stated the attachment was dissolved and awarded attorney fees. Nowhere in the transcript does the trial judge state that the plaintiffs petition is dismissed. The last line of the judgment signed by the trial court dated November 2, 2001 states: “It is further ordered, adjudged, and decreed that the above captioned proceeding be, and it is hereby, dismissed as to' all defendants.” ■ Code of Civil Procedure article 3506 provides that if a Writ of Attachment is dissolved, the action “shall then proceed as if no writ had been issued.” We find that the trial judge erred in dismissing the entire petition as there was no basis for dismissal of the entire petition. The issue before the court was the dissolution of the attachment. The merits of the Petition on Open Account were not before the court. Therefore, the portion of the judgment dismissing plaintiffs proceeding is reversed.

In their Motion to Dissolve the Attachment, the defendants argued that they were never properly served with the petition and attachment and that there were no grounds for attachment. In ruling on defendants’ motion, the trial judge stated:

To this date, even with all the attempts, the banks haven’t properly been served, you know, so there are all sorts of problems with the service.
In addition to that, the Court finds there to be, the plaintiff failed in his burden of proof, as far as the verified petition, they failed to substantiate the allegations in the petition.

IsOn appeal, the plaintiff argues the trial judge erred in dissolving the Writ of Attachment because defendants were in the process of closing their business and liquidating the assets and refused to pay Stran-co’s bill. Plaintiff claims these facts are sufficient to support the Writ of Attachment. Plaintiff goes on to argue that defendants failed to produce any evidence to contradict the sworn testimony that the defendants operated as a single business entity. Defendants respond that plaintiff had the burden of proving the grounds for the attachment and failed to do so.

The following Code of Civil Procedure articles govern pre-judgment attachment of property:

C.C.P. art. 3501
A writ of attachment or of sequestration shall issue only when the nature of the claim and the amount thereof, if any, and the grounds relied upon for the issuance of the writ clearly appear from specific facts shown by the petition verified by, or by the separate affidavit of the petitioner, his counsel or agent.
C.C.P, art. 3541

A writ of attachment may be obtained when the defendant:

(3) Has converted or is about to convert his property into money or evidences of debt, with' intent to place it beyond the reach of his creditors.
C.C.P. art. 3506
The defendant by contradictory motion ' may obtain the dissolution of a writ of attachment or of sequestration, unless the plaintiff proves the grounds upon which the writ was issued. If the writ of attachment or of. sequestration is dissolved, the action shall then proceed as if no writ had been issued.
The court may allow damages for the wrongful issuance of a writ of attachment or of sequestration on a motion to dissolve, or on a reconventional demand. Attorney’s fees for the services rendered in connection with the dissolution of the writ may be included’as an element of damages whether the writ is dissolved on a motion or after trial on the merits.

[794]*794A Writ of Attachment may be obtained in any action for a money judgment. C.C.P. art. 3542. Because the attachment remedy is extremely harsh, the articles providing for Writ of Attachment or sequestration must be strictly complied with. Barnett Marine, Inc., v. Van Den Adel., 96-1029 (La.App. 5 Cir. 4/9/97), 694 So.2d 453, writ denied; 97-1236 (La.9/26/97), 701 So.2d 983. Once the defendant files a Motion to Dissolve a Writ of Attachment, the burden of proof shifts to the plaintiff to establish the facts constituting grounds for the issuance of the Writ of Attachment. Id.

At the hearing on this matter, plaintiff called three witnesses. The first' witness, Colleen McCarthy, was an employee of Hibernia, the bank where two of GNOL’s accounts were frozen. Ms. McCarthy testified that a trust was set up to pay the expenses incurred with the closure of GNOL.

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822 So. 2d 791, 2002 La.App. 5 Cir. 213, 2002 La. App. LEXIS 2165, 2002 WL 1378659, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stranco-inc-v-greater-new-orleans-landfill-inc-lactapp-2002.