TL James & Co. v. Kenner Landing, Inc.

562 So. 2d 914, 1990 La. LEXIS 1382, 1990 WL 73076
Supreme Court of Louisiana·Decided June 4, 1990·No. 89-C-2617·Published·Cited by 16 cases

Opinion

562 So.2d 914 (1990)

T.L. JAMES & COMPANY, INC.
v.
KENNER LANDING, INC. and Francis P. Bonura.

No. 89-C-2617.

Supreme Court of Louisiana.

June 4, 1990.

*915 William J. Guste, Atty. Gen., Gary L. Keyser, David C. Kimmel, Asst. Attys. Gen., Herman C. Hoffmann, Jr., Daria L. Burgess, Hurley & Hoffmann, New Orleans, for T.L. James & Co., Inc., relator/intervenor/defendant-respondent.

Robert G. Creely, Michael F. Somoza, Amato & Creely, Gretna, for Kenner Landing, Inc. and Francis P. Bonura, plaintiff-applicant.

DENNIS, Justice.[*]

We are called upon to decide whether the state may recover tort damages from a dredging company for trespass and unauthorized dredging of materials from a state waterbottom despite the state's failure to demand such relief in its pleadings. In its pleadings, the state prayed only for royalties on the materials taken and the trial court awarded the state the amount demanded for royalties. The Court of Appeal reversed because the state had failed to prove a contract or other legal basis for the state to share in the products or profits from the dredging operations. Moreover, the appeals court rejected the state's argument that the judgment should be affirmed as an award for damages for trespass and unauthorized removal of materials because the state had not demanded damages in its pleadings. T.L. James & Co. v. Kenner Landing, Inc. 550 So.2d 1378 (La.App. 5th Cir.1989). We affirm for somewhat different reasons.

Except in the case of a default judgment, every final judgment must grant the relief to which the party in whose favor it is rendered is entitled, even if the party has not demanded such relief in the party's pleadings. La.C.C.P. art. 862. However, when the party's failure to request a particular form of relief, and the party's trial conduct, improperly and substantially prejudice its adversary's presentation of a defense, it is not "entitled" to relief under this rule. In the present case, the state's *916 conduct of its cause, including its limited demand for royalties in its pleadings, its pretrial consent to confine the issues to royalties, and its introduction of evidence only as proof of royalties unfairly deprived the dredging company of an opportunity to prepare and assert potential protective and mitigative defenses to a tort action.

We granted the state's application because it appeared that the Court of Appeal had erred by vacating a damage award merely because damages were not demanded in pleadings and by holding alternatively that the state's claim had prescribed. T.L. James & Co. v. Kenner Landing, Inc., 550 So.2d 1378 (La.App. 5th Cir.1989). After a full review of the case, however, we conclude that the Court of Appeal judgment should be affirmed on modified grounds, i.e., because of the state's failure to demand tort damages and the substantial and improper prejudice to its adversary's defense caused by the state's pretrial and trial conduct. Hence, we set to one side without deciding the prescription issue and expressly declare that the Court of Appeal opinion shall have no precedential effect in this regard.

The state intervened in a suit by the dredging company, T.L. James & Company, against Kenner Landing, Inc. and Francis Bonura, in which the dredging company alleged that these persons had agreed to pay for materials that it had dredged for them from the Mississippi river. The state asserted that it was entitled to a royalty of twenty cents per cubic yard on the dredged materials from either or both of the original parties. The state demanded in its petition of intervention to be paid a dollar amount calculated by multiplying this royalty rate times the total volume of materials dredged. In response to interrogatories, the state answered that the object of its suit was to recover royalties, not severance taxes. In a pretrial statement, filed in compliance with the trial court's order under La.C.C.P. Article 1551, the state asserted that the purpose of its intervention was to collect royalties on the materials dredged or to recover the amount by which the other parties had been unjustly enriched. Immediately prior to trial, in order to avoid the granting of a continuance to Kenner Landing and Bonura, the state agreed to withdraw its unjust enrichment claim and to "proceed based on [its] original petition of intervention."

At trial, the state failed to introduce any evidence of a contract by which the state and the dredging company agreed that the state should receive royalties on the materials dredged. The state called one witness, an auditor, who testified to the royalty rate and delinquent payment penalty the state had bargained for in previous dredging contracts; and the auditor used that rate to calculate the royalties that T.L. James would have owed the state had the parties entered a royalty agreement. But the testimony by the auditor also revealed clearly that the state and T.L. James had not entered any contract or agreement with respect to the dredging in question.

Furthermore, the state did not introduce any evidence as to damages or indicate that it would seek to rely on any other party's evidence to prove damages. In confirmation of the state's intention, the state's witness testified that the object of the state's intervention was to collect the royalties he calculated to be due.

After the trial on the merits, the trial court rendered judgment in favor of T.L. James & Company against Kenner Land Development, Inc. but rejected the dredging company's demand that Francis Bonura be held personally liable. The trial court further rendered judgment in favor of the state as intervenor against the dredging company for an amount equal to the royalties demanded by the state. The dredging company appealed, and the Court of Appeal affirmed in part and reversed in part, upholding the trial court's decree exonerating Francis Bonura but annulling the state's judgment against T.L. James & Company. The Court of Appeal rejected the state's argument that the judgment should be affirmed as an award for damages for trespass and unauthorized removal of materials. In doing so, the appeals court merely stated that "[t]he present suit is for unpaid royalties, not for damages in trespass or the like." T.L. James & Co. v. Kenner *917 Landing, Inc., 550 So.2d 1378, 1385 (La. App. 5th Cir.1989) (Emphasis in original). Only the state applied for and was granted a writ of certiorari. T.L. James & Co. v. Kenner Landing, Inc., 556 So.2d 26 (La. 1990). We affirm because the state's demand for damages was not merely tardy, but also, in combination with its pretrial and trial conduct, unfairly prejudicial to its adversary's ability to present tort action and damage defenses.

Except in the case of a judgment by default, Article 862 of the Louisiana Code of Civil Procedure provides that "a final judgment shall grant the relief to which the party in whose favor it is rendered is entitled, even if the party has not demanded such relief in his pleadings...." Article 862 is virtually identical to its source, the second sentence of Rule 54(c) of the Federal Rules of Civil Procedure. The second sentence of Federal Rule 54(c) provides:

Except as to a party against whom a judgment is entered by default, every final judgment shall grant the relief to which the party in whose favor it is rendered is entitled, even if the party has not demanded such relief in the party's pleadings.

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TL James & Co. v. Kenner Landing, Inc., 562 So. 2d 914, 1990 La. LEXIS 1382, 1990 WL 73076 (La. 1990).

562 So. 2d 914 (TL James & Co. v. Kenner Landing, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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