Triangle Pac. Corp. v. Nat. Bldg. & Contracting Co.

652 So. 2d 552, 1995 WL 111999
CourtLouisiana Court of Appeal
DecidedMarch 3, 1995
Docket94 CA 0619, 94 CA 0620
StatusPublished
Cited by4 cases

This text of 652 So. 2d 552 (Triangle Pac. Corp. v. Nat. Bldg. & Contracting Co.) 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
Triangle Pac. Corp. v. Nat. Bldg. & Contracting Co., 652 So. 2d 552, 1995 WL 111999 (La. Ct. App. 1995).

Opinion

652 So.2d 552 (1995)

TRIANGLE PACIFIC CORPORATION
v.
NATIONAL BUILDING & CONTRACTING CO., INC. and Dibidale of Louisiana, Inc.
NATIONAL BUILDING AND CONTRACTING CO., INC.
v.
ARABIAN DEVELOPMENT CORP. OF DUBAI, U.A.E., Alerion Bank, Sears, Roebuck and Company, et al.

Nos. 94 CA 0619, 94 CA 0620.

Court of Appeal of Louisiana, First Circuit.

March 3, 1995.

*553 Alan D. Ezkovich, New Orleans, for Alerion Bank.

James S. Holliday, Jr., Baton Rouge, for Nat. Bldg. and Contracting Co., Inc.

Before LOTTINGER, C.J., and SHORTESS and CARTER, JJ.

LOTTINGER, Chief Judge.

This is an appeal from the trial court's ruling on a Motion to Rank Mortgages and Liens and to Release Funds Held in Custodia Legis. The parties, two lienholders and a mortgage holder, assert claims to the proceeds from the sale of Tchefuncte Harbour Townhomes. The trial court ruled that the lienholders had not perfected their privileges under the Private Works Act, La.R.S. 9:4801-4855, and that the mortgage holder was entitled to the proceeds of the sale.

BACKGROUND

In September of 1987, National Building & Contracting Co. Inc. (National) and Dibidale of Louisiana Inc. (Dibidale) entered into a contract for the construction of the Tchefuncte Harbour Townhomes in Madisonville, Louisiana. National was the general contractor of the project, while Dibidale was the owner. American Bank and Trust (American) financed the project through two mortgages.

Although the project was substantially completed by July of 1988, many of the suppliers and subcontractors went unpaid. Among the unpaid creditors were National, Building Resources, Inc. (Building), and Triangle Pacific Corporation (Triangle). On November 15, 1988, Triangle filed suit against National and Dibidale to enforce its rights under the Private Works Act. National answered and filed a third party demand against Dibidale and American. Triangle amended its petition to name Alerion, American's successor, and Tchefuncte Harbour Association, Inc. (THA), the property owners' association, as defendants.[1] Alerion, National *554 and Dibidale were eventually dismissed from the action. THA, the only remaining defendant, executed a confession of judgment in favor of Triangle. The common areas, owned by THA, were then sold at auction, and the funds were held by the court pending a decision on the validity and ranking of claims to the proceeds. On January 30, 1992, Alerion filed a Motion to Rank Mortgages and Liens and to Release Funds Held in Custodia Legis. This motion was set for hearing on June 22, 1993.

Meanwhile, American had executed an Act of Subordination of its first and second mortgages on August 2, 1988. In a separate action, the trial court construed this act as a release of the bank's mortgages on the common areas. American Bank and Trust Co. v. Dibidale of Louisiana, Inc. consolidated with Sears, Roebuck and Company v. National Building and Contracting Co., Inc., 22nd Judicial District Court Nos. 88-16021 and 88-13763 (5/16/90). While that decision was pending appeal, Alerion, American's successor, and Arabian Development Corporation[2] filed a Joint Stipulation and Motion of Dismissal wherein they purported to stipulate to a reversal of the trial court judgment. Based on this joint motion, this Court signed an order on July 29, 1991, reversing the trial court and holding that the mortgages granted in favor of American were never released. See Appendix. Subsequently, National filed a motion to vacate the order of this Court. In denying National's motion, we stated "[t]he nullity of the order signed by this Court must be sought by a direct action filed in the trial court." Sears, Roebuck and Company v. National Building and Contracting Co., No. 91-0314-15 (6/19/92). National then brought an action to set aside and declare null and void the July 29, 1991, order rendered by this Court. National Building and Contracting Co., Inc. v. Arabian Development Corp. of Dubai, U.A.E., 22nd Judicial District Court No. 9214364 (11/10/92). National's nullity action was consolidated with Triangle's suit.

Following consolidation, National filed a motion to modify the rule to rank until there was a disposition on the nullity suit. The trial court indicated that "[it] will consider the foregoing motion before or during the hearing [on the motion to rank] set for June 22, 1993."

Following the June 22 hearing, the trial court held that neither National nor Building had perfected their privileges under the Private Works Act. The court found that National did not file suit timely and that Building did not file the necessary notice of lis pendens and, thus, both privileges were extinguished. Accordingly, the judgment of the trial court dismissed the claims of National and Building and recognized that Alerion was entitled to the funds held in the registry of the court.

National and Building appeal and assign five errors.

1. The trial court erred in deciding the Rule to Rank prior to the suit on nullity.
2. The trial court erred in disbursing funds prior to making a determination of the merits in the action for nullity.
3. The trial court erred in not following the dictates of the First Circuit Court of Appeal in hearing the suit on nullity.
4. The trial court erred in finding American a third party entitled to the filing of a notice of lis pendens and, thus, finding Building did not have a valid lien under the Private Works Act.
5. The trial court erred in finding that National had not filed suit and, thus, not perfected its privilege under the Private Works Act.

ERRORS ONE AND TWO

In their first and second assignments of error, National and Building contend that the trial court should have ruled on the nullity action prior to dismissing their claims and releasing the proceeds of the sale to Alerion. This argument puts the cart before the horse. Unless either National or Building has a valid lien, neither has an interest in the *555 suit and thus, neither has a right to seek the nullification of this Court's judgment. See La.Code Civ.P. art. 927. To determine whether National or Building had a right to proceed in the nullity action, the court had to first determine whether either had an interest in the suit. Thus, we find no error in the trial court's decision to rule on the motion to rank prior to ruling on the nullity action.

Having found no error with the order in which the trial court decided this matter, we next discuss the nullity action. In the nullity action, National alleged that it was aggrieved by this Court's judgment recognizing the validity of Alerion's mortgages. In response, Alerion filed a peremptory exception raising the objection of no right of action. The basis of Alerion's objection was that National lacked standing to challenge the judgment because it had no recognizable lien and, therefore, had no interest in the suit. Although a formal judgment dismissing the nullity action was not entered, the trial court held that neither National nor Building had valid liens. In so ruling, the court effectively adjudicated their lack of a right to proceed.

The failure of the trial court to specifically rule on the nullity action is of no moment. As an appellate court, we may, on our own motion, notice the failure of a plaintiff to disclose a right or interest in a suit. La. Code Civ.P. art. 927.

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Bluebook (online)
652 So. 2d 552, 1995 WL 111999, Counsel Stack Legal Research, https://law.counselstack.com/opinion/triangle-pac-corp-v-nat-bldg-contracting-co-lactapp-1995.