Whitney National Bank v. Goldsmith

913 So. 2d 124, 2005 La. App. LEXIS 1797, 2005 WL 1531973
CourtLouisiana Court of Appeal
DecidedJune 22, 2005
DocketNo. 2004-CA-0707
StatusPublished
Cited by1 cases

This text of 913 So. 2d 124 (Whitney National Bank v. Goldsmith) 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
Whitney National Bank v. Goldsmith, 913 So. 2d 124, 2005 La. App. LEXIS 1797, 2005 WL 1531973 (La. Ct. App. 2005).

Opinions

I MAMES F. McKAY III, Judge.

BACKGROUND DISCUSSION OF THE PERTINENT FACTS:

At issue is whether the trial court erred in dismissing this case, filed in 19911 by appellant2, as abandoned, and if so, whether the dismissal should have been with prejudice, as was so ordered. The crux of the matter involves whether appellant’s filing a‘ Third Set of Interrogatories in the record in 1998, but.not serving it on all parties — especially the judgment debtor3, interrupted the three year abandonment period, and whether, when, in another three years, or 2001, in response to appellant’s Motion to Compel Answers to the Third Set of Interrogatories, the appel-lees’ 4 attempts to have the case declared abandoned were properly granted.5

The original litigation in this conflict sought to collect on at least one promissory note6 that had been personally guaranteed by James B. Goldsmith, the president of his family company, Bernard Lumber Company, which saw its demise pin the l980’s. The appellant, holder of the note(s), was successful in obtaining money judgments.7 This appeal involves the particular “oblique” or revocatory suit that sought money from James B. Goldsmith’s separate property, his mother, his deceased father, the defunct lumber company, and his children’s trust. These parties included Bernard H. Goldsmith8, Leone9 Goldsmith10, Robin W. Goldsmith11, the [126]*126Goldsmith Children’s trust, the Jason Charles Goldsmith Trust12, M.J. Robi-chaux, Jr., Michael B. McCrossen and Bernard Lumber Company Slidell, Inc.13

A dilatory exception of lack of amicable demand was maintained on October 1, 1991. Discovery and limited motions followed. At one point, the trial court granted a protective order to limit the appellant’s discovery that was later modified by the Louisiana Supreme Court14, but a provision requiring a Whitney CEO to attest to discovery matters remained intact.15 Allegedly, the last affidavit by a Whitney CEO was dated October 28, 1993.16 In 1995, the trial court compelled discovery of certain banking records of Robin Goldsmith, and she was ordered to pay sanctions August 31,1995.

The appellant propounded a Third Set of Interrogatories on August 24, 1998, allegedly specifically to interrupt the abandonment period. These interrogatories were addressed separately to Bernard H. Goldsmith and James B. |3Goldsmith. R. King Milling, counsel for appellant, signed an attached certificate of service saying that all counsel of record had been served.17 The appellant argues that this discovery effort is the interruption that prevents abandonment of the case from 1995 to 2001. The crux of the main argument presented herein is that the discovery was never served on James B. Goldsmith or his attorney and, hence, that it was not served on all parties.18 However, appellant points out that then counsel19 for defendants20 filed a motion to withdraw as counsel August 26,1998 and sent correspondence that day to James B. Goldsmith, Bernard H. Goldsmith and Leone21 Goldsmith, informing them of the motion to withdraw and referencing the August 24, 1998 correspondence received from the appellant that “need[ed] to be responded to within fifteen (15 days).” The appellant then filed a Motion to Compel in 2001 that was heard October 12, 2001 and denied October 29, 2001 on the basis that the above mentioned discovery allegedly propounded in 1998 was never served on James B. Goldsmith or his counsel.22

[127]*127Then, on November 20, 2001, James B. Goldsmith filed a Rule to Show Cause Why the Case Should Not- Be Abandoned. Robin Goldsmith filed a Motion to Dismiss for Abandonment on March 28, 2002. On April 11, 2002, the appellant, James B. Goldsmith and Robin Goldsmith appeared for a hearing. The trial court held a status conference in chambers. The trial court dismissed thé cáse as |4abandoned, evidently because the three year abandonment period was not interrupted on August 24, 1998, since not all parties had been served with the Third Set of Interrogatories, essentially finding that six years had lapsed without a step in the prosecution between 1995 and 2001. A judgment was signed to that effect April 23, 2002, dismissing the action with prejudice. There were no reasons for judgment. ■ A motion for new trial was filed and a hearing was held July 26, 2002. A subsequent status conference was held September 9, 2003. The motion was denied September 23, 2003, with the trial court specifically finding that the case had properly been dismissed with prejudice.

APPLICATION OF THE FACTS TO THE LAW:

Pursuant to La. C.C.P. art. 56123, an action is abandoned when the parties fail to take any step in its prosecution or de: fense in the trial court for a period of three years, to the 1997 amendment to article 561, shortening the abandonment period from five to three years, which we have given retroactive application. Alexander v. Liberty Terrace Subdivision, Inc., 99-2171 (La.App. 4 Cir. 4/12/00), 761 So.2d 62.

Article 561 requires that plaintiffs show three specific things to interrupt abandonment: (1) they took some step in the prosecution of their lawsuit; (2) they did so on the record in the trial court; and (3) they did so within the legislatively prescribed time period of the last step taken by either party. Clark v. State Farm Mutual Automobile Insurance Co., 2000-3010 (La.05/15/01), 785 So.2d 779. As we stated in Pichon v. Reynolds, 02-0044, 02-0045 (La.App. 4 Cir. 7/31/02), 828 So.2d 599, 600, writ denied 2002-2856 (La.2/25/03), 841 So.2d 756, the abandonment rule implicates two competing policies. The prevention of protracted litigation, filed for purposes of harassment or without serious intent to hasten the claim to judgment, is balanced against the maintenance of an action whenever possible so as to afford an aggrieved party his day in court. Abandonment is not a punitive measure-it is designed to discourage frivolous lawsuits by preventing plaintiffs from letting them linger indefinitely. Benjamin-Jenkins v. Lawson, 00-0958 (La.App. 4 Cir. 3/7/01), 781 So.2d 893; Shulver v. Slocum, 566 So.2d 1089 (La.App. 2 Cir. 8/22/90). Accordingly, unless a party to the action takes a step in the prosecution or defense of the action within three years from the time the last step was taken by either party, his case can be dismissed on the basis of abandonment. A step in the prosecution or defense of an action occurs whenever a party takes a formal action [128]*128that is intended to hasten the matter to judgment. Breaux v. Auto Zone, Inc., 00-1534 (La.App. 1 Cir. 12/15/00), 787 So.2d 322, 324.

Jurisprudence has established specific situations where the court found that certain actions on the part of either plaintiff or defendant should be construed as an act in furtherance of the prosecution or defense of a lawsuit, or conduct sufficient to waive abandonment, for example:

1. Mailing of discovery interrogatories by plaintiff to defendant, (or vice versa);

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Bluebook (online)
913 So. 2d 124, 2005 La. App. LEXIS 1797, 2005 WL 1531973, Counsel Stack Legal Research, https://law.counselstack.com/opinion/whitney-national-bank-v-goldsmith-lactapp-2005.