Willett v. Premier Bank

696 So. 2d 196, 1997 WL 292709
CourtLouisiana Court of Appeal
DecidedJune 4, 1997
Docket97-187
StatusPublished
Cited by26 cases

This text of 696 So. 2d 196 (Willett v. Premier Bank) 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
Willett v. Premier Bank, 696 So. 2d 196, 1997 WL 292709 (La. Ct. App. 1997).

Opinion

696 So.2d 196 (1997)

David WILLETT, Plaintiff— Appellant/Appellee,
v.
PREMIER BANK, National Association, Cyril Hinds, and Johnny Hinds, Defendants—Appellees/Appellants.

No. 97-187.

Court of Appeal of Louisiana, Third Circuit.

June 4, 1997.

*197 David Charles Laborde, Lafayette, for David Willett.

Calvin Theodore Guidry, Lafayette, for Premier Bank Nat. Assoc., et al.

Edward J. Milligan, Jr., Lafayette, for Cyril Hinds.

Before THIBODEAUX, PETERS and SULLIVAN, JJ.

SULLIVAN, Judge.

Plaintiff/defendant-in-reconvention, David Willett, appeals the trial court's judgment rendered in favor of defendant/plaintiff-inreconvention/cross-claim defendant, Cyril Hinds, which ordered Willett to pay Hinds $33,000.00, plus interest from judicial demand, as the total balance owed on two 1983 loans from Hinds to Willett. One loan for $75,000.00 was secured by Willett's pledge of 200 one ounce gold coins and was for the purchase of construction equipment. The other loan of $30,000.00 was not secured. Willett maintains that Hinds' action on the two loans has prescribed. He also seeks an increase in the trial court's award of $10,830.00 in attorney fees for his success on his main demand, by which the trial court ordered defendant/cross-claim plaintiff, Premier Bank, and Hinds to return to Willett the 200 gold coins which Willett pledged as security for the aforementioned $75,000.00 loan. Willett also asserts the trial court erred in not permitting him to present evidence on the affirmative defenses of credits toward and extinguishment of the debts and, alternatively, in not granting him leave to file an answer to Hinds' original reconventional demand to assert these defenses.

Defendant/cross-claim plaintiff, Premier Bank, also appeals, maintaining the trial court erred in awarding Willett attorney fees in conjunction with his main demand. Premier Bank also contends the trial court erred in finding that Willett did not breach his obligation to mitigate his damages.

Hinds also appeals and, like Premier Bank, asserts the trial court erred in awarding Willett attorney fees and finding that he did not breach his mitigation obligation. He also contends the trial court erred in crediting the entirety of a $60,000.00 payment made by *198 Willett to the $75,000.00 loan. Hinds maintains that the proceeds resulted from the sale of two draglines which he and Willett coowned, and, therefore, only one-half of the proceeds, $30,000.00, should have been credited to the balance Willett owed on the $75,000.00 loan.

For the reasons which follow, we reverse the award of attorney fees to Willett. We also remand this case to the trial court for a full hearing on Willett's exception of prescription as to the $30,000.00 loan, which he filed for the first time in this court. In all other respects, we affirm the trial court's judgment.

FACTS AND PROCEDURAL HISTORY

In September 1983, Willett and Hinds purchased construction equipment from Pat's Waterfront Construction Company, Incorporated and Pat Huval for $150,000.00. Hinds provided the entire purchase price in cash and, in turn, loaned Willett one-half of the amount, $75,000.00. They each had a onehalf undivided interest in the construction equipment. Willett executed a $75,000.00 promissory note dated September 27, 1983. On the back of the note, the following was handwritten: "200 kroners [sic] for coletrel [sic] for this note only. At floating prime." They intended to repair and refurbish the equipment and sell it at a profit.

Willett offered to place the 200 gold coins, known as kronor, in a safe deposit box as security for the loan from Hinds. The safe deposit box was leased from Premier Bank and Willett placed the kronor in the box. The safe deposit box lease agreement provided that, to allow access to the box, Premier Bank would need the signatures of both Willett and Hinds.

On November 16, 1983, Hinds sent a letter to Premier Bank by which the signature terms of the safe deposit box lease were changed. The letter states that Hinds' son, Johnny Hinds, could sign for him and Willett's son, Gary Willett, could likewise sign for Willett.

Also in 1983, Hinds loaned Willett another $30,000.00 at no interest. Thereafter, between 1983 and 1989, Willett paid Hinds a $5,000.00 cash payment and gave Hinds a generator and a hydraulic jack, which Hinds valued at $7,000.00. This $12,000.00 was credited by Hinds to the unsecured $30,000.00 loan. On September 14, 1987, Willett paid Hinds $60,000.00, the proceeds of the sale of two draglines which were part of the original purchase. Hinds applied $18,000.00 of this payment to the balance remaining on the $30,000.00 unsecured loan. He then applied the remainder, $42,000.00, to the $75,000.00 secured loan, with $12,000.00 applied to the principal and $30,000.00 to the interest.

On August 4, 1989 and October 9, 1989, Premier Bank allowed Hinds and his son, Johnny Hinds, to access the safe deposit box without the concurrence of Willett. The second time, Hinds removed the 200 kronor and brought them to his certified public accountant, Gerald Hebert. Hinds instructed Hebert to maintain possession of the coins, and Hebert placed them in his safe deposit box.

On May 28, 1994, Willett filed this suit against Premier Bank, Hinds, and his son, Johnny Hinds[1]. He alleged Premier Bank wrongfully allowed Hinds sole access to the safe deposit box and sought recovery for his mental anguish over his belief that Hinds removed the coins entrusted to Premier Bank.

Hinds answered, denying the allegations of Willett's petition and asserting that the safe deposit box agreement, as amended, allowed access thereto with any two of the four signatures on the card possessed by Premier Bank. The bank also filed an answer generally denying Willett's allegations.

On August 18, 1994, discovery depositions were taken. Hebert was subpoenaed to produce the 200 kronor which Hinds had entrusted to his possession. He did so. During Willett's deposition, Hinds' counsel offered to have the kronor returned to the original safe deposit box. Willett refused the offer, stating his impression that they were not safe there in the first place. Willett also denied signing the $75,000.00 note. He also said that, after the two draglines *199 were sold, he purchased Hinds' remaining interest in the equipment with a $50,000.00 loan from Premier Bank that he obtained in 1987 or 1988. Willett stated that he wants the 200 gold coins returned to him.

After the depositions, Hinds obtained possession of the 200 gold coins from Hebert. He took them to a casino, cashed them in, and proceeded to lose the entire amount by gambling.

On October 11, 1994, Hinds filed a reconventional demand against Willett seeking the $63,000.00 balance owed on the $75,000.00 secured loan plus interest from September 27, 1983 and attorney fees. Hinds also prayed that Willett's pledge of the 200 kronor be judicially recognized.

In response, on October 31, 1994, Willett filed peremptory exceptions of no right of action and prescription on the $75,000.00 loan. On November 28, 1994, Willett filed an amending and supplemental petition against Premier Bank and Hinds in which he asserted Hinds' liability for conversion of the 200 kronor. Willett prayed for compensatory damages and attorney fees.

In response to Willett's exceptions, Hinds then filed an amended and supplemental reconventional demand against Willett on January 26, 1995. The prescription exception was referred to the merits and the no right of action exception was later adjudged moot.

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Cite This Page — Counsel Stack

Bluebook (online)
696 So. 2d 196, 1997 WL 292709, Counsel Stack Legal Research, https://law.counselstack.com/opinion/willett-v-premier-bank-lactapp-1997.