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Regions Bank v. NORRIS RADER OF LAFAYETTE

Citations: 879 So. 2d 904; 2003 La.App. 3 Cir. 1665; 2004 La. App. LEXIS 1813; 2004 WL 1567316Docket: 2003-1665

Court: Louisiana Court of Appeal; July 14, 2004; Louisiana; State Appellate Court

Narrative Opinion Summary

In this case, Regions Bank assigned its judgment rights against two debtors to Mega Properties, Inc. after the debtors defaulted on promissory notes. The trial court had granted Regions a substantial summary judgment, which the debtors appealed. They sought a remand, arguing that the assignment of the judgment constituted a sale of a litigious right under Louisiana Civil Code Article 2652, enabling them to extinguish the obligation by paying the assignee the price paid for the assignment, with interest. Mega Properties contended the assignment did not qualify as such a sale, as it occurred post-ruling, and evidence was deemed inadmissible. The court remanded the case to determine the actual price of the assignment and whether it constitutes a sale of a litigious right, emphasizing the need for evidence verification. The appeal costs were assigned to Mega Properties, L.L.C., while a dissenting judge argued against maintaining the appeal on the docket, citing a lack of multiple affected parties as per precedent. The court ordered the remand to be completed within ninety days to avoid delays, maintaining the appeal's active status pending resolution.

Legal Issues Addressed

Admissibility of Post-Judgment Communications

Application: The court found that post-judgment communications between attorneys were inadmissible as evidence regarding the assignment price.

Reasoning: The only available evidence regarding the assignment price consists of post-judgment communications between attorneys, which are inadmissible for consideration.

Assignment of Judgment Rights

Application: In this case, Regions Bank assigned its judgment rights against the Raders to Mega Properties, Inc., following the Raders' default on promissory notes.

Reasoning: Regions Bank assigned its judgment rights against Norris and Patsy Rader to Mega Properties, Inc. after the Raders defaulted on promissory notes secured by collateral mortgages and stock pledges.

Costs of Appeal

Application: The costs of the appeal were assigned to Mega Properties, L.L.C.

Reasoning: Costs of the appeal are assigned to Mega Properties, L.L.C.

Determination of Assignment Price

Application: The court remanded the case to ascertain the actual price paid for the assignment, as the stated price could not be independently verified.

Reasoning: The court decided to remand the case for further proceedings, noting that the Raders need to ascertain the actual price of the assignment, as the seller's stated price cannot be independently verified without remand.

Remand for Determination of Litigious Right Sale

Application: The case was remanded to determine if the assignment qualifies as a sale of a litigious right and, if so, the redemption amount under La. Civ.Code art. 2652.

Reasoning: Consequently, the case is remanded to the trial court to determine if the assignment is a sale of a litigious right and, if so, to establish the redemption amount under La. Civ.Code art. 2652.

Sale of Litigious Rights under Louisiana Civil Code Article 2652

Application: The Raders argue that the assignment of the judgment rights constitutes a sale of a litigious right, allowing them to extinguish the obligation by paying the assignee the price paid for the assignment plus interest.

Reasoning: The Raders requested a remand, arguing that the assignment of the judgment constitutes a sale of a litigious right under Louisiana Civil Code Article 2652.