Sun Coast Contracting Services, Inc. v. Dien's Auto Salvage, Inc.
Docket: No. 14-307
Court: Louisiana Court of Appeal; October 1, 2014; Louisiana; State Appellate Court
Dien’s Auto Salvage, Inc. (Dien’s) appeals a default judgment in favor of Sun Coast Contracting Services, LLC (Sun Coast), which arose from a "Teaming Agreement" to demolish a sugar mill in New Iberia, Louisiana. Under the agreement, revenues and costs were to be split equally. Sun Coast claimed $1,196,136.46 in job costs and sought reimbursement of $598,068.23 from Dien’s after Dien’s did not respond to reimbursement requests. Dien’s failed to file an answer to the suit, leading to a preliminary default judgment on August 6, 2013, and a confirmation of that judgment on November 14, 2013.
On appeal, Dien’s argues there is no cause of action, asserting that the parties are in a joint venture and that neither can sue the other until the venture is dissolved. The court reviews the sufficiency of the petition's allegations, presuming their truthfulness and drawing reasonable inferences in favor of Sun Coast. A peremptory exception of no cause of action is typically granted only when the petition clearly demonstrates an insurmountable bar to relief or shows an affirmative defense on its face. The court notes that while a joint venture resembles a partnership, the claim of no cause of action due to an undissolved joint venture presents a significant flaw.
The judgment against Dien’s is affirmed based on these considerations.
Dien's is asserting an affirmative defense through its exception, which necessitates that the exception be overruled unless the allegations exclude every reasonable hypothesis aside from the defense's premise. The court determined that the pleadings did not meet this standard, leading to the overruling of the exception of no cause of action.
Regarding service of process, Dien's claimed that the default judgment was erroneous due to a lack of proof of service. However, a Sheriff's Return confirmed personal service on May 30, 2013, establishing that Dien's was properly served.
On the issue of certifications for the default judgment, Dien's contended that the supporting documents did not meet the requirements of Louisiana Code of Civil Procedure Articles 1701 and 1702. Article 1701 allows for default judgments when a defendant fails to respond, while Article 1702(B)(1) permits affidavits and exhibits to establish a prima facie case for conventional obligations. Article 1702.1 outlines specific certifications needed for confirming a default judgment, including details on service and documentation.
Dien's argued against the judgment due to the absence of required certification. However, referencing Weber Property Group, LLC v. Sunburst Media-Louisiana, LLC, the court found that appropriate documentation in the record sufficed even without the certification. Dien's claimed the supporting affidavit was inadequate, but the affidavit from Jerry Crump was validated by a “Sworn Statement of Claim” identifying him as a representative of Sun Coast, meeting the necessary criteria.
Consequently, the trial court's judgment was affirmed, with costs of the appeal assigned to Dien's Auto Salvage, Inc.
