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Calloway v. Lobrano

Citations: 218 So. 3d 644; 16 La.App. 3 Cir. 1170; 2017 WL 1378227; 2017 La. App. LEXIS 629Docket: 2016 CA 1170

Court: Louisiana Court of Appeal; April 12, 2017; Louisiana; State Appellate Court

Narrative Opinion Summary

The case involves an appeal by the plaintiff, who sought reimbursement for a $400,000 check from the defendant, claiming unjust enrichment and an obligation to restore funds under Louisiana Civil Code articles 2298 and 2299. The trial court dismissed the claims, citing no cause of action and prescription, based on the defendant's exceptions. The plaintiff argued the check was a loan with an expected repayment within a year, which the defendant contested, stating the plaintiff failed to show a lack of justification for the alleged enrichment. The court concluded that the unjust enrichment claim was invalid due to the availability of a contractual remedy for money lent, which prescribed after three years. The trial court's judgment was reviewed under the manifest error standard, as it considered evidence on prescription, and was upheld by the appellate court. The appeal was not deemed frivolous, and the request for damages by the defendant was denied. Costs of the appeal were assessed to the plaintiff, affirming the dismissal of claims with prejudice.

Legal Issues Addressed

Damages for Frivolous Appeals

Application: The appellate court declined to award damages for a frivolous appeal as there was no indication that the appeal was pursued for delay or without genuine belief.

Reasoning: The court found no evidence that Mr. Calloway’s appeal was taken for delay or without genuine belief, thus declining to award damages to Ms. Lobrano.

Manifest Error Standard of Review

Application: The appellate court applied the manifest error standard due to the trial court's consideration of evidence in its judgment on the prescription objection.

Reasoning: When evidence is presented during a hearing on a peremptory exception of prescription, the manifest error standard applies.

Peremptory Exception of No Cause of Action

Application: The court evaluated whether the plaintiff's petition established a claim for unjust enrichment, finding no cause of action due to the presence of an alternative legal remedy.

Reasoning: The function of the peremptory exception of no cause of action is to assess the legal sufficiency of the petition by determining if the law provides a remedy based on the facts alleged, with all facts in the petition accepted as true.

Prescription of Claims

Application: The court found the plaintiff's claim for money lent was prescribed as the three-year prescriptive period had expired before the suit was filed.

Reasoning: An action for money lent has a three-year prescriptive period, starting when payment is exigible.

Unjust Enrichment under Louisiana Civil Code

Application: Plaintiff's claim for unjust enrichment was dismissed because a contractual remedy for money lent was available, precluding the unjust enrichment claim.

Reasoning: Relevant case law indicates that having an alternative remedy negates the possibility of successfully claiming unjust enrichment.