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Bureaus Investment Group 2, LLC v. Howard

Citations: 947 So. 2d 37; 6 La.App. 5 Cir. 273; 2006 La. App. LEXIS 2584; 2006 WL 3290824Docket: No. 06-CA-273

Court: Louisiana Court of Appeal; November 13, 2006; Louisiana; State Appellate Court

Narrative Opinion Summary

The case involves an appeal by Mark Howard against a default judgment favoring Bureaus Investment Group, LLC, which claimed to be the assignee of Howard's debt to Chase Visa/Mastercard. The judgment included a debt of $4,403.05, 20% annual interest, and 25% attorney fees. Howard did not respond to the initial petition, resulting in a preliminary default, later confirmed. On appeal, Howard contended that insufficient evidence supported Bureaus Investment's claim as the creditor. The court found no competent evidence, such as the necessary exhibit accompanying the 'Bill of Sale,' to confirm the assignment of the debt, leading to the vacation of the default judgment. Additionally, Howard's exception of prescription was denied due to lack of evidence proving the debt fell outside the prescriptive period. The court remanded the case for further proceedings, with appeal costs assigned to Bureaus Investment. The decision underscores the necessity for an assignee to present clear evidence of debt ownership and clarifies the burden of proof in prescription exceptions.

Legal Issues Addressed

Assignee's Burden of Proof

Application: The assignee must provide sufficient proof of the right to the debt in order to maintain a claim.

Reasoning: Consequently, there is no evidence demonstrating Bureaus Investment's right to the debt, necessitating the vacation of the default judgment.

Default Judgment Requirements

Application: The court requires competent evidence to establish a prima facie case before confirming a default judgment.

Reasoning: Establishing a prima facie case for confirming a default judgment requires competent evidence of the essential allegations, which was not present in this case.

Effect of Failure to Respond to Requests for Admissions

Application: Failure to respond to requests for admissions may imply acceptance of claims, but does not substitute the need for competent evidence.

Reasoning: Bureaus Investment contends that Howard's failure to answer its request for admissions implies acceptance of the claims.

Exceptions of Prescription

Application: The burden of proof for exceptions of prescription lies with the party asserting the exception.

Reasoning: Howard's exception of prescription is found to lack merit, as the burden of proof lies with the exceptor.