70 So. 3d 20
La. Ct. App.2011Background
- Divorced in 1995; petition for partition of community property filed; injunction issued prohibiting alienation of community assets; descriptive lists and supplements filed; 2005 partial partition consent judgment; trial on partition held January 8–9, 2009; June 10, 2009 judgment and August 2009 partial new-trial denial; appellate briefing raising damages, dividends, pre-judgment interest, open liability, and partial new-trial issues.
- Stock in Hibernia Bank (original Bank of St. John) held by both, sold by Mr. Becnel in February 2000 after community termination; bank merged with Capital One in 2005; damages and damages-related claims centered on this sale/dividends; dividends and potential interest disputed; $100,000 alleged debt to brother, later found unsupported; appellate court partially reverses and amends judgment.
- Ms. Becnel sought damages for sale in violation of injunction, reimbursement for lost dividends, pre-judgment interest, open claim re: brother debt, and partial new trial; trial court found no mismanagement and denied most reimbursement; court amends to grant partial dividend reimbursement and vacates open-liability ruling; otherwise affirms.
- Trial court held that Becnel’s sale did not constitute mismanagement; injunction violation damages denied; dividends claim denied except for one-half of actual post-termination dividends; pre-judgment interest denied; open status of a $100,000 debt to brother vacated; partial new-trial motion denied; final decree reverses and amends in part.
- The appellate court assigns the following: affirm in part, amend in part, reverse and vacate in part; amended allocation adds $21,552.45 to Becnel; denies the brother-debt claim but vacates the open-status ruling; costs borne by each party.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether sale of Hibernia stock violated the injunction and warranted damages | Becnel argues mismanagement and injunction violation merit damages | Becnel contends no mismanagement and sale consistent with prudence | No de novo review; no proven mismanagement or damages |
| Whether Becnel is entitled to reimbursement for dividends after termination | Becnel seeks one-half of dividends actually received and potential lost dividends | Defendant disputes lost-dividends entitlement and speculative lost dividends | Amended judgment to grant $21,552.45 for actual post-termination dividends (one-half) previously denied |
| Whether pre-judgment interest is due on stock proceeds and legal fees | Becnel seeks pre-judgment interest per Reinhardt | Interest not applicable to reimbursement claims arising from partition | Reinhardt controls; pre-judgment interest not awarded |
| Whether the $100,000 debt to Daniel Becnel Jr. should remain open | There is evidence of a valid community debt | No proven valid debt; record lacks evidence; should not be open | Vacate open-status; claim denied; no community liability proven |
| Whether the motion for partial new trial should be granted | Arguments substantially similar to appeal; error allegedly shown | No error; evidence supports trial court findings | No error; motion denied |
Key Cases Cited
- Saacks v. Saacks, 942 So.2d 1130 (La.App. 5 Cir. 2006) (trial court discretion in divorce/partition; manifest error standard limited on appeal)
- Reinhardt v. Reinhardt, 748 So.2d 423 (La. 1999) (reimbursement claims arise from the legal regime in partition; pre-judgment interest not available for such claims)
- Knighten v. Knighten, 809 So.2d 324 (La. App. 1 Cir. 2001) (higher standard of care for former community property; preservation duty after termination)
- Gibson v. Gibson, 692 So.2d 708 (La. App. 3 Cir. 1997) (article 2369.3; no requirement of bad faith; standard of prudence in preservation)
- Anding v. Anding, 740 So.2d 253 (La. App. 2 Cir. 1999) (burden to prove failure to act prudently)
- Rosell v. ESCO, 549 So.2d 840 (La. 1989) (credibility determinations; deference to trial court findings)