Green Trails, LLC v. Stewart Title of Louisiana, Inc.
111 So. 3d 14
La. Ct. App.2012Background
- Green Trails acquired SCC-1, SCC-3 and leased SCC-2 from SGC for development.
- The planning commission approved a preliminary plat to subdivide the SCC property into 282 lots.
- Residents of Shenandoah Estates sued Green Trails in 2005 over zoning/servitude issues.
- Green Trails sued Baton Rouge Title Co. (BRT) and Stewart Title in 2006 for failing to defend under a title policy.
- Stewart Title settled with Green Trails for $40,000 before trial; trial court later awarded Green Trails $166,909.38 with credit for the settlement.
- Court reverses: Green Trails’ claim was perempted under La. R.S. 9:5605 and not timely filed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Green Trails’ claim is perempted. | Green Trails contends timely filing. | BRT argues peremption bars the claim. | Peremption applies; claim extinguished. |
| When Green Trails had knowledge triggering the peremptive period. | Knowledge occurred in September 2006. | Knowledge occurred later or is disputed. | Constructive knowledge as of Aug–Nov 2005; timely filed within one year. |
| Whether the trial court properly overruled the peremption exception. | Petition timely under discovery rule. | Peremption defeats timeliness. | Trial court erred; peremption bars the claim. |
| Effect of non-notice until Dec 16, 2005 under policy terms. | Notice was given in December 2005. | No timely notice; obligation not reported. | Irrelevant; peremption already applicable. |
Key Cases Cited
- Huffman v. Goodman, 784 So.2d 718 (La.App.2d Cir.4/4/01) (peremptive period cannot be interrupted or renounced)
- Biggers v. Allstate Ins. Co., 886 So.2d 1179 (La.App.5th Cir.10/26/04) (peremption cannot be interrupted or renounced)
- Stobart v. State through Dep’t of Transp. & Dev., 617 So.2d 880 (La.1993) (manifest error standard for credibility within peremption rulings)
- Campo v. Correa, 828 So.2d 502 (La.2002) (constructive knowledge starts peremption period)
- C’s Discount Pharmacy, Inc. v. Pacific Insurance Co., 31 So.3d 1103 (La.App.5th Cir.1/26/10) (timeliness and discovery in insurance defense context)
- Straub v. Richardson, 92 So.3d 548 (La.App.1st Cir.5/2/12) (burden of proof on peremption exception)