118 So. 3d 27
La. Ct. App.2013Background
- Intervenors Ruby Walsh and RW Real Estate—Star Road Development, LLC intervened in IberiaBank's executory process against Live Oak Circle Development, LLC.
- Master Business Loan Agreement and amendments with IberiaBank reaffirmed Ruby Walsh's guarantee and additional collateral securing Walsh/Walsh entities' obligations.
- Loans defaulted; IberiaBank filed a Petition for Executory Process in the 19th Judicial District Court; writ of seizure issued for Live Oak's units.
- Mississippi foreclosure proceeded separately; Appellants sought TRO, preliminary injunction, and damages alleging the Mississippi property did not secure any obligations.
- District court denied lack of subject matter jurisdiction, granted improper cumulation of actions, and later granted IberiaBank's exception of no cause of action, dismissing intervenors with prejudice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Intervenors' right to intervene | Walsh asserts connexity via loan agreements. | IberiaBank contends no connexity and no right to intervene. | Intervenors have no right to intervene; dismissal without prejudice. |
| Subject matter jurisdiction over the intervention | Walsh seeks to enforce rights related to loans in Louisiana. | IberiaBank argues jurisdiction to enjoin Mississippi proceedings is improper. | District court had subject matter jurisdiction; assignment upheld. |
| Cumulation of actions | Intervention expands to include loan-collection issues. | Intervention improperly cumulates ordinary and executory proceedings. | Court correctly granted improper cumulation exception. |
Key Cases Cited
- Dickerson v. Scott, 476 So.2d 524 (La.App. 1 Cir. 1985) (court may determine legality of loan agreements)
- Bordelon v. Dehnert, 770 So.2d 433 (La.App. 1 Cir. 2000) (subject-matter jurisdiction cannot be waived)
- Clark v. State, Dept. of Revenue, 849 So.2d 700 (La.App. 1 Cir. 2003) (justiciable interest and connexity in intervention)
- Amoco Production Co. v. Columbia Gas Transmission Corp., 455 So.2d 1260 (La.App. 4 Cir. 1984) (definition of justiciable right for intervention)
- Mid-South Car & Truck Rental v. Moore, 516 So.2d 1224 (La.App. 2 Cir. 1987) (no right to intervene when no connexity)
- Rochon v. Young, 6 So.3d 890 (La.App. 1 Cir. 2009) (substance governs pleading characterization)
- Mike M. Marcello, Inc. v. Louisiana Gaming Control Bd., 903 So.2d 545 (La.App. 1 Cir. 2005) (intervenor rights limited to joining or opposing parties)