126 So. 3d 732
La. Ct. App.2013Background
- Mid-South performed plumbing work at Magnolia Garden Apartments in 2002 and billed $35,177.50, receiving only $10,000.
- Mid-South filed a Lien (June 12, 2002) and a lawsuit (January 29, 2003) against Shelly Arms, LLC, misidentifying the owner.
- An amended petition named Cobalt, LLC as owner, but the Lien and Lis Pendens were not amended to reflect Cobalt as owner.
- In 2004, Cobalt obtained a mortgage from First Bank; Mid-South’s lien was not reflected in public records, hindering the bank’s due diligence.
- In 2009, Mid-South moved for summary judgment against Cobalt, misrepresenting that the Lien identified the owner; judgment granted recognizing the Lien as valid and directing sale.
- Property was seized; in 2012 First Bank sought injunctive relief, arguing the Lien was facially invalid for failing to name the owner; Mid-South defended the lien and process.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did First Bank have standing to seek injunctive relief? | Mid-South claims Bank lacked standing; intervention only shares proceeds. | Bank may seek injunction to contest sale of unlawfully seized property. | No error; First Bank could seek injunctive relief to contest the sale. |
| Are the Lien and Lis Pendens defective for failing to name Cobalt as owner? | Lien and Lis Pendens should have identified owner; strict construction required. | Statutes permit injunctions even if ownership not named; waiver via other remedies. | Trial court did not err; despite misidentification, injunction appropriate; lien validity contested, not strictly limited to proceeds. |
| Did the trial court err in granting a preliminary injunction? | Injunction improperly issued due to defective lien and notice. | Injunction warranted to preserve status quo pending revocatory action and contest of sale. | Preliminary injunction affirmed; strict construction of liens does not preclude injunctive relief here. |
Key Cases Cited
- Shaw v. Hingle, 648 So.2d 903 (La. 1995) (creditor may seek injunctive relief contesting validity of sale)
- Mennonite Board of Missions v. Adams, 462 U.S. 791 (U.S. 1983) (notice considerations in lien enforcement; due process in liens)
- Hughes v. Will, 35 So.2d 241 (La. App. Orleans 1948) (strict construction of lien statutes and owner identification)
- Bradley Elec. Serv., Inc. v. 2601, L.L.C., 82 So.3d 1242 (La. App. 4 Cir. 2011) (cancellation of liens failing to meet statutory requirements)
- Tee It Up Golf, Inc. v. Bayou State Constr., L.L.C., 30 So.3d 1159 (La. App. 3 Cir. 2010) (strict construction and due process in lien claims)
- Fink v. Bryant, 801 So.2d 346 (La. 2001) (no-cause-of-action standard requires accepting the petition as true)
- Oestreicher v. Hackett, 660 So.2d 29 (La. App. 4 Cir. 1995) (irreparable injury considerations in injunctions)
- Franz v. Cormier, 579 So.2d 1201 (La. App. 5th Cir. 1991) (monetary judgments and injunctive relief considerations)