170 So. 3d 275
La. Ct. App.2015Background
- Defendants/Appellants Vo and Nguyen appeal a default judgment in favor of N&F Logistic on an open account against Cathay Inn and the guarantors.
- N&F Logistic alleged Cathay Inn owed $10,012.62 for goods supplied from Nov 2011 to Jan 2012 and that Vo and Nguyen were personal guarantors.
- A July 10, 2012 Personal Guarantee document, a spreadsheet, and an affidavit supported the petition.
- N&F Logistic moved for default on Jan 21, 2014; the court entered a default judgment on July 7, 2014 for $10,012.62 plus fees, interest, and costs.
- Appellants argued the record lacked prima facie proof of indebtedness, the amount including attorney’s fees was unsupported, and service of citation was incomplete.
- The appellate court vacated the judgment, holding the evidence did not establish personal guaranty against Vo and Nguyen and remanded for further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the record shows prima facie evidence of indebtedness by the guarantors. | N&F Logistic asserts the guaranty and supporting affidavit establish liability. | Vo and Nguyen contend the guaranty lacks sufficient signatures and uncertainty as to who signed. | Yes; the default judgment reversed for lack of prima facie evidence of personal guaranty. |
| Whether the amount, including attorney’s fees, is supported by the record. | N&F Logistic argues the documents support the claimed amount. | Vo and Nguyen argue the guaranty/invoices do not prove the asserted sum. | Pretermitted due to insufficient prima facie evidence regarding guaranty. |
Key Cases Cited
- Apex Realty, LLC v. Vidrine’s of Gonzales, LLC, 112 So.3d 301 (La.App. 5 Cir. 2013) (default must be supported by prima facie proof)
- Romious v. CBSL Transp. Servs., 142 So.3d 228 (La.App. 5 Cir. 2014) (prima facie proof required for open account default)
- Stobart v. State, Dept. of Transp. and Development, 617 So.2d 880 (La.1993) (appellate review limited to sufficiency of the record for prima facie case)
- Premier Brands, Inc. v. Martiny, 377 So.2d 864 (La.App. 4th Cir. 1979) (non-negotiable instrument requires signature proof for guaranty)
- Chana v. Mungoven, 550 So.2d 939 (La.App. 5th Cir. 1989) (proof of signatures required for non-negotiable instruments)
- N.E.N.H., L.L.C. v. Broussard-Baehr Holdings, L.L.C., 142 So.3d 91 (La.App. 5 Cir. 2014) (contract of guaranty is express and in writing)