48 So. 3d 1257
La. Ct. App.2010Background
- Upland owned Bedico Creek property and defaulted on a construction loan with MIC and on a Mitigation Participation Agreement with TNC.
- MIC foreclosed on the property and purchased it at public auction; TNC remained unsecured from the mitigation contract.
- TNC sued Upland and MIC for the remaining balance on the wetlands credits; default judgment against both was entered.
- MIC challenged the default judgment arguing unjust enrichment and third-party beneficiary theories were improperly established.
- The trial court ruled in favor of TNC on both theories; MIC appeals, seeking reversal on both theories.
- This court reverses the default-judgment confirmation against MIC and remands for further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Unjust enrichment viability against MIC | TNC: unjust enrichment applies; enrichment without cause and no adequate remedy exists. | MIC: valid juridical act (mitigation contract) prevents unjust enrichment; no other remedy is necessary. | Unjust enrichment not proven; valid juridical act precludes recovery. |
| Third-party beneficiary status of MIC | TNC: MIC is third-party beneficiary of the permit or mitigation contract. | MIC was not a party to the contract and cannot be forced to pay as beneficiary. | MIC cannot be forced as third-party beneficiary; not bound by contract. |
Key Cases Cited
- Clary v. D’Agostino, 665 So.2d 792 (La.App. 1st Cir. 1995) (prima facie proof standard for default judgments)
- Grevemberg v. G.P.A. Strategic Forecasting Group, Inc., 959 So.2d 914 (La.App. 1st Cir. 2007) (appellate review limited to sufficiency of evidence)
- Bates v. Legion Indem. Co., 818 So.2d 176 (La.App. 1st Cir. 2002) (records with transcript negate presumption of sufficiency)
- Paul v. Louisiana State Employees’ Group Ben. Program, 762 So.2d 136 (La.App. 1st Cir. 2000) (stipulation pour autrui requires manifest intent and consideration)
- Minyard v. Curtis Products, Inc., 205 So.2d 422 (La. 1967) (five prerequisites for unjust enrichment claim)