210 So. 3d 835
La. Ct. App.2016Background
- STPOA sued homeowner Charles Williams in 2014 seeking $15,529.71 in unpaid subdivision dues allegedly imposed by recorded Southern Trace covenants.
- The petition alleged assessments existed and demanded recovery, but the exhibits showing assessments and the recorded covenants are absent from the appellate record.
- Williams answered, disputed liability, and filed multiple peremptory exceptions (prescription, no cause/no right of action), arguing either a 3-year open-account rule or that La. C.C. art. 781 (two-year rule for building restrictions) applied and extinguished obligations.
- No documentary evidence (community documents, deed, lien records, or invoices) was introduced at the exceptions hearing; parties only presented oral argument.
- Trial court granted prescription in part, ruling only dues within two years of suit were collectible; both parties appealed.
- The appellate majority reversed and vacated, holding the record was fatally incomplete and remanding for an evidentiary hearing to determine which prescriptive period and rights apply; dissent would have affirmed the two-year limitation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Which prescriptive period applies to collection of HOA dues? | STPOA: LHAA/community documents govern; longer prescriptive periods (10 years or 5 years under privilege) apply, so dues are not prescribed. | Williams: Dues are building-restriction obligations subject to La. C.C. art. 781 two-year prescription (and thus older dues are extinguished). | Remanded — court declined to decide on this record; ordered evidentiary hearing to produce community documents and relevant proof. |
| Whether the earlier denial of a prescription exception bars re-raising the issue (res judicata/law of the case) | STPOA: Prior denial precludes relitigation; law of the case/res judicata should apply. | Williams: Exception may be re-urged on different grounds; interlocutory denial is not res judicata. | Court: Denial was interlocutory; res judicata does not apply; law of the case is discretionary and did not bar reconsideration. |
| Burden of proof and adequacy of record on prescription | STPOA: Argued prior rulings and legislative changes (Acts 1999, No. 309) undermine Brier Lake and support its position. | Williams: Argued article 781 applies; trial court accepted two-year rule without documentary proof. | Court: Neither party met the burden; no community documents or evidence in record — remand for evidentiary hearing. |
| Effect of the Louisiana Homeowners Association Act (LHAA) and Acts 1999, No. 309 on Brier Lake | STPOA: LHAA legislatively overruled Brier Lake; community documents and statutory scheme control and may change prescriptive analysis. | Williams: Brier Lake remains controlling as to characterization of assessments as building restrictions and two-year prescription. | Court: Recognized LHAA changes but declined to resolve conflict on incomplete record; remanded for fact development. |
Key Cases Cited
- Brier Lake, Inc. v. Jones, 710 So.2d 1054 (La. 1998) (held subdivision assessments characterized as building restrictions subject to two-year prescription)
- Lakewood Estates Homeowners’ Ass’n, Inc. v. Markle, 847 So.2d 633 (La. App. 4th Cir. 2003) (held LHAA/supplemental statutes govern assessments; art. 781 inapplicable)
- Eastover Prop. Owner’s Ass’n, Inc. v. Cochrane, 848 So.2d 710 (La. App. 4th Cir. 2003) (rejected application of two-year prescriptive period where community documents characterized assessments as personal obligations)
- Tri-State Sand & Gravel, L.L.C. v. Cox, 871 So.2d 1253 (La. App. 2 Cir. 2004) (discussed legislative changes to building restriction law; noted Brier Lake was addressed by legislation)
- Cichirillo v. Avondale Indus., Inc., 917 So.2d 424 (La. 2005) (explains burden of proof on prescription and when petition is prescribed on its face)