Thompson Tree & Spraying Service, Inc. v. White-Spunner Construction, Inc.
68 So. 3d 1142
La. Ct. App.2011Background
- Live Oak Landscaping (Thompson) sued White-Spunner Construction, Hartford Insurance, and Wal-Mart over LPWA lien and contract breach on a Louisiana Wal-Mart Super-Center project.
- Live Oak filed a statement of claim against the project in Sept. 2009 and then filed suit in Dec. 2009 for breach and LPWA claims.
- Trial court dismissed LPWA claims as untimely due to defective notices (notice of contract and termination lacked a legal description) and dismissed contract breach under a forum clause, finding venue in Alabama.
- The trial court’s rulings left no live claims against Wal-Mart and Hartford; it entered judgments later treated as final for purposes of appeal.
- Louisiana appellate court reversed, holding Live Oak’s LPWA claim timely under 9:4822 and that forum selection clause violated Louisiana public policy, remanding for further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Finality of the partial judgment | Live Oak argues the partial judgment was final and immediately appealable | Appellees contend the judgment was interlocutory | Final judgment; appeal allowed |
| Timeliness of the LPWA claim | Timely under LPWA after proper termination notice | Notice defects prevented tolling and timely filing | Timely; tolling period starts with proper termination notice (9:4822(A)) |
| Enforceability of forum selection clause | Clause violates Louisiana public policy and 44(A) | Clause generally enforceable under prior case law | unenforceable; public policy against pre-litigation venue waiver; remand for proceedings in Louisiana |
Key Cases Cited
- Jeansonne v. New York Life Ins. Co., 11 So.3d 1160 (La.App. 3 Cir. 2009) (partial final judgments dismissed from suit are immediately appealable)
- Bernard Lumber Co., Inc. v. Lake Forest Constr. Co., Inc., 572 So.2d 178 (La.App. 1 Cir. 1990) (tolling when notice of termination absent or defective)
- Rowley Co., Inc. v. Southbend Contractors, Inc., 517 So.2d 1260 (La.App. 4 Cir. 1987) (notice of termination must include legal description; tolling issues)
- In re Whitaker Constr. Co., Inc., 439 F.3d 212 (5th Cir. 2006) (federal interpretation of LPWA timing when notices are defective)
- Norman H. Voelkel Constr., Inc. v. Recorder of Mortgages for E. Baton Rouge Parish, 859 So.2d 9 (La.App. 1 Cir. 2003) (proper identification issues can prejudice and tolling)
- Case Atlantic Co. v. Blount Bros. Constr., Inc., 960 So.2d 1274 (La.App. 2 Cir. 2007) (forum selection clauses generally enforceable but may be limited by policy and practical considerations)
- Lejano v. Bandak, 705 So.2d 158 (La. 1997) (public policy considerations in forum selection; admiralty context)
- Power Marketing Direct, Inc. v. Foster, 938 So.2d 662 (La. 2006) (forum selection clauses generally enforceable; dictum in some contexts)
- M/S Bremen v. Zapata Off-Shore Co., 407 U.S. 1 (Supreme Court) (public policy limits on enforcing forum selection clauses)
- Calahan v. Haspel, 732 So.2d 796 (La.App. 3 Cir. 1999) (previous view on enforceability of forum selection clauses disavowed)