162 So. 3d 414
La. Ct. App.2015Background
- Union Federal obtained a seizure-and-sale order for seven vehicles (four semi-trucks, three trailers) as collateral on a 2008 loan; three trucks and three trailers (the "6 Vehicles") were towed to and stored at A & R Towing's open lot on Jan 16, 2011; Union Federal kept possession of the fourth truck.
- Debtor Thornton filed bankruptcy on Jan 31, 2011, staying the sale; the 6 Vehicles remained in A & R’s lot for 689 days (Jan 2011–Dec 5, 2012), including time while in the bankruptcy estate and after abandonment.
- A & R invoiced the Sheriff for towing ($2,730), an office fee ($2,400), and storage at $36/day/vehicle (PSC "oversized vehicle" rate) totaling $153,954 for the full period; the Sheriff sought to tax those costs against Union Federal.
- At trial the district court found A & R’s billed amount excessive, awarded the Sheriff $2,730 towing + $9,720 storage, credited $1,437 previously paid by Union Federal, and entered judgment for $11,013; both parties appealed.
- The appellate court affirmed in part and reversed in part: it upheld the court’s exercise of discretion to receive more evidence, found the storage award not manifestly erroneous given facts (open-lot storage; creditor delay), and increased the judgment by $1,437 (removing the credit against towing/storage and permitting its application to other administrative foreclosure costs), for a total of $12,450.
Issues
| Issue | Union Federal's Argument | Sheriff/A & R's Argument | Held |
|---|---|---|---|
| Whether trial court abused discretion by permitting additional evidence after initial hearing | Trial court erred by reopening the record and prejudicing Union Federal | Reopening was within trial court discretion to establish customary/reasonable rates | No abuse of discretion; reopening permissible and not prejudicial |
| Whether the storage fees billed were reasonable and recoverable | Fees (as reduced by trial court) still excessive given debt size and circumstances; creditor not liable for disproportionate storage | Large storage charge justified by PSC rates and actual storage time; Sheriff entitled to reasonable storage | Appellate court affirmed trial court’s award as not clearly wrong; creditor delay justified storage award |
| Whether Louisiana Towing and Storage Act/PSC rates governed charges for court-ordered seizure storage | Union Federal argued PSC rates inapplicable to court-ordered seizure/storage | Sheriff argued the Act does not apply to court seizures but PSC rates are persuasive evidence of customary charges | Court agreed the Act did not strictly apply; assessed fees on overall reasonableness rather than automatic PSC rate application |
| Whether Union Federal's $1,437 prior payment must be credited against towing/storage fees | Credit should reduce towing/storage judgment | Sheriff argued payment covered other administrative foreclosure costs and should not be applied only to towing/storage | Reversed trial court’s specific credit against towing/storage; $1,437 may be applied to other administrative foreclosure costs, increasing judgment by that amount |
Key Cases Cited
- Pitre v. Talley, 205 So.2d 818 (La. App. 3d Cir. 1968) (sheriff may recover usual warehousekeeper charges; reasonableness review applies)
- Storey v. Weaver, 139 So.3d 1079 (La. App. 2d Cir. 2014) (trial court discretion to reopen record for additional evidence)
- Wooley v. Lucksinger, 61 So.3d 507 (La. 2011) (appellate review focuses on judgments, not written reasons)
- Bellard v. American Central Insurance Co., 980 So.2d 654 (La. 2008) (same rule regarding review of judgments vs. reasons)
- In re Skinner, 213 B.R. 335 (Bankr. W.D. Tenn. 1997) (bankruptcy court control over custodian expenses and administrative claims for property in estate)
- In re R. Brown & Sons, Inc., 498 B.R. 425 (Bankr. D. Vt. 2013) (post-petition storage expenses subject to bankruptcy administrative expense rules)