Joseph v. Wasserman
Joseph v. Wasserman
Opinion of the Court
This is a legal malpractice case. Nathaniel Joseph and Kecia Esteen (formerly known as Kecia Joseph) (collectively the "Josephs") commenced this case against Gerald Wasserman, an attorney who handled numerous business and property dealings on their behalf (the "Malpractice Case"). The Josephs appeal from the trial court's May 3, 2017 judgment granting, but staying, the exception of no right of action filed by Mr. Wasserman (the "May 2017 Judgment").
Factual and procedural background
In December 2004, the Josephs commenced the Malpractice Case. In May 2006, the trial court rendered a judgment dismissing the Malpractice Case with prejudice; the reason for the dismissal is not relevant here. Although the Josephs timely appealed the May 2006 judgment by filing a motion for appeal (the "Motion for Appeal"), the Motion for Appeal was not signed until a decade later, in 2016. Meanwhile, in July 2013, the Josephs filed a Chapter 7, Voluntary Bankruptcy Petition, in the United States Bankruptcy Court for the Eastern District of Louisiana (the "Bankruptcy Case"). In the Bankruptcy Case, the Josephs failed to disclose the Malpractice Case as a potential asset of the bankruptcy estate.
In 2015, the Josephs filed in the Malpractice Case a motion seeking to have the Motion for Appeal signed by the trial court; instead, the trial court, sua sponte , declared their appeal from the May 2006 judgment of dismissal abandoned. This court vacated the trial court's judgment and remanded for further proceedings.
*17Joseph v. Wasserman , 15-1193 (La. App. 4 Cir. 5/4/16),
In January 2017, Mr. Wasserman filed a partial exception of no right of action and a motion for partial summary judgment.
Following a hearing, the trial court rendered the May 2017 Judgment, conditionally granting Mr. Wasserman's exception of no right of action, ordering that notice be issued to the Trustee in the form attached to the judgment,
DISCUSSION
Jurisdictional issue
"The foundation of an appeal is subject matter jurisdiction." Wells One Invs., LLC v. City of New Orleans , 17-0415, 17-0416, p. 3 (La. App. 4 Cir. 11/2/17),
The threshold question that must be answered before reaching the merits of an appeal is whether the ruling from which a party seeks review is an appealable judgment. "A party may appeal (1) from a final judgment in actions in which appeals are given by law; (2) an interlocutory judgment only when expressly provided by law; and (3) from a judgment reformed in accordance with an additur or remittitur." Frank Maraist, 1 LA. CIV. L. TREATISE, CIVIL PROCEDURE § 14:3 (2d ed. 2017) (citing La. C.C.P. art. 2083 ) ("Maraist ").
Although Louisiana courts require no particular form for a valid final judgment, they require that it be "precise, definite and certain." 1960 Revision Comment (a) to La. C.C.P. 1918. Indeed, this Court has noted that " '[a] valid judgment must be precise, definite and certain' " and that " '[t]he quality of definiteness is essential to a proper judgment." Board of Sup'rs of Louisiana State Univ. & Agric. & Mech. Coll. v. Mid City Holdings, L.L.C. , 14-0506, p. 2 (La. App. 4 Cir. 10/15/14),
Recognizing the principle that a conditional judgment is generally not a final judgment for purposes of appeal and summarizing the jurisprudence supporting this principle, the court in Barfield v. Tammany Holding Co. , 16-1420, pp. 2-3 (La. App. 1 Cir. 6/2/17),
A judgment that is contingent on the occurrence of a future event is indeterminate and not a valid, final, appealable judgment. Drury v. Drury , 01-0877 (La. App. 1 Cir. 8/21/02),835 So.2d 533 , 538 ; Sibley v. Sibley , 14-0045 (La. App. 1 Cir. 9/19/14),2014 WL 4667577 *1 (unpublished) (finding the phrase "in the event" in the language of a judgment was not precise, definite, nor certain); State v. Fumar , 05-2459 (La. App. 1 Cir. 11/3/06),2006 WL 3108327 (unpublished) (finding a judgment ordering a father to pay child support effective "at the time the [mother] moves out of home owned by [father]" was not a valid, final judgment because it was based on a contingency).
*19Further, a judgment that grants an exception of no cause of action and allows a period of time for amendment of the petition is not an appealable judgment, because it is not a final judgment nor an interlocutory judgment expressly appealable by law. LSA-C.C.P. art. 2083. See Schroeder v. Bd. of Supervisors of LSU ,540 So.2d 380 , 382 (La. App. 1 Cir. 1989) ; also see B.G. Mart, Inc. v. Jacobsen Specialty Svces., Inc. , 16-675 (La. App. 5 Cir. 2/8/17),213 So.3d 1238 , and Hughes v. Energy & Marine Underwriters, Inc. , 07-490 (La. App. 5 Cir. 3/11/08),978 So.2d 566 , 567-68, writ denied , 08-0957 (La. 8/29/08),989 So.2d 100 .
Applying this principle, we find that we lack appellate jurisdiction. The May 2017 Judgment, albeit labeled a "Final Judgment,"
IT IS ORDERED, ADJUDGED AND DECREED that Gerald D. Wasserman's Exception of No Right of Action be granted; and, ACCORDINGLY , the claims of Nathaniel Joseph and Kecia Joseph against Gerald D. Wasserman be STAYED ;
IT IS FURTHER ORDERED, ADJUDGED AND DECREED that a decision on Gerald D. Wasserman's Motion for Partial Summary Judgment be deferred as moot;
IT IS FURTHER ORDERED, ADJUDGED AND DECREED that the Clerk of this Court send a Notice in the form attached hereto to the Clerk of Court of the U.S. Bankruptcy Court for the Eastern District of Louisiana.
The May 2017 Judgment is analogous to the judgment in the Falgoust case; the typewritten-part of the judgment in the Falgoust case read as follows:
IT IS ORDERED, ADJUDGED AND DECREED that plaintiff's cause of action against David J. Luck, John Luck and Royal Indemnity Company is hereby dismissed with prejudice due to the plaintiff's failure to fully submit to a physical examination on October 12, 1984 ["the Date"].
The conditional judgment in the case before us, without a subsequent judgment setting out final dismissal, does not fit the criteria for an appealable judgment *20.... This is not a judgment of dismissal but only presents the possibility of dismissal conditioned on future non-compliance. The judgment herein is analogous to a judgment maintaining an exception and ordering the plaintiff to amend within a certain time on pain of dismissal. Spencer v. Burglass ,288 So.2d 68 (La. App. 4th Cir. 1974) ; Taylor v. Consol. Rail Corp. ,391 So.2d 1351 (La. App. 4th Cir. 1980) ; Coulon v. Gaylord Broadcasting ,408 So.2d 16 (La. App. 4th Cir. 1981). In the above cases, the appeals were dismissed for lack of a final judgment or interlocutory judgment which may cause irreparable harm. The judgment before us neither disposes of the merits nor causes irreparable harm and, as in the cited cases, is no more than a preliminary order.
Although Mr. Wasserman supplemented the record on appeal with a copy of the Trustee's intervention that has been filed in the trial court, the Trustee's intervention does not change the conditional nature of the trial court's ruling on the exception of no right of action. See 44 C.J.S. Appeal and Error § 144 (noting that "the happening of the event does not operate to render the order final"). Until the trial court unconditionally dismisses the Josephs' claims against Mr. Wasserman, there is no final judgment. Thus, we lack appellate jurisdiction.
Converting appeal to an application for supervisory writ
When, as here, a non-appealable judgment is appealed, this court has the discretion to convert the appeal to an application for supervisory writ and to rule on the merits of the writ. Stelluto v. Stelluto , 05-0074, p. 7 (La. 6/29/05),
(i) The motion for appeal has been filed within the thirty-day time period allowed for the filing of an application for supervisory writs under Rule 4-3 of the Uniform Rules, Courts of Appeal.
(ii) When the circumstances indicate that an immediate decision of the issue sought to be appealed is necessary to ensure fundamental fairness and judicial efficiency, such as where reversal of the trial court's decision would terminate the litigation.
Mandina, Inc. v. O'Brien , 13-0085, pp. 7-8 (La. App. 4 Cir. 7/31/13),
Neither fundamental fairness nor judicial efficiency would be served by converting the appeal to an application for supervisory writ. An immediate decision will not terminate the litigation. Moreover, the procedural posture of this case has changed since the judgment was rendered-the Trustee has intervened.
As a general rule, appellate courts decline to exercise their supervisory jurisdiction when an adequate remedy exists by appeal. See Cardon v. Chalmette Christian Acad. , 06-0489 (La. 4/24/06),
Given the conditional nature of the May 2017 Judgment, the change in the procedural posture of this case, and the existence of an adequate remedy on appeal, we decline to exercise our discretion to convert the Josephs' appeal to a writ.
Answer to the appeal
Mr. Wasserman filed an answer to the Josephs' appeal seeking affirmative relief. The answer, however, is based on the same conditional, interlocutory, non-appealable May 2017 Judgment. Thus, we lack jurisdiction over Mr. Wasserman's answer to the appeal. See Nicaud v. Nicaud , 16-1531, p. 3 (La. App. 1 Cir. 9/15/17),
DECREE
For the foregoing reasons, the appeal and the answer to the appeal are dismissed; and this matter is remanded for further proceedings.
APPEAL AND ANSWER TO APPEAL DISMISSED; AND REMANDED
For ease of discussion, we refer to the Josephs as the only appellants. The trial court's judgment named the Josephs as the only plaintiffs. The notice of appeal, however, was signed by not only the Josephs, but also three other individuals-Frank Mitchell, Lucinda Mitchell, and Nathan Joseph. These three individuals all filed a notice to intervene as a plaintiff in the Malpractice Case. Nathan Joseph's motion to intervene was denied. Given that we dismiss the instant appeal on jurisdictional grounds, we decline to address the issue of whether these three individuals have standing to appeal.
In 2016, while the appeal in Joseph I was pending before this court, Mr. Wasserman filed an exception of no right of action in this court, asserting the same grounds as set forth in the exception of no right of action that he filed in the trial court. This court denied the exception because proof of the grounds for the exception did not appear of record. See La. C.C.P. art. 2163.
In his motion for partial summary judgment, Mr. Wasserman contended that the Josephs were precluded from pursing this matter pursuant to the doctrine of judicial estoppel due to their failure to disclose the Malpractice Case to the Bankruptcy Court and the Trustee.
The form attached to the May 2017 Judgment read as follow:
PLEASE TAKE NOTICE THAT this Court has rendered the attached Judgment, staying claims asserted against Gerald Wasserman by Nathaniel Joseph and Kecia Esteen (formerly, Kecia Joseph), due to their filing of a bankruptcy proceeding in the U.S. Bankruptcy Court, for the Eastern District of Louisiana, in the matter entitled: In Re: Kecia Esteen and Nathaniel Joseph , Case No. 13-12107. The Court ruled that the cause of action asserted by Nathaniel Joseph and Kecia Joseph, Debtors in said bankruptcy proceeding, was property of the bankruptcy estate, and therefore those Debtors have no right to pursue a claim against Mr. Wasserman.
The Court gave the Trustee of the Estate until July 10, 2017, to determine whether she wishes to pursue the claim pending before this Court. In the event the Trustee takes no action, Nathaniel Joseph and Kecia Esteen will have until August 9, 2017, to petition the Court for leave to pursue the case.
The trial court apparently crafted the conditional judgment it issued (the May 2017 Judgment) based on a federal bankruptcy decision, Gillain v. A-C Product Liability Trust ,
Summarizing the current scope of appealable judgments, La. C.C.P. art. 2083 provides as follows:
A. A final judgment is appealable in all causes in which appeals are given by law, whether rendered after hearing, by default, or by reformation under Article 1814.
B. In reviewing a judgment reformed in accordance with a remittitur or additur, the court shall consider the reasonableness of the underlying jury verdict.
C. An interlocutory judgment is appealable only when expressly provided by law.
The label placed on a judgment is not dispositive of this court's appellate jurisdiction. See LHO New Orleans LM, L.P. v. MHI Leasco New Orleans, Inc. , 03-1283, 03-1284, p. 5 (La. App. 4 Cir. 3/3/04),
The Josephs filed their notice of appeal within the thirty-day period for filing a writ. The trial court signed the judgment on May 3, 2017; and the Josephs filed a notice of appeal on May 30, 2017.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.