Source: http://www.iclg.co.uk/practice-areas/litigation-and-dispute-resolution/litigation-and-dispute-resolution-2016/usa-louisiana
Timestamp: 2016-12-09 23:11:35
Document Index: 384983711

Matched Legal Cases: ['art. 966', 'art. 1551', 'art. 3540', 'art. 1920', 'art. 2652', 'art. 421', 'art. 3549', 'art. 3601', 'art. 854', 'art. 862', 'art. 1001', 'art. 1111', 'art. 1113', 'art. 1701', 'art. 1091', 'art. 928', 'art. 641', 'art. 1561', 'art. 1562', 'art. 1551', 'art. 1471', 'art. 863', 'art. 966', 'art. 1424', 'art. 1425', 'art. 1422', 'art. 402', 'art. 403', 'art. 602', 'art. 701', 'art. 802', 'art. 705', 'art. 702', 'art. 1425', 'art. 1841', 'art. 2124', '§ 4202', '§ 4204', '§ 4206', '§ 4209']

USA - Louisiana - Litigation & Dispute Resolution 2016 · ICLG - International Comparative Legal Guides
Home Practice area Litigation & Dispute Resolution Litigation & Dispute Resolution 2016 USA - Louisiana
In Louisiana, there are 42 judicial districts and the district court in each has general jurisdiction over all civil and criminal matters. Many of these judicial districts are co-extensive with a single parish; however, some judicial districts cover multiple parishes. Under Louisiana’s venue rules, a lawsuit may always be commenced in the parish where the defendant is domiciled. In Orleans Parish, the civil and criminal courts are separate meaning that there are 43 district courts among the 42 judicial districts. Civil matters are governed by the Louisiana Code of Civil Procedure. In addition, the Louisiana Supreme Court promulgates procedural rules for conduct before it, along with the Uniform Rules of the Louisiana Courts of Appeal and the Rules for Louisiana District Courts.
Louisiana has a three-tiered civil court system. Above the Louisiana district courts are five Courts of Appeal, which are divided geographically across the state. Any party wishing to have a district court’s final judgment revised, modified, set aside, or reversed may make an appeal to the geographically-appropriate Court of Appeal. An opinion of the Court of Appeal may be appealed to the Louisiana Supreme Court through a process known as filing a writ application. Writ applications to the Louisiana Supreme Court are discretionary, meaning that the Supreme Court can decline to consider the appeal.
Louisiana has certain civil courts of limited jurisdiction, including Parish Courts, City Courts, and Justice of the Peace Courts. These courts are typically limited to considering matters where the amount in controversy is below $15,000.00, although this dollar amount is not uniform across all courts. These limited jurisdiction courts do not provide for the right of a jury trial and typically proceed more quickly and without many of the formalities found in district court. These courts are discussed generally in Code of Civil Procedure arts. 4831 et seq.
Civil proceedings in Louisiana will typically include: (a) a petition, in which the party filing the lawsuit alleges the factual bases of the suit and, although not required, the legal entitlement to relief should the allegations be proven; (b) an answer, in which the party against whom the suit is filed responds to the allegations of the petition and asserts any affirmative defences, which, if proven, would exculpate the defendant from liability; (c) a period of discovery during which each side can ask for documents, seek to identify facts and witnesses, take depositions, inspect property, develop expert testimony, and request admissions of fact; (d) a trial on the issues raised in the litigation; (e) a judgment; and (f) an appeal.
In addition, defendants may bring special motions, called exceptions, which challenge some legal, jurisdictional, or procedural aspect of the lawsuit. These exceptions are typically brought prior to answering or as part of the answer. Some exceptions are waived if not brought prior to answering, while others can be brought at any time prior to judgment. See generally, La. Code of Civil Procedure arts. 921 et seq.
Additionally, lawsuits may be resolved prior to trial through the use of dispositive motions, most notably motions for summary judgment. La. Code of Civil Procedure art. 966. Such motions require the district court to find the absence of any fact disputes such that the lawsuit may be decided as a matter of law.
Louisiana litigation is typically party-driven rather than court-driven. Trial dates are set upon motion of the party, La. District Court Rule 9.14, and scheduling conferences are discretionary. La. Code of Civil Procedure art. 1551. Accordingly, the timeframe of any litigation depends on the parties and may often be set by consent arrangements as to deadlines. Depending on the complexity of the matter, cases will often take more than a year to bring to resolution.
Louisiana generally recognises the validity of forum selection clauses, which allow the parties to stipulate where a lawsuit between them can be brought. See Power Marketing Direct, Inc. v. Foster, 938 So.2d 662, 675 (La. 2007). Likewise, Louisiana law allows the parties to stipulate to the substantive law which will govern their interactions (usually through a contractual choice-of-law clause). La. Civil Code art. 3540.
However, these choice of law and choice of forum provisions may be invalidated for public policy reasons, and neither can create subject matter jurisdiction in a particular court where it does not otherwise exist at law. 1.5 What are the costs of civil court proceedings in your jurisdiction? Who bears these costs? Are there any rules on costs budgeting?
Filing costs are established by each clerk of court for the judicial district in which the lawsuit is brought. See La. Revised Statute 13:841. These fees vary based on, among other things, the type of document filed, the length of the document, whether the document must be served, and the manner in which the document was filed. In addition, costs during the litigation can include costs associated with collecting and reproducing documents, and the cost of ordering court or deposition transcripts. Such costs are borne by the party incurring them during litigation, but may be recoverable by the prevailing party upon judgment. La. Code of Civil Procedure art. 1920.
The Louisiana Rules of Professional Conduct governing the conduct of lawyers admitted to practice in Louisiana allow for contingent and conditional fee arrangements between an attorney and its client. La. R.P.C. 1.5. A contingent fee must be reasonable and agreed to in a writing signed by the client. Certain matters (such as criminal defence) cannot be litigated subject to contingent fees. Lawyers cannot generally fund litigation under Rule of Professional Conduct 1.8(e) beyond advancing certain costs and fees (such as filing fees, expert witness costs, or deposition costs).
Non-lawyers may finance another’s litigation or purchase another’s litigious rights under Louisiana Civil Code art. 2652.
As discussed above, it is permissible for a non-party to litigation to finance the litigation proceeding, so long as the non-party is not a lawyer and does not run afoul of the Louisiana Rules of Professional Conduct. The assignment or transfer of the claim or cause of action (the “litigious right”) must already be contested in a suit already filed. It can be extinguished by the defendant paying the assignee of the right the same price, with interest, the assignee paid to the assignor. 2
No. Under Code of Civil Procedure art. 421, “[a]micable demand is not a condition precedent to a civil action, unless specifically required by law”. In other words, a party contemplating filing a suit need not first provide notice to the other party and offer them an opportunity to resolve the dispute before litigation is filed. However, if a statute or a contract requires such pre-litigation notice, then the failure to do so can be grounds for dismissal pursuant to an exception for want of amicable demand.
Louisiana limitations periods are generally termed as “prescriptive periods” under the civil law doctrine of liberative prescription. La. Civil Code arts. 3492 et seq. Tort actions generally have a one-year prescriptive period, while contract actions generally have a ten-year prescriptive period. These periods are generally calculated from the date the cause of action arises (injury in the case of a tort or breach in the case of a contract).
Under Louisiana Civil Code art. 3549, if Louisiana law governs the substance of the dispute, Louisiana prescription will apply. If another state’s law governs the substance of the dispute, Louisiana law applies a framework for determining whether Louisiana prescription will apply.
A civil proceeding is commenced by filing a pleading (usually a petition) in a court of competent jurisdiction. Service on a person may be done either personally or at the person’s domicile. For corporations, service is personal upon the corporation’s registered agent, or, if no registered agent is designated, upon an officer or director of the company, or upon an employee at the corporation’s place of business. Service is made by the sheriff for the parish in which the action is brought. If the sheriff is unable to effect service, a private citizen may be designated by the court upon the plaintiff’s motion. Upon service of the initial pleading, the sheriff (or private process server) files a return into the record that indicates the date of service. This date is considered prima facie valid and will be used to calculate delays to answer or otherwise respond to the pleading.
For defendants outside Louisiana, Louisiana law provides for “long-arm” jurisdiction and service. Long-arm jurisdiction is defined in Revised Statute 13:3201, which details the circumstances under which Louisiana court may exercise personal jurisdiction over a nonresident defendant. In such circumstances, the nonresident defendant may be served pursuant to Revised Statute 13:3204, which allows for service by certified or registered mail or by commercial courier. When service is made in this manner, the return receipt, or equivalent confirmation of delivery, must be filed into the record under Revised Statute 13:3205.
Louisiana does not provide for “pre-action” interim remedies because it considers the filing of any pleading necessary to provide an interim remedy to be the commencement of an action. For example, Louisiana law provides for the entry of preliminary injunctions or temporary restraining order as ancillary relief in support of a petition for injunction. See La. Code of Civil Procedure art. 3601. A preliminary injunction requires notice to the adverse party and a hearing. A temporary restraining order does not require notice where irreparable harm will result during the time it may otherwise take to provide notice. Even so, a party must certify their efforts to provide notice prior to the restraining order or must certify their reasons why notice is not required. In either case, the restraining order or preliminary injunction must only maintain the status quo until a full trial on the petition for injunction can be held. See Smith v. Brumfield, 2013-1171 (La. App. 4 Cir. 1/15/14), 133 So. 3d 70, 74.
To obtain these forms of interim relief, a party must show irreparable injury and a likelihood of success on the merits of its claim. If the injunction or restraining order is granted, the party that requested the injunction will likely have to post a bond securing it.
No specific elements are required under Louisiana law beyond “simple, concise, and direct” “allegations of fact”. La. Code of Civil Procedure art. 854. No prayer for relief is required and the courts may award any relief to which the parties are entitled. Id. art. 862.
A petition may be amended anytime without leave of court before an answer is served. An answer may be amended once without leave of court within ten days of its service. Otherwise, all amendments require leave of court or consent of the adverse party.
The primary statement of defence is the answer. An answer must admit or deny each allegation of fact contained in the petition, or state that the defendant lacks knowledge sufficient to admit or deny the allegation. A defendant must plead affirmative defences that it intends to raise against the plaintiff. A defendant can bring a counterclaim, referred to as a reconventional demand, under Louisiana law. See La. Code of Civil Procedure arts. 1061 et seq. A claim of set-off may either be made as an affirmative defence or a reconventional demand.
As discussed above, in addition to an answer, a defendant may bring exceptions challenging certain legal, procedural and jurisdictional aspects of the petition.
Answers must be filed within fifteen days of service, unless an extension is granted by the court. If a defendant files exceptions prior to answering, the answer is not due until ten days after the exception is overruled or referred to the merits. If a petition is amended prior to answering (either by right or to cure an exception), the answer is due ten days after the amended petition is served. La. Code of Civil Procedure art. 1001.
Yes, this is known as an incidental demand. La. Code of Civil Procedure art. 1111. Failure to bring such an action against a third party does not extinguish the defendant’s rights against the third party unless the third party can show he had the means to defeat the entire action, which were not used, because of his absence or his lack of notice of the action. Id. art. 1113.
If the defendant fails to defend the lawsuit, a default judgment may be taken against it. La. Code of Civil Procedure art. 1701 et seq.
Yes. A defendant can challenge the subject matter jurisdiction through a declinatory exception. It should generally be filed prior to or with the answer, unless the jurisdictional defect is not discovered until later. A defendant can also challenge the court’s personal jurisdiction over it or the propriety of the venue, but the failure to raise these in an exception waives them.
As discussed above, a defendant can join a third-party to the action by bringing an incidental demand against that third-party. Similarly, if a defendant brings a reconventional demand against the plaintiff, the plaintiff can bring a third-party demand against anyone who may be liable under the reconventional demand.
In addition, a third party having a right related to or connected with a pending lawsuit may seek to intervene under Code of Civil Procedure art. 1091. Furthermore, a defendant can raise the absence of a necessary third party as a defence to a pending lawsuit by raising the peremptory exception of nonjoinder. La. Code of Civil Procedure art. 928. The court must then determine the necessity of the third party and, if the party cannot be joined, whether the lawsuit should proceed in that party’s absence. Id. art. 641-642.
Consolidation is allowed under Code of Civil Procedure art. 1561. It is done by motion of any party in either proceeding and after a hearing before the court in which the first proceeding was initiated. The court must find that common questions of law and fact predominate and that consolidation will not confuse the jury, prevent a fair trial, provide an undue advantage, or cause prejudice. If all parties in both proceedings consent to the consolidation, the court may waive the required hearing.
Yes, a court may separate the issues of liability from damages if it finds that doing so is in the interest of justice and the parties consent to the bifurcation. La. Code of Civil Procedure art. 1562. On these same grounds, a court may separate the issue of insurance coverage from the underlying litigation, unless a fact issue relevant to coverage duplicates a fact issue relevant to the underlying litigation.
Cases are randomly allotted. District Court Rule 9.3. A party may seek to have a case assigned to a particular judge if it relates to a matter already assigned to that judge. District Court Rule Appendix 9.3.
Case management is vested in the discretion of the district court under Code of Civil Procedure art. 1551. As discussed above, parties may obtain interim relief through the use of preliminary injunctions and temporary restraining orders. The cost consequences of such interim relief are usually in the form of a bond set by the court which must be paid by the party that obtained the interim relief. The bond secures the party being enjoined against damages should the injunction later be found to have been improvidently granted.
Courts have three general categories of sanctions available to them: contempt; discovery sanctions; and attorney sanctions. Contempt may be either direct (in the presence of the court) or constructive (such as wilful disobedience of a court order). Punishment for contempt may include monetary fines or imprisonment. La. Revised Statute 13:4611.
Discovery sanctions may overlap with contempt sanctions, but may also include orders from the court which establish certain facts as true, bar the sanctioned party from offering evidence or witnesses on a particular claim or defence, striking a pleading, or dismissing a lawsuit. La. Code of Civil Procedure art. 1471. In addition, the party who had to seek a discovery sanction may be entitled to recover its costs and attorneys’ fees incurred in seeking the sanction.
Finally, sanctions against an attorney may be made if the attorney fails to meet his certification obligations under Civil Code art. 863 if a document filed by the attorney is found to be unreasonable or frivolous. Such sanctions are rare.
Yes, as discussed above, a case may be dismissed in whole or in part pursuant to exceptions (challenging the legal, procedural, or jurisdictional merit of a lawsuit), judgments on the pleadings, motions for summary judgment, or as a possible sanction for misconduct.
Yes. As discussed above, summary judgment is governed by Code of Civil Procedure art. 966.
The right to stay a matter is generally within the discretion of the court before whom the matter is pending. The right to stay is an inherent power of the court subject only to the court’s abuse of its discretion. In addition, an appellate court may, in its discretion, stay any proceeding in a court inferior to it. Thus, the Louisiana Supreme Court may stay proceedings in any Louisiana appellate court or district court while a Louisiana appellate court may stay district court proceedings for those district courts within its geographic footprint.
Louisiana does not require any mandatory disclosures by either party in litigation (in contrast to the U.S. federal rules). The only discovery that the Louisiana code allows for prior to the commencement of an action is the perpetuation of testimony pursuant to Code of Civil Procedure arts. 1429-1431. Materials that are generally prepared in “anticipation of litigation” are shielded from discovery unless shielding those materials would unfairly prejudice the party seeking their disclosure. Id. art. 1424(A). Attorney-client communications and attorney work product are also generally shielded from discovery. In the event expert witnesses are used, the expert’s draft reports and notes are not discoverable. Id. art. 1425(E). Louisiana does not have any special rules for electronic discovery.
As discussed above, attorney-client communications and attorney work product are privileged and generally not subject to disclosure. In addition, the Louisiana Code of Evidence provides for a number of testimonial privileges, such as spousal communications, doctor-patient communications, accountant-client communications, and penitent-clergyman communications. See generally La. Code of Evidence arts. 501 et seq.
Third party disclosures may be obtained through the use of a subpoena. La. Code of Civil Procedure arts. 1351 et seq. A subpoena may compel either testimony or the production of materials, which is called a subpoena duces tecum. Noncompliance with a subpoena may be sanctioned as a contempt of court.
The court is generally not an active participant in discovery in Louisiana. It is only when one party needs the court to compel another party’s compliance, or needs the court to limit or disallow certain discovery, that the court will become involved. 7.5 Are there any restrictions on the use of documents obtained by disclosure in your jurisdiction?
Discovery in Louisiana is intentionally broad. See La. Code of Civil Procedure art. 1422. Documents may be obtained in discovery even if they would not be admissible at trial. Id. The admissibility of a document is governed by the Louisiana Code of Evidence.
The basic rules of evidence in Louisiana are codified in the Louisiana Code of Evidence.
The general rule is that “relevant” evidence is admissible, while irrelevant evidence is not. La. Code of Evidence art. 402. Relevant evidence may be excluded on the grounds of prejudice, confusion, or waste of time. Id. art. 403. Expert testimony is generally permitted under arts. 702-706, with some limitations governing the qualification of the witness as an expert prior to offering its testimony.
Fact witnesses are generally limited to testifying about those matters within their personal knowledge. La. Code of Evidence art. 602. In some limited cases, a fact witness can offer opinion testimony. Id. art. 701.
Witness statements or deposition transcripts are generally inadmissible under the hearsay rule, La. Code of Evidence art. 802, unless a particular exception applies.
Experts are typically retained by a party to support their position in a lawsuit. It is incumbent upon the other party to test the expert’s theories, methods, assumptions, data, and conclusions through cross examination. E.g., La. Code of Evidence art. 705.
Before being qualified as an expert, the Court must first make a threshold finding that the witness being offered as an expert has the requisite knowledge, skill, experience, training or education in the field for which he is being offered. Id. art. 702. In addition, the court must determine that the proffered testimony will help the trier of fact (judge or jury) understand the evidence, that the testimony is based on reliable principles and methods, and that the expert has reliably applied his principles and methods to sufficient facts developed in the case. Id.
Expert reports are not required unless the parties agree to their preparation or the court orders their preparation. La. Code of Civil Procedure art. 1425(B). 9
In Louisiana, “a judgment is the determination of the rights of the parties in an action and may award any relief to which the parties are entitled”. La. Code of Civil Procedure art. 1841. A judgment need not conclude the merits as to one or all of the parties. Where it addresses preliminary matters or interim matters that arise during the litigation, it is considered to be an “interlocutory” judgment.
Damages may be awarded in any amount that is proven and that the finder of fact determines to be reasonable under the circumstances. The court may award interest “as prayed for or as provided by law” and may tax the costs of the litigation against the party cast in judgment. 9.3 How can a domestic/foreign judgment be recognised and enforced?
Foreign judgments can be recognised and enforced pursuant to the Enforcement of Foreign Judgments Act, La. Revised Statute 13:4241 et seq. Generally, the judgment must be authenticated and filed with an ex parte petition praying that the judgment be made executory in Louisiana. Once the procedural requirements of the Act are met, the judgment is treated as though issued by a Louisiana court and may be enforced as one.
Final judgments may be appealed as a matter of right. An appeal must be brought within either sixty days of the expiration of the time for seeking a new trial (called a “devolutive” appeal) or thirty days after the expiration of the time for seeking a new trial (called a “suspensive” appeal). The difference between the two appeals is that suspensive appeal requires the appealing party to post a bond and, when so posted, suspends the enforcement of the underlying judgment. La. Code of Civil Procedure art. 2124. A devolutive appeal does not suspend the enforcement of the judgment pending the appeal.
District Court Rule 11.0 states that the courts “encourage and support” alternative dispute resolution. A court can order the parties to mediate, but only if the parties consent. La. Revised Statute 9:4103.
Alternative dispute resolution in Louisiana is primarily driven by either contract or consent of the parties. The two forms most commonly encountered are mediation (a largely informal process used prior to or during the litigation where a neutral or panel of neutrals works with the parties to facilitate a settlement) or arbitration (a formal proceeding in place of litigation which often requires a stay or dismissal of the underlying lawsuit in favour of the arbitration).
Where the parties have a written agreement providing for arbitration, either party may sue or move to compel the enforcement of that provision under the Louisiana Binding Arbitration Law, La. Revised Statute 9:4201 et seq. In addition, the existence of an arbitration provision can be used as a defence to a lawsuit brought in contravention of the arbitration clause. As discussed above, parties are encouraged to mediate and may invoke the Louisiana Mediation Act, Rev. Stat. 9:4101, in support of that effort.
We are not aware of any areas of the law which forbid agreed-upon alternative dispute resolution, although, in some instances, Louisiana forbids the use of binding alternative dispute resolution when such resolution would prevent a party from bringing a lawsuit. For example, the Louisiana Insurance Code prohibits an insurance contract from including any provision “[d]epriving the courts of this state of the jurisdiction of action against the insurer.” La. Revised Statute 22:868.
Under the Louisiana Binding Arbitration Law, courts are empowered to aid the enforcement of arbitration provisions. These powers include the power to compel arbitration (Revised Statute 9:4203), stay proceedings in favour of arbitration (id. § 4202), assist in the appointment of arbitrators (id. § 4204), assist in compelling the attendance of witnesses at hearings or depositions (id. §§ 4206, 4207), and confirm, vacate or modify awards (id. §§ 4209-4211). Finally, the court can enter a judgment giving the arbitration award the force and effect of law. Id. 4212.
Other than the powers of the court to support and enforce arbitration awards, settlements are largely binding and enforceable only as matters of contract. Often, when the parties agree to a settlement and dismiss a lawsuit subject to the settlement, they will include language in the settlement allowing either party to reinstate the lawsuit should one party default on their settlement obligations.
2.1 What are the major alternative dispute resolution institutions in your jurisdiction? American Arbitration Association (“AAA”), Mediation Arbitration Professional Systems, Inc. (“MAPS”), ADR, Inc., and Perry Dampf Dispute Solutions.
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