In Re: Debra R. Guastella

Filing 26

ORDER and REASONS denying 20 Motion for Rehearing, as stated within document. Signed by Judge Kurt D. Engelhardt on 5/30/2013. (cbs)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF LOUISIANA
1161 LAKE AVENUE CONDOMINIUM
ASSOCIATION, INC. (appellant)

CIVIL ACTION

VERSUS

NO. 12-2971

DEBRA R. GUASTELLA, ET AL
(appellee)

SECTION “N” (5)

ORDER AND REASONS
Considering the appellant’s Motion for Rehearing (Rec. Doc. 20);
IT IS ORDERED that the motion is hereby DENIED.
In its ruling on this bankruptcy appeal (Rec. Doc. 14), the Court cited Aetna Cas. &
Surety Co. v. LaSalle Pump & Supply Co., Inc., 804 F.2d 315, 317-18 (5th Cir. 1986), for the
principle that a surety’s obligation under an appeal bond is determined by the terms of the
contract. To adopt the appellant’s interpretation of the bond contract in this case would require
the Court to find that the words “in the sum of $86,000.00” are utterly superfluous and without
meaning. The interpretation of the appellee and the bankruptcy court, on the other hand, allows
meaning to be attributed to all provisions of the contract. When the provisions are interpreted in
light of each other so that each is given meaning, see La. Civ. Code art. 2050, it is clear that the
surety bound herself to be liable for the judgment up to “the sum of $86,000.00” in the event of
default by the judgment debtor.
New Orleans, Louisiana, this 30th day of May, 2013.

____________________________________
KURT D. ENGELHARDT
UNITED STATES DISTRICT JUDGE