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Legal Memorandum: Revocatory Action in LA

Issue: What are the laws governing revocatory action in Louisiana?

Area of Law: Litigation & Procedure
Keywords: Revocatory action; Insolvency
Jurisdiction: Louisiana
Cited Cases: 366 So. 2d 911; 770 So. 2d 859; 958 So. 2d 131; 162 So. 44; 587 So. 2d 812; 133 So. 797; 939 So. 2d 1227; 21 So. 48
Cited Statutes: La. Civ. Code arts. 2036-2043, art. 2036, art. 2037, art. 2040 ;
Date: 10/01/2009

A revocatory action under Louisiana law is governed by La. Civ. Code arts. 2036-2043. Under the revocatory action law, “[a]n obligee has a right to annul an act of the obligor, or the result of a failure to act of the obligor, made or effected after the right of the obligee arose,*FN1 that causes or increases the obligor’s insolvency.”  Id., art. 2036.  An obligor is considered insolvent when his or her liabilities exceed the total of his or her assets.  Id., art. 2037.  The statutes further provide that “[a]n obligee may not annul a contract made by the obligor in the regular course of his business,” id., art. 2040, and that a revocatory action must be filed within one year from the time the obligee “learned or should have learned of the act, or the result of the failure to act, of the obligor that the obligee seeks to annul, but never after three years from the date of that act or result,” id. at 2041.*FN2

Although the requirements for maintaining a revocatory action have changed somewhat over the century that the action has been part of Louisiana law,*FN3 there always has been a requirement that the plaintiff show an injury.  See Feist v. Willer & Gamm, Inc., 133 So. 797, 799 (La. App. 2 Cir. 4/9/31) (stating the rule that it is essential that the plaintiff in a revocatory action show a present […]

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