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Supreme Court, First Circuit Uphold Promissory Note Standing Precedent


The Louisiana Supreme Court upheld the precedent that, in suits to enforce a promissory note, the plaintiff who produces the note makes out a prima facie case of its claim to enforce the note. In Consumer Sols., LLC v. Thompson, 309 So. 3d 730, 731 (La. 2021), a creditor-plaintiff produced at trial the original, blank endorsed promissory note. Courts have long held that this is sufficient to establish standing. However, the trial court held that the creditor-plaintiff did not have possession of the promissory note at the time the suit was filed. The First Circuit agreed. The Louisiana Supreme Court disagreed:

In a suit on a promissory note, the payee who produces the note sued upon makes out a prima facie case of its claim to enforce the note. JP Morgan Chase Bank, N.A. v. Boohaker, 14-0594 (La. App. 1 Cir. 11/20/14), 168 So.3d 421. At the trial of this matter, the applicant *731 produced the original note, and therefore successfully made a prima facie case of its right to enforcement. The mere fact that Consumer Solutions, LLC may not have had physical possession of the note when the suit was filed does not, in and of itself, defeat applicant’s claim to the right to enforce. See LSA-R.S. 10:3-301.
Consumer Sols., LLC v. Thompson, 309 So. 3d 730, (Mem)–731 (La. 2021.

The Louisiana Supreme Court remanded it to the First Circuit who entered judgment in favor of creditor-plaintiff. This case is important for maintaining the enforceability of transferred loans which is an integral part of the our economy.
Jason R. Smith represented the Appellant’s at the trial court, First Circuit Court of Appeal, and Louisiana Supreme Court.