Articles Posted in Civil Matter

to-sign-a-contract-2-1236630-1024x683How do you know whether an arbitration provision in a contract applies? The easy answer: read the contract. If you are a member of a company that provides services to you, such as financing your small business needs, you must be sure to closely read any and all documentation relating to the services provided and what you can do if you are dissatisfied with the company’s work. Companies will often include an arbitration and mediation clause in their contracts with individual members. This means that instead of suing the company in a court of law, the dispute would first have to be arbitrated by an independent third party and an attempt at mediation would have to be made. In Louisiana, companies frequently create operating agreements that function as contracts between owners and members. These operating agreements use a lot of boiler plate language that is ultimately enforced. In fact, Louisiana law favors arbitration. See La. R.S. 9:4201; see also  v. Auction Mgmt. Corp., 908 So.2d 1, 18 (La. 2005).

In May 2014, eleven members of a small business financing company, North Louisiana Bidco, LLC (NLB), filed a lawsuit to enforce their rights to examine NLB’s financial and other records. The eleven members became concerned when NLB was sued by various clients and incurred a bad debt expense of $6 million, which showed on the company’s 2013 financial statements. In response, NLB raised the exception of prematurity. NLB argued that the company’s operating agreement required the members of the company to mediate their disputes amongst themselves and if mediation failed, to submit disputes for arbitration. The members that were suing the company in this instance opposed the prematurity argument and asserted that this dispute was not one “among members” but instead was between the body of the membership itself and the management of the company. The Trial Court upheld the prematurity exception. It held that this was indeed a dispute between members and the mediation and arbitration clause applied.

When the members of NLB appealed the Trial Court’s decision they argued that this dispute was a demand by the members of the company against the company itself. The members were attempting to enforce their own rights to view the company’s records rather than trying to enforce any rights against the other members. The Second Circuit Court of Appeal agreed with the eleven members stating that this was not a dispute between members. Therefore, in the absence of such a dispute between members, the arbitration clause could not be enforced. In addition, the Court of Appeal pointed out that for the arbitration clause to be triggered, the action must have been a dispute arising among members relating to the operating agreement. The operating agreement at issue here made it clear that members had the right to inspect the company’s books and records and no party disputed this fact. Because there was no dispute relating to the agreement and because the dispute was ultimately not between members, the Court of Appeal held that the arbitration clause did not apply and the members would be allowed to bring a lawsuit against the company.

contract-signing-1474333-768x1024No one likes to deal with insurance matters. Shopping for insurance and understanding the terms of an insurance policy can be complex. Most people are happy to just pay their monthly premiums and know that they have insurance when they need it – and then hope they never need it at all. One woman learned how complex insurance matters can be when she was injured in July of 2012 when the Pontiac Sunfire that she was driving was involved in an auto accident in Ouachita Parish.

The insurer of the other driver who was involved in the accident tendered payment to the plaintiff, Sonya Rodgers, in an amount equal to the policy limits. At the time of the accident, Rodgers was insured by State Farm. Rodgers sued State Farm alleging that she should be provided uninsured motorist coverage for the injuries she suffered in the accident. State Farm filed a motion for summary judgment arguing that uninsured motorist coverage was not provided because Rodgers rejected such coverage in April of 2010.

Rodgers contended in opposition to the motion that there was a genuine issue of material fact as to whether there was uninsured motorist coverage at the time of the accident. Rodgers argued that after the original vehicle covered under her State Farm policy became inoperable, she turned its license plate into the DMV, alerted her State Farm agent that she would no longer need the coverage because the vehicle was broken down beyond repair, and she stopped paying premiums to State Farm. Rodgers said that she considered the policy to be cancelled after she took those steps. Rodgers further said that after acquiring the Pontiac Sunfire she contacted her State Farm agent and negotiated a new policy and she believed that she had uninsured motorists coverage because State Farm never asked her to execute a new rejection of uninsured motorist coverage form. See La. R.S. 22:1295.

construction-site-1229346-1024x680If your contractor tells you a job will take a day, you might expect it to actually take a week. But, do you have to pay your contractor for time they are unable to work? Depending on the contract agreement you signed you may be liable for the costs the contractor has even when work is not going according to plan. This may be particularly true if you fail to uphold some part of the bargain. Whenever you enter a contract or feel that a contract may have been breached, it is important that you fully understand your contract. A case out of Baton Rouge in 2001 gives some insight into the necessary proof when trying to recover for contract losses.

In March of 2001, the city of Baton Rouge, Louisiana, entered into a contract with F.G. Sullivan, Jr. to improve Tiger Bend Road. The nearly $4,000,000 contract involved the expansion of the road, as well as the installation of a storm drainage system. Baton Rouge had been acquiring the rights to utilities on the road that would be in the way of the project. Both parties had agreed that the utility lines would be removed prior to Sullivan commencing work. The city informed the contractor that the utilities would be removed by April 1, 2001, and that work was to commence the following day.

Work began on the drainage system on April 2, but a snag was quickly hit. As construction on the drainage system began the company realized that the utility lines had not been moved. The city refused Sullivan for the time when his idle equipment was unable to work. Sullivan filed a lawsuit against the city seeking recovery for the time his equipment was idle, along with additional overhead expenses resulting from the utilities delays. At a bench trial, which is a trial with only a judge and no jury, just under a $1,000,000 was awarded in damages.

money-1237119-828x1024If you fail to make payments on a mortgage you may lose your home, but you may also be held liable for any remaining debt after your home has been sold. If the sale of your house does not pay off the balance of what you owe, the institution owning the mortgage may come after you for a deficiency judgment. A deficiency is essentially the balance remaining on the loan after the sale of the property. For example, if a homeowner with a $100,000 mortgage defaults and the bank sells their home for $75,000, there would be a $25,000 deficiency. The owner of the debt may be able to come after a person for the deficiency.

In order for a debt owner to get a deficiency judgment against a debtor in Louisiana, the owner of the debt must file a lawsuit against the debtor in court. In order to find in favor of the owner of the debt, the court must find that the debt satisfied all requirements of the 1989 Louisiana Credit Agreement Statute.  See La. R.S. 6:1121.  One of the provisions of the statute states “a debtor shall not maintain an action on a credit agreement unless the agreement is in writing, expresses consideration, sets forth the relevant terms and conditions, and is signed by the creditor and the debtor.” A recent case out of Baton Rouge, Louisiana, shows what this language means.

In August of 2007, Kristina Jackson took out a loan for $224,220 with First American Bank, which she secured using a mortgage on a piece of property she owned. Jackson defaulted on the loan, and the bank sold the property in February of 2013. After the sale of the property a deficiency remained. Jackson claims she only agreed to mortgage the property because a First American Officer told her that it was only a temporary mortgage and it would be released within 30 days after the loan dispersed.

ancient-ruins-flooded-by-water-1622023Imagine walking into your recently deceased parent’s home and discover that due to freezing temperature the pipes burst and there is water everywhere. You are shocked and angry because your parent’s beloved home is damaged significantly. Photographs and family memories that filled the home are now drowning in water. You had contacted the city on to shut off the water prior to this unfortunate incident, but it is only after the water damage discovery is made that the city finally complies. Initially you are upset with the city’s actions, but you didn’t decide to sue the city until one year after the damage to the property occurred. Could you still recover damages?


A Louisiana court answered this question when Ms. Linda Rosenberg-Kennett filed a lawsuit against the City of Bogalusa. This scenario happened to Ms. Rosenberg- Kennett when she discovered her deceased father’s home suffered water damage due to freezing pipes bursting during the winter. In March of 2009, she contacted the city to turn off the water. An employee came out to turn off the water, but it turns out the water was never turned off.  After the pipes burst in January of 2010, Ms. Rosenberg-Kennett contacted the City of Bogalusa again on numerous occasions to turn off the water valve to the property, but it was not turned off until February 1, 2010.


In January of 2011, Ms. Rosenberg filed a lawsuit against the City of Bogalusa for negligence due to its failure to turn off the water. She sought to recover damages. The City of Bogalusa filed a motion of summary judgment, but the trial court dismissed the motion.  The court ruled in favor of Ms. Rosenberg-Kennett and found the city liable and ordered them to pay damages in the amount of $50,618.95.  The City of Bogalusa appealed the trial court’s decision because they believed the trial court should not have denied their motion for summary judgment and award Ms. Rosenberg-Kennett damages, asserting that the City was not liable.

stethoscope-1427015Court procedures can be confusing for many people.  Cases can be even more confusing when they involve medical malpractice claims.  One Louisiana case arising from injuries suffered by the plaintiff from treatment he received in March and April of 2009 reached the summary judgment stage.  The complaint was originally filed with the Commissioner of Administration in accordance with the Louisiana Medical Malpractice Act.  See La. R.S. 40:1231.1.  A medical review panel was convened on three separate occasions and concluded that there was a deviation from the standard of care by Chabert Medical Center, the defendant in the case, and its employees, but there had not been a deviation from the standard of care by a certain Dr. Bass. Consequently, in response to a lawsuit filed by the plaintiff naming Dr. Bass, Dr. Bass filed a motion for summary judgment.   

Summary judgment is a favored court procedure and is designed to get a just, speedy, and less expensive finding on a cause of action.  A summary judgment is a court order ruling that no factual issues remain to be tried and therefore a cause of action or all causes of action in a complaint can be decided without a trial.  Under article 966(G) of the Louisiana Code of Civil Procedure, if a person is found not to be negligent, not to be be at fault, and not to have caused the injury or damage in a summary judgment, it is mandatory for the trial judge to specify in the motion that the charged party is not at fault and not to be party to subsequent allocations of fault.  See LA.C.C.P art. 966(G).  Usually, it is the party filing for summary judgment that bears the burden of proof.  

A claim asserting medical malpractice must show beyond a preponderance of the evidence that the doctor breached an applicable standard of care that caused the resulting injury. The plaintiff in this case was unable to establish a connection between the standard of care and the resulting injury, and therefore did not dispute the defendants motion for summary judgment, but requested that the court include a provision mirroring the language of La. C.C.P. article 966(G) in its judgment.  Ultimately, the trial court granted Dr. Bass’ motion for summary judgment, but struck through the La. C.C.P. article 966(G) language, which the plaintiff argued was an error and appealed to the circuit court.

LSUEmployment discrimination can be damaging for both parties involved. It generally involves employee mistreatment, or a perception of such, that causes harm to the plaintiff. The employee must show that the employer treated him or her differently because of a federally protected reason, such as age, race, religion, or disability. Conversely, if the “at will” employee cannot prove he or she was fired for one of these reasons, there is no cause of action. Employment discrimination can be pursued in state court or federal court. However, when one court dismisses the action, a plaintiff cannot bring the same claim to another court. This idea is known as res judicata or claim preclusion, meaning “a matter already judged.” Having a good lawyer who knows the local and federal rules of civil procedure could save a plaintiff the time and money that comes with having their claims barred.

Recently, a professor at Louisiana State University (“LSU”) claimed the school discriminated against him for not obtaining sufficient grant money. The professor, Dr. Madhwa Raj, further alleged that the school administration harassed him and pressured him to retire. Dr. Raj claimed LSU even closed his laboratory in an effort to get him to retire. The harassment exacerbated his diabetes and led to him suffering neuropathy and chest pains. He also tore his rotator cuff, which required him to take an extended sick leave. Dr. Raj sued LSU, its Board of Supervisors (“LSU Board”), and the LSU Health and Sciences Center in New Orleans (“LSU Health”).

The professor’s complaints were dismissed in federal district court. Then, he filed in state trial court but added a Family Medical Leave Act claim. However, LSU used Res Judicata as a defense because the professor’s state court claims arose from the same operative facts as his federal court claims.

contracts disputeContractual relationships and the relative obligations and rights that come with them can be difficult to decipher. There are so many clauses, provisions, and sections buried in these agreements that understanding the importance of certain matters can get lost in translation. In order to truly comprehend the exact obligations and rights that an individual or corporation has under an agreement, it is important to have the best attorneys drafting and reviewing the agreement. After all, these clauses are what govern the course of the parties’ professional relationship.

Case in point, Christus Health Southwestern Louisiana (“Christus”) planned to build a Senior Living Community in Lake Charles, Louisiana. It entered into a Development Services Agreement (“DSA”) with Greenbrier Development Co., L.L.C. (“Greenbrier”) in May 2007. Under the agreement Greenbrier would assist Christus with preparing budgets, providing marketing advice, and performing other development services.

Under the terms of the DSA, Christus was required to pay Greenbrier a development fee of $1.49 million, which was payable in installments throughout different phases of the project. There was no dispute as to Christus paying the initial 20% of the payment. The next 35% of the payment was due upon commencement of the construction. Certain sections of the DSA governed the parties’ respective rights and obligations for payment and termination of their professional relationship. The pertinent sections are summarized as follows:

courtroom-1-1236725The right to jury trial is a fundamental part of our government, enshrined in its own amendment to the Constitution. U.S. Const. Amend VII.   It is such a valued right that, while a party has the option to waive it, that waiver must be clear and obvious.  In fact, a party can only waive its right to a jury trial in one of two ways: by express declaration, or by failing to demand a jury trial within the required time. Bowles v. Bennett, 629 F.2d 1092 (5th Cir. 1980).  If the party successfully waives its right to trial, that right cannot be reclaimed.  Thus, it is extremely important that an attorney understand these rules and the ramifications of waiving this right.

In a recent case before the U.S. Court of Appeals for the Fifth Circuit, it was the trial court that was apparently unclear on when a jury trial is actually waived by a party.  Both the plaintiffs, Allstate Insurance Company and its subsidiaries (“Allstate”) and the defendants, Community Health Center, Inc. and related defendants (“Community”) requested at different times to have a jury trial.  After discovery, Allstate filed a motion for summary judgment, which was granted.  Then the parties agreed that the only issue for trial was damages.  In response, Allstate waived its right to a jury, but only with respect to damages, the issue it thought was the only one left on the table.

It was at this point, however, that the district court found that there was a lot of confusion amongst the parties as to what claims remained after the motion for summary judgment, and rescinded its earlier grant of summary judgment.  As a result, the court reinstated all claims and scheduled a new and full trial based on Allstate’s initial allegations.  

old-louisiana-church-1206411An  appeal is the legal system’s way of letting the losing side have one, or two, additional chances at making their case before the final bell rings.  The losing side can, and often does, argue for virtually every perceived problem or slight that occurred in the lower court proceedings.  But, this is also why appeals are generally only available after the trial or lower court proceedings have ended.  Of course, this being the law, there are exceptions to just about every rule.  It is critical, however, to have an attorney who knows the rules and their exceptions so that they are then capable of making savvy choices on how and when to appeal.

This issue came up from a seemingly benign error made in the initial filing of a lawsuit in Louisiana state court by Lenetra Jefferson (“Jefferson”) against the Charity School of Nursing at Delgado Community College (“Delgado”), a New Orleans public community college.  In her suit, she alleged Delgado racially discriminated against her while she was an employee at the school.  As is required for all lawsuits, Jefferson had to name the defendant, here Delgado, and then serve that defendant so that they are on official notice of a lawsuit being filed against them. The problems began when Jefferson identified the school as an agency or instrumentality of State of Louisiana.  Jefferson attempted to serve her lawsuit on Delgado’s Chancellor, but ended up serving the Louisiana Attorney General, as the representative of the state for litigation.    

The Attorney General first removed the lawsuit from state court to federal court.  Once it had removed the case, the Attorney General moved to have the entire suit dismissed on the grounds that Jefferson’s complaint did not specifically name the state as a defendant and the state was not a proper defendant.  At the trial court, the Attorney General argued that Jefferson essentially filed her suit against the school, and not any Louisiana state agency.  The Attorney General also declined to enlighten the trial court or Jefferson as to who was the proper defendant. (Spoiler alert:  she should have named the Board of Supervisors of Community and Technical Colleges and she should have served the Board’s Chairman, who is its agent for service of process).  

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