Articles Posted in Civil Matter

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).  

contract-2-1237208Louisiana is an “at-will” state when it comes to employment meaning when the employer and employee have not agreed to a limited term of employment, either the employee or the employer can break the relationship at any time without a reason.  Term employment involves a stronger and a more defined agreement through a contract that is usually written, but that can also be established orally.  An important part of such a contract defines the length of the employment – it can be, for example, for a given number of weeks, months, or years.  In such employment, there must be a good reason for either side to terminate the relationship.  Since there is a contract in this employment type, there are generally consequences for ending the relationship without a good reason.

Many disputes involving employment issues reach the courts because of the lack of an agreement or, as here, there is no meeting of the minds as to the terms of employment.  The defendant, Willwoods Community, a precept of the Roman Catholic Church on Howard Avenue in New Orleans (“Willwoods”) hired the plaintiff Michael Read (“Read”) as its Executive Director in mid 2009.  About a year later in 2010, Willwoods decided to terminate the relationship and let Mr. Read go, when it determined that there was an issue with Mr. Read’s employment.  

Read filed a lawsuit against Willwoods alleging that he had an employment contract with Willwoods for a term of five years and Willwoods’ termination of him violated this contract.   Read argued there had been a term of employment promised to him and he had resigned a lucrative and established position at Capital One because of this.  He argued that he only did so based on his belief that he was going to have a five year commitment at Willwoods.  Since there was a contract, he argued, Willwoods’ dismissal of him without cause meant he was entitled to the remaining pay and benefits as if he had finished out the five year term.  

supreme-court-of-canada-1551191Litigation is very complicated, particularly amongst the weeds of appeals and motions. This is illustrated very well in a case out of the Louisiana state Fifth Circuit Court of Appeal.  One of the most important things it teaches is that it is invaluable to have a knowledgeable attorney who is familiar with summary judgments and appeals so the correct motions and pleadings can be filed on behalf of the client.

The case started as a seemingly straightforward personal injury case.  The plaintiff, Candace Gray, was injured when she fell in the parking lot owned by the Marrero Land and Improvement Association Limited (“Marrero Land”).  She filed a lawsuit against Marrero Land alleging damages from her injury.  Through the course of discovery and depositions, Marrero Land’s attorneys filed a motion for summary judgment.  The motion for summary judgment is used to assert that there is no issue of material fact that needs to be determined, only issues of law which can be adjudicated by the court.  Marrero Land argued that Ms. Gray was going to be unable to meet her burden of proof and the case should be determined in favor of Marrero Land.  The trial court denied the motion for summary judgment, finding that there were some genuine issues of fact.  

In its written judgment, the trial court noted that the decision was final and appealable prompting Marrero Land to file an appeal of the denial of its motion.  Before addressing the merits of Marrero Land’s appeal, the appellate court pointed out that it always has the duty to examine subject matter jurisdiction even when the parties do not raise the issue.   In other words before hearing the issue at hand, the appellate court must first determine whether the court has the right to hear the case at all.   

a-charming-old-lady-1432366When bringing a case for damages for wrongful termination due to age discrimination, a former employee must demonstrate that despite their age (or other considerations), they are capable of performing the duties associated with the position from which they had been fired. Failure to do so may result in a dismissal of the lawsuit.

In Kenner, Louisiana, a seventy-four year old named Mrs. Aderholt was hired by Metro Security to work as a gatehouse attendant at Gabriel Properties. Six years later, Aderholt was fired from her job, at the age of eighty. Aderholt subsequently filed a lawsuit, seeking damages for retaliatory firing based on age discrimination.

According to Aderholt, she had faced discrimination due to her age throughout the six years she worked for Gabriel Properties. The discrimination culminated in the owner of the company, Lloyd Jarreau, told Aderholt that she was “too old” for this kind of work. According to Aderholt, she complained about these comments to management, and as a result was fired from her job in retaliation.

money-9-1238441Lawyers owe a fiduciary duty to their clients, corporate directors owe a fiduciary duty to the corporation’s shareholders, and trustees owe a fiduciary duty to the beneficiaries of a trust. So, what is a fiduciary duty? Simply put, it’s a duty of the “fiduciary” (i.e., lawyers, corporate directors, trustees, etc.) to act solely in the interest of the person to whom the duty is owed, and the law does not tolerate breaches of that duty (whether by acts of self-dealing, incompetence, etc.). If you find yourself in a situation where you believe someone has breached their fiduciary duty to you, you may be entitled to judicial relief for the harm you suffered because of that breach of duty.

However, even if you did in fact suffer the harm and have a solid cause of action, you must ensure that you are meeting all of the statutory deadlines for filing a lawsuit against the party who breached their duty. Otherwise a prescription statute, which sets the peremptive period (the amount of time you have to file a lawsuit against another party after certain events take place), may prevent a court from being able to hear your case. It is important in these situations to seek legal counsel immediately upon discovering the breach of duty against you, because a good lawyer will be able to inform you of the relevant deadlines for filing suit. The following case demonstrates how waiting too long to file, and failing to provide certain paperwork to the party who breached its duty to you, can result in the court refusing to hear your case.

In this case, out of the Louisiana Fourth Circuit Court of Appeals, Marguerite and Christine Hartman (“the Hartmans”) were sisters who filed a lawsuit against JPMorgan Chase Bank for a breach of their fiduciary duty. The Hartmans were beneficiaries of a trust, a fiduciary relationship where JPMorgan acted as trustee to manage money from the Hartmans’ father’s wrongful death settlement for the benefit of the sisters. In the lawsuit against JPMorgan, the sisters alleged that after they came of age and were eligible to receive the money, their mother had forged their names on documents to the bank to terminate the existing trust and wire the money to the mother directly. The sisters also claimed that JPMorgan had wrongfully mailed all their trust-related statements to their grandparents’ address, not their own actual home address, making it easier for their mother to commit these fraudulent acts. However, JPMorgan brought evidence showing that the only address they had ever had on file was the grandparents’ address, and because the trust statute in Louisiana permitted that address to be used for mailing of official documents, they had not erred in their actions.

gavel-1238036If  you believe you have been misrepresented by an attorney, or that your legal counsel in any way acted wrongfully or neglected your legal needs, you may have a cause of action for legal malpractice. However, the time limit for when you may bring such an action to court is relatively short, and very strictly enforced, so it is important to retain new counsel as soon as the legal malpractice occurs or as soon as you first learn about it, so that you do not miss your window of opportunity to bring a malpractice claim. The following case demonstrates the problems that can arise when you wait too long to bring a legal malpractice claim before the court.

At the foundation of this lawsuit, out of the Louisiana Fourth Circuit Court of Appeals, George and Bryan Burch (“the Burches”) owed Mr. Barrasso and Mr. Roberts, their attorneys in a family law dispute, unpaid fees and costs arising from the representation of the Burches in the family law case. In response to the attorneys’ petitions to reclaim those unpaid costs, the Burches filed a reconventional demand, which alleged that Barrasso and Roberts had failed to adequately represent their interests, and had engaged in fraudulent activity like excessive billing and overstating the effort they spent on the case. In response to that petition for reconventional demand, Barrasso filed for an exception of res judicata and peremption, claiming the Burches’ causes of action were time-barred by the one-year limit for bringing a legal malpractice action in Louisiana. The Burches then filed a separate action against Roberts, claiming instead that they had a right of action under the Louisiana Unfair Trade Practices and Consumer Protection Act (“LUTPA”). They relied on many of the same facts, including the claims about fraudulent overbilling and overstating effort spent on the case. Roberts then filed for exceptions of peremption and res judicator, because of the same one-year limit for malpractice claims, and because the claims at issue against Roberts had already been litigated in the Burches’ reconventional demand response against Barrasso. Res judicata applies to cases where the legal issues brought have already been litigated to finality—here, Roberts argued res judicata applied to the Burches’ claims against him because those claims had already been litigated when they were brought against Barrasso earlier. The trial court agreed, and granted both the exceptions for peremption and res judicata. The Burches then appealed.

Appellate Court Holding

street-sales-1-1553280Be  careful what your getting into when you attend a timeshare presentation. While you may get a “free” vacation for sitting through the sales pitch, you could be getting into more trouble then it is worth. This was the case for over one hundred purchasers of timeshares who bought from Festiva Resorts, LLC and Festiva Development Group, LLC. Festiva held sales presentations in New Orleans, Louisiana, for points based timeshares memberships.

In two separate suits, plaintiffs sought for damages alleging they were subjected to high pressure sales tactics coercing the buyers into signing purchasing documents without reading them. Moreover, the plaintiffs stated in their petitions they were not provided with documents as described in the selling documents. Essentially, the claim boiled down to being the victims of unfair and deceptive practices on the part of Festiva. The group of people seek for the contracts to be declared null and void, in addition to money back for all of the charges they had incurred and reversal of negative actions taken by creditors.

Festiva argued to the court that the cases did not satisfy the requirements for joinder and therefore the trial court erred in not requiring each case be tried individually. The law applying to joinder in Louisiana is “Two or more parties may be joined in the same suit, either as plaintiffs or as defendants, if: (1) There is a community of interest between the parties joined; (2) Each of the actions cumulated is within the jurisdiction of the court and is brought in the proper venue; and (3) All of the actions cumulated are mutually consistent and employ the same form of procedure.” La. C.C.P art. 463. Essentially if the parties contain similar community of interest, venue where the harm took place, and procedure by which the harm occurred it is proper for the court to allow the cases to be joined together.

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