Articles Posted in Litigation

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.

thrown-rubbish-1561470Insurance policies can still be intact even if the insured fails to pay if the insurance company fails to follow the proper protocol in informing the insured that he or she no longer has coverage. State Farm found themselves liable for coverage in just a situation.

Thomas Sapp was insured under a Florida State Farm policy. The policy ran from December 3 until June 3, 2008, and the policy was renewed thereafter for consecutive six-month terms.  Sometime during Sapp’s insurance coverage, Sapp moved from Florida to New Orleans, Louisiana. State Farm was aware of his move. On August 15, 2009, Sapp was involved in an automobile accident with Roderick Lee. Subsequently, Lee sued Sapp and State Farm seeking damages for his personal injuries incurred in the accident as the result of Sapp’s alleged negligence.  State Farm denied coverage, arguing that the policy was not renewed.

In support of State Farm’s claim that they were not responsible for Lee’s damages because the policy was not renewed, State Farm presented evidence that Sapp was no longer covered by State Farm because Lee stopped making payments in February of 2009. In response, both Lee and Sapp argued that the State Farm policy was still in effect because State Farm did not send the legally required notice of cancellation for renewal.  The trial court agreed with Lee and Sapp, and granted their motions for partial summary judgment, while denying State Farm’s motion for summary judgment. The Louisiana Fourth Circuit Court of Appeals agreed with the trial court and affirmed. In determining the claim, the Fourth Circuit recognized that although the incident occurred in Louisiana, the Court had to apply Florida law because the contract arose out of Florida. However, the Court also noted that even if the Court were to have applied Louisiana law the outcome would have been the same.  

curb-1-1571125Our court system includes rules that aim to promote court efficiency.  Some of the rules may sound intimidating, but having a good attorney, one who is able to build a strong strategy and with strong knowledge of the rules, makes the necessary difference.  One such rule is called res judicata – Latin for “a matter judged.”  Unfortunately, Mr. Springer, a resident of Nannie O’Neal Senior Apartments on Oneal Street in DeRidder, Louisiana recently lost his case because of failing to understand how this rule applied.

When a party asserts that res judicata applies, the goal is to prevent the litigation of issues that have already been adjudicated in a previous lawsuit between the same parties. See Atheron v. Rosteet Law Firm, 137 So.3d 1246 (La. Ct. App. 2014). In other words, it prevents the opposing party from getting a second chance in court.  The rationale for the rule are logical, after all it would be strange and unreasonable to allow a plaintiff to continuously sue the same defendant, on the same matter, until the plaintiff receives a favorable decision.

In Mr. Springer’s case, Mr. Springer first filed a complaint with a state court in Beauregard and MAC-RE. Beauregard and MAC-RE own and manage Nannie O’Neal Senior Apartments respectively. Mr. Springer is handicapped.  He alleged that he tripped and fell over a curb in the apartment building’s parking lot, and that the apartment complex did not have the required access for the handicapped.  He also alleged that the owner and the managing company were aware of this, but failed to address the situation.

policeFailing to seek timely legal advice could not only keep you out of the back of a police car, but could also help ensure you are able to get the compensation you deserve for your injuries. When one man from Lake Charles, Louisiana was injured during an arrest he made some critical mistakes that lead to his personal injury case being dismissed.

Stanley Savoie filed a lawsuit to recover injuries he sustained when he was arrested by the Lake Charles Police Department (“LPCD”) on September 13, 2008. In Savoie’s first attempt to file his lawsuit he incorrectly named as the defendant the Calcasieu Parish Sheriff Office rather than the LCPD. He further mistakenly listed the date of the incident as one year after it happened on September 13, 2009. Soon after learning of this mistake, Savoie filed an amendment to his original complaint naming the LCPD as the defendant.

However, this mistake prevented the LCPD from being served notice of the lawsuit within the period of prescription. Prescription is essentially the period of time you have in which to file your claim of a lawsuit before your right to bring that suit ends. Because the police department was not served within the mandated time of one year the LCPD moved to have the case dismissed. The Trial Court allowed Mr. Savoie 15 days to amend his petition and after he failed to do so dismissed his case.

sundial-1447016It  is, mildly stated, disappointing for a plaintiff when a court dismisses his or her case based on a technicality, particularly when the lawsuit is about medical malpractice.  Unfortunately, even when a plaintiff has a good case, with all the necessary evidence to show that the defendant was wrong, the plaintiff can still lose the case if he or she does not diligently take the necessary steps to move the case forward. In Louisiana courts, the Code of Civil Procedure ensures a fair process for all parties.  All civil cases must follow these rules as part of the process.  Malpractice cases are no exception. In a recent case of the Louisiana Second Circuit Court of Appeal, the plaintiffs learned this the hard way.  

In this case, plaintiffs Eric and Nicki Hudson filed a lawsuit against Town & Country Nursing Center of Minden, Louisiana for malpractice damages. Eric Hudson alleged that he sustained injuries while he was a resident of Town & Country. The Hudsons filed their petition for damages on September 3, 2009. Almost one year later, Town & Country filed a motion to withdraw their lawyer and substitute a new one. The Trial Court granted Town & Country’s motion the same day it was filed. In 2013 – four years after the Hudsons filed their petition – Town & Country moved to have the Trial Court dismiss the case on the ground of abandonment.

In Louisiana, the Code of Civil Procedure regards as abandoned cases where parties fail to take measures in the prosecution or defense of their case. La. C.C.P. art. 561.  A step in the prosecution or defense of a case can be making a request for discovery or taking a deposition; essentially, any action by one of the parties that moves the case forward. In order to avoid dismissal of a case on the ground of abandonment, three requirements must be fulfilled. First, the party must take some step to move the case forward. Second, that step must be taken in the Trial Court and must be served on all parties and recorded in the trial record. And third, that step must be taken within three years of the last step taken by any party. See Koutroulis v. Centennial Healthcare Corp, 34 So.3d 503 (La. Ct. App. 2010).

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