Circle, LLC v. M&L Engine, L.L.C.
Date Filed2022-12-19
Docket2022-CA-0381
JudgeChief Judge Terri F. Love; Judge Dale N. Atkins; Judge Pro Tempore James F. McKay; III
Cited0 times
StatusPublished
Full Opinion (html_with_citations)
CIRCLE, LLC * NO. 2022-CA-0381
VERSUS *
COURT OF APPEAL
M&L ENGINE, L.L.C. *
FOURTH CIRCUIT
*
STATE OF LOUISIANA
*******
APPEAL FROM
25TH JDC, PARISH OF PLAQUEMINES
NO. 65-999, DIVISION âBâ
Honorable Michael D. Clement, Judge
******
Judge Dale N. Atkins
******
(Court composed of Chief Judge Terri F. Love, Judge Dale N. Atkins, Judge Pro
Tempore James F. McKay, III)
LOVE, C.J., DISSENTS AND ASSIGNS REASONS
Charles A. Cerise, Jr.
Jeffrey Edward Richardson
James T. Rogers, III
William K. Wright, IV
Luke G. LaHaye
ADAMS AND REESE LLP
701 Poydras Street, Suite 4500
One Shell Square
New Orleans, LA 70139
COUNSEL FOR APPELLANTS, Circle, LLC, and Michael Wolfe
Daniel M. Redmann
DUPLASS, ZWAIN, BOURGEOIS, PFISTER, WEINSTOCK & BOGART
3838 N. Causeway Boulevard, Suite 2900
Metairie, LA 70002
COUNSEL FOR APPELLEE, M&L Engine, LLC
AFFIRMED
December 19, 2022
DNA
JFM
This is a contract matter. Appellants, Circle, LLC (âCircleâ), and Michael
Wolfe (âMr. Wolfeâ), appeal the trial courtâs April 18, 2022 judgment, which
granted the Motion for Summary Judgment filed by M&L Engine, LLC (âM&Lâ).
For the following reasons, we affirm.
FACTUAL BACKGROUND
Circle contracted with Lafourche Parish to perform drainage work, which
included the installation of pumps. Thereafter, M&L issued quote number
LP021319 to Circle on February 13, 2019, for the drainage project and titled the
quote âIndustrial Park Floodwall Phase II â T-Bois Pump Station â Larose,
Louisiana.â The quote pertained to the provision of equipment, including two
#4836 Lo-Lift 48â Water Lubricated Propeller Pumps, as well as âstart[-]up
services, lube and delivery to the job site.â Regarding payment, the quote called for
â20% down; Net on deliveryâorâNet 30 days with open account.â Further, the
quote provided for delivery 12-14 weeks after receipt of the order. Circle executed
a purchase order on May 29, 2019, in response to the quote from M&L. On June 7,
2019, Circle directly deposited twenty percent of the purchase as down payment to
M&L. The parties do not dispute that by these actions they formed a contract.
1
Thereafter, on September 18, 2019, M&L notified Circle that Lo-Lift, the
manufacturer of the pumps, had experienced a problem, thereby resulting in a
potential three-week delay for delivery of the pumps. M&L ultimately delivered
one of the pumps on October 11, 2019, and sent Circle an invoice for the amount
still due on November 12, 2019. Subsequently, M&L delivered the second pump
on December 5, 2019.
Circle failed to pay the balance, and M&L emailed Circle on January 23,
2020, notifying that M&L would stop its attendant work on the pumps until Circle
paid the balance of the account. Circle requested a meeting, which occurred on
January 27, 2020. Present at the meeting were Mr. Wolfe, Circleâs president; Troy
Foret (âMr. Foretâ), Circleâs project manager; Justin Baudoin (âMr. Baudoinâ),
M&Lâs sales manager; and Ryan Marmande (âMr. Marmandeâ), Mr. Baudoinâs
boss. The parties dispute what happened during the meeting. Circle contends that
Mr. Wolfe and Mr. Foret discussed the costs that Circle had incurred due to the
delay in the delivery of the pumps, including the costs of keeping its equipment on
site longer than anticipated and the damage to Circleâs business with Lafourche
Parish. Further, Circle asserts that Mr. Wolfe and Mr. Foret explained that Circle
was still waiting to receive its payment from Lafourche Parish. Circle alleges that
Mr. Baudoin and Mr. Marmande agreed at that meeting that Circle would pay all
of the amount due on the account except for $35,000, which Circle would hold
toward any costs that Circle incurred from the delay. M&L, however, disputes that
they came to such an agreement.
On January 28, 2020, Circle paid M&L $131,525 and then paid M&L
$40,526 on February 28, 2020, thereby leaving a balance on the account of
$35,000. On March 2, 2020, Mr. Foret emailed Mr. Baudoin, asking if M&L had
2
received payment. Mr. Baudoin replied the next day that M&L had received the
payment but that the payment was not the full amount due on the account; and he
advised Mr. Foret that the remainder was due. In response, Mr. Foret stated that he
believed that at the January 27, 2020 meeting, M&L agreed that the remainder
would be held until the matter of the delay costs had been settled. The next day,
Mr. Baudoin replied that M&L was suspending all work until full payment was
made on the account. M&L then filed a lien on March 10, 2020.
On March 25, 2020, Mr. Foret emailed Mr. Baudoin again concerning issues
with a pump, stating that the problem should be under warranty and asking if M&L
could send someone to look at it. Mr. Baudoin reiterated that M&L would perform
no further work until the balance was paid. Circle eventually contracted with other
companies to complete the project.
PROCEDURAL HISTORY
On April 7, 2020, Circle filed a Petition for Damages (âPetitionâ) against
M&L, seeking damages allegedly caused by the delay in the delivery and set up of
the pumps. In response, on June 29, 2020, M&L filed an answer and a
reconventional demand against Circle; and M&L filed a third-party demand
against Mr. Wolfe and Lo-Lift. M&L also filed a Motion for Summary Judgment
against Circle and Mr. Wolfe on August 20, 2021. Therein, M&L asserted that âthe
uncontested facts and applicable law show that M&L is entitled to judgment
against [Circle] and [Mr. Wolfe], in solido, in the amount of $35,000.00, plus
services charges of $525.00 per month from the date the account was over thirty
days past due . . . .â On December 2, 2021, the trial court denied M&Lâs Motion
3
for Summary Judgment, citing La. R.S. 9:2781(A)1 in the reasons for judgment and
stating that âM&L did not submit an affidavit of correctness of account showing
the current amount owed nor was there an affidavit attesting to the authenticity of
the quote or the invoice. In other words, M&L failed to present a prima facie case .
. . .â
On February 24, 2022, M&L filed a second Motion for Summary Judgment
setting forth documentation of the amount it claimed Circle owed on the account
and referring to its prior motion for summary judgment. Circle and Mr. Wolfe filed
their opposition to the motion on March 21, and M&L replied on March 29. On
April 18, 2022, the trial court conducted a hearing and granted M&Lâs Motion for
Summary Judgment. This appeal by Circle and Mr. Wolfe (collectively,
âAppellantsâ) timely follows.2
ASSIGNMENTS OF ERROR
Appellants assert two assignments of error:
1. A party that has breached a contract cannot recover from
another party for breach of that contract. The trial court erred in
awarding summary judgment to M&L based on M&Lâs contract with
Circle because M&L itself breached the contract in multiple ways.
2. The trial court erred in awarding summary judgment to M&L
based on its claim that Circle owed $35,000 (plus attorney fees and
service charges) because there is a genuine dispute of fact on whether
the parties agreedâon January 27, 2020âthat Circle does not yet
owe $35,000 and may never owe it.
Before analyzing the merits of the partiesâ arguments, we turn to the principles
applicable to the summary judgment procedure.
1 Louisiana Revised Statutes 9:2781 pertains to open accounts.
2We note that Circleâs and Mr. Wolfeâs claims against M&L for any
damages occasioned by the delays are currently pending before the trial court, with
trial set for January 17, 2023.
4
DISCUSSION
SUMMARY JUDGMENT PRINCIPLES
âThe summary judgment procedure is designed to secure the just, speedy,
and inexpensive determination of every action . . . .â La. C.C.P. art. 966(A)(2). It
âis favored and shall be construed to accomplish these ends.â Id. See Citron v.
Gentilly Carnival Club, Inc., 2014-1096, p. 10 (La. App. 4 Cir. 4/15/15), 165 So.3d
304, 310-11. âAfter an opportunity for adequate discovery, a motion for summary
judgment shall be granted if the motion, memorandum, and supporting documents
show that there is no genuine issue as to material fact and that the mover is entitled
to judgment as a matter of law.â La. C.C.P. art. 966(A)(3).
âAn appellate court applies the de novo standard of review in examining the
trial courtâs ruling on a motion for summary judgment and utilizes âthe same
criteria that govern the trial courtâs determination of whether summary judgment is
appropriate.ââ Jones v. Boot Bar & Grill, C. Napco, Inc., 2022-0154, p. 12 (La.
App. 4 Cir. 10/05/22), ___ So.3d ___, ___, 2022 WL 5110928, at *5 (quoting Knox v. Elite Prot. Sols. & Willieâs Chicken Shack, LLC, 2021-0419, p. 9 (La. App. 4 Cir. 10/13/21), ___ So.3d ___, ___,2021 WL 4771758
, at *4). Accordingly, âappellate courts ask the same questions the trial court does in determining whether summary judgment is appropriate: whether there is any genuine issue of material fact, and whether the mover is entitled to judgment as a matter of law.âId.
(quoting Hood v. Cotter, 2008-0215, 0237, p. 9 (La. 12/2/08),5 So.3d 819, 824
).
On a motion for summary judgment, â[t]he burden of proof rests with the
mover.â La. C.C.P. art. 966(D)(1). âThe party seeking summary judgment has the
burden of proving there is no genuine issue of material fact.â Jones, 2022-0154, p.
12, ___ So.3d at ___, 2022 WL 5110928, at *6 (citing Suire v. Lafayette City-Par.
5
Consol. Govât, 2004-1459, 1460, 1466, pp. 26-27 (La. 4/12/05), 907 So.2d 37, 56). Thereafter, â[i]f the movant satisfies the initial burden, the burden shifts to the party opposing summary judgment to present factual support sufficient to show he will be able to satisfy the evidentiary burden at trial.â Id. at pp. 12-13, ___ So.3d at ___,2022 WL 5110928
, at *6. See also La. High Sch. Athletics Assân, Inc. v. State, 2012-1471, p. 18 (La. 1/29/13),107 So.3d 583, 598
.
âHowever, if the mover will not bear the burden of proof at trial on the issue
that is before the court on the motion for summary judgment, the moverâs burden
on the motion does not require him to negate all essential elements of the adverse
partyâs claim, action, or defense, but rather to point out to the court the absence of
factual support for one or more elements essential to the adverse partyâs claim,
action, or defense.â Jones, 2022-0154, p. 13, ___ So.3d at ___, 2022 WL 5110928, at *6 (quoting Knox, 2021-0419, p. 9, ___ So.3d at ___,2021 WL 4771758
, at *5). Only after the motion has been made and properly supported does the burden shift from the mover to the adverse party.Id.
Subsequently, âthe adverse party [must] produce factual support sufficient to establish the existence of a genuine issue of material fact or that the mover is not entitled to judgment as a matter of law.â La. C.C.P. art. 966(D)(1). âThe adverse party may not rely on mere allegations or denials to defeat a motion for summary judgment but must provide specific facts showing that a genuine issue remains for trial, and failure to do so will result in the rendering of the summary judgment.â Jones, 2022-0154, p. 13, ___ So.3d at ___,2022 WL 5110928
, at *6 (citing La. C.C.P. art. 967(B)). Any supporting or
opposing affidavits filed in connection with a motion for summary judgment must
be based upon the affiantâs personal knowledge. La. C.P.P. art. 967(A). ââIf the
adverse party fails to provide factual evidence sufficient to establish that he will be
6
able to satisfy his evidentiary burden of proof at trial, there is no genuine issue of
material factâ and summary judgment is appropriate.â Jones, 2022-0154, p. 13, ___
So.3d at ___, 2022 WL 5110928, at *6 (quoting Knox, 2021-0419, pp. 9-10, ___ So.3d at ___,2021 WL 4771758
, at *5).
In considering a motion for summary judgment, the trial court cannot make
credibility determinations but must construe reasonable factual inferences in favor
of the party opposing the motion, resolving all doubt in favor of the opponent. Id.
at p. 14, ___ So.3d at ___, 2022 WL 5110928, at *6 (citing Citron, 2014-1096, p. 12,165 So.3d at 312-13
).
âA genuine issue is a triable issue.â Id.(quoting Knox, 2021-0419, p. 10, ___ So.3d at ___,2021 WL 4771758
, at *5). âMore precisely, an issue is genuine if reasonable persons could disagree.âId.
âHowever, âif on the state of the evidence, reasonable persons could reach only one conclusion, there is no need for a trial on that issue.ââId.
âA fact is material when its existence or non-existence may be essential to the plaintiffâs cause of action under the applicable theory of recovery.âId.
âFacts are material if they potentially insure or preclude recovery, affect a litigantâs ultimate success, or determine the outcome of the legal dispute.âId.
âBecause it is the applicable substantive law that determines materiality, whether a particular fact in dispute is material can be seen only in light of substantive law applicable to the case.âId.
We now apply these principles in our review of
Appellantsâ assignments of error.
ASSIGNMENT OF ERROR NUMBER 1
In their first assignment of error, Appellants contend that the trial court erred
in granting M&Lâs Motion for Summary Judgment because M&L breached the
contract in two ways and thus cannot recover from it. First, Appellants assert that
7
M&L breached the contract by failing to deliver the pumps in a timely manner. In
particular, Appellants state that the terms of the contract specified that delivery of
the pumps would be twelve to fourteen weeks after receipt of the order but that
neither pump was delivered by this deadline. Second, Appellants assert that M&L
breached the contract by failing to perform service on the pumps. They contend
that the contract also called for M&L to provide services for the pumps, yet M&L
ceased all work on the pumps when Circle failed to pay the remaining balance. In
sum, Appellants argue that M&Lâs actions breached the contract and that the
breach precludes M&L from collecting the balance of the amount due under the
contract.
In opposition, M&L admits that Circle is entitled to compensation for any
damages caused by the delay but maintains that its untimeliness was not a breach
of the contract, which would allow Circle to avoid payment of the balance of the
account. To this end, M&L asserts that âa delayed performance is treated
differently than nonperformanceâ and that â[t]he law does not allow one to escape
an obligation to pay for a thing delivered late, when that same thing is accepted by
the buyer.â Regarding Circleâs contention that M&L breached the contract by
failing to perform services on the pumps, M&L argues that â[t]he contract terms
make payment due upon delivery of the equipment-not upon certain services being
provided whenever the buyer gets around to installing the equipment.â
Delayed Delivery of Pumps
We begin by agreeing with Appellants that the contract promised delivery
within twelve to fourteen weeks after receipt of the order and that M&L did not
deliver either pump by this deadline. Specifically, Circle placed its order on May
29, 2019, but M&L did not deliver the first pump until October 14, 2019, and the
8
second pump until December 5, 2019. However, we find that the determining issue
is whether M&Lâs late delivery of the pumps constituted a breach of the contract,
which thereby allowed Circle to withhold the remainder of the balance without
itself breaching the contract, or if the late delivery merely entitled Circle to delay
damages.
Louisiana Civil Code Article 1994 provides that â[a]n obligor is liable for
the damages caused by his failure to perform a conventional obligation.â It further
states that â[a] failure to perform results from nonperformance, defective
performance, or delay in performance.â Regarding damages associated with
delayed performance, La. C.C. art. 1989 provides that â[d]amages for delay in the
performance of an obligation are owed from the time the obligor is put in default.â
It also states that â[o]ther damages are owed from the time the obligor has failed to
perform.â As the plain language of the article evidences, La. C.C.P. art. 1989
differentiates between damages for an outright failure to perform and for delayed
performance, noting that the latter is associated with a default, not a breach.
Indeed, Comment (b) to La. C.C.P. art. 1989 states that â[m]oratory damages[3]
presuppose a performance actually rendered, although delayed. In such a case, the
object of the obligeeâs recovery is compensation for the injury his interest has
sustained because of the obligorâs untimeliness in performing. Compensatory
damages presuppose, instead, total or partial nonperformance, or defective
performance by the obligor. See 2 Litvinoff, Obligations 387 (1975).â
Additionally, we note that Section 1.12 of the Louisiana Civil Law Treatise
provides that â[t]he distinction between absolute and relative failure to perform
3Section 1.13 of the Louisiana Civil Law Treatise explains that âmoratory . .
. means, precisely, damages for delay.â
9
serves as one of the criteria for determining the damages that the obligee may
recover in one and the other case.â Further, Section 1.12 of the Louisiana Civil
Law Treatise (footnotes omitted) discusses delayed performance and moratory
damages:
[D]elay is a relative failure to perform on the part of an obligor.
Rather than final, or definitive, it is a sort of temporary
nonperformance with respect to the time element of the obligation that
can be cured by the obligor through subsequent rendering of
performance plus reparation of the damage that his tardiness may have
caused to the obligee. The damages that an obligee may recover in
such a case are called moratory . . . . Moratory damages thus
presuppose a performance actually rendered, although delayed.
Addressing the âother damagesâ language of La. C.C. art. 1989, Section 1.14 of the
Louisiana Civil Law Treatise defines these damages as ones that are caused by
something other than delay, such as an âabsolute failure to perform;â where
performance is no longer possible or of value; or where there is âa relative failure
to performâ that does not involve the time of the performance of the obligation but
rather the quality of the performance. It further provides that damages for failures
other than delay âare called compensatory because they are intended to compensate
the obligee for a performance that he will not receive, or will not receive in full.â
We observe that La. C.C.P. art. 1989, comment (b), further states:
Nevertheless, some damages which an obligee may sustain as a result
of the untimely satisfaction of his expectations, though grounded on
the passage of time, are compensatory rather th[a]n moratory. Thus, if
an obligor abandons the construction of a building and the obligee
must secure completion by another, it is clear that the obligee, besides
other items of recovery, is entitled to recover damages sustained by
reason of any delay thus caused, such as rent paid for another
building. In that case, the damages for the delay should be regarded as
compensatory rather than moratory.
However, we find this portion of the comment inapplicable to the matter sub
judice. Though Circle contends that it eventually paid other companies to complete
10
the subject project, this occurred after M&L delivered the pumps and Circle
refused to pay the remaining $35,000 per the contract.4 In this regard, we find
instructive the case of Murphy v. Southern Mineral & Land Improvement Co., 130
La. 914,58 So. 766
(La. 1912), the facts of which are similar to those herein
presented. Therein, the Louisiana Supreme Court explained:
The case presented is one where neither party complied with the
stipulations of the contract. The defendant found it impracticable to
get stone from the quarry in sufficient quantities to make deliveries
within the specified time. . . . [T]he defendant continued to make
shipments until the whole quantity was delivered. Plaintiff refused to
make the stipulated payments to defendant, and paid only $1,000 out
of a total of $7,580.21, earned by the defendant under the contract.
It is well settled that a party cannot claim damages for the
nonperformance of a contract as to which he himself is in default.
Silverman v. Caddo Gas & Oil Co., 127 La. 928,54 South. 289
. That
was a suit to recover damages for an alleged breach of a contract to
deliver 100,000 barrels of oil, and it appeared that the plaintiff refused
to pay the defendant for a part of the oil delivered under the contract.
The court, inter alia, said:
âTo recover damages the plaintiff must begin by showing
that he has complied with the terms of the contract.â
Murphy, 130 La. at 916,58 So. at 767
. Here, Appellants have failed to demonstrate
compliance with the contract because Circle never paid the remaining $35,000 to
M&L for delivery of the pumps per the terms of the contract.
Considering the language of La. C.C. art. 1989 and comment (b), the Civil
Law Treatise, and Murphy, we find that M&Lâs late delivery of the pumps was not
a breach of the contract because M&L ultimately, though untimely, fulfilled its
obligation under the contract to deliver the pumps. By the terms of the contract, at
4 We note that the extra costs Circle allegedly expended to pay other
companies were included in Circleâs Petition and will be the subject of the
upcoming trial before the trial court. These damages are not before this Court in
this appeal.
11
that point, Circle was obligated to pay the balance of the account, and it could
separately seek any moratory damages that it sustained by M&Lâs late delivery.
Circleâs obligation to pay arose with M&Lâs December 5, 2019 delivery of the
second pump, after which Circleâs failure to pay per the terms of the contract
constituted non-performance by Circle. Thus, the late delivery of the pumps was
not a breach of the contract that relieved Circle from paying the balance of the
account. Rather, the untimely delivery of the pumps constituted a delayed
performance thereby entitling Circle to moratory damages, which are the subject of
the upcoming January 17, 2023 trial.
Failure to Perform Services
As noted, Appellants further argue that M&L breached the contract because
it failed to perform the services listed in the contract. The contract included âstart[-
]up services, lube and delivery to job site.â Appellants argue that when M&L
ceased its work on the project in January 2020, M&L breached the contract by not
providing the services required by the contract. Thus, Appellants conclude that
they were not obligated to pay the balance of the contract. However, by the terms
of the contract, Circle had thirty days to pay the balance upon delivery of the
second pump, not upon completion of the services. By the time Circle requested
services from M&L, Circle itself was in default of the contract for non-payment
because M&L had already delivered the second pump. See Murphy, 130 La. at 916,58 So. at 767
. Just as Circle was not obligated to pay the remainder of the balance
until the second pump was delivered, M&L was not obligated to complete the
services when Circle failed to make timely payment on the account.
12
In sum, we conclude that this assignment of error is without merit. M&L did
not breach the contract by the untimely delivery of the pumps or by ceasing service
when Circle failed to pay the balance of its account.
ASSIGNMENT OF ERROR NUMBER 2
In their second assignment of error, Appellants assert that the trial court
erred in granting M&Lâs second Motion for Summary Judgment because there is a
genuine issue of material fact about whether the parties agreed on January 27,
2020, that Circle did not owe $35,000. Specifically, Appellants refer to the alleged
oral amendment to the payment terms of the contract that they insist M&L agreed
to at the January 27, 2020 meeting between Mr. Wolfe and Mr. Foret from Circle
and Mr. Baudoin and Mr. Marmande from M&L. As noted previously, M&L
denies that the parties confected any such agreement.
Louisiana Civil Code Article 1831 provides, in pertinent part, that â[a] party
who asserts that an obligation . . . has been modified . . . must prove the facts or
acts giving rise to the . . . modification . . . .â Additionally, La. C.C. art. 1846
requires that a contract in excess of $500 âmust be proved by at least one witness
and other corroborating circumstances.â In Guiterrez v. Moezzi, this Court set forth
the standard for the proof of a non-written amendment: âA party to a lawsuit may
serve as his own credible witness for the purpose of satisfying [La. C.C. art. 1846],
and, although the party must show other circumstances which corroborate his
claim, only general corroboration is required, not independent proof of every detail
of his testimony.â 2006-1395, p. 9 (La. App. 4 Cir. 4/11/07), 957 So.2d 842, 848. See also Duvio v. Specialty Pools Co., 2015-0423, p. 10 (La. App 4 Cir. 6/6/16),216 So.3d 999, 1008
(wherein this Court held that the corroborating circumstances
13
must come from a source other than the person asserting that the change occurred
(citing Suire, 2004-1459, 1460, 1466, p. 29 (La. 4/12/05), 907 So.2d at 58)).
For example, in First Bank and Trust v. Treme, First Bank and Trust (âFirst
Bankâ) filed a petition for executory process against Warren G. Treme (âMr.
Tremeâ) to collect amounts allegedly due on a promissory note. 2013-168, p. 2
(La. App. 5 Cir. 10/30/13), 129 So.3d 605, 606. In response, and in pertinent part, the defendant filed a third-party demand against the chairman of the bank, Joseph C. Canizaro (âMr. Canizaroâ). Id. at p. 3,129 So.3d at 606
. In the third-party demand, the defendant alleged that he had entered into a joint venture with First Bank to build a banking branch in Kenner, Louisiana, but that Mr. Canizaro used his position as chairman of the bank to interfere with the purchase of the property, thereby breaching his fiduciary duty. Id. at pp. 3-4,129 So.3d at 606
. First Bank and Mr. Canizaro filed a motion for partial summary judgment, requesting, in part, that the trial court dismiss Mr. Tremeâs breach of fiduciary duty claim against Mr. Canizaro because Mr. Treme failed to put forth any evidence of a joint venture relationship or any fiduciary duties between any of the parties. Id. at pp. 4-5,129 So.3d at 608
. At the hearing on the motion for partial summary judgment, Mr. Treme submitted his own deposition testimony stating that he had a joint venture agreement with First Bank to build a branch in Kenner and that Mr. Canizaro interfered with that contract. Id. at p 10,129 So.3d at 611
. Additionally, Mr. Treme submitted an affidavit of a First Bank Employee, Clark Heebe (âMr. Heebeâ).Id.
The trial court granted the motion for partial summary judgment, finding âan absence of evidence of a joint venture agreement between Mr. Treme and [First] Bank to build a branch on the alleged site.â Id. at p. 5,129 So.3d at 608
. In
14
interpreting La. C.C. art. 1846, the Louisiana Fifth Circuit Court of Appeal
affirmed, explaining:
After our de novo review of the partial summary judgment and
the evidence submitted, we do not find that Mr. Treme submitted
sufficient evidence to prove the existence of a joint venture agreement
between him and the Bank. Although Mr. Treme offered his own
testimony regarding the alleged joint venture agreement, the
submission of Mr. Heebeâs affidavit as corroborating evidence is
insufficient. Mr. Heebeâs affidavit does not state that he had any
personal knowledge of a joint venture between Mr. Treme and the
Bank. The affidavit simply states that Mr. Heebe âunderstood from
Treme that Treme had agreed to find suitable propertyâ in Kenner to
build a branch for the Bank. Mr. Heebeâs affidavit is also void of any
information of how Mr. Treme and the Bank would conduct the
venture for joint profit or the level of control for each party. Without
any further corroborating circumstance, Mr. Treme failed to meet the
burden of proving an oral contract over $500.00. Because Mr. Treme
failed to prove the existence of a joint venture between him and the
Bank, there is no need for this Court to address whether Mr. Canizaro
intentionally interfered with that contract.
Id. at p. 12, 129 So.3d at 612.
As noted previously, this Court must conduct a de novo review to decide if
there is a genuine issue of a fact whose âexistence or non-existence may be
essential toâ Appellantsâ cause of action and one that could âpotentially insure or
preclude recovery, affect [Appellantsâ] ultimate success, or determine the outcome
of the legal dispute.â Jones, 2022-0154, p. 14, ___ So.3d at ___, 2022 WL
5110928, at *6 (quoting Knox, 2021-0419, p. 10, ___ So.3d at ___,2021 WL 4771758
, at *5). Appellants argue that they have shown sufficient, independent
corroborating circumstances to provide a genuine issue of material fact as to the
existence of the alleged January 27, 2020 agreement to modify the payment terms
of the contract. In support, they point to a portion of Mr. Baudoinâs deposition
testimony, wherein he admitted that the parties met on January 27, 2020. Further,
Appellants cite the email exchanges between Mr. Baudoin and Mr. Foret wherein
15
Mr. Foret âconfirmedâ the alleged January 27, 2020 agreement and Mr. Baudoin
did not disagree with Mr. Foretâs statements. Yet, a review of the emails reveals
that Mr. Baudoin himself did not refer to the January 27, 2020 meeting or alleged
agreement. Rather, he merely replied that M&L would perform no further work
because the remaining balance was still due. Additionally, Appellants also observe
that in Mr. Baudoinâs deposition he did not deny that the January 27, 2020 meeting
happened. However, Mr. Baudoin responded that he only recalled Circleâs
representatives mentioning equipment costs due to the late delivery at the meeting.
Thus, Mr. Baudoinâs testimony did not negate or corroborate the alleged
agreementâs existence.
Appellants next point to an affidavit by Mr. Marmande, which M&L
submitted in support of its second Motion for Summary Judgment. In the affidavit,
Mr. Marmande, stated: âAccording to M&Lâs records, Circle, LLC[,] made
payments on the Exhibit A invoice in the amount of $131,525.00 on 1/28/20 and
$40,526.00 on 2/28/20.â Appellants assert that this supports their position because
it matches the payment schedule allegedly agreed upon by the parties at the
January 27, 2020 meeting. Without additional information though, this fails to
demonstrate that the parties agreed that Circle would withhold $35,000 after
making the January 28 and February 28 payments.
Therefore, we disagree with Appellants that this evidence constituted
independent corroborating circumstances sufficient to raise a genuine issue of
material fact as to the existence of the alleged January 27, 2020 agreement. Given
this lack of independent âcorroborating circumstances,â we conclude that the trial
court did not err in finding the lack of a genuine issue of material fact that would
preclude the granting of M&Lâs motion for summary judgment.
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Based upon our de novo review, we find that M&L did not breach the
contract by its untimely delivery of the pumps or by ceasing services when Circle
failed to pay the balance of its account. Further, we find that Appellants failed to
provide âfactual evidence sufficient to establish that they will be able to satisfy
[their] evidentiary burden of proof at trialâ regarding the alleged January 27, 2020
agreement. Jones, pp. 12-13, ___ So.3d at ___, 2022 WL 5110928, at *6.
DECREE
For the foregoing reasons, we affirm the trial courtâs April 18, 2022
judgment, which granted M&Lâs second Motion for Summary Judgment.
AFFIRMED
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