AAA Delivery, Inc. v. Airborne Freight

646 So. 2d 1113, 1994 WL 638080
CourtLouisiana Court of Appeal
DecidedNovember 16, 1994
Docket94-CA-346
StatusPublished
Cited by9 cases

This text of 646 So. 2d 1113 (AAA Delivery, Inc. v. Airborne Freight) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AAA Delivery, Inc. v. Airborne Freight, 646 So. 2d 1113, 1994 WL 638080 (La. Ct. App. 1994).

Opinion

646 So.2d 1113 (1994)

AAA DELIVERY, INC.
v.
AIRBORNE FREIGHT CORPORATION and Twin-Air, Inc.

No. 94-CA-346.

Court of Appeal of Louisiana, Fifth Circuit.

November 16, 1994.
Writ Denied February 9, 1995.

*1115 S. Ault Hootsell, III, David M. Hunter and Robert S. Eitel, New Orleans, for plaintiff/appellant AAA Delivery, Inc.

Timothy W. Cerniglia and James H. Colvin, Jr., Cerniglia Law Firm, New Orleans, for defendant/appellee Airborne Freight Corp.

Before WICKER and CANNELLA, JJ., and JOHN C. BOUTALL, J. Pro Tem.

CANNELLA, Judge.

Plaintiff, AAA Delivery, Inc. (AAA), appeals from two judgments in a breach of contract case filed against defendants, Airborne Freight Corporation (Airborne) and Twin-Air, Inc. One judgment dated August 16, 1993 granted the peremptory exceptions of no cause of action and prescription filed by Airborne relative to some of the claims filed by AAA. The second judgment dated November 30, 1993 dismissed the remaining claims after AAA failed, for the fourth time, to comply with a court order to amend its petition, in order to cure the dilatory exception of vagueness filed by Airborne and granted by the trial judge. We affirm the granting of the exception of no cause of action. We reverse the granting of the exception of prescription and the dismissal of the suit based on failure to amend and the exception of vagueness.

In 1987, the parties executed a cartage agreement whereby AAA agreed to deliver packages by ground transportation to Airborne's customers in the New Orleans metropolitan area and the Mississippi Gulf Coast region. Working as an independent contractor, AAA provided the pick-up and delivery services for overnight deliveries for a period of fifteen years. The cartage agreement was rewritten in 1990 and the parties operated under that contract until May 22, 1992, when Airborne terminated the agreement according to the contract terms.

AAA filed a suit against Airborne on May 28, 1992, asserting several categories of breach of the contract: 1) underpayments due to the institution of two special programs for Airborne's customers; 2) improper penalty assessments; 3) failure to provide dispatch facilities; 4) wrongful appropriation of certain routes; and, 5) refusal to grant a right of first refusal on certain routes.

Airborne responded with several exceptions, including an exception of vagueness, which the trial judge heard on September 10, 1992 and granted with an order to amend on September 17, 1992. Subsequently, the petition was amended again on October 16, 1992, December 28, 1992 and February 10, 1993 in response to Airborne's exceptions of vagueness and the orders of the trial judge. In the February amendment, AAA added a cause of action for goodwill compensation pursuant to the state of Washington Investment Protection Act (a franchise protection act). In this respect, AAA alleged that the contract provides that the laws of the state of Washington apply to disputes concerning the cartage agreement. On April 6, 1992, Airborne refiled peremptory exceptions of no cause of action and prescription, along with another dilatory exception of vagueness. On August 16, 1993, the trial judge granted the exceptions of no cause of action to the goodwill claim under The Washington Investment Protection Act and prescription as to those claims arising prior to two years before the suit was filed. He rejected AAA's argument that the claims were subject to the prescriptive period of six years under the Washington act. AAA then appealed the judgment granting the exceptions of no cause of action and prescription.

The trial judge also granted the exception of vagueness and ordered AAA to file another amendment within forty-five days. When AAA failed to comply with the fourth order to amend, Airborne filed a Motion To Dismiss, which was granted by the trial judge on November 30, 1993. AAA next requested *1116 written reasons and specifically requested the trial judge to explain what was needed to cure the vagueness allegation. The trial judge submitted written reasons stating that the dismissal was for failure to comply with the order to amend and that the vagueness problem could not be cured by amendment. He declined to be more specific. AAA then appealed the judgment dismissing the case and the two appeals were subsequently consolidated.

On appeal, AAA asserts that the trial judge erred in granting the exceptions of prescription and no cause of action. It also asserts that the trial judge erred in dismissing the case when it was divested of jurisdiction by the pending appeal of the first judgment.

EXCEPTION OF NO CAUSE OF ACTION

The Washington Investment Protection Act, which regulates franchise agreements, provides that a franchisee is entitled to recover compensation for goodwill when the franchise contract is terminated. RCWA 19.100.180(2)(i). AAA argues that this applies because it meets the definition of a franchisee and because the cartage agreement at issue in this case provides that Washington law will apply to disputes. Airborne asserts that the contractual provision relates only to disputes involving the interpretation and construction of the contract terms, not to a breach of the contract claim.

The two cartage agreements state that:

This Agreement, including the Schedules attached hereto, constitutes the full understanding by and between the parties ... (It) shall be interpreted and construed in accordance with the laws of the State of Washington. In the event of any suit (blank) legal action to enforce any of the provisions of this Agreement, costs and reasonable attorneys' fees shall be awarded to the prevailing party. (Emphasis added)

In order to determine whether the contract falls within the ambit of the Washington Investment Protection Act, the contract terms of "interpret" and "construe" must be reviewed and understood. The definition of "construe" in Webster's Third New International Dictionary is: "To put a construction on: discover and apply the meaning and intention of with reference to a particular state of affairs." Webster's defines "interpret" as: "To explain or tell the meaning of, to understand and appreciate in light of individual beliefs, judgment, interest or circumstance." After reviewing the words of the contract, we find that the intent of the provision was to choose Washington law for the settlement of disputes. Consequently, we hold that the Washington Investment Protection Act applies to this case, if AAA is a franchisee within the meaning of that act.

The Washington act RCWA 19.100.010(4)(a) defines a franchise as:

(4) "Franchise" means:
(a) An agreement, express or implied, oral or written, by which:
(i) A person is granted the right to engage in the business of offering, selling, or distributing goods or services under a marketing plan prescribed or suggested in substantial part by the grantor or its affiliate;
(ii) The operation of the business is substantially associated with a trademark, service mark, trade name, advertising, or other commercial symbol designating, owned by, or licensed by the grantor or its affiliate; and
(iii) The person pays, agrees to pay, or is required to pay, directly or indirectly, a franchise fee.

A marketing plan under RCWA 19.100.010(5) is:

(5) "Marketing plan" means a plan or system concerning an aspect of conducting business. A marketing plan may include one or more of the following:

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Cite This Page — Counsel Stack

Bluebook (online)
646 So. 2d 1113, 1994 WL 638080, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aaa-delivery-inc-v-airborne-freight-lactapp-1994.