ALLIED NORTH AMERICAN CORPORATION OF TEXAS v. Edgecomb

11 So. 3d 1246, 2009 WL 1941575
CourtLouisiana Court of Appeal
DecidedJune 19, 2009
Docket2009 CA 0113
StatusPublished

This text of 11 So. 3d 1246 (ALLIED NORTH AMERICAN CORPORATION OF TEXAS v. Edgecomb) 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
ALLIED NORTH AMERICAN CORPORATION OF TEXAS v. Edgecomb, 11 So. 3d 1246, 2009 WL 1941575 (La. Ct. App. 2009).

Opinion

ALLIED NORTH AMERICAN CORPORATION OF TEXAS
v.
RICHARD EDGECOMB, ICT GROUP, L.L.C., MARSH USA, INC. AND STATE OF LOUISIANA.

No. 2009 CA 0113.

Court of Appeals of Louisiana, First Circuit.

June 19, 2009.
Not Designated for Publication

ROBERT J. BURNS, JR., JOHN W. PERRY, JR., Baton Rouge, LA, Attorneys for Plaintiff-Appellant, Allied North American Corp. of Texas.

WILLIAM F. GRACE, JR., CHARLES D. MARSHALL, III, New Orleans, LA, Attorneys for Defendants-Appellees, Richard Edgecomb and Marsh USA, Inc. (Texas).

LAUREN S. COENEN, JUDE C. BURSAVICH, SCOTT N. HENSGENS, Baton Rouge, LA, Attorneys for Defendant-Appellee, ICT Group, L.L.C.

Before: PARRO, McCLENDON, and WELCH, JJ.

WELCH, J.

Plaintiff, Allied North American Corporation of Texas (Allied), appeals a summary judgment dismissing a breach of contract claim against defendant, Richard Edgecomb, and a judgment rendered after a trial on the merits dismissing claims for intentional breach of contract and unfair trade practices against defendants Richard Edgecomb and Marsh USA, Inc. (Texas) (Marsh). Richard Edgecomb answered the appeal to challenge the dismissal of his reconventional demand seeking attorney fees and costs. We affirm.

BACKGROUND

On June 29, 2001, Allied filed this petition for breach of contract, damages, and a declaratory judgment against Richard Edgecomb, Marsh, ICT Group, L.L.C. (ICT), and the State of Louisiana. Allied hired Mr. Edgecomb on October 28, 1998, as an insurance broker, and entered into an employment agreement with him on November 13, 1998. While in Allied's employ, Mr. Edgecomb actively pursued a contract with the State of Louisiana to procure excess property coverage that was subject to the public bid process. The bid specifications, FEC-13, provided for the placement of insurance for the policy year July 1, 1999, through July 1, 2000, with two one-year options to renew the coverage placed.

Mr. Edgecomb worked in conjunction with ICT to submit a bid to the State. On March 30, 1999, the State issued a notice of award of the contract to ICT, also listing Allied and Mr. Edgecomb on the notice of the award. It is undisputed that for the first policy period, July 1, 1999, through July 1, 2000, Allied and ICT had an agreement to share brokerage fees, and fees were paid in accordance with that agreement, with Allied, ICT, and another broker each receiving $100,000.00.

On May 19, 2000, more than one month before the expiration of the insurance policy, Mr. Edgecomb left his employment with Allied and went to work for Marsh, a competitor brokerage firm. It is also undisputed that Marsh, not Allied, received brokerage fees for the July 1, 2000-July 1, 2001 renewal of the State's insurance policy, with Marsh, ICT, and another brokerage firm each receiving $100,000.00. For the July 1, 2001-July 1, 2002 policy period, the State re-bid the contract and Marsh again received brokerage commissions from the award of the re-bid contract.

In its petition, Allied alleged that the brokerage fees received by Marsh for the July 1, 2000-July 1, 2001 renewal and the July 1, 2001-July 1, 2002 insurance contract rightfully belonged to it. Allied asserted that Mr. Edgecomb breached his employment contract by failing to act as a fiduciary and misappropriated or discarded Allied's property. Allied claimed that when Marsh hired Mr. Edgecomb, Marsh was aware of Mr. Edgecomb's employment agreement with Allied, was aware that the contract of insurance had been awarded to Allied, and knew of the partnering agreement Allied had entered into with ICT regarding the distribution of brokerage commissions. Allied asserted that, despite the knowledge of the contractual interest Allied enjoyed with both the State and ICT, Mr. Edgecomb and Marsh intentionally caused one or more of the parties to the contract, ICT and/or the State, to cease performing, causing Allied damages. Allied further alleged that the actions of Mr. Edgecomb, Marsh, and ICT constituted intentional interference with its contract, as well as unfair and deceptive trade practices within the contemplation of La. R.S. 51:1401, et seq., and that Marsh was liable for Mr. Edgecomb's actions under the theory of respondeat superior. It sought to recover the loss of brokerage fees it would have received during the 2000-2001 and 2001-2002 insurance policy periods, liquidated damages as provided in Allied's contract with Mr. Edgecomb, and damages for loss of business reputation and lost business opportunity as a result of Mr. Edgecomb's alleged bad faith breach of his contractual obligations.

Prior to trial, Allied dismissed the State and ICT from the litigation. Marsh and Mr. Edgecomb then filed a motion for summary judgment seeking dismissal of all claims that Mr. Edgecomb breached his employment contract and that Marsh interfered with that employment agreement. Defendants urged that the non-competition clause contained in Mr. Edgecomb's employment contract with Allied violated Louisiana law and was therefore unenforceable. They further charged that even if the non-competition agreement was enforceable, there was no positive evidence that Mr. Edgecomb breached any provision of the employment contract, solicited the State's business, took any action to have the State discontinue or refrain from entering into a relationship with Allied, or misappropriated and/or discarded Allied's property.

In support of the motion for summary judgment on the breach of contract issue, defendants relied on Mr. Edgecomb's affidavit and deposition, and excerpts of the deposition testimony of Mr. Lloyd Ray Pitts, Jr., Allied's president and designated representative. In his affidavit, Mr. Edgecomb attested that he never solicited business from the State after his May 19, 2000 resignation from Allied and insisted he did not remove, discard, or destroy any of Allied's property. Specifically, Mr. Edgecomb stated that after he resigned from Allied, he was contacted indirectly by the State, through a representative of ICT, to assist the State in its efforts to renew the policy of insurance that was originally placed in July of 1999. Mr. Edgecomb attested that prior to his resignation from Allied, he did not solicit the State for the renewal of insurance and did not encourage the State to discontinue or refrain from entering into any relationship with Allied. In his deposition, Mr. Edgecomb explained that after he left Allied, ICT wanted him to help them solve a problem that had arisen when Liberty Mutual, the insurer on the initial policy, wanted to change the pricing as the 2000 renewal approached. He stated that after he began working for Marsh, he was told that the State specifically requested his help in resolving the issues raised by Liberty Mutual in connection with the renewal policy.

In his deposition, Mr. Pitts admitted that to his knowledge, no one at Allied had seen Mr. Edgecomb destroy or remove any documents when he left Allied's employ. Mr. Pitts stated that Allied suspected documents had been destroyed because in the normal course of business, the company would have expected to find certain things in the file or in e-mails that were not there after discovery was conducted. When asked whether he had any information that Mr. Edgecomb solicited any business before he left Allied's employ, Mr. Pitts acknowledged he did not know whether Mr. Edgecomb talked to either ICT or the State about moving that business. He admitted that Allied had no information that Mr. Edgecomb did anything before leaving Allied's employ that violated the employment agreement. Mr. Pitts stated that he believed Mr. Edgecomb initiated contact with the State and solicited the State's business after he left Allied's employ. As evidence of the solicitation, Mr.

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Bluebook (online)
11 So. 3d 1246, 2009 WL 1941575, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allied-north-american-corporation-of-texas-v-edgec-lactapp-2009.