Autin's Cajun Joint Vent. v. Kroger Co.

637 So. 2d 538, 1994 WL 174851
CourtLouisiana Court of Appeal
DecidedFebruary 16, 1994
Docket93 CA 0320
StatusPublished
Cited by17 cases

This text of 637 So. 2d 538 (Autin's Cajun Joint Vent. v. Kroger Co.) 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
Autin's Cajun Joint Vent. v. Kroger Co., 637 So. 2d 538, 1994 WL 174851 (La. Ct. App. 1994).

Opinion

637 So.2d 538 (1994)

AUTIN'S CAJUN JOINT VENTURE & Autin's Cajun Cookery, Inc.
v.
KROGER COMPANY.

No. 93 CA 0320.

Court of Appeal of Louisiana, First Circuit.

February 16, 1994.
Writ Denied April 29, 1994.

*539 Charles E. Hamilton, III, M. Lisabeth Talbott, Donald R. Mintz and Michael A. Berenson, New Orleans, for plaintiff-appellant Autin's Cajun Cookery.

George Fagan and Robert E. Leake, Jr., New Orleans, for defendant-appellee Kroger Co.

Before EDWARDS, CRAIN and LeBLANC, JJ.

CRAIN, Judge.

Autin's Cajun Cookery Joint Venture (Autin's) is a partnership comprised of two partners: Louisiana Corporation and Autin's Cajun Cookery, Inc. It was established for the purpose of developing and marketing Cajun seasonings and food products. J.C. Autin, the moving force behind this enterprise has been engaged in the food processing, catering and restaurant business for many years through numerous corporations. The Kroger Company, at its South Carolina plant had been manufacturing cajun spices for one of Mr. Autin's corporations, Autin's Smoke Factory, Inc.[1] Ray Gibson, a Kroger employee of its manufacturing division, suggested to Autin's that Autin's develop a cajun mayonnaise and other mayonnaise based products to be manufactured by Kroger to Autin's specifications. Autin's submitted its recipe for the cajun mayonnaise to the research and development (or technical) department of Kroger manufacturing division. From this recipe Kroger was to develop a formula for the commercial production of the mayonnaise and a tartar sauce. It is uncontradicted that Autin's would not be charged for the refinement and development of the formula. Once the formula was finalized and perfected Autin's would purchase orders of the products from the plant for sale in supermarkets, gourmet shops, etc., nationally and in Canada and Great Britain. Autin's also hoped to sell the products to the Kroger supermarket chain. Sample batches of the mayonnaise products were produced by Kroger for Autin's. Autin's understood the shelf life of the mayonnaise products to be 12 months. The first production run of the cajun mayonnaise occurred in August, 1988. Autin's ordered approximately 14,700 cases of the products. *540 Cases of the mayonnaise products were shipped to designated warehouses from the Kroger plant pursuant to Autin's instructions. Shortly thereafter, problems with the products began to appear. The product began to de-stabilize or separate, discolor and eventually become rancid. The mayonnaise products had to be recalled, the orders canceled and the product destroyed. Kroger requested that Autin's share the cost of attempted reformulation of the product to cure the stability problem which had to be done before a new production run of the mayonnaise. Autin's refused to share the cost, negotiations between Kroger and Autin's broke down and this action ensued.

Autin's sued Kroger for breach of contract, negligent misrepresentation, detrimental reliance, and violation of the Unfair Trade Practices and Consumer Protection Law.

Among the damages allegedly due Autin's were the following:

a) Expenses incurred by Autin's in connection with the labels printed for the various Mayonnaise Line products;
b) Expenses incurred by Autin's in connection with development advertising and promotion of the Mayonnaise Line;
c) Expenses incurred by Autin's in connection with removal, destruction and/or return of the Mayonnaise Line from store shelves.
d) Lost profits arising out of the cancellation of existing orders and the return of the product from customers which had already received it;
e) Future lost profits arising from Kroger's failure to develop the Mayonnaise Line to a marketable state;
f) Expenses that Autin's has incurred to determine the source of the problems in the Kroger manufacturing process, and to develop the Mayonnaise Line to a marketable state as a result of Kroger's refusal to do so;
g) Damages for loss of business reputation and damage, to the good name of Autin's Cajun Cookery, Inc.;
h) Lost sales and profits in the Spice Line as a result of the problems experienced in the Mayonnaise Line;

After trial on the merits special interrogatories were submitted to the jury. The interrogatories provided in pertinent part:

We the Jury in the above-captioned matter, find as follows:

1. Did Kroger breach any contract with Autin's? (Answer Yes or No)
Yes ___________ No ___________
2. Did Kroger make representation to Autin's upon which Autin's reasonably relied to its detriment? (Answer Yes or No)
Yes ___________ No ___________
3. Did Kroger negligently make misrepresentations to Autin's? (Answer Yes or No)
Yes ___________ No ___________
[Instructions: If you answered any one of questions 1, 2 or 3 "Yes" then proceed to question 4. If you have answered "No" to questions 1, 2 and 3, your deliberations are ended. The foreman should sign and date this form and you may return to the courtroom.]
4. Did Autin's sustain any loss as a direct result of any improper conduct of Kroger? (Answer Yes or No)
Yes ___________ No ___________
[If you answered question 4 "No" you may skip the remaining questions on the form.]

In response to the interrogatories the jury found there was no breach of contract by Kroger; Kroger made negligent misrepresentations to Autin's; Autin's reasonably relied on Kroger promises or representations to Autin's detriment; however, Autin's suffered no damages as a result thereof. In conformity with the special verdict, judgment was rendered in favor of Kroger. Autin's subsequently filed a motion for judgment notwithstanding the verdict and alternative motion for new trial on the issue of quantum. The motion was subsequently denied by the trial court.

Autin's has appealed, alleging as error:

1. The trial court erred by not instructing the jury that a finding of detrimental reliance implies an injury to the plaintiff and requires an award of damages.
2. The trial court erred by confusing the jury with a comment about being pregnant *541 in response to the jury's question about detrimental reliance damages.
3. The trial court erred by refusing to grant a judgment notwithstanding the verdict awarding damages to Autin's based upon the jury's finding of detrimental reliance.
4. Because the jury's verdict was legally inconsistent in finding detrimental reliance but finding no damage to Autin's, the trial court erred in denying a new trial on the issue of quantum.

JURY INSTRUCTIONS

In the first assignment of error Autin's contends the trial court erred in failing to properly instruct the jury that if it finds detrimental reliance it must award damages. In the second assignment of error Autin's contends the trial court confused the jury when it sought additional instructions regarding "detrimental reliance damages."

The trial judge's jury charges regarding detrimental reliance were as follows:

Now, a person may be obligated by a promise when that person knew or should have known that the promise would induce a second person to reasonably rely on the promise to his detriment.

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Cite This Page — Counsel Stack

Bluebook (online)
637 So. 2d 538, 1994 WL 174851, Counsel Stack Legal Research, https://law.counselstack.com/opinion/autins-cajun-joint-vent-v-kroger-co-lactapp-1994.