Banque De Depots v. Bozel Mineracao E Ferroligas

728 So. 2d 533, 98 La.App. 4 Cir. 0742, 1999 La. App. LEXIS 171, 1999 WL 43225
CourtLouisiana Court of Appeal
DecidedJanuary 27, 1999
Docket98-CA-0742
StatusPublished
Cited by8 cases

This text of 728 So. 2d 533 (Banque De Depots v. Bozel Mineracao E Ferroligas) 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
Banque De Depots v. Bozel Mineracao E Ferroligas, 728 So. 2d 533, 98 La.App. 4 Cir. 0742, 1999 La. App. LEXIS 171, 1999 WL 43225 (La. Ct. App. 1999).

Opinion

728 So.2d 533 (1999)

BANQUE DE DEPOTS
v.
BOZEL MINERACAO E FERROLIGAS.

No. 98-CA-0742.

Court of Appeal of Louisiana, Fourth Circuit.

January 27, 1999.

*534 Aubrey B. Hirsch Jr., Locke Purnell Rain Harrell, New Orleans, Louisiana, and Scott A. Roberts, Sullivan, Weinstein & McQuay, Boston, Massachusetts, For Plaintiff/Appellant Banque De Depots.

C. Gordon Starling, Jr., Stephanie D. Skinner, Gelpi, Sullivan, Carroll & Gibbens, New Orleans, Louisiana, Counsel for Defendant/Appellee Companhia Paulista De Ferroligas.

Eric A. Bopp, Edward S. Boppa, Law Corporation, Arabi, Louisiana, for Defendant/Appellee Peixoto and Cury Advogados S.C.

Court composed of Judge JOAN BERNARD ARMSTRONG, Judge CHARLES R. JONES and Judge MIRIAM G. WALTZER.

ARMSTRONG, Judge.

This is an appeal from a judgment entered upon a motion to enforce a settlement. The litigation settled was quite complex and involved lawsuits in two other countries as well as two actions in Louisiana. The Settlement Agreement, while entered into in connection with the actions in Louisiana, also extended to the lawsuits in other countries. One of the provisions of the Settlement Agreement was a defense and indemnity provision requiring each party to provide defense and indemnity to the other party if certain types of claims should occur. Aside from some procedural exceptions made by one of the appellees with respect to the manner in which the issue of enforcement of the settlement was raised, the only issue is whether certain claims for attorney's fees, made by attorneys for one of the settling parties against the other settling party, are within the scope of the defense and indemnity provision of the Settlement Agreement. The trial court held that, to some extent, the attorney's fees claims are within the scope of the defense and indemnity provision. All parties appeal. We believe that the defense and indemnity provision is clear and unambiguous and that it applies to all of the attorney's fees claims at issue. Thus, we will amend the judgment of the trial court, to broaden it, and affirm as so amended.[1]

This litigation has its origins in an international commercial financing transaction. The Banque De Depots ("BDD"), a Swiss bank, advanced funds equal in amount to millions of U.S. dollars. The funds were, according to BDD's allegations, advanced to a Brazilian company named Bozel Mineracao E Ferroligas ("Bozel"). Another Brazilian company, Companhia Paulista De Ferroligas, S.A. ("CPDF"), eventually became the successor to Bozel. Bozel, and then CPDF, alleged that BDD had actually advanced the funds, not to Bozel, but to Hofflinghouse Finance Ltd. ("Hofflinghouse"). Apparently because Hofflinghouse became insolvent, BDD sought to recover from Bozel, and then CPDF, the funds BDD had advanced. This resulted in the initiation of five lawsuits as follows.

BDD brought an action against Bozel in Brazil for verification of accounts which sought to establish that Bozel was indebted to BDD ("the Brazilian Verification Action"); BDD filed against Bozel in St. Bernard Parish, Louisiana, two actions urging various legal theories for recovery of money damages and Bozel filed reconventional demands against BDD seeking money damages ("the Louisiana actions");[2] Bozel filed against *535 BDD in Brazil a declaratory action which sought a declaratory judgment to the effect that Bozel was not indebted to BDD ("the Brazilian Declaratory Action"); Bozel filed against BDD in Geneva, Switzerland a "summons of payment" ("the Geneva Action").

After Bozel was succeeded by CPDF, there were settlement negotiations between BDD's United States counsel and an attorney in the United States who represented CPDF. The result of these negotiations was a "walk away" settlement in which each side agreed to dismiss, with prejudice, all of its claims against the other in the five lawsuits and to give a full and final release to the other party. Each party was to bear all of its own court costs, attorney's fees and other expenses of the litigation. The settlement also included the reciprocal defense and indemnity arrangement at issue in this appeal. In May, 1996, counsel informed the trial court that the matter was settled. Also, BDD and CPDF reduced their settlement agreement to a formal writing in a six-page Settlement Agreement to which were attached as exhibits forms of stipulations of dismissal and forms of releases for each party's execution. The Settlement Agreement includes a choice of law clause, specifying Louisiana law and a choice of forum clause specifying Louisiana courts as the exclusive forum for any actions related to the Settlement Agreement.

Despite the Settlement Agreement, it appears that the Brazilian Declaratory Action was not dismissed. More specifically, and more importantly, the court in which the Brazilian Declaratory Action was pending rendered a judgment, in favor of CPDF's Brazilian attorneys, Peixoto & Cury Advogages S.C. ("Peixoto") and against BDD, for attorney's fees in an amount equivalent to more than one million U.S. dollars. Apparently, under Brazilian law, this attorney's fee claim belongs to Peixoto rather than CPDF. However, whether that attorney's fee claim belongs to Peixoto or to CPDF does not affect our analysis because this appeal does not address Peixoto's right to collect attorney's fees but, instead, addresses only CPDF's obligation to defend and indemnify BDD against Peixoto's claim.

Peixoto began attempts to collect from BDD its attorney's fee judgment against BDD. In addition to collection proceedings in Brazil, Peixoto engaged a Swiss attorney to make demand upon BDD in Switzerland, filed a Petition For Intervention in one of the Louisiana Actions and filed a Petition For Declaratory Judgment against BDD in the St. Bernard Parish court. BDD demanded of CPDF that, pursuant to a defense and indemnity provision of the Settlement Agreement, CPDF defend and indemnify BDD against these various collection actions by Peixoto. CPDF refused to so defend or indemnify BDD and, as a result, BDD filed against CPDF in the Louisiana Actions a motion to enforce settlement.

The terms of the Settlement Agreement determine whether CPDF is obligated to defend and indemnify BDD. The Settlement Agreement initially was drafted by BDD's counsel, based upon an agreement in principle with CPDF's counsel, and was reviewed, revised and approved by CPDF's counsel. The Settlement Agreement is a "global settlement" by which the parties settled, not only the Louisiana Actions, but also their other three lawsuits as well, and by which they released all of the various claims between them. The recitals of the Settlement Agreement identify specifically the two Louisiana Actions, the Brazilian Verification Action, the Brazilian Declaratory Action and the Geneva Action. The recitals also reflect the desire of the parties to settle all of the disputes between them including all five of the identified lawsuits. The Settlement Agreement then provides that the parties will dismiss with prejudice all five of the lawsuits including all reconventional demands, etc. and with neither party receiving from the other costs or attorney's fees.

*536 For purposes of the present appeal, the key provision of the Settlement Agreement is paragraph 6, which states:

6. Each party agrees that it will defend and indemnify any other party against any loss, damages, costs, and expenses incurred by that party as a result of any claim, suit, or other legal action arising out of the transactions at issue

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728 So. 2d 533, 98 La.App. 4 Cir. 0742, 1999 La. App. LEXIS 171, 1999 WL 43225, Counsel Stack Legal Research, https://law.counselstack.com/opinion/banque-de-depots-v-bozel-mineracao-e-ferroligas-lactapp-1999.