Boncosky Services, Inc. v. Lampo

751 So. 2d 278, 1999 WL 1007020
CourtLouisiana Court of Appeal
DecidedNovember 5, 1999
Docket98 CA 2239
StatusPublished
Cited by14 cases

This text of 751 So. 2d 278 (Boncosky Services, Inc. v. Lampo) 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
Boncosky Services, Inc. v. Lampo, 751 So. 2d 278, 1999 WL 1007020 (La. Ct. App. 1999).

Opinion

751 So.2d 278 (1999)

BONCOSKY SERVICES, INC. and C. & C. Logistics, Inc.
v.
Sam LAMPO, John L. Majors and Quality Transport, Inc.

No. 98 CA 2239.

Court of Appeal of Louisiana, First Circuit.

November 5, 1999.
Rehearing Denied December 30, 1999.
Writ Denied March 24, 2000.

*280 Felix R. Weill, Baton Rouge, for Plaintiffs/Appellees, Boncosky Services, Inc. and C. & C. Logistics, Inc.

James R. Lewis, Baton Rouge, for Defendants/Appellants, Quality Transport, Inc., Sam Lampo and John L. Majors.

Before: CARTER, C.J., LeBLANC, and PETTIGREW, JJ.

CARTER, C.J.

This is an appeal from a judgment finding that Sam Lampo, John Majors, and Quality Transport violated the Louisiana Unfair Trade Practices Act (LUTPA), LSA-R.S. 51:1401 et seq., and awarding damages in the amount of $150,000.00 to the plaintiffs, Boncosky Services Inc. and C & C Logistics, Inc. The plaintiffs answered the appeal seeking an increase in the amount of damages to $1,396,671.00.

*281 FACTS AND PROCEDURAL HISTORY

Sam Lampo and John Majors were employed by C & C Transport, Inc. (C & C Transport), a liquid petroleum transportation company owned by John Mangano. Lampo had been employed by C & C Transport since 1982, and Majors had been employed by C & C Transport since 1987. Since approximately 1992, Mangano entrusted the daily operation of the business to Lampo and Majors. Lampo oversaw sales, personnel, and general operations, and reported to Mangano, while Majors served as operations manager and reported to Lampo. At no time did Lampo or Majors ever sign an employment contract or non-competition agreement with C & C Transport.

In the summer of 1995, Boncosky Services, Inc. (Boncosky Services), a national transporter of chemical products, was interested in establishing a presence in the Baton Rouge area. Robert C. Boncosky, the president of Boncosky Services, contacted Mangano and arranged an initial meeting with him in Baton Rouge. Boncosky's interest in a possible purchase of C & C Transport increased, and he made another visit to Baton Rouge in the early part of 1996. At that time, Boncosky was provided with a equipment list of C & C Transport and introduced to Lampo and Majors.

Eventually, Mangano and Boncosky agreed to an arrangement where Boncoksy Services would purchase the assets of C & C Transport. Once the assets were purchased, Boncosky Services would then lease these assets back to a newly formed, subsidiary company, C & C Logistics, which would service the same customers that C & C Transport had serviced. This agreement was not a buy-out of the shares of C & C Transport, but only a transfer of assets.

Boncosky sent a letter of intent dated August 5, 1996, to Mangano, specifying the terms of the purchase of assets. On August 8, 1996, Pete Denil and Roger Czajkowski, the respective general manager and financial comptroller of Boncosky Services, arrived in Baton Rouge to perform the financial due diligence prior to the sale of the company. During the visit, Lampo and Majors, who had become concerned about their future with the new company, asked Denil whether they could get employment contracts to ease their concerns. Although Denil indicated that was something Boncosky Services would investigate, he later decided employment contracts would not be provided to Lampo or Majors.

In the early part of October, Denil and John Boncosky, Boncosky Services' Director of Sales, contacted Lampo and Majors to set up meetings with key customers of C & C Transport in an effort to ease the transition. Again, Lampo and Majors voiced their concerns over the lack of information they and the rest of the employees of C & C Transport had regarding their future with the company. According to Lampo, as late as October 7, no one from Boncosky Services had been there to discuss their employment and roles with the new company. Lampo and Majors had a lot of anxiety regarding their futures and feared they would be replaced after the sale of assets, which was scheduled to be completed on October 31.

A purchase agreement, which included all the provisions of the letter of intent, was executed on October 9, 1996, by Boncosky Services and C & C Transport. The agreement provided that Boncosky would buy nearly all of C & C Transport's assets for $1.8 million. As a general condition to closing, the purchase agreement provided that contracts would be in place for key employees.[1] According to the testimony of Robert C. Boncosky, Lampo and Majors *282 were the most important part of the sale because they were the management team and would be expected to expand the existing customer base of C & C Transport. Another condition of closing provided that C & C Transport, through Mangano, and Mangano individually, would execute a two-year non-competition agreement. Lampo and Majors were not parties to this agreement, nor the act of sale.

When Denil was in Baton Rouge from October 8-10, 1996, to meet with the customers, he also met with Lampo and Majors to discuss their roles with the new company. According to Lampo and Majors, once the sale of assets was completed, their duties, authorities, and responsibilities would be greatly diminished; they would not be entitled to any retirement benefits from Boncosky Services; and there would be significant changes to their use of company cars. Majors also testified that he was told that his salary was in the higher range for his position. Once again, they requested employment contracts, but their request was denied. When Lampo and Majors considered the changes that the sale of assets would bring, and the tone of the meeting with Denil, their fears of becoming buy-out casualties reached a pinnacle.

Following the October 8 meeting with Denil, Lampo and Majors both pondered their futures. Their options included accepting employment in different fields, staying with the company, or starting their own business. In mid-October, Lampo began to gather information on forming his own trucking company. He went to see Russell Dennis at Capitol Trucks, Inc. to discuss truck information. At that meeting, Lampo indicated he was still unsure what he was going to do, but gave Dennis the necessary information so he could contact Mercedes Benz to determine whether Capitol Trucks could arrange for financing for Lampo's potential purchase of trucks. Capitol ordered trucks on October 21, 1996. Lampo eventually purchased trucks from Capitol in the first week of December, after his financing was approved. According to Dennis, Lampo was never obligated to buy the tracks until their arrival in the first week of December.

Lampo also met with Bob Jackson, the owner of Slades Industrial Services (Slades), a tank sales and repair business in Baton Rouge. Slades was also a representative of the Jack Olsta Company, a dealer of tank trailers. Lampo discovered it would take sixty to ninety days to obtain trailers through Slades. Slades had ordered stock trailers on October 17, 1996, and Lampo eventually purchased 5 of those trailers in the early part of December. Jackson indicated that the Heil Company, which received the trailer order, required a customer name to be on every order; however, Jackson indicated this did not obligate Lampo and Majors to purchase these particular trailers since the trailers were ordered as a stock order.

On October 11, 1996, Lampo and Majors encountered William Clark, the district manager for Associates Commercial Corporation (Associates Commercial), at a restaurant in Baton Rouge.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bihm v. Deca Systems, Inc.
226 So. 3d 466 (Louisiana Court of Appeal, 2017)
Innovative Manpower Solutions, LLC v. Ironman Staffing, LLC
929 F. Supp. 2d 597 (W.D. Louisiana, 2013)
Terrebonne Concrete, LLC v. CEC Enterprises, LLC
76 So. 3d 502 (Louisiana Court of Appeal, 2011)
Freeman v. MEDICAL SYSTEMS, INC
15 So. 3d 385 (Louisiana Court of Appeal, 2009)
Wooley v. Lucksinger
14 So. 3d 311 (Louisiana Court of Appeal, 2009)
Restivo v. Hanger Prosthetics & Orthotics, Inc.
483 F. Supp. 2d 521 (E.D. Louisiana, 2007)
Harrison v. CD Consulting, Inc.
934 So. 2d 166 (Louisiana Court of Appeal, 2006)
Hebert v. ANCO Insulation, Inc.
835 So. 2d 483 (Louisiana Court of Appeal, 2002)
Grayson v. RB Ammon and Associates, Inc.
778 So. 2d 1 (Louisiana Court of Appeal, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
751 So. 2d 278, 1999 WL 1007020, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boncosky-services-inc-v-lampo-lactapp-1999.