Buster's Frozen Custard, LLC v. Lancaster Manufacturing, Inc.

190 So. 3d 1239, 15 La.App. 3 Cir. 947, 2016 WL 1660494, 2016 La. App. LEXIS 816
Louisiana Court of Appeal·Decided April 27, 2016·No. No. 15-947·Published·Cited by 1 cases

Opinion

PETERS, J.

Ijn this procedurally complicated litigation, Buster’s Frozen Cuátard, LLC appeals the trial court’s judgment annulling a previously rendered'money judgment in its favor and against Lancaster Manufacturing, Inc. and Antony Carey; and Buster’s Frozen Custard, LLC’s attorney of record, Ashley W. Phillips, challenges the validity of a judgment for attorney fees rendered against him personally and in favor of Lancaster Manufacturing, Inc. and Antony Carey as an ancillary part of the annulment action. Lancaster Manufacturing, Inc. and Antony Carey answered the appeal and .requested an increase in the amount of the attorney fees awarded and for additional , attorney fees for their work on appeal. For the following reasons, we affirm the trial court judgment annulling the previously rendered money judgment; amend the trial court judgment awarding attorney fees to Lancaster Manufacturing, Inc. and Antony Carey to correct a mathematical error in the calculation of the attorney fees, and affirm the judgment as amended; and reject the request of Lancaster Manufacturing, Inc. and Antony Carey for an increase of the attorney fees awarded by the trial court, and for an award of attorney fees for work performed on appeal.

DISCUSSION OF THE PROCEDURAL RECORD

Buster’s Frozen Custard, LLC (Buster’s LLC) is a Louisiana limited liability company which operates a retail mobile food distribution business in Lafayette, Louisiana. Ashley W. Phillips is.a Lafayette, Louisiana attorney at law. Lancaster Manufacturing, Inc. (Lancaster) is a Michigan corporation who supplies and installs refrigeration equipment for its customers, and Antony Carey is a resident of the state of Michigan who is described in Buster’s [1242] LLC’s pleadings as the agent for Lancaster. Lancaster and Mr.. Carey are represented by Jones Walker, LLP (Jones Walker), a Louisiana law firm with offices in numerous places in the state, | «.including Lafayette, Louisiana. The underlying dispute giving rise to the judgment, which became the subject of the nullity action now before us, was based on an April 2013 contract entered into by Buster’s LLC and Lancaster, wherein Lancaster agreed to supply and install refrigeration" equipment in a mobile food truck owned and operated by Buster’s LLC in Lafayette, Louisiana. Lancaster provided and installed the equipment called for in the contract.1

On April 15, 2014, Mr. Phillips filed a suit for damages on behalf of Buster’s LLC in Lafayette, Louisiana, naming Lancaster and Mr. Carey as defendants. In the suit, Buster’s LLC asserted that the equipment supplied and installed by Lancaster was not fit for the particular use required by Buster’s LLC, and/or the equipment contained a redhibitory defect. The two out-of-state defendants were served on May 5, 2014, by certified mail pursuant to La.R.S. 13:3204(A).

On May 14, 2014, Lancaster and Mr. Carey solicited the advice and counsel of Nadia de la Houssaye, a Lafayette, Louisiana attorney and a partner in Jones Walker. Ms. de la Houssaye informed the defendants that due to a medical condition she was working limited hours, but that she would contact Mr. Phillips and see if anything could be done to settle the matter.

The same day, Ms. de la Houssaye spoke by telephone with Mr. Phillips, and explained to him that her personal medical condition precluded her from representing the defendants as trial counsel; but that she was willing to attempt to negotiate an amicable settlement without further litigation if he were willing to work toward that end. According to Ms. de la Houssaye, Mr. Phillips expressed an interest in pursuing settlement' negotiations and agreed to give her clients an |aextension of time in which to plead.2 Based on this' understanding, neither Lancaster nor Mr. Carey filed any responsive pleadings to the pending suit. *

Three days later, on May 17, 2014, Mr. Phillips sent an e-mail to Ms. de la Hous-saye in which he began by stating:

Please do not feel obligated to respond to this email without taking some time to recuperate._ I want to thank you for reaching out to me on this matter. I hope we may be able to reach an amicable resolution. I do not have a firm offer at this time. We are waiting on some estimates in regards to the cost of removal of 'the installed equipment.

Mr. Phillips then listed a tentative offer and ended the e-mail with the comment that, “I will forward invoices and estimates to your office when I have them.”

On May 21, 2014, Mr. Phillips forwarded a second e-mail to Ms. de la Houssaye, with attachments representing the' claimed removal and replacement costs. These amounts, together with the amount itemized in the May 17,. 2014 e-mail,-were described to Ms. de la Houssaye as “a final offer to settle this matter. Please confer with Mr. Carey and let me know if we can reach an agreement.”

On June 12, 2014, Mr.. Phillips and Ms. de la Houssaye had further settlement discussions which Ms. de la Houssaye confirmed by e-mail that same- day. The email set forth the counteroffer in detail [1243] and requested that Mr. Phillips “[p]lease advise as to how your clients want to proceed.” At 1:12 p.m. the next day, Mr. Phillips responded to Ms. de la Houssaye by e-mail, stating.that his clients were “very receptive to Mr. Carey’s offer.” However, Mr. Phillips followed that statement by listing three issues which his clients wanted to address; by setting forth those portions of the June 12, 2014 counteroffer that his clients did not agree with; and by setting out with particularity four additions to the settlement offer. At 2:58 p.m. that same day, Mr. Phillips sent a sécond e-mail to Ms. de la |4Houssaye wherein he stated: “Just as an aside, I am also working towards settling this matter as quickly as possible and hopefully without having to waste time in court proceedings.' I believe we have the same goal here.”

On the same day he provided Ms. de la Houssaye with the two e-mails which-ex-pressed his desire to avoid court proceedings, Mr. Phillips caused a preliminary .default to be entered by the trial court against Lancaster and Mr. Carey.3 On June 26, 2014, the trial court set a confirmation hearing on . the default judgment. Mr. Phillips failed to mention this setting to Ms. de la Houssaye.

At the July 14, 2014 confirmation hearing, Mr. Phillips offered'evidence, in support of his clients’ claim for damages, but made no mention of the ongoing settlement negotiations with Ms. de la Hous-saye. In fact, Mr. Phillips executed an affidavit entitled “ATTORNEY CERTIFICATION [,]” wherein he stated, among many other things, that “[n]o appearance by way of formal answer, enrollment of counsel, or- otherwise has been made by either defendant at the time of this certification.” 4 (Emphasis added.)

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Buster's Frozen Custard, LLC v. Lancaster Manufacturing, Inc., 190 So. 3d 1239, 15 La.App. 3 Cir. 947, 2016 WL 1660494, 2016 La. App. LEXIS 816 (La. Ct. App. 2016).

190 So. 3d 1239 (Buster's Frozen Custard, LLC v. Lancaster Manufacturing, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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