Christian v. Fontenot

672 So. 2d 436, 1996 WL 160796
CourtLouisiana Court of Appeal
DecidedApril 8, 1996
Docket28175-CA
StatusPublished
Cited by7 cases

This text of 672 So. 2d 436 (Christian v. Fontenot) 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
Christian v. Fontenot, 672 So. 2d 436, 1996 WL 160796 (La. Ct. App. 1996).

Opinion

672 So.2d 436 (1996)

Richard W. CHRISTIAN, et al, Plaintiff-Appellee,
v.
Paul W. FONTENOT, et al, Defendant-Appellant.

No. 28175-CA.

Court of Appeal of Louisiana, Second Circuit.

April 8, 1996.
Rehearing Denied May 2, 1996.

*438 Ben Marshall, Jr., Shreveport, for Appellant.

John M. Madison, Jr., Shreveport, for Appellee.

Before NORRIS and HIGHTOWER, JJ., and CLARK, J. Pro Tem.

CLARK, Judge Pro Tem.

Colonel Paul W. Fontenot and the State of Louisiana (defendants), appeal a jury verdict awarding Sergeant Richard W. Christian and *439 Lieutenant Urbane R. "Rudy" Crain, Jr. (plaintiffs), damages, attorney fees, and court costs for statements and actions attributed to Colonel Fontenot concerning plaintiffs' ownership of stock in River Cities Gaming Corporation (River Cities). The defendant, Colonel Fontenot, was the commander of the state police, and the plaintiffs were both veteran state police officers. After a trial by jury, the trial court found that Colonel Fontenot defamed the plaintiffs, that his actions were negligent, constituted an abuse of rights, violated the plaintiffs' civil rights, and interfered with their business relations. The trial court further found that the defendants failed to prove that they were entitled to discretionary immunity under LSA-R.S. 9:2798.1, or that Colonel Fontenot was entitled to qualified immunity from liability on the plaintiffs' civil rights claim. At the conclusion of the trial, the judge determined that the State of Louisiana was solidarily liable as to each cause of action, excluding the civil rights violations under 42 U.S.C. § 1983. For the following reasons, we reverse.

FACTS

Southwest Gaming Services of Louisiana was formed on February 26, 1992, to take part in the emerging video gaming industry in Louisiana. Southwest Gaming Services of Louisiana is a joint venture partnership comprised of a Louisiana corporation, River Cities Gaming Corporation (51 percent), and a Nevada corporation, Southwest Gaming Services, Inc. (49 percent). Sometime prior to July 19, 1991, the plaintiffs, Christian and Crain, were presented with an opportunity to invest in River Cities by a mutual friend, Richard Pernici.

Plaintiffs were employed in the patrol division of the state police with their primary duties relating to enforcement, control, regulation, and registration of vehicles on Louisiana highways. Prior to making the proposed investment, knowing the state police would have the responsibility of regulating and licensing the fledgling video gaming industry in the state, they obtained a draft of the pending legislation relevant to state police ownership of video poker stock. This legislation prohibited stock ownership by members of the video gaming division of the state police.[1] The plaintiffs also reviewed the State Police Procedural Order Manual. As the legislation assigning the licensing and regulatory responsibilities to the state police had yet to be passed, the procedural rules of the state police did not specifically address the plaintiffs' proposed investment.[2]

Next, they presented the question of trooper ownership in the video gaming industry to the video poker section and the research section of the state police. Trooper Bruce Vanderhoeven and Sergeant Darrell Guillory of the video poker section and Sergeant Donald Cotton of the research section determined there existed no specific prohibition regarding investment in the gaming industry by state police officers other than those officers in the video poker section. *440 Sergeant Cotton informed Crain of his findings and further advised him to contact the legal division of the state police for an opinion on the matter.

Before Crain had an opportunity to contact the legal department, he spoke over the phone with Colonel Marlin Flores who was commander of the state police at the time. Crain testified that Colonel Flores advised him that he did not object to the investment, but requested that he contact the legal section for an opinion. Thereafter, Crain contacted James Dixon, an attorney with the state police. Crain testified Dixon told him he did not know of any legal prohibition to the investment.

However, according to an internal affairs investigation report regarding the investment, Colonel Flores told investigators he informed Crain to put his request in writing and forward it through his chain of command (see footnote two regarding Procedural Order Number 202). James Dixon is reported as having told investigators that Crain had not asked about the legality of the investment, only informing him of how much money was involved. Both Colonel Flores and Dixon stated they would never have given verbal authorization for such an investment.

On July 19, 1991, Crain and Christian each invested $7,000 in River Cities for a five percent share of the corporation. Also in July 1991, the enabling legislation allowing video gaming in Louisiana was passed by the legislature giving the state police regulatory authority over the industry. On April 3, 1992, Trooper Vanderhoeven received the application for licensing from Southwest Gaming Corporation of Louisiana. On the application, both of the plaintiffs were listed as owners in River Cities. Trooper Vanderhoeven attached a memorandum to the application emphasizing the ownership by the state police officers, and forwarded it to his supervisor, Sergeant Guillory. After reviewing the file, he forwarded it to Sergeant Ronald Lewis who reviewed it and approved the license.

On June 4, 1992, the Nevada Gaming Control Board informed Lieutenant Gilbert Blackwelder of the Louisiana State Police, video poker section, that they were delaying licensing of Southwest Gaming Services of Nevada due to the plaintiffs' ownership in River Cities. As Lieutenant Blackwelder was unaware of the troopers involvement, he referred the matter to Sergeant Lewis. According to the internal affairs report, Sergeant Lewis informed him that he was aware of the inquiries made into the legality of the investment by the plaintiffs and had been informed by either Christian or Crain that Colonel Flores had authorized the investment during his administration.

In early 1992, Colonel Paul Fontenot had taken office as the commander of the state police. On June 5, 1992, before entering a New Orleans courtroom to testify on an unrelated matter, he was approached by Captain Ronnie Jones of the public affairs section and informed that a reporter was asking questions about an Associated Press article that stated Louisiana State Police Officers were allowed to own stock in the video gaming industry. Colonel Fontenot testified this was the first he had heard of the plaintiffs' investment. At this point Colonel Fontenot went into the courtroom, and attended a press conference that followed. Approximately one and one-half hours after learning about the investment he was approached by a reporter and made comments reported in the Baton Rouge Morning Advocate the following day.[3] Generally, the statements attributed to Fontenot were that he was surprised to learn of the investment, that the state police did not allow this type of investment, and that the state troopers involved would either have to divest themselves of the video gaming stock or quit the state police.

Upon further investigation, Colonel Fontenot determined that there was no statutory or procedural rule that would specifically prohibit this type of investment.

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Cite This Page — Counsel Stack

Bluebook (online)
672 So. 2d 436, 1996 WL 160796, Counsel Stack Legal Research, https://law.counselstack.com/opinion/christian-v-fontenot-lactapp-1996.