City of Alexandria v. CLECO CORP.

735 F. Supp. 2d 448, 2010 U.S. Dist. LEXIS 78784, 2010 WL 3035919
CourtDistrict Court, W.D. Louisiana
DecidedAugust 3, 2010
DocketCivil Action 1:05-cv-01121
StatusPublished
Cited by1 cases

This text of 735 F. Supp. 2d 448 (City of Alexandria v. CLECO CORP.) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Alexandria v. CLECO CORP., 735 F. Supp. 2d 448, 2010 U.S. Dist. LEXIS 78784, 2010 WL 3035919 (W.D. La. 2010).

Opinion

JUDGMENT

DEE D. DRELL, District Judge.

For the reasons detailed in a separate ruling issued on this date, the Intervenor Defendants’ Rule 12(b)(6) Motion to Dismiss Intervenor’s Tortious Interference with Contract Claims (Doc. 158) will be GRANTED. Accordingly, the magistrate judge’s Report and Recommendation on Motion to Dismiss (Doc. 383) will be ADOPTED IN PART. However, the Court does NOT ADOPT the portion of the magistrate judge’s Report and Recommendation on Motion to Dismiss referring to “policy considerations.” (Doc. 383, p. 7).

RULING

A number of matters are currently pending before the Court in the captioned lawsuit. Among them is a Rule 12(b)(6) Motion to Dismiss Intervener’s Tortious Interference with Contract Claims (Doc. 158) filed by the Intervenor Defendants, the City of Alexandria (“City”), Mayor Jacques Roy (“Mayor Roy”), and City Attorney Charles E. Johnson (“Mr. Johnson”) (collectively, “City”), against the Intervenor Plaintiff, Ms. Bridgett Brown (“Ms. Brown”). The magistrate judge is *450 sued a Report and Recommendation on Motion to Dismiss (Doc. 383), suggesting that we grant the City’s motion. For the reasons detailed below, the City’s motion will be GRANTED, and the magistrate judge’s report and recommendation will be ADOPTED IN PART, as specified herein. Disposition will follow by a separate judgment.

I. Background

The history of this lawsuit is well documented in the annals of this Court and this community. As a brief summary, in the principal action the City alleged that the Defendants, Cleco Corp. et al. (collectively, “Cleco”), the City’s electrical utilities provider, caused the City and its ratepayers substantial economic losses through a series of intentional and negligent acts of mismanagement. After more than four long years of litigation, the parties resolved the main demand. By a judgment of dismissal dated February 24, 2010 (Doc. 379), the Court dismissed the City’s claims against Cleco with prejudice. The claims in the intervention, however, require us to recount events dating back to the beginning of the litigation.

On July 19, 2005, shortly after the original lawsuit was filed, at the request of the City administration, the Alexandria City Council (“City Council”) adopted ordinance No. 214-1005 (Doc. 77-1, Exh. 3) (“Ordinance”). The Ordinance authorized then-Mayor Edward G. Randolph (“Mayor Randolph”) to “enter into a Professional Services Agreement with ... Bridgett Brown,” a licensed attorney practicing in Alexandria, Louisiana. (Doc. 77-1, Exh. 3, p. 1). Subsequently, Ms. Brown entered into a “Contract for Legal Services and Contingent Fee Agreement” (“Contract”) with the City. (Doc. 77-1, Exh. 1). The Contract was executed by Ms. Brown and Mayor Randolph, but was not dated. Under the Contract, Ms. Brown was retained “to represent [the City] in all claims related to any and all transactions and/or any and all other relationships [the City] has or had with Cleco.” (Doc. 77-1, Exh. 1, p. 1).

In November 2006, Jacques Roy (“May- or Roy”) was elected Mayor of Alexandria. Mayor Roy appointed attorney Charles E. Johnson, Jr. (“Mr. Johnson”) as City Attorney, and Mr. Johnson assumed responsibilities as City Attorney in January 2007. Approximately one month later, in February 2007, Mr. Johnson issued a letter to Ms. Brown purporting to terminate her representation of the City under Section 4-02 of the City’s Home Rule Charter. (Doc. 77-1, Exh. 2). In the termination letter, Mr. Johnson opined that Ms. Brown’s client was “the City of Alexandria ... not just the Council,” and that Ms. Brown’s “actions have created an incurable conflict of interest with the elected chief administrator of this City.” (Doc. 77-1, Exh. 2, p. 2). Finally, Mr. Johnson requested a “detailed itemization” of Ms. Brown’s work on the case. (Doc. 77-1, Exh. 2, p. 2).

Instead of complying with Mr. Johnson’s requests, Ms. Brown filed a Petition for Intervention (Doc. 77) in the principal litigation on April 17, 2007. Nearly two years after filing her initial “petition,” or complaint, Ms. Brown filed a supplemental complaint, adding allegations that Mayor Roy and Mr. Johnson breached them fiduciary duties to the City, and tortiously interfered with her contract with the City, making them jointly or solidarily liable with the City for any damages that she may have incurred. (Doc. 152).

Also during the course of the litigation of the main demand, the City filed two motions against Ms. Brown’s claims. The first motion, and the only one that we consider in this ruling, was a motion to *451 dismiss Ms. Brown’s tortious interference with contract claims under Rule 12(b)(6). (Doc. 158). 1 The magistrate judge recommended that we grant both of the City’s motions. (Docs. 382, 383). Ms. Brown filed timely objections to these recommendations (Docs. 384, 387), and both parties have had ample opportunity to brief then-positions on the City’s motion to dismiss. After carefully considering these materials, and after reviewing the applicable law, the Court is now prepared to rule.

II. Law and Analysis

A. Standards for a Rule 12(b)(6) Motion to Dismiss

Federal Rule of Civil Procedure 12(b)(6) authorizes a court to dismiss an action for “failure to state a claim upon which relief can be granted.” In evaluating a Rule 12(b)(6) motion, the Court must accept as true the well-pleaded facts in the plaintiffs complaint, and must construe the facts in a light most favorable to the plaintiff. Arias-Benn v. State Farm Fire & Cas. Ins. Co., 495 F.3d 228, 230 (5th Cir.2007). However, the Court need not “ ‘accept as true conclusory allegations, unwarranted factual inferences, or legal conclusions.’ ” Id. (quoting Plotkin v. IP Axess Inc., 407 F.3d 690, 696 (5th Cir.2005)).

To survive a Rule 12(b)(6) motion, the plaintiffs “[fjactual allegations must be enough to raise a right to relief above the speculative level, on the assumption that all the allegations in the complaint are true (even if doubtful in fact).” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). Finally, we note that “[mjotions to dismiss are viewed with disfavor and are rarely granted.” Test Masters Educ. Servs., Inc. v. Singh, 428 F.3d 559, 570 (5th Cir.2005).

B. Discussion

This motion to dismiss presents the question of whether the cause of action for tortious interference with contract in Louisiana should or can be extended beyond the narrow factual confines of the case in which it was recognized. Ms. Brown maintains that the cause of action may be properly stated against public officers, such as Mayor Roy and Mr. Johnson. The City argues that this Court should decline to extend the cause of action.

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735 F. Supp. 2d 448, 2010 U.S. Dist. LEXIS 78784, 2010 WL 3035919, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-alexandria-v-cleco-corp-lawd-2010.