City of Alexandria v. Cleco Corp.

735 F. Supp. 2d 465, 2010 U.S. Dist. LEXIS 84824, 2010 WL 3282961
District Court, W.D. Louisiana·Decided August 17, 2010·No. Civil Action 1:05-cv-01121·Published·Cited by 2 cases

Opinion

RULING

DEE D. DRELL, District Judge.

Pending before the Court is a Motion for Partial Summary Judgment (Doc. 165) filed by Intervenor Defendant the City of Alexandria (“City”), and former Intervenor *467 Defendants Mayor Jacques Roy (“Mayor Roy”) and City Attorney Charles E. Johnson (“Mr. Johnson”). Magistrate Judge Hill issued a Report and Recommendation on Motion for Partial Summary Judgment suggesting that we grant the City’s motion. (Doc. 382). As Mayor Roy and Mr. Johnson have been dismissed from the lawsuit as intervenor defendants (Doc. 434), the City is now the only remaining movant. For the reasons detailed below, the City’s motion (Doc. 165) will be GRANTED. Disposition will follow by a separate judgment.

I. Background

The claims presently before the Court relate to Ms. Brown’s intervention in the principal litigation (“Cleco litigation”). This lawsuit was originally filed by the City against Cleco Corp. et al. (collectively, “Cleco”), the City’s primary electrical utility services provider. In the main demand, the City alleged that Cleco caused the City and its ratepayers substantial economic losses through a series of intentional and negligent acts of mismanagement. The parties ultimately reached a settlement, and the Court dismissed the claims against Cleco on February 24, 2010. (Doc. 379).

During the pendency of the Cleco litigation, the City administration requested that the Alexandria City Council (“City Council”) grant the City approval to retain attorneys to represent the City. Edward G. Randolph (“Mayor Randolph”) was mayor of Alexandria at that time. On July 19, 2005, the City Council complied and adopted ordinance No. 214-1005 (Doc. 77-1, Exh. 3) (“Ordinance”). The Ordinance authorized Mayor Randolph to “enter into a Professional Services Agreement with ... Bridgett Brown,” as well as several other attorneys. (Doc. 77-1, Exh. 3, p. I). 1 The effect of the Ordinance was conditioned upon Mayor Randolph’s signature, any invalid clauses were declared severable, and any conflicting ordinances were repealed.

Subsequently, Ms. Brown entered into an undated “Contract for Legal Services and Contingent Fee Agreement” (“Contract”) with the City. (Doc. 77-1, Exh. 1). Both Mayor Randolph and Ms. Brown signed the Contract. The City was designated as the “Client” in the document, while Ms. Brown was referred to as “Attorney.” (Doc. 77-1, Exh. 1, p. 1). Under the Contract, Ms. Brown was retained “to represent [Client] in all claims related to any and all transactions and/or any and all other relationships Client has or had with Cleco.” (Doc. 77-1, Exh. 1, p. 1). Importantly, the Contract also provided that, “[s]hould Client discharge Attorney for any reason, Client authorizes Attorney to initiate proceedings and/or intervene in any proceedings for fees, costs, advances, guarantees, and any other sums to which Attorney is entitled.” (Doc. 77-1, Exh. 1, P-1)- 2

In November 2006, Mayor Roy was elected, and he appointed Charles E. Johnson, Jr. (“Mr. Johnson”) as city attorney. Mr. Johnson assumed responsibilities as city attorney in January 2007. Shortly thereafter, on February 28, 2007, Mr. Johnson issued a letter to Ms. Brown terminating her representation of the City in *468 the Cleco litigation. (Doc. 77-1, Exh. 2). In this termination letter, Mr. Johnson claimed, without detailed explanation, that Ms. Brown had violated Rule 1.8(b) of the Louisiana Rules of Professional Conduct, which states that “[a] lawyer shall not use information relating to representation of a client to the disadvantage of the client unless the client gives informed consent, except as permitted or required by these Rules.” Moreover, Mr. Johnson claimed 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). Accordingly, Mr. Johnson requested that Ms. Brown “return the entire file, less any work product,” “refrain from any representation, further contact, or communication regarding this case,” and submit a “detailed itemization” of her work on the case. (Doc. 77-1, Exh. 2, p. 2).

Instead, on April 17, 2007, Ms. Brown filed a petition (or complaint) for intervention in the principal litigation. (Doc. 77). In this initial complaint, Ms. Brown sought to recover “fees, cost [sic], and expenses as outlined in the Contract.” (Doc. 77, p. 1). More specifically, the Contract provided for a contingency fee of “ten percent (10%) of the underlying amount recovered including judicial interest.” (Doc. 77-1, Exh. 1, p. 2). Ms. Brown later filed two amended complaints which have little bearing on the proceedings at this point. 3

The City filed the instant Motion for Partial Summary Judgment (Doc. 165) on March 5, 2009. In its motion, the City contends that, as a matter of law, Mr. Johnson had the authority to terminate Ms. Brown’s Contract. 4 The motion necessitates a legal interpretation of Ms. Brown’s Contract and the City’s Charter, and a determination of the extent of Mr. Johnson’s authority, under those documents, to terminate Ms. Brown’s representation of the City in the Cleco litigation. On March 11, 2010, 2010 WL 3328319, the magistrate judge issued a Report and Recommendation suggesting that we grant the City’s motion. (Doc. 382). After carefully reviewing all of the parties’ submissions, we are compelled to approve the magistrate judge’s recommendation and to grant the City’s motion.

II. Law and Analysis

A. Summary Judgment Standard

Under Federal Rule of Civil Procedure 56(c), the Court will grant a party’s motion for summary judgment only if:

the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law.

A genuine issue of material fact exists if the evidence is such that a reasonable jury could return a verdict in favor of the non-moving party. See Anderson v. Liberty *469 Lobby, Inc., 477 U.S. 242, 249-50, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986).

In conducting this analysis, the Court must construe “all of the evidence and all of the factual inferences from the evidence ... in a light most favorable to the party opposing the motion.” Kling Realty Co., Inc. v. Chevron USA, Inc., 575 F.3d 510, 517 (5th Cir.2009). Any doubts are likewise resolved in favor of the nonmoving party. U.S. ex rel Longhi v. United States, 575 F.3d 458, 465 (5th Cir.2009).

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City of Alexandria v. Cleco Corp., 735 F. Supp. 2d 465, 2010 U.S. Dist. LEXIS 84824, 2010 WL 3282961 (W.D. La. 2010).

735 F. Supp. 2d 465 (City of Alexandria v. Cleco Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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