Coates v. HILL WHOLESALE DISTRIBUTING CO.

968 So. 2d 315, 2007 La. App. LEXIS 1955, 2007 WL 3086021
CourtLouisiana Court of Appeal
DecidedOctober 24, 2007
Docket42,584-CA
StatusPublished
Cited by3 cases

This text of 968 So. 2d 315 (Coates v. HILL WHOLESALE DISTRIBUTING CO.) 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
Coates v. HILL WHOLESALE DISTRIBUTING CO., 968 So. 2d 315, 2007 La. App. LEXIS 1955, 2007 WL 3086021 (La. Ct. App. 2007).

Opinion

968 So.2d 315 (2007)

Kurt COATES, Plaintiff-Appellant
v.
HILL WHOLESALE DISTRIBUTING COMPANY, Defendant-Appellee.

No. 42,584-CA.

Court of Appeal of Louisiana, Second Circuit.

October 24, 2007.
Rehearing Denied November 29, 2007.

*316 Gauthier, Houghtaling, & Williams, by James M. Williams, Brian J. Houghtaling, Metairie, for Appellant.

McMichael, Medlin, D'Anna & Wedgeworth, L.L.C., by James C. McMichael, Jr., Shreveport, for Appellee.

Before STEWART, DREW and MOORE, JJ.

STEWART, J.

Plaintiff, Kurt Coates, appeals the judgment of the trial court in favor of the defendant, Hill Wholesale Distributing Co. ("HWD"), rejecting plaintiff's demand for damages for the defendant's alleged breach of an employment contract. For the reasons more fully explained herein, we reverse the judgment of the trial court and render judgment in favor of Kurt Coates and against HWD in the amount of $44,123.02.

FACTS

Kurt Coates was hired in May of 2003 by Hill Wholesale Distributing Co. ("HWD"), a countertop and flooring wholesaler based in Shreveport, Louisiana. Coates was hired to work as a floor covering sales representative out of the company's Baton Rouge office at an annual salary of $50,000. Although Coates' salary was guaranteed for one year, he was terminated by HWD on October 31, 2003, less than six months after he began. Coates filed suit against HWD for breach of the employment contract seeking payment of the unpaid portion of his guaranteed one-year salary and penalties and attorneys' fees under La. R.S. 23:631. HWD answered *317 the petition asserting that Coates was fired for good cause, thus relieving it from the salary obligation in the employment contract.

Trial was held on October 31, 2006, during which the court heard testimony from the plaintiff and from HWD's president, Allan Hill. The parties by stipulation also submitted various exhibits into evidence including, but not limited to, the depositions of two HWD employees, Coates' personnel file, his call/sales reports and the documents reflecting his engagement and termination.

EVIDENCE ADDUCED AT TRIAL

The terms of Coates' employment were set forth in a letter from Coates to Allan Hill dated May 13, 2003, and a reply e-mail from Hill to Coates on May 16, 2003. The letter from Coates set forth the following conditions of employment:

1.) an annual salary of $50,000 guaranteed for at least one year;

2.) a company vehicle, together with necessary maintenance expenses and a Fuelman gas card;

3.) a cell phone;

4.) expense reimbursement (meals, hotel, etc.);

5.) health insurance coverage with a limited monthly employee contribution of $200.00;

6.) cost of Cobra coverage to cover lag time between health insurance provided by old employment and new health insurance;

7.) bonus commission based on percentage of profit;

8.) description of territory to be covered;

9.) one week of paid vacation after six months and two weeks after the first year of employment;

10.) HWD would provide a list of job duties, customer lists, and types of customers to be called on; and,

11.) HWD would provide a list of products and any sales quota Coates was expected to meet.

The letter included Coates' request for a one-year guarantee on the salary by explaining that as a new venture for HWD, it could take more than a year to get the project off the ground.

Allan Hill's May 16 reply indicates that the parties were in agreement on everything except the following:

1.) bonuses were to be paid only if the money was available and if HWD was operating at a profit;

2.) joining trade groups at company expense could only be done with prior company approval, and;

3.) two weeks' paid vacation would be granted after the first year of employment, prior to which Coates could use sick leave.

At trial, Allan Hill testified that he had hired Coates in an effort to open up a new product line in south Louisiana and that the two documents referenced above reflected the employment agreement between Coates and HWD. Although Hill admitted that Coates was never provided a sales quota or a list of customers that he was to call on, he described Coates' sales performance during his time at HWD as poor. Mr. Hill identified a document which was provided to and signed by Coates on October 20, 2006, setting forth Coates' duties regarding his employment. The document provided in pertinent part:

• Call reports from previous week & Itinerary for CURRENT week to be faxed to Shreveport office by 9:00 a.m. on Mondays (XXX-XXX-XXXX)
• If need be, appointments can be scheduled during the previous week via cell *318 phone while travelling (sic) & office time so that Mondays can be productive with actual sales calls.
• Go through the local phone books to get your appointments lined out. Also use the AIA listing Roy from Azrock faxed us.
• 8 to 12 physical sales calls per day required (except on office day)

Mr. Hill testified that he had directed Coates' immediate supervisor, Susan Hill, to draft the document and provide it to Coates. Hill further admitted that the October 20, document was the first time Coates had been informed in writing about the need to file call reports and itineraries. However, Hill alleged that Coates had previously been informed verbally on many occasions.

Mr. Hill also identified a "Separation Notice" completed by him indicating that on October 31, 2003, he had orally informed Coates that he was terminated for failure to turn in call reports and itineraries for two weeks. However, when confronted with documentary evidence to the contrary, Mr. Hill conceded that Coates had faxed a report to the office on October 20, 2003, reflecting his activities of the previous week.

Susan Hill, a sales manager with HWD, testified in her deposition that Coates was hired to be a sales representative responsible for calling on floor covering dealers and architects to try and provide sales of the products marketed by HWD. Coates answered to both her and Allan Hill. She testified that Coates was very lethargic, that his sales performance was disappointing, and that he failed to turn in his call reports as required. She testified that she spoke to him on several occasions beginning about three months into Coates' employment and finally drafted the above-referenced October 20, 2003, document listing Coates' duties for him to acknowledge through his signature.

Ms. Hill testified that while she had never documented any of the warnings she had communicated to Coates about his failure to comply with the call report requirements, but that he had been warned on several occasions prior to being provided the written form delineating his obligations. She also testified that on one occasion she had observed Coates drive his company vehicle after drinking alcohol at a work function. However, she did not recall addressing the matter with Coates as a violation of company policy. As far as she was concerned, the only reason for Coates' termination was his failure to turn in call reports as required of him.

Wanda Wallace, another HWD employee, was also deposed. She testified that she was the manager of the Baton Rouge office during Coates' employment but that her duties did not include supervising Coates or any other sales representative.

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968 So. 2d 315, 2007 La. App. LEXIS 1955, 2007 WL 3086021, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coates-v-hill-wholesale-distributing-co-lactapp-2007.