Collins Dozer Service, Inc. v. Gibbs

502 So. 2d 1174, 1987 La. App. LEXIS 8754
CourtLouisiana Court of Appeal
DecidedFebruary 19, 1987
Docket85-856
StatusPublished
Cited by3 cases

This text of 502 So. 2d 1174 (Collins Dozer Service, Inc. v. Gibbs) 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
Collins Dozer Service, Inc. v. Gibbs, 502 So. 2d 1174, 1987 La. App. LEXIS 8754 (La. Ct. App. 1987).

Opinion

502 So.2d 1174 (1987)

COLLINS DOZER SERVICE, INC., Plaintiff-Appellee,
v.
Sidney GIBBS, et al., Defendants-Appellants.

No. 85-856.

Court of Appeal of Louisiana, Third Circuit.

February 19, 1987.
Writ Denied April 20, 1987.

Henry H. Lemoine, Jr., Pineville, for defendants-appellants.

Gahagan and Gahagan, H.C. Gahagan, Jr., Natchitoches, for plaintiff-appellee.

Chris J. Roy, Alexandria, for defendants-appellees.

Before FORET, STOKER, LABORDE and KING, JJ., and PAVY[*], J. Pro Tem.

*1175 LABORDE, Judge.

Defendants, Soreal N.V. Corporation and Ceteno Corporation, appeal the judgment of the trial court which found that defendants breached an oral contract with plaintiff, Collins Dozer Service, Inc. Defendants also appeal the trial court's dismissal of their third party demands against Sidney Gibbs and Parker Gibbs. Plaintiff answers urging the dismissal of defendants' appeal; in the alternative, that the judgment be affirmed on the merits, but that damages be increased to not less than $25,000.00. Plaintiff does not reurge its action against the Gibbs on appeal.

The able trial judge summarized the salient facts of this case in his reasons for judgment which we have taken the liberty of reproducing below:

"This suit is for breach of an oral contract between the plaintiff and defendants for clearing land located in Rapides Parish. The land in question, `Echo Ranch', is owned by the defendants Soreal N.V. Corporation and Ceteno Corporation. At the time of the alleged contract Echo Ranch was managed by Sherman G. Knowles pursuant to a farm management contract with defendant corporations.
In May, 1980, Sidney Gibbs and his son, Parker Gibbs, lessees of Echo Ranch, arranged through a friend, Don Descant, to have Don Collins attend a pig roast on Echo Ranch. The evidence indicates that Don Collins was invited to the pig roast to meet with representatives of the Echo Ranch for purposes of discussing land clearing.
On the afternoon of the pig roast Sidney Gibbs took Don Collins on a tour of the ranch and discussed the areas that were to be cleared. During the pig roast Sidney and Parker Gibbs, Sherman Knowles, Christian Van DeViver and Guido Clays, the latter two gentlemen being representatives of the defendant corporations, and Don Collins discussed the need to have certain land clearing performed. Don Collins' experience and ability to clear the acreage in question in a short period of time were also discussed.
Collins testified that he was instructed by Sidney Gibbs to move the land clearing equipment and men needed to complete the clearing operation onto Echo Ranch. After having moved his equipment onto the ranch, Don Collins was denied access to the property for clearing. On or about July 18, 1980, Collins relocated his equipment and men to Natchitoches Parish, Louisiana.
The issues presented before this Court are whether there existed actual or apparent authority on the part of Sidney Gibbs and/or Sherman Knowles to enter into a contract with Collins Dozer Service, Inc., for land clearing operations; and, if these acts were unauthorized, were they ratified by the defendant corporations.
As evidenced by the deposition of Sherman Knowles, it was decided from the inception of the purchase that the land in question needed to be cleared. Meetings took place between Gary Partney, the registered agent for the corporations, Christian VanDeViver [sic], Guido Clays, Sherman Knowles and Sidney Gibbs concerning the need for clearing the timberland. Knowles stated that because Sidney Gibbs had previous experience in land clearing, it would be better to allow Gibbs to select someone to do the clearing operation. There was also a discussion as to the necessity that the land clearing be completed in a relatively short period of time. Knowles stated that there were discussions concerning the amount of acreage to be cleared and the price that was to be paid to Don Collins. Collins trial exhibit # 7 further shows the intent of the parties to contract with Collins Dozer Service, Inc., for land clearing. This exhibit is a contract prepared by Gary Partney, drafted for the purpose of effecting a written agreement with Collins Dozer Service, Inc. Apparently, the selection of Don Collins *1176 by Sidney Gibbs was communicated to Mr. Partney for the purpose of preparing the written contract.
Defendants filed in evidence resolutions of the two corporations requiring that all contracts were to be in writing and approved by Gary Partney. Defendants sought to prove that all contracts in the past for services performed on Echo Ranch were in writing and approved by Partney. However, the evidence indicates that Sidney Gibbs and/or Sherman Knowles, on previous occasions had orally contracted for work to be performed on the ranch without prior approval of Partney. Although prior written approval was not obtained, they were still allowed to submit those bills to Partney for payment. It was further shown at trial that the defendants' alleged requirement that all contracts be in writing was not communicated to Don Collins by the defendants."

After carefully reviewing the record and applicable law, we are left with the inexorable conclusion that the trial court was manifestly erroneous in finding that Sidney Gibbs acted with the implied consent of defendant corporations and with apparent authority to act on their behalf. Further, we find no express authority to empower Sidney Gibbs to bind defendant corporations as their authorized agent.[1]

Apparent authority is a concept of estoppel operating in favor of a third person seeking to bind a principal for the unauthorized act of a putative agent. Byles Welding & Tractor, Inc. v. E.W. McDaniel, 441 So.2d 48, 49 (La.App. 3d Cir.1983). The burden of proving apparent authority is on the party seeking to bind the principal. Id. at 50.

The judicially created doctrine of apparent authority has two requirements which must be met before application is possible: (1) the principal must make some form of manifestation to the innocent third party; and (2) the third party must reasonably rely on the purported authority of the agent as a result of the principal's manifestations. Pargas, Inc. v. Estate of Taylor, 416 So.2d 1358, 1362 (La.App. 3d Cir.1982); Lilliedahl & Mitchel, Inc. v. Avoyelles Trust and Savings, 352 So.2d 781, 787 (La.App. 3d Cir.1977). In the case sub judice, we find no evidence of the defendant corporations clothing Sidney Gibbs with apparent authority to contract with Collins Dozer Service, Inc.

As mentioned earlier, Donald Collins was invited to a pig roast as a candidate to clear land at defendant corporations' farm in Echo, Louisiana. He was invited through Don Descant, a mutual friend of Mr. Collins and Parker Gibbs, Sidney's son. Mr. Collins knew no one at the social except Don Descant. Mr. Collins had never heard of the defendant corporations.

Mr. Collins knew only that the Gibbs were the lessees of the Echo Ranch which was owned by the defendant corporations. He was taken by the Gibbs to survey the property to be cleared. Mr. Collins was introduced to several other people at the gathering, including Sherman Knowles, Guido Clays, and Christian Van DeViver, the latter two being foreign representatives of the defendant corporations. The local representative of the defendant corporations was Gary W. Partney who did not attend the pig roast. The two corporations, Soreal N.V. and Ceteno, each appointed Mr.

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Related

Desormeaux v. Lalonde
578 So. 2d 226 (Louisiana Court of Appeal, 1991)
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502 So. 2d 1174, 1987 La. App. LEXIS 8754, Counsel Stack Legal Research, https://law.counselstack.com/opinion/collins-dozer-service-inc-v-gibbs-lactapp-1987.