Creamer Brothers, Inc. v. Hicks

907 So. 2d 880, 2005 WL 1523317
CourtLouisiana Court of Appeal
DecidedJune 29, 2005
Docket39,799-CA
StatusPublished
Cited by4 cases

This text of 907 So. 2d 880 (Creamer Brothers, Inc. v. Hicks) 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
Creamer Brothers, Inc. v. Hicks, 907 So. 2d 880, 2005 WL 1523317 (La. Ct. App. 2005).

Opinion

907 So.2d 880 (2005)

CREAMER BROTHERS, INC. and Robert N. Creamer, Plaintiffs-Appellants
v.
Lisa Annette Whitney HICKS a/k/a Lisa Whitney, and Nelson W. Cameron, Defendants-Appellees.

No. 39,799-CA.

Court of Appeal of Louisiana, Second Circuit.

June 29, 2005.

*881 William A. Lanigan, III, Shreveport, for Plaintiffs Appellants.

Cook, Yancey, King & Galloway, by Herschel E. Richard, Jr., Douglas L. Harville, Shreveport, for Defendant Appellee Nelson W. Cameron.

Ginger W. Johnson, Shreveport, for Defendant Appellee Lisa Annette Whitney Hicks.

Before STEWART, GASKINS and MOORE, JJ.

STEWART, J.

The plaintiffs, Creamer Brothers, Inc., and Robert Creamer (referred to collectively as "Creamer"), appeal a judgment of dismissal on an exception of no cause of action as to their claims for damages against the defendant, Nelson Cameron, for breach of contract, breach of fiduciary duty, and loss of business opportunity. Following our de novo review of the record, we find that the exception of no cause of action should not have been granted. The factual allegations when accepted as true state a cause of action for which relief may be granted if the allegations are borne out at trial. Therefore, we reverse the trial court's judgment and remand for further proceedings.

FACTS AND PROCEDURAL HISTORY

The facts as set forth in Creamer's petition and attachments thereto show that he filed suit on an open account in 1996, against Lisa Annette Whitney Hicks (referred to as "Whitney" in the petition and herein), a former employee. She reconvened for damages alleging sexual harassment, battery, abuse of process, and violations of the Violence Against Women Act, 42 U.S.C. § 13981 et seq. The matter was *882 removed to the federal court where a trial ensued. The jury awarded Creamer $535 on his main demand. The jury also found in favor of Whitney and awarded her $13,000 for loss of wages, $17,000 in general damages, $200 in medical expenses, and $31,000 in attorney fees for a total award of $60,200. The judgment against Creamer was affirmed by the Fifth Circuit on July 16, 1999. Creamer did not seek a writ of certiorari before the U.S. Supreme Court.

Whitney's attorney, Nelson Cameron, scheduled a judgment debtor examination for September 27, 1999. Creamer negotiated an agreement with Cameron whereby Whitney would forgo her right to the judgment debtor examination upon Creamer's tender of $65,000 for deposit into Cameron's client trust account as a demonstration of Creamer's good faith and ability to ultimately pay the judgment. A copy of the September 27, 1999, letter agreement was attached as Exhibit A to Creamer's petition. The letter states that the funds "will not be disbursed until the final resolution of this matter and the mutual agreement of the parties." The letter agreement further provides that interest accrued on the deposit will be payable to Whitney "pending a final affirmation of the judgment in question."

Creamer's petition then recounts that on November 4, 1999, Cameron notified Creamer's trial attorney, James Madison Woods, of his intent to disburse the funds. This notification letter is attached as Exhibit C to Creamer's petition. In the letter, Cameron claims that Creamer owes $400 more than the $65,000 he tendered. By a letter dated November 11, 1999, Woods notified Cameron that Creamer did not agree to the disbursement. The letter, which is attached to the petition as Exhibit D, suggests that the parties must draft settlement and receipt and release documents, determine the legal status of the money held in Cameron's client trust account, and answer questions about Cameron's "third increment of attorneys fees." Creamer's petition alleges that despite his objections, Cameron disbursed the funds to Whitney in two payments between October 1999 and December 1999.

Then, on November 19, 1999, Cameron filed a pleading styled "Motion to Make Judgment Executory, For Writ of FIFA, For Garnishment, Consent by Garnishee" in the federal district court. The pleading which is attached to Creamer's petition as Exhibit F states that the total due Whitney for her award and attorney fees is $60,361.37 and that Cameron will be filing another application for attorney fees that will exceed $5,000. In response, Creamer filed a motion to quash, upon which the federal magistrate scheduled a hearing and issued a minute entry order stating, "Counsel for defendant is directed not to disburse the funds in question pending further order." According to Creamer's petition, Cameron suggested at the hearing, the transcript of which is attached to the petition as Exhibit G, that the funds remained in his account. The hearing transcript shows that the federal magistrate denied Creamer's motion to quash, because no writ of fieri facias had yet been issued. Cameron then filed a motion for attorney fees in January 2000, for his efforts to collect on the past awards. In a memorandum ruling on April 28, 2000, the magistrate denied the motion as being inadequate and premature. The ruling is attached to the petition as Exhibit H. It notes that Whitney had not yet met the prerequisite to seizure or garnishment by obtaining a writ of fieri facias and that she "is no closer to execution of the past awards now than she was on the days they were entered." The ruling also provides that the denial of the motion for attorney fees is without prejudice and that Whitney *883 may file another motion for fees if she takes future steps to collect the past awards.

Nine months later, on January 26, 2001, Creamer, through counsel, inquired about the status of the funds in Cameron's client trust account. By letter dated February 7, 2001, Exhibit I attached to the petition, Cameron replied that Creamer's funds had been "accepted and disbursed."

Creamer asserted four claims against Cameron based on these factual allegations. First, Creamer alleged that Cameron breached their agreement and misappropriated the funds tendered by Creamer for deposit into Cameron's client trust account when Cameron withdrew the funds without Creamer's consent. Second, Creamer alleged an abuse of process claim that was later voluntarily dismissed by him. Third, Creamer alleged that his tender of the funds for deposit into Cameron's client trust account created a fiduciary relationship between them which Cameron breached when he seized and disbursed the funds without obtaining Creamer's consent as per their agreement. Fourth, and as an alternative should the trial court find disbursement of the funds was not in violation of the agreement, Creamer alleged that Cameron caused him to lose business opportunities due to his failure to cancel the judgment upon receiving the funds in September 1999, and his alleged concealment until January 2001, of the fact that he had disbursed the funds. This latter complaint was based on financing allegedly denied to Creamer because of the outstanding judgment against him.

In response to Creamer's petition, Cameron filed a peremptory exception of no cause of action as to the first, second, and fourth claims described in the preceding paragraph. Cameron alleged that Creamer tendered the funds voluntarily, that the funds were not extrajudicially seized, and that the funds were disbursed in accordance with the valid conditions of the agreement. Cameron argued that the agreement was subject to a suspensive condition that the funds could not be disbursed without mutual consent and that the condition was null as it depended solely on Creamer's will.

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Cite This Page — Counsel Stack

Bluebook (online)
907 So. 2d 880, 2005 WL 1523317, Counsel Stack Legal Research, https://law.counselstack.com/opinion/creamer-brothers-inc-v-hicks-lactapp-2005.