Crowe v. Homesplus Manufactured Housing, Inc.

877 So. 2d 156, 2004 WL 1375742
CourtLouisiana Court of Appeal
DecidedJune 21, 2004
Docket38,382-CA
StatusPublished
Cited by19 cases

This text of 877 So. 2d 156 (Crowe v. Homesplus Manufactured Housing, Inc.) 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
Crowe v. Homesplus Manufactured Housing, Inc., 877 So. 2d 156, 2004 WL 1375742 (La. Ct. App. 2004).

Opinion

877 So.2d 156 (2004)

William E. CROWE, Plaintiff-Appellee,
v.
HOMESPLUS MANUFACTURED HOUSING, INC.; Jeff Foote, Individually; and Shane Scott Upshaw, Individually, Defendant-Appellant.

No. 38,382-CA.

Court of Appeal of Louisiana, Second Circuit.

June 21, 2004.

Watson, McMillin & Harrison, L.L.P. by David Carlton McMillin, Monroe, for Defendant-Appellant, Homesplus Manufactured Housing, Inc./ Defendants-Appellees, Jeff Foote and Shane Scott Upshaw.

Michael S. Coyle, Ruston, for Plaintiff-Appellee, William E. Crowe.

Before WILLIAMS, PEATROSS and DREW, JJ.

DREW, J.

The primary issue is whether the trial court erred in finding that an oral contract of employment existed between William E. Crowe, plaintiff, and HomesPlus Manufactured Housing Inc., defendant. HomesPlus contended that the trial court was clearly wrong in finding the evidence was sufficient to prove the parties entered into an oral employment contract. For the following reasons, the judgment of the trial court in favor of Crowe is affirmed.

FACTUAL AND PROCEDURAL BACKGROUND

Crowe was a co-owner with William J. Meyer of Bud's Mobile Homes d/b/a Lincoln Home Center, a business which sold *157 and serviced mobile homes in Ruston. Jeff Foote and Shane Scott Upshaw, officers of HomesPlus, contacted Crowe in March 1999 because they wished to purchase Bud's and the property on which the business was located.

Via stipulation, the parties placed into evidence the July 1999 letter of intent signed by Meyer, Crowe, and Foote for HomesPlus; an unsigned employment contract; the October 13 memo to a law partner from defendant's primary counsel, Tod Cagle; the October 14, 1999, memo from his law partner to Cagle; the settlement statement; and the HomesPlus Ruston sales figures for 2000. HomesPlus placed into evidence without objection: (1) the act of sale of the business and moveable property; (2) the deed executed by the parties to the immovable property; (3) Crowe's pay stub from HomesPlus; (4) an initial offer from Upshaw dated May 21, 1999; and (5) a counterproposal from Crowe dated June 11, 1999.

From the judgment in favor of Crowe, HomesPlus appealed.

REASONS FOR JUDGMENT

The trial court observed that:

• For 16 years Crowe co-owned Bud's located on the I-20 service road in Ruston.
• Foote and Upshaw approached Crowe and his co-owner in March 1999 and the parties negotiated for the sale of the business and immovable property.
• Crowe's contention was that, as partial consideration for the sale, Crowe would be employed as General Manager of HomesPlus for a period not less than one year at a salary of $4,000 per month plus 40% of the gross profits in excess of $120,000.
• In November 1999, in two acts of sale, Crowe and his partner sold the business and the immovable property to HomesPlus.
• No written employment contract was executed, but Crowe began working for HomesPlus at the agreed salary and capacity on November 23, 1999.
• On December 7, 1999, HomesPlus terminated Crowe, who alleged he was wrongfully terminated and had a one-year employment contract. HomesPlus maintained that Crowe was an "at will" employee who was fired for failure to perform employment duties.
• Crowe sued HomesPlus, Upshaw, and Foote; by stipulation, the individual defendants were dismissed from the action.

The trial court cited La. C.C. art. 1846, which provides, in pertinent part:

If the price or value is in excess of five hundred dollars, the contract must be proved by at least one witness and other corroborating circumstances.

In addition to Crowe's testimony, the trial court found the following was corroborating evidence:

• All testified that it was Foote and Upshaw's idea to hire Crowe; Foote and Upshaw considered Crowe's employment essential to the business.
• The letter of intent among the parties corroborated Crowe's assertions concerning the terms of the employment agreement, stating that if no employment contract was reached, the sale terminated and the buyers could have their $50,000 deposit refunded.
• Neither Upshaw nor Foote asked for a return of the deposit.
• Other documents reflected the parties' attempts to complete an employment contract.

The parties testified that disagreements over various "perks" requested by Crowe resulted in the failure to sign the employment *158 contract. The trial court observed that the basic terms of Crowe's employment were never at issue and noted that no one told Crowe his employment was dependent on a written contract.

The trial court concluded that Crowe had met his burden of proving that he had an oral contract of employment for a term of one year at $4,000 per month and that HomesPlus terminated Crowe without cause. Therefore, HomesPlus was responsible for Crowe's damages of $48,000 less salary already paid.

TESTIMONY

By Bill Crowe

In addition to recounting his background and 24 years' employment in the mobile home industry, Crowe testified that:

• He belonged to and held offices in various state and national manufactured housing associations.
• He was being inducted into the Louisiana Manufactured Housing Association's Hall of Fame.
• He had been appointed by the governor to the Louisiana Manufactured Housing Commission.
• Foote and Upshaw approached him at a mobile home show in March 1999 about buying the business and the land on which it was located; they also stated they wanted Crowe to work for HomesPlus for a minimum of one year due to his reputation and good will in the community.
• Negotiations began in April 1999, primarily by phone and fax.
• If HomesPlus bought the business, Foote and Upshaw specified that they would hire Crowe.
• The agreed prices were $175,000 for the land and $100,000 for the business.
• Part of the consideration for the sale was HomesPlus's agreement to employ Crowe as general manager of the Lincoln Parish business for not less than one year at $4,000 per month plus 40% of the gross profits (less any salaries) exceeding $120,000.
• Neither Foote nor Upshaw ever requested the $50,000 deposit be returned or stated to him that the sale closing would not occur.
• The letter of intent did not require that Crowe's employment contract had to be written.
• Crowe was satisfied with the agreed compensation package and went to work on November 23, 1999; he was paid per the agreement until his termination on December 7, 1999.
• Crowe received no employment or policy/procedure manual.
• At termination, Crowe was informed HomesPlus had a good young salesman who wanted a promotion; the Lincoln Parish location was the only place the defendant could make the other employee a manager.
• During negotiations, Foote and Upshaw told Crowe that HomesPlus would not purchase the business if Crowe did not agree to be employed.

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Bluebook (online)
877 So. 2d 156, 2004 WL 1375742, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crowe-v-homesplus-manufactured-housing-inc-lactapp-2004.