Doland v. ACM Gaming Co.

921 So. 2d 196, 2005 WL 3579329
CourtLouisiana Court of Appeal
DecidedMarch 1, 2006
Docket05-427
StatusPublished
Cited by7 cases

This text of 921 So. 2d 196 (Doland v. ACM Gaming 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
Doland v. ACM Gaming Co., 921 So. 2d 196, 2005 WL 3579329 (La. Ct. App. 2006).

Opinion

921 So.2d 196 (2005)

Pat DOLAND d/b/a Pat's of Cameron
v.
ACM GAMING COMPANY.

No. 05-427.

Court of Appeal of Louisiana, Third Circuit.

December 30, 2005.
Opinion Granting Rehearing March 1, 2006.

*198 John Emory Seago, Seago & Carmichael, Baton Rouge, Counsel for: Defendant/Appellant — ACM Gaming Company.

Penelope Quinn Richard, Cameron, Counsel for: Plaintiff/Appellee — Pat Doland d/b/a Pat's of Cameron.

Jack Warner Riffle, Fenet Law Firm, Baton Rouge, Counsel for: Defendant/Appellant — ACM Gaming Company.

Court composed of ULYSSES GENE THIBODEAUX, Chief Judge, BILLY HOWARD EZELL, and J. DAVID PAINTER, Judges.

THIBODEAUX, Chief Judge.

Pat Doland, d/b/a Pat's of Cameron (Doland), sued ACM Gaming Company (ACM) for violations of Louisiana's Unfair Trade Practices and Consumer Protection Law (Unfair Trade Practices Law). After a bench trial, the trial court rendered judgment in favor of Doland and against ACM. ACM has appealed the judgment and has also filed an exception of no right of action with this court, challenging Doland's standing to recover the damages claimed. For the following reasons, we overrule the exception of no right of action and affirm the judgment of the trial court.

ISSUES

ACM, through its exception of no right of action, asks whether "Pat Doland, d/b/a Pat's of Cameron" possesses the legal capacity to sue to recover the damages asserted in the lawsuit or whether the right to recover those damages belongs solely to the entity "Pat's Restaurant of Cameron, Inc."

On appeal, ACM asks this court to determine whether it violated Louisiana's Unfair Trade Practice and Consumer Protection Law by refusing to remove its video poker machines from the premises of the restaurant, despite its belief that a bona fide dispute existed regarding whether the machines could remain on the premises under the existing lease terms. Regarding damages, ACM asks this court to determine whether Doland failed to mitigate his losses when he caused the video poker machines to be disabled prior to the resolution of the lease dispute, thereby limiting his recovery of the damages claimed. Finally, we are asked to review whether Doland proved with reasonable certainty the damages that were awarded by the court.

*199 FACTS AND PROCEDURAL BACKGROUND

At the center of this dispute is a lease agreement between Allied Gaming Management, Inc. (Allied), its assignee, ACM, and Pat's of Cameron. Pat's of Cameron is a restaurant located in Cameron, Louisiana, which is owned and operated by Pat Doland. Allied leased space in the restaurant for the exclusive installation and operation of video poker machines. The lease was entered into on July 19, 1993, for an initial term of three (3) years, ending July 19, 1996. A representative of Allied signed the contract on its behalf. Doland signed his name on the signature line that was generically designated for the lessor.

According to the lease, either party could cancel it after the initial three (3) year term if, within sixty (60) days of the end of the term, written notification of the cancellation was sent to the other party by certified mail. It is undisputed that Doland issued timely notice of his intent to discontinue the lease by letter dated December 8, 1995. Although the lease period ended on July 19, 1996, Allied did not remove the video poker machines. Rather, Allied continued to remit to Doland his share of revenues from the machines. Doland testified that because he was continuing to receive those payments, he decided to allow the machines to remain on the premises on a day-to-day basis until he was able to purchase machines to replace them. He made a handwritten notation on the bottom of the original lease agreement sometime after July 19, 1996, which states, "[p]lease Note: We have agreed to continue with these people until we get our license to buy our own machines."

A year later in August of 1997, Doland learned that Allied had filed for Chapter 11 bankruptcy in 1995 and that its assets had been recently purchased by ACM as a part of a bankruptcy reorganization plan. Allied's July 19, 1993 lease agreement with Doland was included in the asset purchase. After learning of the purported lease assignment to ACM, Doland orally advised at least two employees of ACM that the lease it had assumed terminated in 1996 and that the machines were onsite only on a day-to-day basis. ACM advised that it believed that the lease had been reconducted by Doland's consent to allow the machines to remain onsite after July 19, 1996, and his continued acceptance of gaming revenue. Doland disagreed and demanded removal of the video poker machines. ACM refused and argued that it was not required to remove the machines until such time as Doland gained his own gaming operator's license, as set forth in the terms of the current lease.

Doland's attorney sent a demand letter to ACM on August 11, 1997, requesting removal of the machines within five (5) days of its receipt of the letter in lieu of the institution of legal proceedings. When ACM failed to comply, Doland contacted the Louisiana State Police and requested that the machines be disabled, believing that ACM would be forced to remove the machines as a result. The machines were disabled by the state police on August 27, 1997, but ACM continued to refuse to remove the machines. Consequently, on October 1, 1997, "Pat Doland, d/b/a Pat's of Cameron" filed a "Petition for Damages and Injunctive Relief" in the district court against ACM. A preliminary injunction hearing was held on November 10, 1997, resulting in the issuance of an order by the trial court to ACM to remove its machines within forty-eight (48) hours of the hearing. There is conflicting testimony as to which day the machines were actually removed, but it is undisputed that they were not removed within the forty-eight (48) hours ordered by the court.

*200 Doland contends that during the time period in which he had no working video poker machines at his establishment, he lost patrons and suffered losses in restaurant sales and video gaming revenue. He testified that as long as ACM's machines remained at his restaurant, the state police prohibited him from connecting any additional machines at that location. Doland contended that ACM had knowledge of the fact that he had negotiated a more favorable lease with another company for the placement of video poker machines at the restaurant and that ACM's refusal to remove its machines, even after they were disconnected, was meant to cause him losses and to prevent a competitor from operating machines at that location.

The trial court ruled in favor of "Pat Doland, d/b/a Pat's of Cameron," finding ACM's failure to remove the machines to have been a violation of Louisiana's Unfair Trade Practices and Consumer Protection Law. The court reasoned that the July 19, 1993 lease was timely terminated and that a new day-to-day lease was established after July 19, 1996. Because this new lease was indeterminate, according to the trial court, the video poker machines could remain onsite subject to Doland's will. As a result, the court found that the failure of ACM to remove the machines after receipt of multiple demands from Doland to do so, constituted "a coercive and unethical method to keep those machines on Mr. Doland's property when they no longer had any right to have the machines there." The court stated that Doland was, therefore, "entitled to the damages for their failure to enable him to buy his own machines or, as he ultimately did, to make a more favorable agreement with another company."

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Cite This Page — Counsel Stack

Bluebook (online)
921 So. 2d 196, 2005 WL 3579329, Counsel Stack Legal Research, https://law.counselstack.com/opinion/doland-v-acm-gaming-co-lactapp-2006.