Doneyl Taylor v. Eric Clark

CourtLouisiana Court of Appeal
DecidedJune 24, 2026
Docket56,784-CA
StatusPublished
AuthorEllender

This text of Doneyl Taylor v. Eric Clark (Doneyl Taylor v. Eric Clark) 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
Doneyl Taylor v. Eric Clark, (La. Ct. App. 2026).

Opinion

Judgment rendered June 24, 2026. Application for rehearing may be filed within the delay allowed by Art. 2166, La. C.C.P.

No. 56,784-CA

COURT OF APPEAL SECOND CIRCUIT STATE OF LOUISIANA

*****

DONEYL TAYLOR Plaintiff-Appellee

versus

ERIC CLARK Defendant-Appellant

Appealed from the First Judicial District Court for the Parish of Caddo, Louisiana Trial Court No. 590,969

Honorable Christopher T. Victory, Judge

GOLD, WEEMS, BRUSER, Counsel for Defendant- SUES & RUNDELL Appellant, Eric Clark By: Connor C. Headrick

LAW OFFICES OF J. RANSDELL KEENE Counsel for Plaintiff- By: J. Ransdell Keene Appellee, Doneyl Taylor

AYERS, SHELTON, WILLIAMS, Counsel for Defendant- BENSON & PAINE, LLC Appellee, Chad Garland By: Chaz Coleman

Before STONE, ROBINSON, and ELLENDER, JJ.

STONE, J., dissents with written reasons. ELLENDER, J.,

Eric Clark appeals a judgment ordering him to pay Doneyl Taylor

$20,274.48, representing Taylor’s one-half of the profits from the first year

of operation of a limited liability company, pursuant to an oral agreement to

share profits 50/50 for one year in exchange for $10,000 in start-up capital.

For the reasons expressed, we affirm.

FACTUAL BACKGROUND

Most of the operative facts are drawn from a 2018 pretrial order and a

2020 consent judgment; these are supplemented by trial testimony.

In his portion of the pretrial order, Taylor alleged that, in April 2015,

Clark approached him proposing a joint venture or partnership in a new

business to be called Raising Up Family Services LLC (“RUFS”). The

purpose of RUFS was to provide mental health and counseling services to

people insured under the Louisiana Medicaid system; trial testimony

established Clark and some of his family members had worked at another

agency providing such services, and he felt he could replicate that enterprise

and reap the Medicaid benefits. However, the state required a minimum

$20,000 bank balance to qualify for Medicaid reimbursements, and Clark

did not have this sum. He therefore came to Taylor, who was married to

Clark’s aunt (Clark testified he and Taylor had also partnered in a used-car

business). Taylor also asserted the venture has been successful.

Clark alleged, in his portion of the pretrial order, the two men reached

an agreement whereby each would give $10,000 in start-up cost and, in

return, they would share equally in the profits after costs; further, Taylor

would get his $10,000 back first, followed by 50% of the profits every 90 days. Both parties admitted the agreement was strictly oral; there was no

writing.

Clark repaid Taylor’s initial investment, issuing checks of $5,000 each

in July and October 2015. Taylor alleged, however, after this he repeatedly

asked Clark for an accounting of RUFS’s books and his one-half of the

profits, but Clark never complied. In the pretrial order, Clark asserted RUFS

was unable to comply because it lacked sufficient cash flow.

PROCEDURAL HISTORY

Taylor filed this petition for an accounting and declaratory judgment

in April 2016. He alleged despite amicable demand, Clark had refused to

provide an accounting of RUFS’s revenues, expenses, and profits, and

refused to pay Taylor as agreed. Clark denied all allegations and, through

RUFS, asserted the agreement also included Taylor’s commitment to pay

one-half of RUFS’s business expenses, but he had never done so.

After discovery and pretrial practice, the parties entered the pretrial

order in May 2018 (each side’s contentions are summarized above). The

parties proceeded with discovery, which was at times contentious.

When the parties appeared for trial on December 1, 2020, they

announced they had reached a consent agreement. The court signed a

judgment (drafted by Taylor’s counsel) decreeing the parties are “declared to

be fifty/fifty owners/partners” of RUFS, meaning “50/50 in profit, losses and

expenses with the parties reserving their right to litigate the length of the

partnership agreement[.]” The judgment also appointed a forensic

accountant, Chad Garland, “to review the books and records of [RUFS] and

any related parties for a period of 3 years from its inception and report

his/her findings to counsel and the Court.” 2 The parties then appeared for trial on November 2, 2022 (“the First

Trial”), at which Mr. Garland testified Clark had never provided certain

requested documents and, from his review, there were “literally hundreds of

thousands of dollars of expenses that were not supported.” He explained

that, using the “principle of conservatism,” he placed undocumented

expenses in the “draw account.” Doing “the best that I could do with the

information” provided by Clark, Mr. Garland found RUFS made a net profit

of $82,957.77 in 2015, $485,242.25 in 2016, and $425,220.14 in 2017. On

cross-examination, Mr. Garland elaborated that the 2015 draw of $82,274.48

was almost the same as RUFS’s income: “You can’t draw money out of a

company you don’t earn.”

Taylor testified he thought Mr. Garland’s findings were accurate, and

he was entitled to one-half of RUFS’s profits since inception. He denied

there was any agreement limiting the deal to one year, or that after one year

he could go off and start his own, similar business.1 Taylor’s wife, Cynthia,

also testified the oral agreement made no provision for a time limit. Clark,

however, testified the agreement was for one year only: “at some point at the

end of the year,” Taylor was to get his money back. Clark also offered copies

of filings from the La. Secretary of State showing RUFS was registered on

September 11, 2014, and Taylor was never listed as a partner or owner.

ACTIONS OF THE DISTRICT COURT

At the close of Taylor’s evidence, Clark moved for involuntary

dismissal, on grounds that Taylor failed to prove any kind of partnership.2

1 Taylor also testified he gave the money to Clark in 2014, despite his earlier allegation, in the petition and in the pretrial order, that it was in “April of 2015.” 2 Counsel referred to the motion as a “directed verdict,” but the court correctly construed it as an involuntary dismissal. The concepts are often confused, but the latter 3 The district court initially stated it would “grant the motion for involuntary

dismissal” under La. C.C.P. art. 1672 (B), and then recapped the testimony

and evidence, stating Taylor failed to prove an agreement to be 50/50

partners “for any duration of time at all.” However, Taylor objected,

apparently citing Clark’s assertion in the pretrial order, “The contractual

agreement * * * was to have a term of one year.” After a bench conference,

the court corrected itself and found that Clark “admitted, at some point, that

the duration was for one year.” Based on this admission, the court clarified

its ruling to find “evidence to show that there was some sort of partnership,

and that duration was, at most, one year.” The court also noted Mr.

Garland’s report addressed calendar years, not the first year of operation, so

an additional report would be needed.

Despite this clarification, the court signed a judgment (prepared by

Clark’s counsel) granting the involuntary dismissal unequivocally, with no

reservation for the first year of operation.

Taylor then moved for new trial or partial new trial on grounds the

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Doneyl Taylor v. Eric Clark, Counsel Stack Legal Research, https://law.counselstack.com/opinion/doneyl-taylor-v-eric-clark-lactapp-2026.