Doris M. Wellan, PhD. v. Comfort Innovations, LLC

CourtLouisiana Court of Appeal
DecidedJune 12, 2020
Docket2019CA0812
StatusUnknown

This text of Doris M. Wellan, PhD. v. Comfort Innovations, LLC (Doris M. Wellan, PhD. v. Comfort Innovations, LLC) 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
Doris M. Wellan, PhD. v. Comfort Innovations, LLC, (La. Ct. App. 2020).

Opinion

STATE OF LOUISIANA

COURT OF APPEAL

FIRST CIRCUIT

2019 CA 0812

DORIS M. WELLAN, PH.D.

VERSUS

COMFORT INNOVATIONS LLC

DATE OF JUDGMENT.- f; JUN 1 2 2020

ON APPEAL FROM THE NINETEENTH JUDICIAL DISTRICT COURT NUMBER 615242, SECTION 25, PARISH OF EAST BATON ROUGE STATE OF LOUISIANA

HONORABLE WILSON E. FIELDS, JUDGE

Gregory Thomas Akers Counsel for Plaintiff -Appellee Joshua P. Melder Doris M. Wellan, PhD Baton Rouge, Louisiana

David Allen Lowe Counsel for Defendant -Appellant Baton Rouge, Louisiana Comfort Innovations, LLC

BEFORE: McDONALD, THERIOT, AND CHUTZ, JJ.

Disposition: AMENDED AND, AS AMENDED, AFFIRMED. CHUTZ, J.

Defendant -appellant, Comfort Innovations, LLC ( CI), appeals the trial

court' s judgment awarding unpaid rent and conversion/ unjust enrichment relief to

plaintiff -appellee, Doris Wellan, as the dispossessed owner of a corporeal movable.

We amend and, as amended, affirm.

FACTUAL AND PROCEDURAL BACKGROUND

Wellan filed this lawsuit on September 10, 2012, averring a breach of a 66 -

month written lease of movable property that she entered into with CI in July 2007.

The movable property consisted of "The Mold," which was described in the lease

as "[ a] series of molds ... used to produce all of the plastic parts for the assembly

of a portable air conditioner, under patent # US 7, 188, 489 B2" held by CI.

According to the petition, CI had defaulted on the required monthly payments and,

despite demand by Wellan, refused to make payments in accordance with the terms

of the lease. Wellan claimed " an amount sufficient to compensate her for past -due

monthly payments" from CI.

CI answered the lawsuit on April 4, 2013, generally denied Wellan' s

allegations, and asserted a reconventional demand. In its claim against Wellan, CI

averred that to raise capital and expand its business relative to its portable air

conditioner invention, it had entered into an investment contract with Wellan

whereby, for a $ 300, 000. 00 investment by Wellan, CI agreed to repay her original

investment plus a return over a period of a little more than five years. According to

CI, the " investment contract" was memorialized in part by the lease agreement

executed on July 20, 2007, and CI " was to be and would always be the majority

owner" of The Mold while Wellan would simply receive a return on her

investment. Thus, the lease agreement " was a simulation of part of the terms,

2 conditions, and understandings of the investment contract" into which the parties

had entered.

In its reconventional demand, Cl acknowledged that Wellan had paid

266, 685. 32 of the $ 300, 000. 00 that she had agreed to pay but refused to pay the

balance. Claiming that Wellan' s failure to pay the remaining $ 33, 314. 68

constituted a breach of the investment contract, CI sought damages, including the

remaining sums on the original investment amount. Wellan answered, generally

denying CI' s allegations.' The parties engaged in discovery and Wellan filed a

motion for partial summary judgment, which was denied.

A pretrial order was signed by the trial court on November 6, 2017, and the

matter was tried on November 15, 2017. On February 5, 2019, the trial court issued

a final judgment against CI, awarding Wellan the amounts of $298, 364. 66 for

unpaid rent and $ 826, 125. 00 for conversion and unjust enrichment relief.

Additionally, the judgment dismissed all of CI' s claims.2 This appeal followed.

UNPAID RENT

Challenging the award of unpaid rent to Wellan in accordance with the terms

of the written lease agreement, Cl maintains the trial court erred in failing to

conclude that Wellan breached the lease agreement by failing to deliver The Mold

I Wellan also alleged that she and Cl had entered into an independent contractor agreement on May 1, 2007, but that Cl never requested the consulting services contemplated by the agreement. The trial court granted an involuntary dismissal of Wellan' s claim for relief under the agreement, and Wellan has not appealed that disposition.

z Although the judgment states it was signed on February 5, 2018, the notice of judgment establishes that it was rendered in 2019. Additionally, we note that the trial court initially issued a judgment on March 12, 2018, which this court concluded was not a valid final judgment because it failed to specifically identify the party against whom judgment was rendered and dismissed the appeal. See Wellan v. Comfort Innovations, LLC, 2018- 1260 ( La. App. 1st Cir. 12/ 27/ 18) ( unpublished action). Thereafter, the trial court issued the judgment presently under review, which Cl timely appealed.

3 and to pay the full sum of $300, 000.00. 3

Where factual findings are pertinent to the interpretation of a contract, those

factual findings are not to be disturbed unless manifest error is shown. But when

appellate review is not premised upon any factual findings made at the trial level,

but is, instead, based upon an independent review and examination of the contract

on its face, the manifest error rule does not apply. In such cases, appellate review

of questions of law is simply whether the trial court was legally correct or legally

incorrect. This determination of a legal question is made de novo. Whether a

contract is ambiguous or not is a question of law. Bonvillain Builders, LLC v.

Gentile, 2008- 1994 ( La. App. 1st Cir. 10/ 30/ 09), 29 So. 3d 625, 629, writ denied,

2010- 0059 ( La. 3/ 26/ 10), 29 So. 3d 1264.

At trial, Wellan testified that she and CI verbally agreed for her to purchase

The Mold. She pledged some of her assets and the Bank of Montgomery ( bank)

was willing to give her " a certain amount" of money, which she believed would

amount to between $ 200, 000. 00 and $ 250, 000. 00. According to Wellan,

w]hatever I was able to get from the bank" was the amount she agreed to pay for

The Mold. Wellan recalled having discussed the purchase of The Mold with Cecil

Cavanaugh, who was her CPA and whom she understood would serve as Chief

Financial Officer (CFO) for CI.

Wellan made two payments to CI for the purchase of The Mold. The first

was $ 150, 000. 00 given to CI on August 16, 2007. The second payment was

3 Asserting that Wellan breached the lease agreement, Cl also maintains that the trial court erred in denying its motion for an involuntary dismissal. See La. C. C. P. art. 1672B (" In an action tried by the court without a jury, after the plaintiff has completed the presentation of his evidence, any party, without waiving his right to offer evidence in the event the motion is not granted, may move for a dismissal of the action as to him on the ground that upon the facts and law, the plaintiff has shown no right to relief."). Although Cl moved for a directed verdict, the error is one of form rather than substance, as the ultimate object of both motions is the same. The trial court, in its discretion, denied CI' s motion, heard all of the evidence presented, and rendered its decision on the merits — a decision that included a damage award to Wellan for conversion. Because we affirm that award on appeal, it is clear that Wellan has shown a right to relief, and we find no error in the trial court' s denial of CI' s motion.

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