Gilbert v. Visone

708 So. 2d 496, 1998 WL 78249
CourtLouisiana Court of Appeal
DecidedFebruary 25, 1998
Docket30204-CA
StatusPublished
Cited by16 cases

This text of 708 So. 2d 496 (Gilbert v. Visone) 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
Gilbert v. Visone, 708 So. 2d 496, 1998 WL 78249 (La. Ct. App. 1998).

Opinion

708 So.2d 496 (1998)

Noel M. GILBERT, et al., Plaintiff-Appellant,
v.
John P. VISONE, Defendant-Appellee.

No. 30204-CA.

Court of Appeal of Louisiana, Second Circuit.

February 25, 1998.

*497 Comegys, Jones, Odom, Spruiell & Davis, L.L.P. by Frank H. Spruiell, Jr., for Plaintiff-Appellant Cardio Devices, Inc.

Wiener, Weiss & Madison by Larry Feldman, Jr., Mark L. Hornsby, Shreveport, for Defendant-Appellee.

Before MARVIN, C.J., and STEWART and GASKINS, JJ.

MARVIN, Chief Judge.

In this action filed in 1984 seeking damages for breach of contract, plaintiff Cardio Devices, Inc., which had once been a distributor of Telectronics cardiac pacemakers, appeals a judgment sustaining an exception of res judicata barring Cardio's demands against Cardio's former sales representative, defendant Visone.

In a 1980 federal court diversity action Cardio had sued Telectronics, alleging that Telectronics had breached or wrongly terminated its contract with Cardio. The federal court found Telectronics justified in terminating its contract and rendered a judgment dismissing Cardio's breach of contract demands. Shortly after that judgment was affirmed on appeal in 1984, Cardio brought the instant breach of contract action in state court against Visone, who had been a witness in the federal court action.[1]

In 1996, about 12 years after Cardio brought the state court action, Visone filed his exception of res judicata. Applying the former La. C.C. art. 2286 law, the trial court sustained the exception, reasoning that the *498 two actions involved the same or virtually the same parties and cause of action.

We reverse and remand.

FACTS

Cardio, a Louisiana corporation, in 1979 entered into a two-year exclusive sales agreement with Telectronics, a pacemaker manufacturer domiciled in Colorado, to sell Telectronics products in six southern states, including Louisiana, Arkansas and Mississippi. In that same year, Cardio then separately contracted with John Visone, a Shreveport resident, to serve as Cardio's sales representative in north Louisiana and south Arkansas for roughly the same two-year period, 1979-1981, irrespective of which manufacturer or manufacturers supplied the products to be sold by Cardio during the contract period.

Notwithstanding this express provision, Visone unilaterally terminated his contractual relationship with Cardio after Telectronics terminated its contract with Cardio [for cause as the federal court later found] and accepted Telectronics' offer to serve as an exclusive sales representative of Teletronics in the same territory, as evidenced by a third contract in the record.

Visone was not a party to the federal court action, nor to the 1979 exclusive sales agreement between Telectronics and Cardio. The federal court's jurisdiction to adjudicate Cardio's breach of contract claim against Telectronics, the only claim asserted in the complaint, was premised solely on the diversity of citizenship between the two litigants. The only portions of the federal court record that appear in this record are the complaint, the district court's judgment and reasons for judgment, the per curiam affirmance by the 5th Circuit, and an excerpt from the trial transcript in which the court admonished Cardio's counsel, apparently during his cross-examination of Visone, to cease questioning the witness about the reasons for his departure from Cardio. The court stated:

... I let you touch on this for credibility purposes; but ... if you all want to file a lawsuit against this individual, that's another case at another time you all can litigate that one. But we are not going to litigate this agreement [between Cardio and Visone] and who violated what. (Our brackets.)

Visone's exception of res judicata was presented to the trial court on documentary evidence only, consisting primarily of the pleadings, the three contracts and the limited portions of the federal court record noted above. After argument by adverse counsel, the trial court essentially agreed with Visone's contentions that the federal court judgment against Cardio in favor of Teletronics "necessarily determined" the obligations between Cardio and Visone, and that "Visone cannot be liable [to Cardio] because Telectronics was not liable."

Our review compels us to find that the record does not support, but negates, the factual premise upon which the court's legal conclusion is based.

THE CONTRACTS

Each of the three contracts mentioned above—Telectronics-Cardio, Cardio-Visone and Telectronics-Visone—is simply labeled a "Representative Agreement." In this opinion we shall refer to the first agreement as the "Cardio exclusive sales agreement," to the second as the "Visone sales representative agreement," and to the third as the "Visone exclusive sales agreement."

Cardio Exclusive Sales Agreement

This agreement, for the period May 1979— June 1981, names Cardio/Gilbert as the "Representative" of Telectronics in six southern states including Louisiana, Arkansas and Mississippi. Cardio's status as the exclusive representative of Telectronics in the sales territory is not expressly stated in the agreement but was apparently understood and intended by the parties. The agreement required Cardio to meet a monthly sales quota, "to be decided at a later date, no later than 7/31/79." Telectronics agreed to pay a specified commission on each "quota unit" and a lesser commission on "other units."

Visone Sales Representative Agreement

A few months after executing the exclusive sales agreement with Telectronics, Cardio contracted with Visone, a resident of Shreveport, *499 to represent Cardio in "North Louisiana and Southern Arkansas" for the period October 1979—September 1981. The agreement establishes Visone's monthly sales quota but does not specify the amount of Visone's commissions.

We emphasize this portion of the agreement:

... It is expressly understood by [Visone] that [Cardio] may from time to time ... add, delete, or change the manufacturers... of some of the products that [Cardio] sells ... and that [Visone] is cognizant of this possibility and hereby agrees ... that all provisions of this contract shall apply equally to any new or changed manufacturers.

Visone also agreed "not to represent or work for a competitor of [Cardio] or its pacemaker manufacturers" in the sales territory for one year after termination of the agreement with Cardio. Our emphasis. Cardio has not specifically pleaded Visone's breach of the agreement not to compete in the state court action, perhaps because Telectronics, a pacemaker manufacturer, may not be considered a competitor of Cardio.

Visone asserted in the trial court that he "was a party to the contract between Cardio and Telectronics" by virtue of his having signed an addendum to his agreement with Cardio in which he bound himself to the terms and conditions of Cardio's exclusive sales agreement with Telectronics. That assertion or argument is the basis of Visone's contention that he was essentially a subrepresentative or subagent of Telectronics during the time he worked for Cardio, and that his obligations under the agreement with Cardio were "derivative of" and dependent on the continuation of Cardio's contractual relationship with Telectronics. Cardio disputes that assertion. Visone conceded at oral argument in this court that he is unable to locate and produce such a signed addendum to his contract with Cardio.

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Cite This Page — Counsel Stack

Bluebook (online)
708 So. 2d 496, 1998 WL 78249, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gilbert-v-visone-lactapp-1998.