Gilbert v. Visone

743 So. 2d 909, 1999 WL 974691
CourtLouisiana Court of Appeal
DecidedOctober 27, 1999
Docket32,303-CA
StatusPublished
Cited by5 cases

This text of 743 So. 2d 909 (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, 743 So. 2d 909, 1999 WL 974691 (La. Ct. App. 1999).

Opinion

743 So.2d 909 (1999)

Noel M. GILBERT & Cardio Devices, Inc., Plaintiffs-Appellants,
v.
John VISONE, Defendant-Appellee.

No. 32,303-CA.

Court of Appeal of Louisiana, Second Circuit.

October 27, 1999.

Noel Gilbert, in pro. per.

Wiener, Weiss & Madison by Larry Feldman, Jr., Shreveport, Counsel for Appellee.

Before WILLIAMS, PEATROSS and DREW, JJ.

DREW, J.

Plaintiff, Cardio Devices, Inc., and the defendant in reconvention, Noel Gilbert, appealed the judgment which (1) dismissed Cardio's action for breach of an employment contract against John P. Visone and *910 (2) rescinded the employment contract between Cardio and Visone, awarding damages and attorney's fees to Visone who answered the appeal and sought an increase in the attorney's fees. The judgment of the trial court is vacated and the matter is remanded with instructions for further proceedings.

FACTS

A previous appeal in this same litigation dealing with an exception of res judicata, Gilbert v. Visone, 30,204 (La.App.2d Cir.2/25/98), 708 So.2d 496, 498, set out the factual background:

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 Telectronics 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.)

At this trial, John P. Visone, testified he began working as a customer service representative for Telectronics Proprietary Limited in 1975 in Buffalo, New York. Telectronics trained him to sell, distribute and assist doctors with pacemakers. Later he worked as a sale representative for the company in Detroit and Milwaukee. The regional sales director, Bob Bunch, approached Visone in 1978 about Visone moving to Shreveport where Telectronics' representative was Noel Gilbert, who operated through a corporation, Cardio Devices. According to Visone, Gilbert used his person and his corporation as one and the same.

When Visone moved to Shreveport in 1979, Telectronics paid for the move. His guaranteed salary for six months was $1800 per month, of which Telectronics paid $1000, while Gilbert paid $800. Telectronics continued to train Visone. During the six-month period from March to October 1979, there was no written agreement between Visone and Telectronics, Visone and Cardio or Visone and Gilbert. Visone stated he believed that he would be selling Telectronics pacemakers and testified Gilbert never told Visone he might be selling other brands. During that six-month *911 period, Visone did not know that Gilbert was negotiating with Telectronics' competitor, Pacesetter Systems.

Telectronics-Cardio Sales Representative Agreement

Gilbert and Telectronics entered a contract, the term of which was from May 18, 1979 to June 30, 1981. Visone was unaware that Gilbert negotiated the exclusion of a non-compete clause in his contract with Telectronics. The contract provided that Gilbert/Cardio was the "Representative" of Telectronics in six southern states including Louisiana. 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."

Cardio-Visone Representative Agreement

At the end of the six-month period from March to October 1979, Gilbert prepared and sent a contract with a term from October 1, 1979 until September 30, 1981 for Visone to sign. Stating there were no negotiations, Visone signed because Gilbert threatened to withhold his commissions earned during the past month if he refused. Visone testified that he would not have signed the contract had he known that Gilbert was negotiating to sell pacemakers other than Telectronics products. Visone explained that he owed loyalty and obligation to Telectronics which had invested a lot of money and time in his training. Visone, who was 21 at the time, did not have an attorney review the contract and stated he could not afford legal assistance. Although the contract provided that Cardio might change the manufacturer of products sold, Visone testified that Gilbert never told him he might change manufacturers. Specifically, the contract stated:

... 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. 708 So.2d at p. 499.

Gilbert/Cardio had another sub-representative, Gilbert Halpern, who Visone later learned signed a representative agreement for a term from August 1, 1979 through July 31, 1980, containing a noncompete clause. Halpern signed an addendum to Gilbert's contract with Telectronics which stated that the sub-representative was bound to Gilbert's agreement with Telectronics. Visone testified he did not recall Gilbert submitting him the addendum for his signature. This court's previous opinion stated:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Stett v. Greve
810 So. 2d 1203 (Louisiana Court of Appeal, 2002)
Davis v. Mayberry
802 So. 2d 974 (Louisiana Court of Appeal, 2001)
Anderson v. Cunningham
786 So. 2d 940 (Louisiana Court of Appeal, 2001)
Louisiana State Bd. of Dentistry v. Baker
768 So. 2d 683 (Louisiana Court of Appeal, 2000)
Demopulos v. Jackson
765 So. 2d 480 (Louisiana Court of Appeal, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
743 So. 2d 909, 1999 WL 974691, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gilbert-v-visone-lactapp-1999.