Glod v. Baker

998 So. 2d 308, 2008 WL 4924095
CourtLouisiana Court of Appeal
DecidedNovember 19, 2008
DocketCA 08-355
StatusPublished
Cited by6 cases

This text of 998 So. 2d 308 (Glod v. Baker) 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
Glod v. Baker, 998 So. 2d 308, 2008 WL 4924095 (La. Ct. App. 2008).

Opinion

998 So.2d 308 (2008)

Walter A. GLOD, Jr., M.D.
v.
W. Gregory BAKER, et al.

Nos. CA 08-355.

Court of Appeal of Louisiana, Third Circuit.

November 19, 2008.

*310 Steven Gerald Durio, Robert Louis Broussard, Jessica Farmer Watts, Durio, McGoffin, & Stagg, Lafayette, LA, for Defendants/Appellees, Donald J. Baker, Kirby Pecot, Andrew B. Jameson, Max Luttgeharm, M.L. Godley, M.D.

Joseph C. Giglio, Jr., Liskow & Lewis, Lafayette, LA, for Plaintiff/Appellee, Walter A. Glod, Jr., M.D.

Robert A. Kutcher, Nicole Sophia Tygier, Chopin, Wagar, Cole, Richard, Reboul & Kutcher, Metairie, LA, for Defendant/Appellant, Copeland's of New Orleans, Inc.

William H. Parker, III, Allen & Gooch, Lafayette, LA, for Defendants/Appellees, Darnell, Sikes, Kolder, Frederick & Rainey BCM, L.L.C., Nawlins Kajun Food, L.L.C., Ed Larry Sikes.

Larry Lane Roy, Jennifer A. Wells, Dawn L. Morris, Preis & Roy, Lafayette, LA, for Defendants/Appellees, Coregis Insurance Company Chris Verret.

Louis Benedict Viviano, Attorney at Law, Opelousas, LA, for Defendant/Appellee, Louis B. Viviano.

George Allen Walsh, Alice F. Estill, Attorneys at Law, Baton Rouge, LA, for Defendants/Appellees, Vikki Lynn Baiers, W. Gregory Baker.

Court composed of SYLVIA R. COOKS, MICHAEL G. SULLIVAN, and BILLY HOWARD EZELL, Judges.

EZELL, Judge.

This case, which has been before this court on numerous occasions, arises out of the termination of the Copeland's of New Orleans (CNO) franchises in Lafayette, Louisiana, and Orlando, Florida. The issues of detrimental reliance and conversion against CNO, Al Copeland, and William Copeland were tried to a jury on December 4, 2006 to December 12, 2006. At the time of trial, the only remaining *311 plaintiffs in the suit were BCM, LLC and Nawlins Kajun Foods, LLC. These entities were the franchisees. The jury rejected their claims for detrimental reliance but found that CNO had converted the property of both BCM and Nawlins. It made an award of $123,189 to BCM and $119,830 to Nawlins on the conversion claims. The jury's decision on both issues is appealed by the parties.

FACTS

The underlying facts of this case were previously before this court in Glod v. Baker, 02-988 (La.App. 3 Cir. 8/6/03), 851 So.2d 1255, writ denied, 03-2482 (La.11/26/03), 860 So.2d 1135. The facts are undisputed by the parties and are restated below:

In 1994, Alvin C. Copeland, William A. Copeland, and Copeland's of New Orleans, Inc. (the Copelands) entered into a written franchise agreement with W. Gregory Baker (Baker), of Rapides Parish, to open a Copeland's restaurant in Lafayette. Baker initially assigned the franchise to BCM, Inc., a corporation in which he and Vikki Lynn Baiers (Baiers) were the sole stockholders. This assignment had written CNO approval, a requirement under the franchise agreement. Baker and Baiers then hired an accountant, Ed Larry Sikes, and an attorney, Chris A. Verret, both of Lafayette Parish, to work with the franchise. In November 1994, on the advice of their accountant and their attorney, Baker and Baiers created a Louisiana limited liability company, BCM, into which the franchise was transferred. This transfer also had the written approval of CNO.
To get the Lafayette restaurant up and running, BCM needed investors. Baker approached Louis Viviano, of St. Landry Parish, who bought a 30% interest in BCM for $200,000. Viviano then transferred that interest to a wholly owned corporation, LAF Foods, Inc. (LAF), which he had created for the purpose of holding that franchise interest. Baker also obtained from Dr. Walter A. Glod, M.D., of Lafayette Parish, an investment of $100,000 in exchange for a 15% interest. At this point, the ownership of the limited liability company, BCM, was 30% in LAF Foods, Inc., 27.5% in Baker, 27.5% in Baiers, and 15% in Glod. The Copeland's restaurant in Lafayette was built and it opened for business in September 1995.
On January 1, 1996, Baker transferred his interest in BCM into a wholly owned new corporation, Greg Baker Enterprises (GBE), and Baiers transferred her interest into her newly created corporation, VLB, Inc. (VLB). In addition, Viviano transferred his interest held by LAF to CBC International, Inc. (CBC), a sub-chapter S corporation wholly owned by him. As a result of these transfers, the ownership of the limited liability company that held the Lafayette franchise was: GBE, 27.5%; VLB, 27.5%; CBC, 30%; and Glod, 15%.
The Lafayette franchise was a success. Attention was then turned to opening another restaurant, this one in Orlando. For this purpose another limited liability company, Nawlins, had already been created. On or about January 5, 1996, Viviano's sub-chapter S corporation, CBC, invested $75,000 and acquired a one-third interest in Nawlins. Baker and Baiers were the members of Nawlins having the remaining two-thirds interest. They each transferred their respective interests to their corporations, GBE and VLB.
Baker and Baiers created NKF I-Drive Limited Partnership (I-Drive), a Florida limited partnership, to be the operating entity for the Orlando store. *312 A Louisiana corporation, NKF, Inc. (NKF), owned in equal shares by Viviano, Baker and Baiers, was created to be I-Drive's general partner. NKF owned 10% of I-Drive. There were two classes of partners in I-Drive. Class B partners consisted of Nawlins and CPCI, Incorporated (CPCI), another entity owned by Viviano. Class A partners consisted of the individuals Donald Baker, Dr. Lloyd Godley, Max Luttgenharm, Donald Jameson and Kirby Pecot: these individuals were the limited partners, whose investments also contributed to the efforts on behalf of the Orlando store.
Viviano's entity, CBC, loaned $450,000 for the purchase of furniture, fixtures, and equipment for the Orlando store. To secure this loan, CBC got a mortgage on the purchases, and it also required, as collateral, stock pledges from Baker and Baiers. Baker pledged his stock in GBE, and Baiers pledged a thousand shares of her stock in VLB.
Nawlins acquired a franchise from CNO and the Orlando restaurant opened for business. This store was not a success. When it needed money, Viviano, through his entities CBC and CPCI, eventually infused $1,050,000 into the Orlando store. There were loans made by CBC that were later subsumed by loans made by CPCI. As a part of the complicated recapitalization and restructuring process that these loans entailed, Baker sold to Viviano all of his stock in GBE for $225,000. It was through GBE that Baker held his ownership in the LLCs. Baker also acquired half of Baiers' interest in VLB. Later, most of the shares of VLB were purchased by CPCI at a judicial sale. The money changing hands in this process went to I-Drive, but it was all for the benefit of Nawlins.
All of these financial transactions and structuring resulted in numerous conveyancing and encumbrancing of interests in the franchises owned by the LLCs. Eventually, Viviano had the majority ownership or control of both BCM and Nawlins, the two franchisee LLCs. His ownership or control became 85% of BCM and 87.5% of Nawlins.
We have named the corporations, partnerships, and LLCs involved in these multiple and complicated transactions. The individuals involved were Glod, Gregory Baker, Baiers, the two Copelands, Viviano, the five limited partners (Donald Baker, Godley, Luttgenharm, Jameson, and Pecot), Ed Larry Sikes, the accountant, and Chris A.

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

Related

Landry v. Pediatric Services of America, Inc.
189 So. 3d 540 (Louisiana Court of Appeal, 2016)
Bcm, L.L.C. v. Roy Clifton Cheatwood
Louisiana Court of Appeal, 2012
Le v. Nitetown, Inc.
72 So. 3d 374 (Louisiana Court of Appeal, 2011)
Richard Le v. Nitetown, Inc.
Louisiana Court of Appeal, 2011
TYCO VENTURES, LLC v. Wiggins
32 So. 3d 1168 (Louisiana Court of Appeal, 2010)
Tyco Ventures, LLC v. Joshua Wiggins
Louisiana Court of Appeal, 2010
Baker v. Verret
998 So. 2d 320 (Louisiana Court of Appeal, 2008)
Godley v. Darnall
998 So. 2d 321 (Louisiana Court of Appeal, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
998 So. 2d 308, 2008 WL 4924095, Counsel Stack Legal Research, https://law.counselstack.com/opinion/glod-v-baker-lactapp-2008.