Goulas v. B & B Oilfield Services, Inc.

69 So. 3d 750, 2011 WL 3505141
CourtLouisiana Court of Appeal
DecidedAugust 10, 2011
DocketNos. 10-934, 10-1393
StatusPublished
Cited by10 cases

This text of 69 So. 3d 750 (Goulas v. B & B Oilfield Services, Inc.) 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
Goulas v. B & B Oilfield Services, Inc., 69 So. 3d 750, 2011 WL 3505141 (La. Ct. App. 2011).

Opinions

SAUNDERS, Judge.

11 This is a case where two employees filed an unpaid wage claim against their employer under La.R.S. 23:631 and La. R.S. 23:632. The employer filed an exception of unauthorized use of summary proceedings based on the assertion that both employees’ claims for unpaid wages were novated, one by written agreement, the other by oral agreement.

The trial court found that both employees entered into novations with their employer, granted the employer’s exception, and dismissed the employees’ claims for unpaid wages. The employees appeal. We affirm in part, reverse in part, and render.

FACTS AND PROCEDURAL HISTORY:

Johnny Goulas (Goulas) and Vernon Wilkins (Wilkins) were salesmen at B & B Oilfield Services, Inc. (B & B,) and each earned a $10,000.00 monthly salary plus commissions. For all sales generated by Goulas and/or Wilkins, they earned a joint, four percent (4%) commission that was equally divided between them.

B & B had a regular procedure of deferred payment of commissions where all commissions earned quarterly were totaled, then dispersed in equal installments two quarters later. According to the parties, this deferment allowed for the money generated from the sales to be collected prior to the commissions being dispersed.

Goulas and Wilkins worked for B & B from January 2005 until 2009, at which time both resigned at differing points. B & B owed commissions to each Goulas and Wilkins when they resigned.

Wilkins resigned on January 5, 2009. According to B & B, Wilkins agreed to be paid his salary and benefits until March 31, 2009, in lieu of the outstanding commissions B & B owed to him,.and Wilkins was paid as such prior to this litigation. Wilkins asserts that he remained on B & B’s staff while also performing his new job [2at a different company and that his pay from January through March of 2009 simply reflected his agreed-upon salary for the work he was actually doing for B & B during that time.

Goulas resigned on July 6, 2009. Goulas and B & B entered into a post-resignation agreement whereby B & B would pay Gou-las his commissions in six, equal, monthly installments rather than pay the entire amount of his outstanding commissions collectively. B & B paid the first installment, then transferred a building to Gou-las in lieu of the second installment. B & B failed to make any other payments to Goulas.

On February 4, 2010, Goulas and Wilkins filed a petition for unpaid wages, penalty wages, and attorney fees as a summary proceeding under La.R.S. 23:631 and La.R.S. 23:632, setting the matter for trial on a rule to show cause. On March 24, 2010, B & B responded by filing a dilatory exception of unauthorized use of summary proceedings.

On March 30, 2010, the parties agreed to the trial court hearing the merits of both Goulas and Wilkins’ petition and B & B’s exception simultaneously. At the hearing, the trial court heard testimony from Gou-las, Wilkins, and three former employees of B & B. On May 24, 2010, the trial court issued a judgment that granted B & B’s exception with respect to both Goulas and [755]*755Wilkins. It did so based on its finding that novation extinguished B & B’s wage debts to each and substituted in the wage debts’ place a different type of debt whose recovery is not authorized to be sought via summary proceedings. The trial court’s judgment also dismissed Goulas and Wilkins’ petition. Goulas and Wilkins now appeal this May 24, 2010 judgment.

^ASSIGNMENTS OF ERROR:

Goulas and Wilkins assert five assignments of error. Therefore, we must decide whether:

1. The trial court erred in granting the exception of unauthorized use of summary proceedings and dismissing the petition for unpaid commissions (wages) and for penalty wages and attorney fees.
2. The trial court erred in ruling that John Goulas and Vernon Wilkins entered into novation contracts which extinguished the obligations of B & B Oilfield to pay commissions.
3. The trial court erred in denying the petition rather than ordering that any deficiency subject to the dilatory exception be cured through amendment.
4. The trial court erred in ruling that the filing of suit did not constitute demand for the Louisiana Wage Law, La.R.S. 23:631, et seq.
5. The trial court erred in not awarding commissions as wages, including penalty wages and attorney fees to John Goulas and Vernon Wilkins.

ASSIGNMENT OF ERROR NUMBER ONE:

Goulas and Wilkins contend in their first assignment of error that the trial court erred in granting B & B’s exception of unauthorized use of summary proceedings. We agree.

Whether the trial court was correct in granting B & B’s exception raises a question of law. Questions of law are subject to a de novo review of whether the trial court was legally correct in its finding. Guillory v. Allied Waste Indus., Inc., 10-159 (La.App. 3 Cir. 10/6/10), 47 So.3d 23.

Louisiana Code Civil Procedure Article 2592(12) authorizes the use of summary proceedings in all matters in which it is permitted. An employee is granted the right to proceed against an employer for a wage claim via summary proceeding, band commissions are “wages” under La.R.S. 23:631. See Dugas v. Aaron Rents, Inc., 02-1276 (La.App. 3 Cir. 3/5/03), 839 So.2d 1205; Brown v. Navarre Chevrolet, Inc., 610 So.2d 165 (La.App. 3 Cir.1992).

It is clear from Goulas and Wilkins’ petition that they are entitled to summary proceedings. Both alleged that they were employees of B & B and that they were owed commissions upon termination that each was not paid. Therefore, it is clear when reading La.Code Civ.P. art. 2592(12) and La.R.S. 23:631 together that the trial court erred in granting B & B’s exception. As such, we reverse the trial court in this regard.

ASSIGNMENT OF ERROR NUMBER TWO:

In their second assignment of error, Goulas and Wilkins assert that the trial court erred in ruling that a novation occurred between them and B & B, respectively, which extinguished the obligations of B & B to pay commissions. The trial court based its granting of B & B’s exception on its finding that both Goulas and Wilkins entered into novations with B & B. We have already determined that the trial court was legally incorrect in granting B & B’s exception. Therefore, this assignment of error is moot.

[756]*756ASSIGNMENT OF ERROR NUMBER THREE:

Goulas and Wilkins contend that the trial court erred in denying their petitions rather than ordering that any deficiency subject to the dilatory exception of unauthorized use of a summary procedure should have been allowed to be cured through amendment. Our finding in assignment of error number one that Goulas and Wilkins’ petition can be properly adjudicated through summary proceedings pre-termits this assignment of error. ASSIGNMENT OF ERROR NUMBER FOUR:

1 r,Goulas and Wilkins, in their fourth assignment of error, contend that the trial court erred in ruling that the filing of suit did not constitute a demand for wages under La.R.S. 28:681 and La.R.S. 23:632. We need not address this assignment of error.

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Bluebook (online)
69 So. 3d 750, 2011 WL 3505141, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goulas-v-b-b-oilfield-services-inc-lactapp-2011.