Grevemberg v. GPA FORECASTING GROUP

959 So. 2d 914
CourtLouisiana Court of Appeal
DecidedFebruary 9, 2007
Docket2006 CA 0766
StatusPublished

This text of 959 So. 2d 914 (Grevemberg v. GPA FORECASTING GROUP) 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
Grevemberg v. GPA FORECASTING GROUP, 959 So. 2d 914 (La. Ct. App. 2007).

Opinion

959 So.2d 914 (2007)

Robert L. GREVEMBERG, Jr.
v.
G.P.A. STRATEGIC FORECASTING GROUP, INC., Strategic Forecasting, L.L.C., Stratfor Systems, Inc., and George Friedman.

No. 2006 CA 0766.

Court of Appeal of Louisiana, First Circuit.

February 9, 2007.

*915 Daniel J. Balhoff, Baton Rouge, Counsel for Plaintiff/Appellee Robert L. Grevemberg, Jr.

Richard D. Chappuis, Jr., John W. Hutchison, Robert M. Francez, Kristen B. Menard, Hoai T. Hoang, Lafayette, Counsel for Defendant/Appellant George Friedman.

Before: KUHN, GAIDRY, and WELCH, JJ.

GAIDRY, J.

A judgment debtor appeals a default judgment in an action seeking recovery of money owed under a promissory note and damages based upon alleged breaches of fiduciary duties by corporate officers. For the following reasons, we reverse the default judgment against the appellant.

FACTUAL BACKGROUND AND PRIOR PROCEEDINGS

The plaintiff-appellee, Robert L. Grevemberg, Jr., instituted this litigation on January 14, 2002, by filing a petition for damages against various defendants, including the appellant, George Friedman, an alleged resident of Texas. The petition alleged that in 1996 Mr. Grevemberg and Mr. Friedman, among others, formed a corporation known as G.P.A. Strategic Forecasting Group, Inc. (the original corporation), which owned the rights to a computer software program. It further alleged that David Marshall became the original corporation's chief executive officer, and that in November 1996 the corporation was reorganized as a limited liability company, Strategic Forecasting, L.L.C. Attached as an exhibit to the petition was a copy of a promissory note, alleged to have been executed on December 17, 1996 *916 by Mr. Marshall in favor of Mr. Grevemberg. The note was signed only by Mr. Marshall as the "borrower," above his typed name and expressed capacity as "President" of "Strategic Forecasting [,] L.L.C." In his petition, Mr. Grevemberg specifically stated that "[o]n its face, the note indicates that Strategic Forecasting, L.L.C. is the obligor."[1]

Strategic Forecasting, L.L.C. (the successor limited liability company) was alleged to have been reorganized as STRATFOR Systems, Inc. (the reorganized corporation) on January 1, 1998. Mr. Grevemberg set forth additional allegations that the reorganized corporation's board of directors appointed a management committee without his consent as a board member, and that the committee members violated their fiduciary duties by failing to inform him of the committee's actions and fraudulently misrepresenting the reorganized corporation's financial status to him and other board members, leading to the corporation's sale of the rights to the software program and other assets and the consequent dilution of the corporation's stock value. The corporate assets were allegedly sold to Infraworks Corporation, which was named as defendant, together with the original corporation, the successor limited liability company, the reorganized corporation, and Mr. Friedman. Finally, Mr. Grevemberg alleged that by reason of all the various business reorganizations and transfers, all defendants became obligors on the promissory note. He requested that service be withheld on his original petition.

On February 20, 2002, Mr. Grevemberg filed a first amended petition, clarifying his allegations as to the parties designated as defendants. STRATFOR Systems, Inc. (the reorganized corporation) was nominally deleted as a defendant, and Infraworks Corporation was described as being "formerly known as" STRATFOR Systems, Inc. Ordinary service of process was requested upon both the original corporation and the successor limited liability company through Mr. Marshall, and service was requested upon Infraworks Corporation, a Texas corporation, pursuant to the Louisiana Long-Arm Statute, La. R.S. 13:3201, et seq. Service on Mr. Friedman was again requested to be withheld.

On February 27, 2003, Mr. Grevemberg filed a "Second Supplemental, Amending and Restated Petition for Damages," essentially reiterating the allegations of his prior pleadings, except to again name STRATFOR Systems, Inc. (the reorganized corporation) as defendant and to clarify that the successor limited liability company was "merged into" the reorganized corporation, which in turn was "now known as Infraworks Corporation." A set of interrogatories and a request for admissions of fact were also filed with the second amended petition, and service of the petition and discovery requests was requested on all defendants under the Louisiana Long-Arm Statute, La. R.S. 13:3201, et seq.

On April 21, 2005, Mr. Grevemberg filed affidavits of service by certified mail, pursuant to La. R.S. 13:3205, with the trial court. Two of those affidavits, identical in content (except for two different return receipts), verified the mailing of the citation and a certified copy of the second amended petition to Mr. Friedman and the receipt of those documents on March 12, 2003.

*917 On May 20, 2005, Mr. Grevemberg filed a motion for preliminary judgment by default against the defendants, including Mr. Friedman. The preliminary judgment by default was signed on May 24, 2005.

On July 20, 2005, the default judgment against the defendants was confirmed after a hearing in open court before the trial court's duty judge, Judge Kay Bates. The minute entry recited that the default judgment was confirmed "[u]pon documentary evidence and testimony heard." On the same date, the written default judgment in favor of Mr. Grevemberg and against all defendants was signed. This devolutive appeal by Mr. Friedman followed.

MOTION TO SUPPLEMENT RECORD

On July 7, 2006, Mr. Grevemberg filed a motion in this court to supplement the record with two exhibits. The exhibits are (1) a copy of a letter dated April 15, 2002 from Mr. Grevemberg's counsel to the clerk of the trial court, requesting the preparation of citation for service of the original and first amended petitions upon Mr. Friedman, and (2) a letter of April 15, 2002 from Mr. Grevemberg's counsel to Mr. Friedman, purportedly enclosing a citation and certified copies of the original and first amended petitions, with copies of the citation, the certified mail envelope postmarked that date and marked "unclaimed," and the incomplete return mail receipt. Mr. Friedman objects to supplementation of the record. As the first exhibit bears on its face stamped indicia of its receipt and the receipt of the court costs described therein by the clerk of the trial court, we will grant the motion in part, and hereby order the appeal record supplemented with that exhibit. As to the other exhibit, we deny the motion. As Mr. Friedman correctly observed in his opposition to the motion, there is no indication or showing that the exhibit was ever a part of the trial court record or filed with the trial court.

ASSIGNMENTS OF ERROR

Mr. Friedman cites three specific assignments of error by the trial court, which we summarize as follows:

(1) The trial court erred in confirming the default judgment on the promissory note against Mr. Friedman, as he did not sign the note;

(2) The trial court erred in confirming the default judgment against Mr. Friedman, as service of citation was not requested within 90 days of commencement of the action, as required by La. C.C.P. art. 1201(C);

(3) In the alternative, the trial court erred in awarding an unreasonable attorney fee.

Elsewhere in his appellate brief, Mr.

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Grevemberg v. G.P.A. Strategic Forecasting Group, Inc.
959 So. 2d 914 (Louisiana Court of Appeal, 2007)

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