Guidry v. Hedburg

722 So. 2d 1036, 1998 WL 765108
CourtLouisiana Court of Appeal
DecidedNovember 4, 1998
Docket98-228
StatusPublished
Cited by9 cases

This text of 722 So. 2d 1036 (Guidry v. Hedburg) 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
Guidry v. Hedburg, 722 So. 2d 1036, 1998 WL 765108 (La. Ct. App. 1998).

Opinion

722 So.2d 1036 (1998)

Elmer J. GUIDRY, Sr., Plaintiff-Appellee,
v.
Stefan HEDBURG, et al., Defendants-Appellants.

No. 98-228.

Court of Appeal of Louisiana, Third Circuit.

November 4, 1998.
Rehearing Denied December 16, 1998.

*1037 Chester R. Cedars, Breaux Bridge, for Elmer J. Guidry, Sr.

Philip J. Dugas, Baton Rouge, for Stefan Hedburg, et al.

BEFORE: YELVERTON, PETERS, and AMY, Judges.

YELVERTON, J.

Elmer J. Guidry (Elmer) sued Breaux Bridge Exports, Inc., and Stefan Hedburg claiming back due salary in the amount of $25, 257.72. After a trial the court rendered judgment in favor of Elmer for this amount finding that in a Buy-Sell Agreement there was a stipulation pour autrui in his favor entitling him to this money. We affirm, but our affirmation is based on the completed contract that is in the record and not on the Buy-Sell Agreement alone.

In the fall of 1989 Elmer's brother, Mervin Guidry, together with Luke Bourque and Lysekils Fryshus (a foreign corporation owned by Matt Robertsson), formed the corporation Breaux Bridge Exports, Inc., which engaged in the operation of a crawfish processing plant principally for exportation to Sweden. Elmer supervised the building of the plant and went on salary as plant manager.

Mervin and Luke Bourque, who together owned most of the stock, decided to sell their interest in Breaux Bridge Exports to Stefan Hedburg. On November 15, 1993, these three executed a Buy-Sell Agreement for $72,500. As part of the Buy-Sell Agreement, Hedburg agreed to pay $72,500 and assume responsibility for the debts of Breaux Bridge Exports as evidenced by a document attached to the Buy-Sell Agreement marked Exhibit A entitled "Debts Owed By Breaux Bridge Exports." Paragraph 3 of the Buy-Sell Agreement specifically recognized this obligation in the language:

Breaux Bridge Exports, Inc., and Stefan Hedburg will pay all legal obligations or debts owed by Breaux Bridge Exports, Inc., as of the 23rd day of October, 1993, which is set forth on a list marked Exhibit "A" and attached hereto.

One of the items listed on Exhibit A was back salary due Elmer in the amount of $25,257.72.

This is the stipulation pour autrui on which Elmer relied for his claim. When Hedburg later refused to pay, Elmer filed this suit.

On the morning of trial Hedburg filed an exception of no right of action on the ground that Elmer had no interest to pursue because he was not a party nor was he a third-party beneficiary of the Buy-Sell Agreement. The exception was referred to the merits.

The main issue at trial, as perceived by Elmer and the court, was whether Elmer was a third-party beneficiary of the Buy-Sell Agreement. Elmer maintained that he was because the Buy-Sell Agreement created a stipulation pour autrui in his favor. To defeat the stipulation, Hedburg attempted to introduce parol evidence to vary or modify *1038 the terms of the Buy-Sell Agreement and its attachment. However, the trial court sustained Elmer's objection to the introduction of this parol evidence finding that the written agreement was clear and did not need explaining. The parol evidence is in the record as a proffer.

The proffered parol included the testimony of Gerald Delaunay and Vincent Saitta, attorneys for the defendants. Delaunay represented Hedburg but was not present at the November 15, 1993 negotiations leading to the confection of the Buy-Sell Agreement. Saitta was present. The attorneys proffered testimony that Hedburg never intended to pay Elmer the back salary. Saitta testified that the language in the agreement that appeared to be a promise to pay Elmer was put there merely to protect Mervin, who was Elmer's brother, and let Mervin "off the hook" from having to answer to Elmer.

In addition to the proffer of testimony, there was also a proffer of documentary evidence by Hedburg. He tried to introduce a copy of a fully executed authentic act of sale dated December 3, 1993, together with an unsigned, undated "addendum" to the earlier Buy-Sell Agreement. These documents were proffered because the trial judge sustained Elmer's objection to their admissibility on the ground of surprise: the documents emerged for the first time on the morning of trial.

After consideration of what he considered to be the proper evidence, the trial judge found a stipulation pour autrui in favor of Guidry originating from the Buy-Sell Agreement and rendered judgment in his favor in the amount of $25,257.72 against defendants Stefan Hedburg and Breaux Bridge Exports, Inc. From this judgment, the defendants appealed.

ISSUES

There are two assignments of error raised by Hedburg in this appeal. The first is whether the trial judge should have admitted the proffered testimonial and documentary evidence. The second is whether, considering the proper evidence, Elmer is a thirdparty beneficiary entitled to payment of the listed salary.

OPINION

Testimonial Evidence Ruling

Under Louisiana law and jurisprudence, parol evidence is generally inadmissible to vary the contents of a document or to show the intentions of the parties when it is already clear from the fact of the document itself. La.Civ.Code art. 1848 reads:

Testimonial or other evidence may not be admitted to negate or vary the contents of an authentic act or an act under private signature. Nevertheless, in the interest of justice, that evidence may be admitted to prove such circumstances as a vice of consent, or a simulation, or to prove that the written act was modified by a subsequent and valid oral agreement.

In Braun Welding Supply v. Praxair, Inc., 94-1336, p. 6 (La.App. 3 Cir. 4/5/95); 654 So.2d 388, 391, we approved of the principles set forth in Spohrer v. Spohrer, 610 So.2d 849 (La.App. 1 Cir.1992), at pages 851-853, concerning the admissibility of parol evidence regarding written contracts:

Legal agreements have the effect of law upon the parties, and, as they bind themselves, they shall be held to a full performance of the obligations flowing therefrom. Kean v. Lemaire, 451 So.2d 151, 153-54 (La.App. 1st Cir.1984). Courts are bound to give legal effect to all contracts, according to the true intent of the parties, and the intent is to be determined by the words in the contract when they are clear and explicit and lead to no absurd consequences. LSA-C.C. arts.2045 and 2046; Massachusetts Mutual Life Insurance Company v. Nails, 549 So.2d 826, 832 (La. 1989); Foret v. Louisiana Farm Bureau Casualty Insurance Company, 582 So.2d 989, 991 (La.App. 1st Cir.1991); Ransom v. Camcraft, Inc., 580 So.2d 1073, 1077 (La.App. 4th Cir.1991); Borden, Inc. v. Gulf States Utilities Company, 543 So.2d 924, 927 (La.App. 1st Cir.), writ denied, 545 So.2d 1041 (La.1989); Schroeter v. Holden, 499 So.2d 309, 311 (La.App. 1st Cir.1986). See also Kean v. Lemaire, 451 So.2d at 154. When the words of a contract are clear and explicit and lead to no *1039 absurd consequences, no further interpretation may be made in search of the parties' intent. Borden, Inc. v. Gulf States Utilities Company, 543 So.2d at 927. The rules of interpretation establish that when a clause in a contract is clear and unambiguous, the letter of the clause should not be disregarded under the pretext of pursuing its spirit. Cashio v. Shoriak, 481 So.2d 1013, 1015 (La.1986); Borden, Inc. v.

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Cite This Page — Counsel Stack

Bluebook (online)
722 So. 2d 1036, 1998 WL 765108, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guidry-v-hedburg-lactapp-1998.