Guillard v. Copeland's of New Orleans, Inc.

971 So. 2d 451, 7 La.App. 3 Cir. 0867, 2007 La. App. LEXIS 2189, 2007 WL 4245842
CourtLouisiana Court of Appeal
DecidedDecember 5, 2007
DocketNo. 07-0867
StatusPublished
Cited by1 cases

This text of 971 So. 2d 451 (Guillard v. Copeland's of New Orleans, 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.

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Guillard v. Copeland's of New Orleans, Inc., 971 So. 2d 451, 7 La.App. 3 Cir. 0867, 2007 La. App. LEXIS 2189, 2007 WL 4245842 (La. Ct. App. 2007).

Opinion

PETERS, J.

bThe defendant, Copeland’s of New Orleans, Inc. (Copeland’s), appeals the trial court’s judgment awarding the plaintiff, Alex Guillard, $46,500.00 in damages for Copeland’s breach of a three-year employment contract with him. Mr. Guillard has answered the appeal, asserting that the trial court erred in failing to award him penalties and attorney fees. For the following reasons, we affirm the trial court judgment in all respects.

DISCUSSION OF THE RECORD

On December 30, 2004, Mr. Guillard entered into a three-year employment contract with Copeland’s, wherein he agreed to provide janitorial services at Copeland’s Lake Charles, Louisiana, restaurant, and Copeland’s agreed to compensate him for the services at the rate of $1,500.00 per month. In May of 2005, Copeland’s closed the Lake Charles restaurant and informed Mr. Guillard that his janitorial services were no longer needed. The quality of Mr. Guillard’s services was not at issue in terminating the contract, and Copeland’s only reason for taking that action was the failure of the restaurant to meet its performance expectations. Copeland’s decided not to reopen the restaurant, and, by the end of June 2005, it had entered a listing agreement for the sale of the restaurant property.

On August 17, 2005, Mr. Guillard filed suit for damages against Copeland’s, asserting that it had breached its three-year contract for employment. On September 24, 2005, Hurricane Rita struck the Lake Charles area and caused approximately $400,000.00 in damages to the building which had previously housed the restaurant.

At trial, the trial court rendered judgment finding that Mr. Guillard was an independent contractor, that Copeland’s had breached the contract, and that Mr. Guillard was not entitled to attorney fees and penalties pursuant to La.R.S. 23:631-

[453]*453| ,,632. The trial court then awarded Mr. Guillard judgment in the amount of $46,500.00, said award representing the amount that would have been due Mr. Guillard had the contract remained in force and effect for the full three years. Copeland’s timely appealed this judgment, and Mr. Guillard answered the appeal.

OPINION

In its appeal, Copeland’s asserts two assignments of error: (1) the trial court erred in not finding that Hurricane Rita was a fortuitous event making Copeland’s performance impossible and allowing it to dissolve the contract pursuant to La.Civ. Code art. 1876, and (2) the trial court erred by not reducing Mr. Guillard’s recovery, since Mr. Guillard failed to mitigate his damages as required by La.Civ.Code art.2002. Mr. Guillard answered the appeal, asserting in his one assignment of error that the trial court erred in failing to award penalties and attorney fees payable to employees under La.R.S. 23:631-632.

Copeland’s Assignment of Error Number One

Relying on La.Civ.Code art. 1876, Copeland’s contends that the trial court erred in holding that Mr. Guillard was entitled to payment for the full term of the contract. Louisiana Civil Code Article 1876 provides that “[w]hen the entire performance owed by one party has become impossible because of a fortuitous event, the contract is dissolved” and the other party’s recovery is limited to “any performance he has already rendered.” A fortuitous event is defined by La.Civ.Code art. 1875 as “one that, at the time the contract was made, could not have been reasonably foreseen.”

Copeland’s does not dispute that it owes Mr. Guillard for services rendered under the contract from May of 2005, when it informed Mr. Guillard that it would not | ¡¡honor the contract, until September 24, 2005, when Hurricane Rita struck. Its dispute with the trial court judgment is the award which represents the remaining term of the contract, or until December 30, 2008. Copeland’s argues that since Hurricane Rita was a fortuitous event that made Copeland’s performance impossible, the contract was dissolved pursuant to La.Civ. Code art.1976 as of September 24, 2005, limiting what it owed Mr. Guillard to the period ending on that date.

While Hurricane Rita was unquestionably a fortuitous event, Copeland’s argument ignores La.Civ.Code art. 1873, which provides in part that an obligor is liable for his failure to perform “when the fortuitous event occurred after he has been put in default.” (Emphasis added.) In this case, Copeland’s had unquestionably been put in default over one month before Hurricane Rita struck the Lake Charles area, when Mr. Guillard filed his suit. Thus, pursuant to La.Civ.Code art. 1873, Copeland’s is liable for Mr. Guillard’s lost wages until the end of the contract.

We find no merit in this assignment of error.

Copeland’s Assignment of Error Number Two

Copeland’s contends in this assignment of error that the judgment against it should be reduced because Mr. Guillard failed to make a reasonable effort to mitigate his damages. In making this argument, Copeland’s relies on La.Civ.Code art.2002 which provides that “[a]n obligee must make reasonable efforts to mitigate the damage caused by the obligor’s failure to perform,” and that when he does not, “the obligor may demand that the damages be accordingly reduced.”

The issue of mitigation of damages by a laborer/employee has been addressed by the supreme court in Andrepont v. Lake [454]*454Charles Harbor & Terminal Dist., 602 So.2d 704, 706-07 (La.1992) (emphasis added) with the following conclusion:

| ¿Article 2749 of the Louisiana Civil Code addresses an employer’s liability for terminating an employee with a fixed term contract without cause. • It provides:
If, without any serious grounds of complaint, a man should send away a laborer whose services he has hired for a certain time, before that time has expired, he shall be bound to pay to such laborer the whole of the salaries which he would have been entitled to receive, had the full term of his services arrived.
An employer’s breach of a fixed term contract without cause results in the employee’s entitlement to compensation for all wages or salary that he would have received but for the breach.
Of course, there is no duty to mitigate lost salary damages in these circumstances.

While we recognize that the trial court concluded that Mr. Guillard was an independent contractor and not an employee, we find this is a distinction without a difference for purposes of considering his obligation to mitigate damages. As pointed out by the first circuit in Guidry v. Freeman, 555 So.2d 588, 591-92 (La.App. 1 Cir.1989) (emphasis in original),

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971 So. 2d 451, 7 La.App. 3 Cir. 0867, 2007 La. App. LEXIS 2189, 2007 WL 4245842, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guillard-v-copelands-of-new-orleans-inc-lactapp-2007.