Gulfstream Services v. Hot Energy Services

907 So. 2d 96, 2005 La. App. LEXIS 664, 2005 WL 676365
CourtLouisiana Court of Appeal
DecidedMarch 24, 2005
Docket2004 CA 1223
StatusPublished
Cited by17 cases

This text of 907 So. 2d 96 (Gulfstream Services v. Hot Energy Services) 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
Gulfstream Services v. Hot Energy Services, 907 So. 2d 96, 2005 La. App. LEXIS 664, 2005 WL 676365 (La. Ct. App. 2005).

Opinion

907 So.2d 96 (2005)

GULFSTREAM SERVICES, INC.
v.
HOT ENERGY SERVICES, INC.

No. 2004 CA 1223.

Court of Appeal of Louisiana, First Circuit.

March 24, 2005.
Writ Denied June 17, 2005.

*98 C. Berwick Duval, Houma, Counsel for Plaintiff/Appellee Gulfstream Services, Inc.

Gerald C. deLaunay Lafayette, Counsel for Defendant/Appellant Hot Energy Services, Inc.

Before: PARRO, KUHN, and WELCH, JJ.

WELCH, J.

Plaintiff, Gulfstream Services, Inc. (Gulfstream), sued defendant, Hot Energy Services, Inc. (Hot), on an open account. Although the trial court found no sale, lease, or open account agreement between the parties, the trial court awarded Gulfstream $31,050.00 for the use of its equipment, with interest from the date of judicial demand. Hot appealed. Gulfstream answered the appeal, asking for attorney fees under the open account statute, La. R.S. 9:2781(A). We amend the award of interest and affirm.

FACTS AND PROCEDURAL BACKGROUND

Hot, an oil field services business, stored hot oil in portable tanks secured to barges. The tanks were barged to well sites, where the hot oil was used to clean oil well flow lines. In April of 2002, the United States Coast Guard complained about the tanks and barge system used by Hot. In an attempt to avoid or overturn a cease and desist order issued by the Coast Guard, Hot contacted Gulfstream, a specialty rental tool company. From Gulfstream, Hot hoped to obtain Coast Guard certified tanks. Gulfstream and Hot discussed various options for the acquisition and use of the approved tanks: lease, lease-purchase, and sale. Although Hot generally agreed to a daily rental rate of $75.00 per tank if a lease agreement was chosen, no final *99 agreement between the parties was confected.

On April 20, 2002, while negotiations were still ongoing, Hot requested delivery by Gulfstream of two 100-barrel portable marine tanks. Hot accepted the tanks, and admittedly used them in its business. From April until at least October, Hot continued its attempts to satisfy the Coast Guard and subsequent state requirements. Although Gulfstream eventually sent a delivery ticket showing a rental rate, and several invoices requesting payment of rental fees, Hot made no payments. Eventually, Hot received permission from the Coast Guard to use tanks other than the type supplied by Gulfstream. Hot returned the tanks to Gulfstream on November 27, 2002.

On November 22, 2002, Gulfstream filed a petition on an open account, alleging past due rental payments owed by Hot for the use of the two tanks. Gulfstream submitted invoices totaling $31,050.00. Hot answered and denied the existence of an open account or lease agreement. Instead, Hot asserted its belief that a lease-purchase agreement had been reached, subject to finalization of the specific terms.

After a trial on February 3, 2004, the trial court issued oral reasons. The trial court found that various options for the tanks had been negotiated, but the parties had accepted none of the discussed options. Nor had the parties agreed to an open account. However, the trial court also found that Hot had received and used two of Gulfstream's tanks in Hot's business from April through November. Thus, Gulfstream was entitled to some benefit or return for use of the tanks. Further, the trial court noted that Hot had agreed to $75.00 a day for each tank as a rental fee for the lease option. Based on the rental rate and the number of days Hot possessed the tanks, the trial court determined that $31,050.00 was a reasonable recovery for Gulfstream. However, in the absence of an agreement for an open account, the trial court denied Gulfstream's request for attorney fees. By judgment rendered on February 3, 2004, the trial court awarded $31,050.00 to Gulfstream, with interest from the date of judicial demand.

On appeal, Hot essentially argues that the trial court erred in its award of damages in the absence of an agreement. Hot also argues that any remedy based on unjust enrichment, or its civilian counterpart, actio de in rem verso, was not properly pleaded. Alternatively, if such a quasi-contractual remedy did exist, Hot asserts the trial court used the wrong measure of damages. And finally, Hot assigned error to the award of legal interest from the date of judicial demand, rather than the date of judgment. In Gulfstream's answer to the appeal, it asserts the existence of an open account agreement, and prays for the attorney fees allowed by La. R.S. 9:2781(A).

EXISTENCE OF A CONTRACT OR AGREEMENT

The existence of a contract, and specifically an open account, are questions of fact. Townsend v. Urie, XXXX-XXXX, p. 6 (La.App. 1st Cir.5/11/01), 800 So.2d 11, 15, writ denied, XXXX-XXXX (La.9/21/01), 797 So.2d 674; Sandoz v. Dolphin Services, Inc., 555 So.2d 996, 997 (La.App. 1st Cir.1989). A reviewing court may not set aside a trial court's finding of fact absent manifest or clear error. Stobart v. State, Department of Transportation and Development, 617 So.2d 880, 882 (La.1993). Where two permissible views of the evidence exist, the factfinder's choice between them cannot be manifestly erroneous or clearly wrong. Stobart, 617 So.2d at 883.

*100 Louisiana Revised Statute 9:2781(D) provides that an open account "includes any account for which a part or all of the balance is past due, whether or not the account reflects one or more transactions and whether or not at the time of contracting the parties expected future transactions." An open account necessarily involves an underlying agreement between the parties on which the debt is based. Heck v. Lafourche Parish Council, 2002-2044, p. 17 (La.App. 1st Cir.11/14/03), 860 So.2d 595, 607, writ denied, XXXX-XXXX (La.3/19/04), 869 So.2d 837; Montgomery Stire & Partners, Inc. v. London Livery, Ltd., 99-3145, p. 4 (La.App. 4th Cir.9/20/00), 769 So.2d 703, 706. If a debtor "fails to pay an open account within thirty days after the claimant sends written demand therefor correctly setting forth the amount owed," the debtor "shall be liable to the claimant for reasonable attorney fees . . . when judgment on the claim is rendered in favor of the claimant." La. R.S. 9:2781(A).

At trial, Gulfstream's representatives, Mr. Mark Chauvin and Mr. Michael Mire, agreed that options for the tanks were discussed, but no agreement was ever finalized. Gulfstream began sending the invoices for rental payments when it became concerned over the absence of an agreement on one of the options. Hot's general manager, Mr. James R. Hunt, testified that Hot had previously paid the $75.00 rate for tank rental, and had agreed to the same rate if a lease was executed. Although Mr. Hunt testified that he believed a lease-purchase option was available as late as October, he admitted that no contract or agreement was ever finalized. The record contains no evidence of the parties' intent or agreement to extend credit or create an open account for the tanks. Therefore, from our thorough review of the record, we find no manifest or clear error in the trial court's finding that the parties failed to reach an agreement on the lease or purchase of the tanks, and that an open account was not established. In the absence of an agreement on an open account, we also find no error in the trial court's denial of, attorney fees to Gulfstream.[1]

ENRICHMENT WITHOUT CAUSE

The trial court did not denominate the basis underlying its monetary award.

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Bluebook (online)
907 So. 2d 96, 2005 La. App. LEXIS 664, 2005 WL 676365, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gulfstream-services-v-hot-energy-services-lactapp-2005.