Hanger One Mlu v. Succession of Rogers

981 So. 2d 175, 2008 WL 1734775
CourtLouisiana Court of Appeal
DecidedApril 16, 2008
Docket43,120-CA
StatusPublished
Cited by10 cases

This text of 981 So. 2d 175 (Hanger One Mlu v. Succession of Rogers) 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
Hanger One Mlu v. Succession of Rogers, 981 So. 2d 175, 2008 WL 1734775 (La. Ct. App. 2008).

Opinion

981 So.2d 175 (2008)

HANGER ONE MLU, INC. Plaintiff-Appellant,
v.
The UNOPENED SUCCESSION OF James C. ROGERS, et al., Defendant-Appellee.

No. 43,120-CA.

Court of Appeal of Louisiana, Second Circuit.

April 16, 2008.

*177 The Herring Law Firm, APLC by Charles Evans Herring, Jr., Brian L. Evans, for Appellant, Hanger One MLU, Inc.

Zebie A. Grayson, for Appellee, The Unopened Succession of James C. Rogers.

Hudson, Potts & Bernstein, LLP by Charles William Herold, III, Monroe, Donald H. Zeigler, III, for Appellees, James R. Rogers, Mollie Rogers, and Rogers Aviation, Inc.

Breithaupt, Dunn, Dubos, Shafto & Wolleson, LLC by Walter C. Dunn, Monroe, for Appellees, Deal Paul "Skip" Amidon and Amidon Aircraft Solutions, LLC.

Before STEWART, GASKINS & DREW, JJ.

DREW, J.

Hanger One MLU, Inc. appeals the judgment rejecting its demands against multiple defendants under an alleged contract for the sale of Rogers Aviation, Inc. Hanger One also sought specific performance of the sale by the defendants and recovery for various services allegedly performed by Hanger One for the defendants. For the following reasons, we affirm the judgment.

FACTUAL AND PROCEDURAL BACKGROUND

James C. Rogers, a pilot and president of Rogers Aviation, Inc., died with his two passengers in a plane crash in November 2002. Rogers Aviation leased from the City of Monroe a hangar at the Monroe Regional Airport. Trial evidence indicated that the lease was for a long term and for sought after space at the airport. Hanger One operated a service station for aircraft in a hangar next to the Rogers Aviation hangar.

Hanger One alleged that in September 2002, Hanger One, through its president, T.C. Brown, entered into an oral contract with James C. Rogers and his wife, Mollie Rogers, to purchase all the stock in Rogers Aviation for $20,000.00 at the time of delivery of the stock certificates. Rogers would retain for his lifetime the right to use the facility at no cost to maintain his aircraft. Hanger One was to sell Rogers fuel at cost. If Rogers and Hanger One determined that a stock sale had adverse tax consequences, then all leases and assets (excluding aircraft) would be transferred to Hanger One in lieu of a stock transfer.

According to Hanger One, Mollie (widow of James C. Rogers) and James R. Rogers (Jamie, son) verbally acknowledged the contract for the stock sale following James C. Rogers' death but explained that the sale would be delayed due to possible litigation arising out of the fatal crash and the need to open and close James C. Rogers' succession. Hanger One was not opposed to a reasonable delay but maintained it was prepared at all times to perform its contractual obligations and to pay the purchase price and accept delivery of the stock.

On March 29, 2005, Hanger One sued the succession representative of the Unopened Succession of James C. Rogers, Mollie Rogers, Jamie Rogers, and Rogers Aviation, Inc. ("Rogers defendants"). Hanger One also sought payment under an alleged oral contract with Jamie and Mollie Rogers for recovery and storage of the plane wreckage and for maintaining the Rogers Aviation hangar and aircraft during litigation arising out of the crash. Specifically, Hanger One demanded: *178

• Wreckage recovery                         $1,600.00
• 24 months' storage fees                   $6,000.00
• 24 months' maintenance of hangar/planes   $6,500.00
• 8 engine startups                         $2,000.00

Hanger One asserted that the agreement was that Hanger One would not charge for maintaining the hangar and aircraft as long as the sale was completed in a reasonable time. Storage fees were to be applied to the purchase price as a "down payment."

The Rogers defendants settled the pending litigation concerning the crash and that suit was dismissed on December 1, 2004. In demanding specific performance, Hanger One contended that despite amicable demand, the Rogers defendants failed and/or refused to transfer the stock and the assets of Rogers Aviation.

In their answer, the Rogers defendants admitted that the lawsuit (Noelle Woodard v. the Succession Representative of the Succession of James C. Rogers) concerning the fatal crash was dismissed with prejudice on December 1, 2004. Further, the Rogers defendants alleged there was never a contract between Hanger One and any of the defendants nor was there a verbal contract among the parties for the services for which Hanger One sought recovery.

In amended petitions, the claimants added as defendants Dean Paul "Skip" Amidon and Amidon Aircraft Solutions, the ultimate purchaser of Rogers Aviation from the Rogers family.

TRIAL COURT'S REASONS FOR JUDGMENT

Because it was undisputed that parol evidence could not be used to establish liability against the estate of James C. Rogers or against his heirs, the claim against the unopened succession was dismissed at the start of the bench trial. Parol evidence of statements by the decedent was determined to be admissible to establish a debt of Rogers Aviation or the consideration of a debt of Rogers Aviation, Jamie and Mollie Rogers and/or Jamie and Mollie Rogers individually. The trial court found credibility determinations to be critical in the case in which a vital issue was whether the decedent was acting in his corporate and/or individual capacity.

Testifying for Hanger One, Brown stated that they had a deal and at the beginning of the following year, both parties were to investigate the tax and liability consequences resulting from carrying out the transaction as an asset sale or a stock sale. The court rejected Hanger One's assertion that the parties had a meeting of the minds because each may have reached opposite conclusions about the best way to perfect the sale.

The trial court determined the any of decedent's statements were more likely than not made for initial discussions about some possible sale in the future. James C. Rogers had previously discussed selling his business but had never agreed to the final step. The decedent never discussed a sale with his wife, Mollie, to whom he confided all the time. Nor did the decedent discuss the sale with his attorney or his CPA. The trial court found that there was "no credible evidence that Mr. Rogers made any statements that could be interpreted as a meeting of the minds as to an agreement to sell."

Hanger One failed to establish that decedent's statements were in a corporate capacity. The decedent's statements were personal, not in a corporate capacity. In addition, there was no credible evidence at all that Mr. Rogers made the statements.

Concerning the sale allegedly agreed to by Mollie or Jamie Rogers after the crash, the court heard conflicting testimony. There was confused testimony at the end of the trial that Mollie Rogers agreed to *179 make an offer of $52,000.00 or $55,000.00 to Hanger One. There was no meeting of the minds for a sale at $20,000.00 or $30,000.00. While Mollie and Jamie did tell Brown that they would give him the first opportunity to buy the stock or the lease, the evidence showed this was an experienced, sophisticated businessman dealing with the inexperienced widow and son of his recently deceased friend. There was no evidence that the Rogers family intended to be legally bound or to contract a right of first refusal.

Hanger One failed to carry its burden to prove entitlement to a claim for unjust enrichment or detrimental reliance. Hanger One's belated claim for services arose "only in aggressive negotiations in a counter offer" to the Rogers defendants' $52,000.00 offer.

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Cite This Page — Counsel Stack

Bluebook (online)
981 So. 2d 175, 2008 WL 1734775, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hanger-one-mlu-v-succession-of-rogers-lactapp-2008.