Hansen v. River Cities Disposal Co.

174 So. 3d 1203, 2015 La. App. LEXIS 1539, 2015 WL 4747884
CourtLouisiana Court of Appeal
DecidedAugust 12, 2015
DocketNo. 49,968-CA
StatusPublished
Cited by1 cases

This text of 174 So. 3d 1203 (Hansen v. River Cities Disposal Co.) 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
Hansen v. River Cities Disposal Co., 174 So. 3d 1203, 2015 La. App. LEXIS 1539, 2015 WL 4747884 (La. Ct. App. 2015).

Opinion

BROWN, Chief Judge.

| plaintiffs, the children and heirs of Jim and Carolyn Lynch,1 appeal the granting [1204]*1204of summary judgment dismissing with prejudice their claims against defendant, River Cities Disposal Company, Inc. We reverse and remand for further proceedings.

Facts and Procedural Background

In the mid-1980s the City of Shreveport solicited proposals from solid waste companies to operate its Woolworth Road landfill. River Cities Waste Company, Inc. (“RCW”), a local commercial solid waste hauler, recruited Browning-Ferris Industries, Inc. (“BFI”), the company that was ultimately awarded the contract, to apply to be operater of the landfill. RCW assisted BFI in its preparation and formulation of its proposal.

After being awarded the contract by the City of Shreveport, BFI contracted with defendant, River Cities Disposal Company, Inc. (“RCDC”), a separate corporation created by the shareholders of RCW, for the marketing of BFI’s landfill operations to prospective commercial solid waste customers. Under the agreement, RCDC would receive 10 percent of the net revenues BFI received from the Woolworth Road landfill. The term of the contract between BFI and the City of Shreveport was extended until 2028.

Jim Lynch’s prior position as Director of Public Works for the City of Shreveport, as well as his experience as a former employee of another area commercial solid waste hauler, made him a valuable resource for RCW in 12obtaining the contract for BFI. Rather than paying up front for Lynch’s services, RCDC agreed to pay him a percentage of the net revenues it would receive under its marketing contract with BFI. The agreement was memorialized in a letter dated October 12, 1987, which provided:

This letter will serve as evidence of your ownership of 14½ percent of our net revenues from oui* Shreveport landfill agreement with BFI, Inc.

This letter was signed by John D. Caruth-ers, Jr., and Scott Pernici, secretary/treasurer and president, respectively of RCDC. Mr. Caruthers testified to the authenticity of the letter.2

Jim Lynch died of emphysema in 1989. At the time of his death he had received approximately $24,176 in payments from RCDC and, the year following his death, his estate received an additional $34,127. Thereafter, RCDC continued to pay the 14.5 percent to Lynch’s widow, Carolyn Lynch. These payments to Carolyn continued until her death in 2012 and totaled approximately $2,000,000.

Plaintiffs, the heirs and legatees of Carolyn Lynch, instituted this action by filing a petition for declaratory judgment and damages on May 10, 2013, seeking recognition of their ownership of the 14.5 percent interest. RCDC filed an answer and re-conventional demand alleging that the payments made to Jim and Carolyn Lynch lacked lawful cause and were donations that were not in proper ■ form. RCDC sought to recoup those payments to both Jim and Carolyn Lynch under the legal theory of payment of a thing not due.

|sThe parties engaged in discovery and ultimately filed cross motions for summary judgment. On August 29, 2014, the trial court granted plaintiffs motion for summary judgment as to RCDC’s reconven-tional demand to recover the money paid [1205]*1205to the Lynches. The trial court, in a separate judgment, also granted RCDC’s motion for summary judgment as to the claims asserted by plaintiffs in the principal action. Plaintiffs now appeal.

Discussion

A motion for summary judgment shall be rendered “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to material fact, and that mover is entitled to judgment as a matter of law.” La. C.C.P. art. 966(B). Once the motion for summary judgment has been properly supported by the moving party, the inability of the non-moving party to bring forth evidence of a material factual dispute mandates the granting of the motion. Racine v. Moon’s Towing, 01-2837 (La.05/14/02), 817 So.2d 21; Robertson v. West Carroll Ambulance Service Dist., 39,331 (La.App.2d Cir.01/26/05), 892 So.2d 772, writ denied, 05-0460 (La.04/22/05), 899 So.2d 577. Appellate courts review summary judgment de novo, using the same criteria that govern the district court’s consideration of whether summary judgment is appropriate. Id.; Traweek v. Jackson, 30,248 (La App.2d Cir.02/25/98), 709 So.2d 867.

Louisiana Civil Code article 1969 provides that “[a]n obligation may be valid even though its cause is not expressed.” The supreme court has | ¿recognized that the motive or real consideration can always be established by parol evidence. McCarroll v. McCarroll, 96-2700 (La.10/21/97), 701 So.2d 1280.

In this case, the affidavits, depositions and documents submitted in favor of and against the motions for summary judgment reveal the following relevant facts:

Jim Lynch provided RCW, and by proxy RCDC, valuable consulting services that aided in- its securing the marketing agreement with BFI.
The shareholders of RCDC had a meeting and decided to compensate Lynch with a percentage of the net revenue to be received by RCDC from the BFI agreement. The six shareholders agreed to essentially give Jim Lynch an equal interest in the BFI agreement.
No term was set for the length of time that Lynch would be paid. John D. Caruthers, Jr. testified that he’s “sure that we assumed as long as the [BFI] contract was alive.”
The October 1987 letter stated that it was evidencing Lynch’s “ownership of 14 ½ percent of [RCDC’s] net revenues from our Shreveport landfill marketing agreement with BFI, Inc.” Although Mr. Caruthers is the only person to testify to knowing about the letter, it was signed by him and Scott Pernici, president of RCDC.
Lynch had been suffering from severe emphysema for many years, and at the time of the October 1987 letter, he was not expected to live much longer. All shareholders of RCDC were aware of this fact.
The tax returns filed by RCDC with the IRS froft 1990 through 2012 listed the payments made from RCDC to Carolyn Lynch in a variety of ways. From 1990-1997 the payments were listed as “commissions”; for the periods 1998-1999 and 2001-2004, they 'were shown as “management fees”; in 2000, they were classified as “consulting fees”; from 2005-2011 they were referred to as “royalties paid tó non-owners”; and, for 2012, the attached statement is missing.

In its ruling on defendant’s motion for summary judgment the trial court, in a footnote, stated the following reasons for its ruling:

After a thorough review of this summary judgment record ... River Cities [1206]*1206is entitled to judgment as a matter of law. Jim Lynch’s ^obligations were strictly personal and upon his death River Cities had no legal obligation to pay Carolyn Lynch or the Lynch heirs. The payments to Carolyn Lynch were voluntarily and gratuitously made. Neither Jim Lynch, his widow Carolyn, nor their heirs have a heritable ownership interest of 14 ½% of the net revenue from River Cities’ landfill marketing agreement with BFI dated March 17, 1987.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hansen v. River Cities Disposal Co.
245 So. 3d 213 (Louisiana Court of Appeal, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
174 So. 3d 1203, 2015 La. App. LEXIS 1539, 2015 WL 4747884, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hansen-v-river-cities-disposal-co-lactapp-2015.