Hunt Guillot and Associates, LLC v. Terry Clark, John Jack, Gary Evans, Kirk Trosclair and Ronald McClung

CourtLouisiana Court of Appeal
DecidedApril 22, 2020
Docket53,434-CA
StatusPublished

This text of Hunt Guillot and Associates, LLC v. Terry Clark, John Jack, Gary Evans, Kirk Trosclair and Ronald McClung (Hunt Guillot and Associates, LLC v. Terry Clark, John Jack, Gary Evans, Kirk Trosclair and Ronald McClung) 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
Hunt Guillot and Associates, LLC v. Terry Clark, John Jack, Gary Evans, Kirk Trosclair and Ronald McClung, (La. Ct. App. 2020).

Opinion

Judgment rendered April 22, 2020. Application for rehearing may be filed within the delay allowed by Art. 2166, La. C.C.P.

No. 53,434-CA

COURT OF APPEAL SECOND CIRCUIT STATE OF LOUISIANA

*****

HUNT GUILLOT AND Appellants ASSOCIATES, LLC versus

TERRY CLARK, JOHN JACK, Appellees GARY EVANS, KIRK TROSCLAIR AND RONALD MCCLUNG

Appealed from the Third Judicial District Court for the Parish of Lincoln, Louisiana Trial Court No. 59,111

Honorable Jeffrey Levance Robinson, Judge

FISHMAN HAYGOOD, LLP Counsel for Appellants By: Brent Bennett Barriere By: Kristen D. Amond

IRWIN, FRITCHIE, URQUHART & Counsel for Appellees, MOORE, LLC Terry Clark and John Jack By: Matthew William Bailey By: Kelly E. Brilleaux

HAYES, HARKEY, SMITH & Counsel for Appellees, CASCIO, LLP Gary Evans, Kirk Trosclair, By: Thomas Moore Hayes, III and Ronald McClung By: Peter Stokes

Before MOORE, COX, and STEPHENS, JJ. COX, J.

This appeal arises out of the Third JDC, Lincoln Parish, Louisiana.

Hunt Guillot and Associates, LLC (“HGA”) brought suit against Terry

Clark, John Jack, Gary Evans, Kirk Trosclair, and Ronald McClung after the

defendants failed to pay for services rendered. HGA seeks review of the

district court’s decision to grant the defendants’ exception of prescription.

The defendants seek review of the district court’s decision to deny their

exception of lack of personal jurisdiction. For the following reasons, we

affirm the district court’s decision.

FACTS

In 2014, Terry Clark, John Jack, Gary Evans, Kirk Trosclair, and

Ronald McClung were all members of a publicly traded company,

GreenHunter Resources, Inc. (“GHR”). At that time, GHR was primarily in

the business of water management solutions for oil and gas companies.

GHR sought to grow its business through building two separate condensate

plants in Ohio and West Virginia. In order to complete this goal, GHR

formed GreenHunter Hydrocarbons, LLC (“GHH”), which negotiated with

and solicited business from HGA. At the time of GHH’s inception, Evans

was the chairman and chief executive officer, Trosclair was the executive

vice president and chief operating officer, and McClung served as senior

vice president and chief financial officer. Additionally, Clark and Jack were

executives of GHH.

HGA alleges that in early June 2014, Clark and Jack reached out to

executives with HGA who were located in Louisiana and placed phone calls to them on telephone numbers with Louisiana area codes.1 On June 6, 2014,

HGA, through Dean Roberts, its project manager in Pennsylvania, reached

an agreement with Clark and Jack whereby HGA would provide engineering

and project management services related to the planning and construction of

the two condensate plants. According to HGA, Clark and Jack requested

that HGA begin work on the project immediately. HGA agreed to begin

work as they believed GHH had the necessary preconstruction funding.2

On March 31, 2014, GHR publicly filed an annual report on Form 10-

K that contained a “going concern” qualification, which auditors require

companies to include when there is a serious risk that a company will run

out of money within a year. Additionally, on August 11, 2014, GHR

included a going concern qualification in its 10-Q quarterly disclosure.

GHH and GHR also publicly filed an Amendment No. 1 to the Form S-3

Registration Statement with the SEC on October 17, 2014, reiterating doubt

that the companies could remain financially solvent.

HGA issued its first invoice on July 10, 2014, in the amount of

$40,403.38. It issued a second invoice on August 5, 2014, in the amount of

$77,319.50. Payments were due within 30 days of the respective invoice

dates. GHH delayed payments for a total of two months before paying them.

After GHH paid these two invoices, Evans instructed Clark and Jack to

1 In the defendants’ affidavits, Evans, Trosclair, Clark, and Jack all state that to the best of their knowledge they had no contact with anyone working for HGA who was physically located in Louisiana during 2014. McClung also stated that he never spoke to or communicated with anyone at HGA nor did he make any decision about whether HGA would be hired or paid. 2 Typically, preconstruction financing is used to pay for services like completing sets of engineering plans and those plans are then used to secure funding for the construction phase. 2 make numerous work requests known as “Project Change Notices”

(“PCNs”). These PCNs greatly increased the cost of the building project.

Between August 2014 and November 2014, Clark and Jack

communicated regularly with HGA. On August 4, 6, 19, 25, and 26;

September 4, 18, 24, and 29; and, November 7 and 19, HGA memorialized

PCNs that GHH negotiated. During this time, Trott Hunt, a member of

HGA, stated in his affidavit that Trosclair and McClung telephoned either

him, Glenn Mitchell, or Trotter Hunt in Ruston to assure them that GHH

would pay the balance. By January 9, 2015, HGA had $744,751.01 in

outstanding and unpaid invoices for work on the project. GHH’s executives

deflected paying these invoices. As a result of GHH’s inaction, HGA

stopped working.

On January 15, 2015, HGA filed suit in Pennsylvania for a breach of

contract action captioned Hunt Guillot & Associates, LLC v. GreenHunter

Hydrcarbons LLC, et al., Case No. 10-000821. On April 29, 2015, Trosclair

and Evans met with Trott and Trotter Hunt at HGA’s headquarters in

Ruston, Louisiana. At this meeting Trosclair and Evans requested that HGA

drop the litigation against GHH and provide a new set of plans. According

to Trosclair and Evans, GHH had lost the plans that HGA had drafted for

them. In return for the new plans, Evans committed to pay $100,000 in the

next week.

After the meeting, HGA provided a letter to GHH assuring them that

once they received the $100,000 payment, HGA would supply a second set

of drawings. Nobody from GHH responded to the letter nor did GHH pay

the $100,000. Therefore, HGA pressed forward with its suit. On July 7,

2016, HGA secured summary judgment against GHH in the amount of 3 $744,745.01, plus costs and interest. However, on March 1, 2016, GHH and

GHR filed for bankruptcy. HGA failed to perfect its claims in the

bankruptcy case, leaving HGA unable to enforce its claims.

HGA engaged in post-judgment discovery of GHH’s executives to

locate resources and assets to satisfy the judgment. According to HGA,

beginning with the deposition of Trosclair on August 29, 2016, HGA learned

that it was not dealing with a mere breach of contract, but it was the target of

a sophisticated conspiracy to defraud. This deposition of Trosclair was not

included in the record for our review.

On August 18, 2017, HGA filed a suit against the defendants in

Lincoln Parish, Louisiana, alleging that the defendants conspired to make

negligent, or alternatively, intentional misrepresentations that induced HGA

to perform hundreds of thousands of dollars’ worth of engineering and

project management services for which HGA was never paid. The

defendants filed exceptions of vagueness, prescription, and lack of personal

jurisdiction.

At the district court’s direction, HGA filed an amended petition on

April 10, 2018. The defendants re-urged their exceptions of lack of personal

jurisdiction, prescription, and vagueness. On December 3, 2018, the district

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Hunt Guillot and Associates, LLC v. Terry Clark, John Jack, Gary Evans, Kirk Trosclair and Ronald McClung, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hunt-guillot-and-associates-llc-v-terry-clark-john-jack-gary-evans-lactapp-2020.