Jackson v. Lare

779 So. 2d 808, 2000 WL 1634304
CourtLouisiana Court of Appeal
DecidedNovember 1, 2000
Docket34,124-CA
StatusPublished
Cited by28 cases

This text of 779 So. 2d 808 (Jackson v. Lare) 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
Jackson v. Lare, 779 So. 2d 808, 2000 WL 1634304 (La. Ct. App. 2000).

Opinion

779 So.2d 808 (2000)

Roy C. JACKSON, Plaintiff-Appellant,
v.
Robert W. LARE, Jr., et al., Defendant-Appellee.

No. 34,124-CA.

Court of Appeal of Louisiana, Second Circuit.

November 1, 2000.

*810 Bobby L. Culpepper & Associates By: Bobby L. Culpepper, Jonesboro, Counsel for Appellant.

Dollar Laird By: R. Nicholas Anderson, Monroe, Counsel for Appellee.

Before WILLIAMS, GASKINS and PEATROSS, JJ.

GASKINS, J.

The plaintiff, Roy C. Jackson, appeals a trial court judgment finding that, even though the defendants breached a contract with him, he suffered no damages. The defendants answered the appeal, claiming that the trial court erred in finding that there was a valid contract that was breached and erred in assessing costs to them. For the following reasons, we affirm the trial court judgment.

FACTS

The defendants, Robert W. Lare, Jr. and Gaylene M. Lare; Gregg R. Tousignant and Susan R. Tousignant; Paul B. Reiser and Stacy W. Reiser; Glenn A. Cox and Lori R. Cox; and Mark D. Reiser, were the shareholders in Bellwether Management *811 Corporation, Inc. (Bellwether). Bellwether attempted to build a Sonic Drive-In in Grambling, Louisiana. Apparently there was some tension in the community and the restaurant was burned down before it was completed. Bellwether sought to sell the drive-in. On November 10, 1996, the defendants entered into a written contract of "Purchase and Sale of Stock" with the plaintiff for the sale of all stock in Bellwether for $100. In the agreement, the plaintiff agreed to complete the Sonic Drive-In, obtain the release of the guaranty signed by the defendants at the First National Bank, Bienville Parish, for $485,000, of which there was an outstanding balance of approximately $308,000, and to hold the defendants harmless for any work already completed on the drive-in.

According to the plaintiff, about two months after signing the agreement, the defendants breached the contract by selling the drive-in to a third party, Sapp-Roberson Enterprises, Inc. (Sapp-Roberson). The plaintiff filed suit on July 15, 1997, claiming damages for breach of contract, loss of profits, embarrassment and humiliation, as well as attorney fees. The plaintiff claimed that he had made a demand for specific performance on January 7, 1997 and the defendants failed to comply. The plaintiff contended that he was not given a reasonable time within which to comply with the conditions of the contract. He claimed that he had undertaken extensive public relations work in the community and that not being permitted to complete the contract caused him humiliation and mental anguish. The plaintiff contended that because the defendants sold the property and cannot give specific performance, they must respond in damages.

Trial on the matter was held on September 9, 1999. The plaintiff testified that he was formerly the assistant dean of students at Grambling and had previously owned an interest in a car dealership in the area. Therefore, he was well known in the community. He stated that he was to be the "front man" for the new Sonic in order to garner support in the community for the project. He claimed that he did two months of public relations work talking with the mayor, town council, and other community leaders. He even claimed to have talked with the individuals suspected of setting the fire. He stated that he thought that another individual, Fred Bayles, was arranging the financing for the project. Mr. Jackson testified that he did not know he was out of the deal until after the defendants sold their interest in the drive-in to Sapp-Roberson.

Gary Lewis of the First National Bank, Bienville Parish, testified that an individual named Merlin Reiser, who is not a party to the contract and is not a defendant in this case, was personally liable on the note for the construction of the Sonic, along with Bellwether. Mr. Reiser was not excited about rebuilding the restaurant. The plaintiff was to "front" the deal in the community and was to obtain additional financial backers to complete the drive-in.

Mr. Reiser testified that he owned approximately 16 Sonics and that Bellwether Management is owned by his relatives. He stated that after the fire, the defendants entered into an agreement to sell the Grambling Sonic to the plaintiff, if he could get them off the note. Mr. Reiser claimed that in various meetings Mr. Jackson was made aware that the defendants were also dealing with other prospective buyers. Approximately two months after the signing of the contract, Bellwether and Mr. Reiser did not feel that Mr. Jackson was fulfilling the terms of the agreement. It appeared that Mr. Jackson could not arrange the necessary financing. Mr. Reiser testified that he met with Mr. Jackson and inquired whether he was going to be able "to do the deal." He stated that Mr. Jackson replied, "you know I can't." At that point Bellwether sold the Grambling Sonic to Sapp-Roberson.

Fred Bayles, who was an associate of Mr. Reiser, testified that he works for a *812 company that finds loans for people. In talking with Mr. Reiser, the situation with the fire in Grambling came up. Mr. Bayles suggested that Mr. Reiser and the defendants deal with Mr. Jackson, who had a good reputation in the community and might be able to earn acceptance for the project. The parties met and eventually executed the agreement at issue here. Mr. Bayles contacted Sonic to get the plaintiff accepted as a franchisee. Clean up work at the site was also commenced. Mr. Bayles said he consulted an engineer to look at the structure and contacted manufacturers about the price of material for the project. Mr. Bayles testified that in connection with the agreement between the plaintiff and defendants, he contacted the Rural Development Authority of Alexandria about being a guarantor on a loan from the First National Bank of Arcadia. At that point, the defendants notified the plaintiff that they were selling the drive-in to Sapp-Roberson.

Douglas Sapp, vice-president of Sapp-Roberson Enterprises, Inc., the current owner of the Sonic, testified that in the two and on-half years the drive-in has been in operation, it has not been profitable. Gregg Tousignant, a defendant in this case, testified that he is the bookkeeper for Sapp-Roberson and corroborated the testimony that the drive-in has not yet shown a profit.

On January 19, 2000, the trial court rendered judgment, finding that the defendants had breached the contract with the plaintiff, but that the plaintiff had suffered no damages. Costs were assessed to the defendants.

In reasons for judgment, the trial court found that there was an agreement between the parties for Mr. Jackson to purchase all shares of Bellwether for $100, to assume an outstanding balance of $308,000, and to complete the drive-in. The court found that this was a conditional obligation under La. C.C. art. 1767 and that the plaintiff would have the right to purchase the corporation if he could perform all the suspensive conditions, including obtaining financing and release of the defendants from their obligation with First National. However, the suspensive conditions were not fulfilled so there was no enforceable contract of sale.

The court went on to state that the defendants did not give the plaintiff a reasonable time to fulfill the conditions. The court found that only 59 days elapsed between the defendants' agreement with the plaintiff and the new contract with Sapp-Roberson.

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Cite This Page — Counsel Stack

Bluebook (online)
779 So. 2d 808, 2000 WL 1634304, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jackson-v-lare-lactapp-2000.