Jarrell v. Miller

882 So. 2d 639, 2004 WL 2005899
CourtLouisiana Court of Appeal
DecidedSeptember 9, 2004
Docket38,360-CA
StatusPublished
Cited by4 cases

This text of 882 So. 2d 639 (Jarrell v. Miller) 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
Jarrell v. Miller, 882 So. 2d 639, 2004 WL 2005899 (La. Ct. App. 2004).

Opinion

882 So.2d 639 (2004)

Bobby Ray JARRELL, Plaintiff-Appellee
v.
Leo A. MILLER, Jr., et al., Defendants-Appellants.

No. 38,360-CA.

Court of Appeal of Louisiana, Second Circuit.

September 9, 2004.

*641 Hayes, Harkey, Smith & Cascio, L.L.P., by Joseph D. Cascio, Jr., John C. Roa, The Boles Firm, by Robert W. Kostelka, Monroe, for Defendants-Appellants, Leo A. Miller and Westport Insurance Co.

Crawford & Anzelmo, by Brian E. Crawford, McLeod Verlander, by David E. Verlander, III, Monroe, for Plaintiff-Appellee Bobby Ray Jarrell.

Before BROWN, WILLIAMS, GASKINS, CARAWAY, and DREW, JJ.

BROWN, C.J.

This is an attorney malpractice action. Plaintiff, Bobby Ray Jarrell, argued that he "suffered immense economic harm as a result of Miller's misconduct and negligence in handling the broad scope of duties accepted by [Miller] as Mr. Jarrell's attorney." Jarrell claimed special damages for the loss of his job and stock in the company he and his wife of 27 years founded *642 and operated.[1] He also sought general damages for emotional distress. A jury agreed with plaintiff and awarded him a total of $1,350,285. Defendants, the attorney, and his malpractice insurer have appealed. For the reasons set forth below, we reverse and render judgment in favor of defendants.

Facts

Plaintiff and his wife, Maxine Ford Jarrell, were the sole shareholders and officers of Jarrell Transport, Inc. ("JTI"), a commercial trucking business located in Bastrop, Louisiana. Both husband and wife were personally responsible for most of the debts of the corporation. In 1997, the business was in financial trouble. In April of 1997, a deal was made with a larger trucking business out of Florida, Montgomery Tank Lines, Inc. ("Montgomery Tank"). JTI was made an affiliate of Montgomery Tank. In early July 1998, plaintiff got drunk, telephoned Montgomery Tank, cursed its representative, and threatened to bomb its facility. On July 15, 1998, Montgomery Tank terminated its agreement with JTI. The loss of affiliation with Montgomery Tank, together with IRS tax liens and cash flow problems worsened JTI's already desperate state.

In late July 1998, JTI retained a local attorney, Leo A. Miller. Plaintiff testified that as president of JTI he instructed Miller to file suit against Montgomery Tank and to seek the protection and reorganization of Chapter 11 Bankruptcy for JTI; however, within two weeks, by early August 1998, plaintiff was admitted into Doctors Hospital in Shreveport for detoxification and treatment of his severe alcohol problem. He remained in Shreveport under treatment until November 19, 1998.

During the time plaintiff was in Shreveport, the company was left in the hands of his wife. In October 1998, Miller prepared an act of partial partition of community property, transferring all of JTI's stock to Mrs. Jarrell as her separate property. Until this time, the stock had been community property, with the Jarrells each owning 50% of the shares. Plaintiff testified that he signed the document without reading it; he conceded that he was not prevented from reading it and that he was not under the influence of alcohol or drugs at the time. He claimed that his intent was to donate two percent of his 50% share in the corporation to give his wife 52% ownership so that she could effectively operate the company in his absence and compete for minority preference contracts and loans. Miller testified that the document he prepared was only a draft and that he gave it to Mrs. Jarrell to take to plaintiff in Shreveport for review and discussion and was surprised when the document was returned to him signed by plaintiff. Miller told Mrs. Jarrell to return to Shreveport and discuss the matter again with her husband; she later informed him that she had done so and that plaintiff understood the document.

On November 19, 1998, plaintiff left Shreveport, driving the 200 miles to Bastrop and along the way drinking a couple of fifths of vodka. When he got to Bastrop, he was intoxicated; he threatened his wife, broke windows in the office and company trucks using a tire iron, and generally wreaked havoc on JTI's property.

Plaintiff was arrested and jailed. The next day, Miller filed for divorce on behalf of Mrs. Jarrell and obtained restraining orders against plaintiff. Following his arrest, plaintiff engaged the law firm of McLeod & Verlander to respond to the divorce action filed by his wife, attempt to recover his shares of stock, and sue Miller. *643 In early 1999, while exploring the possibility of a reconciliation, both plaintiff and his wife consulted another attorney, Joseph Lebeau, to address the corporation's ongoing problems. Lebeau advised that the best course of action was to seek a loan rather than to sue Montgomery Tank or file Chapter 11 Bankruptcy.

Plaintiff claims that in February 1999, he and his wife had reached an agreement as to their domestic action. Plaintiff would receive 49% of JTI's stock and his wife, with 51% of the stock, would remain as president of the company. Miller, however, inserted a release of professional liability in the settlement proposal which plaintiff rejected. Later, plaintiff agreed to sign, but Mrs. Jarrell then refused to sign the agreement. Without the settlement, stock ownership of the corporation was in question, which, according to plaintiff, caused the loan to be denied in December of 1999 and led to the company's failure. As stated above, the financial restructuring of JTI was handled by attorney Joseph Lebeau, not Miller.

Plaintiff filed suit against Miller on November 17, 1999. Subsequently, Miller's legal malpractice insurer, Coregis Insurance Company, was added as a party.[2] In May 2000, plaintiff filed a separate suit against Mrs. Jarrell, who had divorced him, to recover his shares of JTI stock; however, he unilaterally dismissed that suit with prejudice in June 2001.

Exceptions of no right of action were filed by defendants asserting plaintiff's inability to seek damages on behalf of the corporate entity. On January 28, 2003, the trial court issued a ruling denying the exceptions. However, the trial court directed that, pursuant to the representation of plaintiff's counsel at the hearing on the exceptions, the only damages being sought were those applicable to the plaintiff and not the corporation.

Defendants filed a motion in limine which sought to limit evidence on several matters, including plaintiff's request for lost wages or earning capacity. This was based on the allegation that plaintiff had sustained an unrelated physical injury in March 1999, as a result of which he was permanently and totally disabled. For the same reason, defendants also filed a motion for partial summary judgment which was denied by the trial court. On the issue of the loss of stock, defendant asserted preclusion by judgment due to plaintiff's voluntary dismissal with prejudice of his suit against Mrs. Jarrell concerning JTI's stock.

A jury trial was held in the Spring of 2003. The jury found for plaintiff. Damages totaling $1,350,285 were awarded as follows: $500,000 in general damages; $623,110 in lost wages; and $227,175 for lost value of stock. The jury did not assess any fault to plaintiff. Judgment in conformity with the jury's verdict was rendered and signed.

Defendants filed a motion for new trial or, alternatively, JNOV. The trial court denied the motion in June 2003. It is from this judgment that defendants have appealed.

Discussion

Legal Malpractice

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Bluebook (online)
882 So. 2d 639, 2004 WL 2005899, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jarrell-v-miller-lactapp-2004.