Jason Meadows, individually and Jason Meadows on behalf of Southern Cross Marine Services, LLC v. Christy Adams

CourtLouisiana Court of Appeal
DecidedNovember 9, 2020
Docket2018CA1544
StatusUnknown

This text of Jason Meadows, individually and Jason Meadows on behalf of Southern Cross Marine Services, LLC v. Christy Adams (Jason Meadows, individually and Jason Meadows on behalf of Southern Cross Marine Services, LLC v. Christy Adams) 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
Jason Meadows, individually and Jason Meadows on behalf of Southern Cross Marine Services, LLC v. Christy Adams, (La. Ct. App. 2020).

Opinion

STATE OF LOUISIANA

COURT OF APPEAL

FIRST CIRCUIT

2018 CA 1544R

JASON MEADOWS, INDIVIDUALLY AND JASON MEADOWS ON BEHALF OF SOUTHERN CROSS MARINE SERVICES, LLC

VERSUS

CHRISTY ADAMS

Judgment Rendered: NOV 0 9 2020

fC_ 4_ On Appeal from the Twenty -Second Judicial District Court In and for the Parish of St. Tammany State of Louisiana Docket No. 2015- 12840, Division " H"

Honorable Alan A. Zaunbrecher, Judge Presiding

Jason R. Anders Counsel for Plaintiff/Appellant Mandeville, Louisiana Jason Meadows

David C. Spinner Counsel for Defendant/ Appellee Galen M. Hair Christy Adams New Orleans, Louisiana

BEFORE: WHIPPLE, C.J., McCLENDON, AND HIGGINBOTHAM, 33.

n_ Lt- taw' MCCLENDON, J.

Former husband and limited liability company ( sometimes collectively " Plaintiffs")

brought suit against former wife. Former wife filed a Motion to Enforce Settlement

Agreement contending that Plaintiffs' claims were precluded by the terms of the

Consent Judgment on Partition of Community Property previously executed in

connection with the divorce proceedings of former husband and former wife. The trial

court rendered judgment granting the Motion to Enforce Settlement Agreement, and

dismissing Plaintiffs' claims with prejudice. Plaintiffs appealed. For the reasons set forth

below, we affirm in part, reverse in part, and remand.

FACTS AND PROCEDURAL HISTORY

Jason Meadows (" Meadows") and Christy Adams (" Adams's were married in

2011 and separated in 2014. Prior to, during, and after the parties' marriage, Meadows

was the sole member of Southern Cross Marine Services, LLC (" Southern Cross").

During the parties' marriage, Adams was employed by Southern Cross for a brief period

of time to assist in bookkeeping and administrative matters.

Adams initiated divorce proceedings on June 5, 2014 (" domestic proceedings" }.1

Material to this appeal, the parties executed a Consent Judgment on Partition of

Community Property (" Consent Judgment's on August 29, 2014. The Consent Judgment

set forth terms under which the parties each received full ownership of certain

property; agreed to indemnify the other from any and all debts associated with the

property received in the partition; and, further agreed to hold the other harmless from

responsibility for debts arising from the former community. Meadows received one

hundred percent ( 100%) right, title, and interest in and to Southern Cross pursuant to

the terms of the Consent Judgment.

On July 17, 2015, during the pendency of the domestic proceedings, Meadows

and Southern Crosse fled a Petition for Damages naming Adams as defendant (" instant

proceedings"). Plaintiffs alleged that during Adams' employment with Southern Cross,

1 The domestic proceedings were captioned " Christy Adams, wife of Jason Meadows, versus Jason Meadows, Twenty -Second Judicial District Court, Parish of St. Tammany, State of Louisiana, Docket No. 2014- 12593, Division H."

2 We note Adams' argument that Southern Cross is not a party to these proceedings. This argument is considered and rejected for the reasons set forth below.

2 she failed to pay various creditors, dishonored contracts, incurred liability on behalf of the business, and misappropriated funds from Southern Cross for personal use.

Meadows asserted claims in his individual capacity under LSA- C. C. art. 2354 for loss or

damage caused by fraud or bad faith in the management of community property.

Southern Cross asserted claims for conversion, unjust enrichment, and breach of

fiduciary duty.

Adams answered the Petition for Damages. Adams asserted that she was only

employed by Southern Cross for approximately three weeks and disputed the

allegations of wrongdoing. More specifically, Adams denied incurring unauthorized

debts; conceded that some of Southern Cross' s bills were left unpaid, but maintained

that was through no fault of her own; and admitted that she had taken funds from

Southern Cross accounts, but explained that she had taken the funds to pay household

bills which were community obligations. Adams further argued that any and all claims

asserted by Plaintiffs were resolved and barred by the Consent Judgment.

The domestic proceedings and the instant proceedings were allotted to the same

division of the trial court. During an October 11, 2016 hearing in the domestic

proceedings, the parties announced their intent to resolve certain matters by

stipulation. Accordingly, the trial court memorialized the terms agreed to at the

October 11, 2016 hearing in a Stipulated Judgment executed on December 21, 2016,

Stipulated Judgment"). The first two provisions of the Stipulated Judgment read as

follows:

1. All open and/ or pending contempt motions and sanctions motion filed by both parties are dismissed with prejudice, with each party to bear its own costs;

2. All outstanding issues in Judge Penzato' s Division concerning pending matters between the parties are dismissed, with each party to bear its own costs.

On May 11, 2017, Plaintiffs filed a Motion for Contempt of Court (" Motion for

Contempt") in the instant proceedings, asserting that Adams failed to comply with a

trial court order to respond to Plaintiffs' discovery requests. On June 15, 2017, Adams

filed a Motion to Dismiss with Prejudice (" Motion to Dismiss") seeking dismissal of

Plaintiffs' claims. In support of her Motion to Dismiss, Adams attached the Consent

3 Judgment, portions of the transcript of the October 11, 2016 hearing, and the

Stipulated Judgment. Adams, then unrepresented by counsel, failed to serve the Motion

to Dismiss on counsel for Plaintiffs, and instead mailed a copy of the Motion to Dismiss

to Meadows. Adams also failed to set the Motion to Dismiss for hearing. Plaintiffs filed

an opposition to the Motion to Dismiss, arguing that the October 11, 2016 hearing and

the resulting Stipulated Judgment concerned the domestic proceedings, and therefore

had no effect on the instant proceedings. Although the Motion to Dismiss was not

properly filed or served, the trial court permitted Adams to state her position " in the

interest of justice" during a June 29, 2017 hearing on the Motion for Contempt. The

Clerk of Court notified the parties by letter dated July 3, 2017, that the Motion to

Dismiss had been denied. 3 The litigation continued.

On November 6, 2017, Adams filed a Peremptory Exception raising the

Objections of No Cause of Action, No Right of Action, and Prescription, together with a

Motion to Enforce Settlement Agreement (" Motion to Enforce Consent Judgment'j. In

the Motion to Enforce Consent Judgment, Adams argued that Plaintiffs were precluded

from asserting the claims set forth in the Petition for Damages by the terms of the

Consent Judgment. Plaintiffs opposed Adams' filings. Following a March 23, 2018

hearing, the trial court took the matter under advisement. On May 8, 2018, the trial

court executed a written judgment granting the Motion to Enforce Consent Judgment

and dismissing Plaintiffs' claims with prejudice.'

Plaintiffs filed a Motion for New Trial, which was denied without a hearing on

May 29, 2018. Plaintiffs then filed a Petition for Devolutive Appeal on July 13, 2018.

Adams filed a Motion to Dismiss Appeal with this court, which was referred to the panel

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Jason Meadows, individually and Jason Meadows on behalf of Southern Cross Marine Services, LLC v. Christy Adams, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jason-meadows-individually-and-jason-meadows-on-behalf-of-southern-cross-lactapp-2020.