John W. Stone Oil Distributor, LLC v. RIVER OAKS CON. & DEV., INC.

986 So. 2d 103, 2008 WL 2190741
CourtLouisiana Court of Appeal
DecidedMay 27, 2008
Docket07-CA-1001
StatusPublished
Cited by13 cases

This text of 986 So. 2d 103 (John W. Stone Oil Distributor, LLC v. RIVER OAKS CON. & DEV., INC.) 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
John W. Stone Oil Distributor, LLC v. RIVER OAKS CON. & DEV., INC., 986 So. 2d 103, 2008 WL 2190741 (La. Ct. App. 2008).

Opinion

986 So.2d 103 (2008)

JOHN W. STONE OIL DISTRIBUTOR, L.L.C.
v.
RIVER OAKS CONTRACTORS & DEVELOPERS, INC., Amelia Homes, L.L.C., J.J. Gretna, L.L.C., Thomas Ward, Jason Ward, and T. Jerard Ward.

No. 07-CA-1001.

Court of Appeal of Louisiana, Fifth Circuit.

May 27, 2008.

*104 George J. Fowler, III, Robert R. Johnston, Anthony D'Alto II, Fowler Rodriguez, New Orleans, Louisiana, for Plaintiff/Appellant, John W. Stone Oil Distributor, L.L.C.

Daniel A. Ranson, Michael D. Peytavin, Gaudry, Ranson, Higgins & Gremillion, L.L.C., Gretna, Louisiana, for Defendants/Appellees, River Oaks Contractors and Developers, Inc. and Thomas J. Ward, Jr.

Omer F. Kuebel, III, Monique M. Lafontaine, Locke Lord Bissell & Liddell LLP, New Orleans, Louisiana, for Defendants/Appellees, Amelia Homes, LLC, J.J. Gretna, LLC, Jason Ward, T. Jerard Ward and JJ Condominiums, LLC.

*105 Panel composed of Judges THOMAS F. DALEY, SUSAN M. CHEHARDY, and CLARENCE E. McMANUS.

THOMAS F. DALEY, Judge.

The plaintiff has appealed the trial court's grant of summary judgment in favor of the defendants. For the reasons that follow, we affirm.

FACTS:

Plaintiff, John W. Stone Oil Distributor, L.L.C. (hereinafter referred to as Stone), filed suit against T. Jerard Ward, Jason Ward, J.J. Gretna, L.L.C., Amelia Homes, L.L.C., Thomas "Butch" Ward, and River Oaks Contractors & Developers, Inc. seeking damages for breach of an alleged agreement to sell certain immovable property to Stone. Specifically, Stone alleged that its company was interested in purchasing a parcel of land located near its facilities for future growth of the company. This parcel of land, referred to in these proceedings as Parcel A, fronts on the Mississippi River and is bound on the south side by First Street. Stone alleges that the defendants wanted to purchase the adjacent parcels of land referred to in these proceedings as Parcels B and C. Stone alleges an agreement was entered into whereby defendants would purchase the land in its entirety and then sell Parcel A to Stone. Stone contends that it relied on this agreement and representations made by defendants and did not negotiate to buy the land. Stone then discovered that defendants had changed their mind about transferring Parcel A to Stone, instead planning to build a condominium development on this land. Stone sought damages under theories of detrimental reliance, breach of a fiduciary duty by its partner in the joint venture to acquire Parcel A, fraud, and unfair trade practice. Stone contends that because defendants failed to transfer Parcel A as agreed, it was necessary to procure a lease on another parcel of land causing financial damages as a result of increased costs.

With regard to the detrimental reliance claim, Stone alleged that the parties agreed that it was best for only one party to approach the previous owner and negotiate a sale in order to obtain the land for the lowest price. Stone alleges that it was agreed that defendants would purchase the land then transfer Parcel A to Stone. Stone contends its detrimental reliance on the promises made by defendants caused Stone to sustain monetary damages. With regard to the fraud claim, Stone alleges a joint venture was formed for the purpose of acquiring the land and accordingly, defendants owed a fiduciary duty to Stone. Stone contends defendants breached this fiduciary duty in failing to transfer Parcel A after agreeing to do so. Stone alleges that it suffered monetary damages as a result of defendants' breach of this fiduciary duty. With regard to the fraud claim, Stone alleges defendants committed fraud by approaching Stone with the intent of deceiving Stone so defendants could purchase the land at a lower price. Stone alleges it is entitled to monetary damages for increased costs it incurred as a result of defendants' alleged fraud. As to the claim of unfair trade practices, Stone alleges defendants committed unfair trade practices when they employed unfair methods of competition and deceptive acts and practices in the process of purchasing the land and used deceitful acts and misrepresentation to keep Stone out of negotiations regarding the purchase of the land. Stone alleges it and defendants were competitors within the meaning of R.S. 51:1404, the Louisiana Unfair Trade Practices and Consumer Protection Act (herein after LUTPA). Again Stone contends it is entitled to monetary damages for increased costs it incurred as a *106 result of defendants' alleged unfair trade practices.

The defendants responded with various exceptions including an Exception of No Cause of Action. The trial court denied these exceptions[1] and discovery was conducted. Thereafter, defendants filed Motions for Summary Judgment. Following a hearing, the trial court granted defendants' motions.

LAW AND DISCUSSION:

Summary judgment is proper when the pleadings, depositions, answers to interrogatories, and admissions on file, together with affidavits, show there is no genuine issue of material fact and that the mover is entitled to judgment as a matter of law. La. C.C.P. art. 966(B). For purposes of summary judgment, a fact is material if it is essential to a claim or defense under applicable substantive law. Johnson v. Drury, 99-608 (La.App. 5 Cir. 6/2/00), 763 So.2d 103. Thus, regardless of the presence of a disputed fact, summary judgment is appropriate if the disputed fact presents no legal issue. Id. If the moving party points out that there is an absence of factual support for one or more elements essential to the adverse party's claim, action or defense, the nonmoving party then must produce factual support sufficient to establish that he will be able to satisfy his evidentiary burden of proof at trial. La. C.C.P. art. 966(C)(2). If the nonmoving party fails to do so, there is no genuine issue of material fact, and summary judgment should be granted. La. C.C.P. arts. 966 and 967.

Although defendants filed separate Motions for Summary Judgment and separate judgments were signed granting summary judgment, the main arguments made by defendants are the same, i.e. that an alleged oral agreement to sell immovable property is not actionable under fraud, breach of fiduciary duty or tort theories of recovery. Defendants contend that agreements, such as an option to purchase or a contract to sell, that establish a transfer or an obligation to transfer immovable property must be in writing. Defendants argue that framing arguments using allegations of fraud, detrimental reliance, and other torts all based on an alleged oral agreement are nothing more than an attempt to circumvent the longstanding rule that written agreements are required to sell immovable property.

Plaintiff relies on three cases to support its position that a written agreement is not required to support its claims. We find these cases distinguishable. In Rhoads v. Quicksilver Brokers, Ltd., 01-768 (La.App. 5 Cir. 12/26/01), 801 So.2d 1284, plaintiff sought to enforce a written stock option agreement. A claim of detrimental reliance was not asserted. Likewise, Cenac v. Hart, 98-1679 (La.App. 3 Cir. 4/7/99), 741 So.2d 690, involved an alleged agreement regarding the transfer of stock. In Cenac, the Third Circuit reversed the trial court's grant of an Exception of No Cause of Action regarding plaintiffs detrimental reliance on an alleged oral agreement to transfer stock. Even in Cenac,

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Bluebook (online)
986 So. 2d 103, 2008 WL 2190741, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-w-stone-oil-distributor-llc-v-river-oaks-con-dev-inc-lactapp-2008.