Kelly O. Orgeron v. Edward J. Orgeron, Jr.

Louisiana Court of Appeal·Decided April 26, 2024·No. 2023CA0858·Unknown

Opinion

NOT DESIGNATED FOR PUBLICATION

STATE OF LOUISIANA

COURT OF APPEAL

FIRST CIRCUIT

oil NO. 2023 CA 0858

KELLY O. ORGERON

VERSUS

EDWARD J. ORGERON, JR.

Judgment Rendered. '

APR 2 6 2024

Appealed from the

J l 22nd Judicial District Court G In and for the Parish of St. TammanyY State of Louisiana

Case No. 2020- 11929, Division K

The Honorable Patrice W. Oppenheim, Judge Presiding

Robert C. Lowe Counsel for Plaintiff/Appellant Paula H. Lee Kelly L. Orgeron New Orleans, Louisiana

Randall A. Smith Counsel for Defend ant/ Appellee Andre M. Stolier Edward J. Orgeron, Jr.

New Orleans, Louisiana and

Karen D. Downs Natalie C. Neale Baton Rouge, Louisiana and

Frank P. Tranchina Covington, Louisiana

BEFORE: THERIOT, PENZATO, AND GREENE, JJ.

THERIOT, J.

Kelly L. Orgeron appeals the 22"d Judicial District Court' s March 27, 2023 amended judgment, which amended its December 8, 2022 judgment relating to community property. For the following reasons, we affirm.

FACTS AND PROCEDURAL HISTORY

Appellant, Kelly L. Orgeron (" Kelly"), and Appellee, Edward J. Orgeron, Jr.

Ed"), were married on February 19, 1997. The parties physically separated on February 24, 2020. On February 26, 2020, Ed filed a petition for divorce in East Baton Rouge Parish Family Court. On April 28, 2020, the Family Court signed a judgment decreeing separation of property, terminating the community of acquets and gains between the parties retroactively to February 26, 2020, the date Ed filed his petition for divorce.

Also on April 28, 2020, Kelly filed a " Petition for Spousal Support and Other Relief; and Petition for Partition of Community Property" in the 22n`' Judicial District Court in St. Tammany Parish.' On March 24, 2021, the trial court signed a consent judgment which settled most of the parties' community property issues. On April 26, 2021, the trial court signed a consent judgment awarding interim spousal support to Kelly.

The remaining issues proceeded to trial on August 11, 2022 and September 29, 2022. The following issues were contested: ( 1) Kelly' s claim to an interest in certain contracts between Ed and his employer, Louisiana State University LSU"), in 2020 and 2021, including a Binding Term Sheet (" BTS") executed in January 2020, prior to Ed filing for divorce; an employment agreement executed in April 2020 (" the 2020 Employment Agreement"); an employment agreement

In response, Ed filed a declinatory exception of lis pendens and motion for transfer, arguing that the matter should be litigated in East Baton Rouge Parish. On October 14, 2020, the trial court in the St. Tammany Parish proceeding denied Ed' s declinatory exception of lis pendens but granted his motion for transfer and transferred the matter to East Baton Rouge Parish. Both parties applied for supervisory writs. On January 25, 2021, this Court reversed the portion of the October 14, 2020 judgment transferring Kelly' s claims for spousal support and partition of community property to East Baton Rouge Parish. As a result, Kelly' s claims for spousal support and partition of community property proceeded in St. Tammany Parish.

executed in October 2021 (" the 2021 Employment Agreement"); and a termination

agreement executed in October 2021 (" the 2021 Termination Agreement"); ( 2)

Kelly' s claim to an interest in funds received by My 3 Tiger Boyz, LLC ;2 and ( 3) Kelly' s claim to a community interest in two separate commercial agreements involving St. Joseph Hospice, LLC (" St. Joseph") and executed in December 2019 and March 2020 respectively.

On December 8, 2022, the trial court signed a judgment wherein it ruled that

1) Kelly had no interest in the 2020 Employment Agreement, the 2021

Employment Agreement, or the 2021 Termination Agreement, nor was she entitled

to an award of any sum related thereto; ( 2) Kelly had no community interest in My 3 Tiger Boyz, LLC or any funds received by My 3 Tiger Boyz, LLC from the 2020 Employment Agreement or the 2021 Termination Agreement; 3 ( 3) Kelly had a

community interest in the December 2019 contract with St. Joseph ( the " 2019 St. Joseph Contract"); and ( 4) Kelly had no community interest in the March 2020 contract with St. Joseph ( the " 2020 St. Joseph Contract").

In its written reasons for judgment, the trial court noted that, although the

BTS was signed prior to Ed filing for divorce, the BTS was subject to the LSU Board of Supervisor' s (" the Board") approval, which was not given until after the

community had been terminated. The trial court found that because the BTS and

subsequent long -form employment agreement were not approved by the Board until after the termination of the community regime, the rights conferred by the BTS were Ed' s separate property. The trial court further found that the BTS was both conditioned upon the execution of a long -form employment agreement and

2 My 3 Tiger Boyz, LLC is an entity Ed formed shortly after filing for divorce_ This LLC has four members, Ed and the parties' three sons. My 3 Tiger Boyz, LLC replaced an existing community entity, " O" The Rosy Finch Boyz, LLC, which only had two members — Ed and Kelly.

I The trial court further found that Ed was within his right under " O" The Rosy Finch Boyz, LLC' s Operating Agreement to resign and replace that LLC. with another entity in a subsequent contract. Kelly does not contest this finding on appeal.

superseded by the 2020 Employment Agreement entered into by Ed and LSU on April 23, 2020 and approved by the Board on the same date.

Regarding the various employment agreements, the trial court noted that each respective contract required Ed to continue working and performing. As a

result, the trial court concluded that these contracts were not an award for past

work. The trial court further pointed out LSD' s decision to terminate Ed less than

three years after winning a national championship, which supports Ed' s assertion that the contracts were for payment of Ed' s future services to LSU, rather than

those contracts being a " reward," as alleged by Kelly.

The trial court also addressed Kelly' s equity argument, wherein she claimed entitlement to the value of the agreement earned as a result of community effort and labor expended in their acquisition. The trial court acknowledged that Kelly had emotionally supported Ed and sacrificed her own career for the benefit of the family and/or Ed' s career path, but also pointed out that Kelly did not financially contribute to Ed' s education or training. The trial court further noted that Kelly has shared in the property acquired and compensation received during the marriage and has had the opportunity to share Ed' s enhanced income, even if it was not his maximum income.

The trial court concluded that it had received no evidence to rebut the

presumption that payments made under the 2019 St. Joseph Contract were

community property. Conversely, the trial court further noted that Kelly had failed to present evidence to establish that any funds were paid or any work was performed prior to March 15, 2020, the date the 2020 St. Joseph Contract was

signed. Because of the presumption of community and the lack of evidence, the trial court found that only the 2019 St. Joseph Contract was community property.

On March 23, 2023, the parties filed a joint motion and order to amend the

December 8, 2022 judgment pursuant to La. Code Civ. P. art. 1951, asserting that the judgment lacked proper decretal language. The parties jointly submitted a

proposed judgment that would add the appropriate decretal language without

altering the substance of the judgment. The trial court signed the amended

judgment on March 27, 2023. Kelly appeals the amended judgment.'

ASSIGNMENTS OF ERROR

Kelly assigns the following as error:

1) The trial court erred legally when it held that Kelly was attempting to expand the definition of community property.

2) The trial court erred legally by ignoring the plain language of the BTS, in violation of Louisiana Civil Code arts. 2046, and 2047 in

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Kelly O. Orgeron v. Edward J. Orgeron, Jr., (La. Ct. App. 2024).

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