Kite v. Kite Bros., LLC

170 So. 3d 1184
CourtLouisiana Court of Appeal
DecidedJuly 15, 2015
DocketNo. 14-808
StatusPublished

This text of 170 So. 3d 1184 (Kite v. Kite Bros., LLC) 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
Kite v. Kite Bros., LLC, 170 So. 3d 1184 (La. Ct. App. 2015).

Opinions

KEATY, Judge.

I,Son appeals a judgment in favor of his father,1 denying son’s objection of lack of jurisdiction, dismissing son’s remaining claims against his father with prejudice, rendering judgment against son on father’s reconventional demand, and awarding father attorney fees. Father files a motion for partial dismissal of son’s appeal. For the following reasons, we grant father’s motion for partial dismissal. The trial court’s judgment is amended in part, reversed in part, affirmed in part, and rendered.

PROCEDURAL HISTORY

This case, which grew out of a feud between a father and two of his sons, has previously come before this court. See Kite v. Kite Bros., 11-334, 11-335, pp. 1-4 [1187]*1187(La.App. 3 Cir. 10/5/11), 74 So.3d 1266, 1267-69, writ denied, 11-2436 (La.1/13/12), 77 So.3d 966, which we now quote for the procedural history2 of this sordid ordeal:

In 1961, Robert Kite (Mr. Kite) co-founded a recreational vehicle dealership with his brother. The company was originally formed as a corporation, Kite Bros., Inc. On April 30, 1998, Elite Bros., Inc. became inactive when Mr, Kite formed a limited liability corporation, Kite Bros., L.L.C. Since its formation, Mr. Kite has been the sole member, manager and owner of Kite Bros., L.L.C.
At different points in the 1980s, Mr. Kite’s two sons, Alan Kite and Jeff Kite, began working for the corporation. When Kite Bros., L.L.C. was formed, both brothers were employed there, although the record indicated Alan never had employment contracts with either Kite Bros., Inc. or Kite Bros., L.L.C. Over time, Alan was given the authority to write checks on the company account, including payroll checks. However, it was testified that neither Alan nor Jeff had authority to change their salary or commission rate.
|2Mr. Kite testified he was always very generous to Alan, and paid him substantially more than other salesmen with the company, receiving a salary of $1,500.00 per week. Alan also received a commission based on a written schedule which Mr. Kite created. Alan was provided with a company truck and a company credit card. Testimony revealed Alan consistently made in excess of $200,000.00 in annual compensation.
In September of 2005, Alan and Jeff, on their own, raised their salaries. The raises Alan took were significant, at times more than triple his previous weekly salary. Alan and his brother also agreed they would take another ten percent (10%) of all revenues of Kite Bros., L.L.C. Alan testified he and his brother would continue to take the increased salaries and the cut of revenues “until everything settled down after the storm [Hurricane Rita].”
It was undisputed that neither Alan nor Jeff cleared their raises nor the decision to take ten percent (10%) of the revenues with Mr. Kite. In January of 2006, Mr. Kite discovered Jeffs salary had been raised without his permission. Mr. Kite told Jeff to return his salary to the authorized level. Mr. Kite then proceeded to revoke Alan and Jeffs authority to write checks and cancelled their credit cards. Despite this, Alan submitted a pay sheet the following week documenting a salary due of $5,000.00, rather than the agreed upon $1,500.00 per week.
On January 19, 2006, both Alan and Jeff left the employ of Kite Bros., L.L.C. It was disputed as to whether the brothers left on their own accord or were fired. Not in dispute is that when Alan left the premises, he took with him business papers belonging to Kite Bros. L.L.C. without permission. Among the papers removed were records which documented the deferred commissions due to Alan.
Mr. Kite filed a criminal complaint over the papers removed by Alan. When the investigating officer contacted Alan, he was assured by Alan that the papers would be returned the next day. However, Alan did not return the papers and kept them in his possession until August of 2006, when his attorney returned some of the papers to Mr. Kite’s [1188]*1188attorney. Alan has continued to remain in possession of some of the business papers to this date.
According to Mr. Kite, when Alan left he wanted to make sure Alan received everything he was entitled to in terms of compensation. However, reaching an exact figure owed was difficult due to the lack of documentation because of Alan’s removal of certain business records. Mr. Kite testified, to be safe, he simply wrote Alan a check for $100,000.00, minus employment taxes. He believed this more than adequately covered any compensation Alan was due. Alan acknowledged receiving this check in February of 2006.
lain March of 2006, Alan and Jeff filed a lawsuit against their father and Kite Bros., L.L.C. Several claims were alleged, including: (1) retaliatory discharge; (2) detrimental reliance; (3) defamation; (4) failure to pay final wages; (5) failure to deliver insurance policies; (6) failure to deliver retirement accounts; and (7) a claim for an injunction ordering the return of a bass boat. Mr. Kite and Kite Bros., L.L.C. brought reeonventional demands against the brothers for taking unauthorized salaries and raises.
Mr. Kite, stating he was saddened by the family squabbling, agreed during a mediation to settle Alan and Jeffs claims. The settlement agreement required that Mr. Kite be treated with respect and he be granted access to his grandchildren. Asserting that Alan did not uphold the agreement, Mr. Kite filed a lawsuit seeking to declare the mediated agreement null. That lawsuit was consolidated with the suit stemming from Alan and Jeffs claims. The mediated agreement was rescinded.
During that time period, Alan and Jeff began a competing RV dealership, Kite RV, L.L.C. Shortly after its inception, Alan and Jeff began arguing over control of the company. As a result, Jeff reconciled with his father and dismissed his claims against him.
On January 21, 2010, Mr. Kite moved for summary judgment dismissing Alan’s claims. The motion for summary judgment was supported with numerous affidavits and depositions supporting the granting of summary judgment.
In his argument to defeat the motion for summary judgment, Alan argued simply that there were several genuine issues of material fact that precluded summary judgment. The trial court ordered Alan to “identify in writing the specific statements” that created the genuine issues of material fact. However, Alan did not provide the court with any such written documentation.
On July 16, 2010, the trial court issued written reasons granting partial summary judgment, dismissing several, but not all, of Alan’s claims. The trial court granted summary judgment on the defamation claim, finding “the fact that Alan did do what any reasonable person would see was stealing would be a complete defense to the action for defamation.” The trial court also granted summary judgment on Alan’s ownership claim based on the doctrine of detrimental reliance, finding “Alan has acknowledged elsewhere that [Mr. Kite] was the sole owner of [Kite Bros.,] LLC and Alan disclaimed any ownership of the [Kite Bros.,] LLC in his divorce proceedings. The trial court also granted summary judgment dismissing Alan’s retaliatory discharge claim.

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Bluebook (online)
170 So. 3d 1184, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kite-v-kite-bros-llc-lactapp-2015.