LaFleur v. Law Offices of Anthony G. Buzbee

960 So. 2d 105, 2007 WL 858859
CourtLouisiana Court of Appeal
DecidedMarch 23, 2007
Docket2006 CA 0466
StatusPublished
Cited by10 cases

This text of 960 So. 2d 105 (LaFleur v. Law Offices of Anthony G. Buzbee) 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
LaFleur v. Law Offices of Anthony G. Buzbee, 960 So. 2d 105, 2007 WL 858859 (La. Ct. App. 2007).

Opinion

960 So.2d 105 (2007)

James Billy LAFLEUR
v.
The LAW OFFICES of ANTHONY G. BUZBEE, P.C., Anthony G. Buzbee, Stern, Miller & Higdon, Jeffrey M. Stern, Ramsey Jones and Clarence Jones.

No. 2006 CA 0466.

Court of Appeal of Louisiana, First Circuit.

March 23, 2007.

*108 Jeremiah A. Sprague, Timothy J. Falcon, Marrero, David Groner, New Iberia, for Plaintiff-Appellee, James Billy Lafleur.

David J. Schexnaydre, Mark A. Myers, Wade D. Rankin, Covington, for Defendants-2nd Appellants, Jeffrey M. Stern and Stern, Miller & Higdon.

James A. Brown, Carey L. Menasco, New Orleans, for Defendants-1st Appellants, Anthony G. Buzbee and the Buzbee Law Firm, P.C.

Clarence Jones, Ramsey Jones, St. Martinville, Pro Se Defendants/Appellees.

Before: CARTER, C.J., WHIPPLE, and McDONALD, JJ.

CARTER, C.J.

Appellants-defendants, Jeffrey M. Stern and Stern, Miller & Higdon (collectively referred to as "the Stern defendants"), seek relief from the trial court's denial of their dilatory exception raising the objection of prematurity, and alternative motions to stay proceedings and compel arbitration.[1] For the following reasons, we affirm the trial court's finding that the arbitration provision in the Power of Attorney and Engagement Agreement (hereafter referred to as the "Agreement") between the Stern defendants and plaintiff, James Billy Lafleur ("Mr. Lafleur"), was adhesionary, and therefore, unenforceable.

BACKGROUND

This case arises out of a contractual relationship between Mr. Lafleur, a Louisiana resident, and his Texas attorneys, the Stern defendants. It is undisputed that on April 5, 2002, Mr. Lafleur executed a written Agreement with the Stern defendants at the Stern defendants' Houston, Texas law office. The Agreement was a five-page preprinted attorney-client contract that had been drafted by the Stern defendants. Mr. Lafleur retained and employed the Stern defendants to pursue his maritime claim for personal injuries that he had sustained on March 19, 2002, while traveling on a vessel in navigable waters off the coast of Louisiana.

On April 5, 2004, Mr. Lafleur filed suit against his attorneys, the Stern defendants, alleging negligent legal representation.[2] Specifically, Mr. Lafleur contended that his attorneys committed legal malpractice by (1) settling his maritime claim without the proper authority from the workers' compensation carrier and his employer; (2) negotiating an inadequate settlement; and/or (3) failing to obtain authority for and payment of his medical services, treatments, and bills from his employer's workers' compensation carrier.

*109 The Stern defendants responded to Mr. Lafleur's lawsuit by filing a dilatory exception raising the objection of prematurity, and alternatively, motions to stay the proceedings and to compel arbitration.[3] The matter was heard on January 5, 2005. The Stern defendants argued that the dispute is subject to arbitration required by the Agreement, and therefore, Mr. Lafleur's claims were premature and the case should be dismissed. Alternatively, the Stern defendants moved for an order compelling Mr. Lafleur to arbitrate and for a stay of the proceedings pending arbitration. The Stern defendants also maintained that Texas law applied according to a provision in the Agreement. Mr. Lafleur argued that Louisiana law applied, because although the Agreement was executed in the state of Texas, all of the other events and contacts occurred in Louisiana. Additionally, Mr. Lafleur opposed arbitration on the grounds that the arbitration provision in the Agreement was unconscionable because it unilaterally applied to him and not the Stern defendants, and it required him to be solely responsible for the cost of the arbitration regardless of the outcome.

After a hearing, the trial court denied the Stern defendants' exception and motions, finding that Louisiana law applied and that the arbitration provision in the Agreement was unenforceable because it was adhesionary, arbitrary, and lacked good faith and mutuality. The Stern defendants appealed, assigning three errors allegedly made by the trial court: (1) error in applying Louisiana instead of Texas law; (2) error in failing to uphold the validity of the arbitration agreement under Texas law; and alternatively, (3) error in holding the arbitration agreement unenforceable under Louisiana law.

BURDEN OF PROOF AND STANDARD OF REVIEW

The burden was on the Stern defendants to establish that a valid and enforceable arbitration agreement exists in this case. In determining whether a party is bound by an arbitration agreement, we apply ordinary contract principles. A party cannot be required to submit to arbitrate a dispute that he has not agreed to submit. Broussard v. Compulink Business Systems, Inc., 41,276 (La.App. 2 Cir. 8/23/06), 939 So.2d 506, 509; Rico v. Cappaert Manufactured Housing, 05-141 (La. App. 3 Cir. 6/1/05), 903 So.2d 1284, 1288. If the Stern defendants satisfy their burden of proof establishing their right to arbitration, the burden then shifts to Mr. Lafleur to demonstrate that he did not consent to the arbitration terms or his consent was vitiated by error, which rendered the arbitration provision unenforceable. See Aguillard v. Auction Management Corp., 04-2804 (La.6/29/05), 908 So.2d 1, 12.

Whether a court should compel arbitration is a question of law. Appellate review of questions of law is simply whether the trial court was legally correct or incorrect. Johnson v. Blue Haven Pools of Louisiana, Inc., 05-0197 (La.App. 1 Cir. 2/10/06), 928 So.2d 594, 597. If the trial court's decision was based on an erroneous interpretation or application of law, rather than a valid exercise of discretion, such incorrect decision is not entitled to deference *110 by the reviewing court. Id. We note that to the extent that the trial court relied on the principles found in Sutton's Steel & Supply, Inc. v. Bellsouth Mobility, Inc., 00-511 (La.App. 3 Cir. 12/13/00), 776 So.2d 589, writ denied, 01-0152 (La.3/16/01), 787 So.2d 316, the trial court was legally incorrect per the Louisiana Supreme Court's recent holding in Aguillard, 908 So.2d at 16-18, abrogating Sutton's Steel. Therefore, we review the instant matter de novo. See Hoffman, Siegel, Seydel, Bienvenu & Centola, APLC v. Lee, 05-1491 (La.App. 4 Cir. 7/12/06), 936 So.2d 853, 858-859, writ denied, 06-1995 (La.11/3/06), 940 So.2d 671.

LAW AND ANALYSIS

The Agreement at issue has two provisions (Paragraph 9 "APPLICABLE LAW" and paragraph 10 "ARBITRATION") pertinent to our analysis. The provisions provide as follows:

9. APPLICABLE LAW
This Agreement shall be construed under and in accordance with the laws of the state in which it is executed, and the rights[,] duties and obligations of [Mr. Lafleur] and of [the Stern defendants] regarding [the Stern defendants'] representation of [Mr. Lafleur] and regarding any matter covered by this Agreement shall be governed by the laws of the state in which this Agreement is executed. Subject to the requirements of Section 10 [the ARBITRATION provision] hereof, any controversy between [Mr. Lafleur] and [the Stern defendants] or either of them regarding [the Stern defendants'] representation of [Mr. Lafleur] or regarding anything covered by this Agreement will be filed in a court of competent jurisdiction in Harris County, Texas.
10. ARBITRATION

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960 So. 2d 105, 2007 WL 858859, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lafleur-v-law-offices-of-anthony-g-buzbee-lactapp-2007.