Linda Sue Chauvin Webster, individually and on behalf of the Succession of Joseph Cameron Webster, The Darrell Webster Trust, and The Robert Webster Trust v. David H. Webster and Twin Brothers Marine, L.L.C

Louisiana Court of Appeal·Decided July 8, 2022·No. 2021CA1224·Unknown

Opinion

STATE OF LOUISIANA

C.OURT OF APPEAL

FIRST CIRCUIT

2021CA1224

LINDA SUE CHAUVIN WEBSTER, INDIVIDUALLY AND ON BEHALF OF THE SUCCESSION OF JOSEPH CAMERON WEBSTER

VERSUS

DA YID H. WEBSTER AND TWIN BROTHERS MARINE, L.L.C.

Judgment rendered:. -JUL 0 8__ 2022'

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On Appeal from the

Sixteenth Judicial District Court In and for the Parish of St. Mary State of Louisiana

No. 135,301

The Honorable Anthony Saleme, Jr., Judge Presiding

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Justin Burton Schmidt Attorneys for Defendant/Appellant New Orleans, Louisiana David H. Webster

Kyle M. Bacon Attorneys for Plaintiffs/Appellees Lafayette, Louisiana Linda Sue Chauvin Webster, and individually and in her capacity as the Andrew R. Lee duly confirmed independent Executor John R. Guenard of the Succession of Joseph Cameron P.J. Kee Webster New Orleans, Louisiana

Gerard J. Bourgeois Attorneys for Defendant/Appellee William E. Bourgeois Twin Brothers Marine, L.L.C. Morgan City, Louisiana

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BEFORE: GUIDRY, HOLDRIDGE, AND CHUTZ, JJ.

HOLDRIDGE, J.

This appeal follows the death of Joseph Cameron Webster (Cameron), one of two manager members of Twin Brothers Marine, L.L.C. (TBM). Petitioners, the decedent's wife, Linda Sue Chauvin Webster, in her individual capacity and in her capacity as succession representative; and two trusts, the Robert Webster Trust (RW Trust) and the Darrell Webster Trust (DW Trust), in their capacity as members of TBM, filed suit against TBM and the remaining manager member, the decedent's surviving twin brother, David H. Webster. The petition sought, amongst other relief, to have Cameron's estate recognized as a member ofTBM with full member rights, including the right to vote. The district court granted relief to petitioners, and defendants have appealed. Since then, however, petitioners have filed a motion to dismiss this appeal as moot, claiming certain post-judgment events have affected IBM's operations and any relief granted in this appeal would have no practical effect. While defendants have not expressly conceded mootness, they have not filed any opposition to the motion to dismiss or challenged the alleged facts supporting the motion. Due to the current posture of this case, we set aside the district court's ruling and remand this matter for the district court to determine, after a contradictory hearing, whether the case has become moot.

FACTUAL AND PROCEDURAL BACKGROUND TBM is a privately-held limited liability company that was formed and managed by Cameron and David. 1 On March 29, 2000, the then-members 2 ofTBM

1 The formation and operation oflimited liability companies in Louisiana is governed by La. R.S. 12:1301, et seq. A limited liability company may conduct business for any lawful purpose. La. R.S. 12:1302. A limited liability company is authorized to conduct business until its dissolution. See La. R.S. 12:1334. 2 At that time, other than Cameron and David, there were two other members of TBM that owned a small portion of membership units, Houston A. Marshall and Farrell M. Luke. Houston and Farrell divested themselves of their interests in TBM years before Cameron's death.

executed its original organizational documents, the Articles of Organization and an Operating Agreement, naming Cameron and David, the majority owners of TBM, as co-managers. Three months later, Cameron and David donated a portion of their respective ownership interests by donating membership units (units) to separate trusts for each of their children, thereby admitting these new members to TBM: the RW Trust, the OW Trust, the Jason Webster Trust (the JW Trust), the Paul Webster Trust (the PW Trust), and the Melynda Webster Leleux Trust (the MWL Trust). Robert and Darrell Webster are the sons of Cameron and Linda Sue, and Jason, Paul and Melynda are David's children. Cameron transferred 11.175 units to each of his children's trusts, and David transferred 7.45 units to each of his children's trusts. Thus, 22.35 units were transferred per stirpes to the family trusts, keeping the amount of unit ownerships even between each brother's respective family members.

After these transfers, David and Cameron each held 175.65 units in TBM.

Thereafter, from 2002 through 2009, several members sold a portion of their units back to TBM, reducing the number of outstanding units. It is undisputed that David sold various small portions of his units back to TBM over the years prior to Cameron's death in November 2018.

From the creation ofTBM until Cameron's death, Cameron and David served as co-managers. The Articles of Organization established a manager-managed company that provided broad powers to both Cameron and David. According to the district court testimony of Linda Sue Chauvin Webster, her husband, Cameron worked at TBM's fabrication yard daily. He managed the yard, and he was physically on TBM's premises every day for forty-nine to fifty years. Cameron's son, Darrell, testified that David initially worked at the fabrication yard, but then later moved to a satellite sales office; David spoke to Cameron daily about business functions, but he was not directly involved in the daily operations of the fabrication

yard for the last twenty years prior to Cameron's death. Darrell worked with Cameron, as a company employee, for approximately twenty-seven years. Darrell continued to work for TBM, in his then capacity as general manager of the fabrication yard, after his father's death.

As of the time of Cameron's death in November 2018, TBM had seven members, the two Webster brothers and the five trusts. It is undisputed that at this time, unit ownership was as follows:

Membership Units Ownership o/o

J. Cameron Webster 175.65 48.47924% David H. Webster 145.96 40.2848o/o RWTrust 1 l.18 3.0857% Darrell Webster Trust 1 l.18 3.0857% JW Trust 7.45 2.0562% PW Trust 5.45 1.5042% MWL Trust 5.45 1.5042°/o

The parties do not dispute that Cameron died testate, and Linda Sue was duly confirmed as the independent executor of the Succession of J. Cameron Webster in the proceeding captioned Succession of Joseph Cameron Webster, 16th Judicial District Court, Docket No. 21118 (the Succession Proceeding). When the district court signed the judgment from which defendants have appealed, the Succession Proceeding was pending, and the property comprising Cameron's estate had not been distributed. Under the terms of TBM's original organizational documents, David was to continue as manager ofTBM after Cameron's death. At some point, conflict developed between David and Linda Sue and, likewise, between David and Darrell. Ultimately, David informed Darrell that he was going to bring in his son, Jason, to take over Darrell's position. In response, Darrell told David, "I quit." He explained that his "ability to perform [his] job duties was taken away from [him]."

On September 4, 2020, David unilaterally amended TBM's Articles of Organization, providing major amendments to most of its provisions, particularly regarding management and member voting. 3 In November 2020, Linda Sue, individually and as independent executor of the Succession, and the RW and DW Trusts sought: 1) a writ of mandamus ordering David and TBM to: a) recognize Cameron's Estate as a member of TBM; b) hold an annual meeting; c) rescind documents that purported to amend TBM' s original organizational documents; and 2) a writ of quo warranto, directing David and TBM to show by what authority they have amended the original organizational documents. 4 In response, David and TBM filed a dilatory exception, urging the objection of unauthorized use of summary proceeding, and a peremptory exception, urging the objection of no cause of action. Additionally, defendants filed a peremptory exception raising the objection of no right of action as to only the "[c]auses of [a)ction" seeking mandamus relief. A hearing was held, which addressed the defendants' objections and petitioners' requested relief.

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Linda Sue Chauvin Webster, individually and on behalf of the Succession of Joseph Cameron Webster, The Darrell Webster Trust, and The Robert Webster Trust v. David H. Webster and Twin Brothers Marine, L.L.C, (La. Ct. App. 2022).

Linda Sue Chauvin Webster, individually and on behalf of the Succession of Joseph Cameron Webster, The Darrell Webster Trust, and The Robert Webster Trust v. David H. Webster and Twin Brothers Marine, L.L.C (Linda Sue Chauvin Webster, individually and on behalf of the Succession of Joseph Cameron Webster, The Darrell Webster Trust, and The Robert Webster Trust v. David H. Webster and Twin Brothers Marine, L.L.C) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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