Louisiana Pigment Co. v. Scott Const. Co.

945 So. 2d 980, 6 La.App. 3 Cir. 1026, 2006 La. App. LEXIS 2880, 2006 WL 3733102
CourtLouisiana Court of Appeal
DecidedDecember 20, 2006
Docket06-1026
StatusPublished
Cited by5 cases

This text of 945 So. 2d 980 (Louisiana Pigment Co. v. Scott Const. Co.) 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
Louisiana Pigment Co. v. Scott Const. Co., 945 So. 2d 980, 6 La.App. 3 Cir. 1026, 2006 La. App. LEXIS 2880, 2006 WL 3733102 (La. Ct. App. 2006).

Opinion

945 So.2d 980 (2006)

LOUISIANA PIGMENT COMPANY, L.P.
v.
SCOTT CONSTRUCTION COMPANY, INC., et al.

No. 06-1026.

Court of Appeal of Louisiana, Third Circuit.

December 20, 2006.

Clayton A.L. Davis, Samuel B. Gabb, Thomas P. LeBlanc, Lundy & Davis, L.L.P., Lake Charles, LA, for Plaintiff/Appellant, Louisiana Pigment Company, L.P.

Ward Lafleur, Katherine A. Theunissen, Mahtook & Lafleur, Lafayette, LA, for Defendants/Appellees, Scott Construction Company, Inc., Virgil Cobb.

Court composed of SYLVIA R. COOKS, MARC T. AMY, and JAMES T. GENOVESE, Judges.

AMY, Judge.

The plaintiff, Louisiana Pigment Company, L.P. (LPC), entered into a lease agreement with defendant, Scott Construction Company, Inc. (Scott), for ten forklifts. Scott assigned the lease to Toyota Motor Credit Corporation (Toyota). After the forklifts were delivered, LPC complained that they did not have the "deluxe" or suspension seats that it requested. Scott attempted to remedy the situation but was unsuccessful. LPC subsequently terminated the lease agreement and returned the forklifts to Scott. Thereafter, Toyota sued LPC for breach of contract in federal court. LPC filed a motion for summary judgment in the federal court proceedings which, after a hearing, was *981 granted. LPC thereafter instituted this suit against Scott and its employee, Virgil Cobb (Cobb), seeking to recover attorney fees that it incurred in defending the breach of contract suit in federal court. LPC also alleged that its damages were caused by Scott's fraud. Scott and Cobb filed motions for summary judgment, which the trial court granted. LPC now appeals. For the following reasons, we affirm.

Factual and Procedural Background

The record indicates that in August 2001, LPC wanted to lease ten forklifts to use at its facility in Westlake, Louisiana. According to Cobb[1], branch manager at Scott, LPC sent a quote package, which contained a description of the equipment it needed, to various vendors. Cobb testified that he submitted a bid, which was to LPC's liking. Thereafter on August 31, 2001, Cobb brought a forklift to LPC's facility for a demonstration. According to Cobb, LPC was interested in leasing this particular forklift; however, there were some concerns about the height of the demonstrated forklift as it was higher than the forklifts that LPC was currently operating. When LPC asked Cobb, if there was a forklift with a lower headrack, he answered affirmatively. LPC and Scott entered into a lease agreement for the forklifts with the lower headrack. This lease agreement was assigned to Toyota.

According to LPC, it informed Scott, through its salesman, David Coontz (Coontz), that it wanted "suspension" or "deluxe" seats. However, Cobb testified that he did not know what LPC was seeking in terms of seats. He further testified that on the day of the demonstration, there was no discussion about the forklift seats. Cobb stated that the forklift that was demonstrated had the same type of seat that was on the forklifts LPC was using at that time. He referred to this type of seat as a "semi-suspension" or a "full suspension" seat.

Cobb testified that the leased forklifts had a different seat than the one demonstrated because of the lower overhead guard option. He explained that the leased forklifts had "the standard seat that Toyota installs on that machine with the lower guard." Upon further questioning, he stated that if the forklifts did not have the requested lower headrack, a "full suspension" seat would have been available.

Cobb testified that he first became aware of a problem with the seats on the leased forklifts when "[w]e were probably 90 to 120 days into the program when Mr. Koonce [sic] c[a]me into the office one day and said that the customer was not comfortable in the seat, wanted to know if there was anything else available." According to Cobb, several attempts were made to fix the problem. He stated that Scott tried to readjust the seats and change the angle. "Additionally, [w]e have had [a] product support representative from Toyota come in and try to do a retrofit, try to get a different seat and put on there." Cobb explained that within thirty days of LPC's complaint, Toyota put a different seat on one of the forklifts. He described this seat as a deluxe seat or a "very expensive suspension seat[.]"

Although this seat met LPC's needs, according to Cobb, it violated ANSI and OSHA standards in that a certain amount of distance is required between the top of *982 the seat and the bottom of the headrack. Cobb testified that because of this, "[w]e made a last ditch effort, if you will, to get a waiver for the ANSI standard. . . . We presented the waiver to [LPC] for these guys to sign off on and release Toyota of any indemnification, I assume, by going with the deluxe seat and these machines. [LPC] refused." Cobb further testified that it was verbally conveyed to LPC that if it signed the waiver, the deluxe seats would be placed on the forklifts at no cost to LPC.

After fifteen months of using the leased forklifts, LPC sought replacement forklifts from another vendor. The record indicates that on May 2, 2003, LPC sent a letter to Scott informing Scott that it was terminating the lease agreement effective June 2, 2003. On June 20, 2003, LPC sent Scott a letter confirming the termination of the lease agreement. LPC also informed Scott that it had until June 30, 2003 to remove the forklifts from its facility. A carbon copy of this letter was sent to Toyota. Consequently, on August 18, 2003, Toyota filed suit in federal court against LPC for breach of contract.[2] The federal court granted LPC's motion for summary judgment, finding that the lease contracts were void ab initio due to error of cause in that the leased forklifts were not what LPC ordered.

On September 10, 2004, LPC filed a petition against Scott and Cobb, individually, alleging that:

Scott and Virgil Cobb's actions were fraudulent in that they failed to comply with agreements between Scott and LPC despite admitting that the agreed upon seats had not been delivered and despite continued representations to LPC that the seats would be replaced with compliant seats. Instead, the defendants have allowed Toyota Motor Credit Corporation, Scott's assignee, to sue LPC for accelerated rental payments, costs, interest, attorney fees and other expenses when LPC was forced to seek replacement forklifts because its continued use of the defective seats was causing a safety hazard to its forklift operators.

It also claimed that the "Defendants are liable to LPC for all attorney fees, interest, costs and other expenses incurred by LPC in defending the suit by Toyota Motor Credit Corporation."

Although the defendants filed separate motions for summary judgment, their arguments are basically the same. They alleged that the fraud claim had prescribed and that they did not make any material misrepresentations or omissions. After a hearing, the trial court granted the defendants' motions for summary judgment and dismissed LPC's claims. LPC appeals and asserts the following assignments of error:

1.) The trial court erred in granting defendants' motions for summary judgment on plaintiff's fraud claim by concluding plaintiff could not prove fraud, as it is inappropriate on summary judgment for the trial court to weigh the evidence and resolve issues of fact.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Lake Charles Medical & Surgical Clinic, LLP v. Smith
69 So. 3d 1169 (Louisiana Court of Appeal, 2011)
Jean B. Richard, Jr. v. Anna Thibodeaux
Louisiana Court of Appeal, 2008
Curtis v. BLUE CROSS BLUE SHIELD OF LOUIS.
971 So. 2d 1249 (Louisiana Court of Appeal, 2007)
Ann Welch v. State of La., Dotd
Louisiana Court of Appeal, 2007
Foley & Lardner, L.L.P. v. Aldar Investments, Inc.
491 F. Supp. 2d 595 (M.D. Louisiana, 2007)
Sepulvado v. Toledo Nursing Center, Inc.
958 So. 2d 135 (Louisiana Court of Appeal, 2007)
Jeff Sepulvado v. Toledo Nursing Center, Inc.
Louisiana Court of Appeal, 2007

Cite This Page — Counsel Stack

Bluebook (online)
945 So. 2d 980, 6 La.App. 3 Cir. 1026, 2006 La. App. LEXIS 2880, 2006 WL 3733102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisiana-pigment-co-v-scott-const-co-lactapp-2006.