Marsh Engineering Inc. v. Parker

883 So. 2d 1119, 4 La.App. 3 Cir. 0509, 2004 La. App. LEXIS 2309, 2004 WL 2181425
CourtLouisiana Court of Appeal
DecidedSeptember 29, 2004
Docket2004-0509
StatusPublished
Cited by21 cases

This text of 883 So. 2d 1119 (Marsh Engineering Inc. v. Parker) 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
Marsh Engineering Inc. v. Parker, 883 So. 2d 1119, 4 La.App. 3 Cir. 0509, 2004 La. App. LEXIS 2309, 2004 WL 2181425 (La. Ct. App. 2004).

Opinion

883 So.2d 1119 (2004)

MARSH ENGINEERING INC., et al.
v.
Ernest L. PARKER, et al.

No. 2004-0509.

Court of Appeal of Louisiana, Third Circuit.

September 29, 2004.

*1120 Warren D. Rush, Charles M. Rush, Attorneys at Law, Lafayette, LA, for Plaintiff/Appellant, Richard D. Barnett/Marsh Engineering, Inc., et al.

James J. Hautot, Judice & Adley, Lafayette, LA, for Defendant/Appellee, New England Insurance Company.

*1121 Court composed of JIMMIE C. PETERS, GLENN B. GREMILLION, and BILLY H. EZELL, Judges.

PETERS, J.

The plaintiff, Richard D. Barnett, appeals the grant of an exception of no cause of action dismissing six defendants from the litigation. For the following reasons, we affirm the trial court's grant of the exception in all respects.

DISCUSSION OF THE RECORD

This litigation began on November 22, 1991, when Barnett and Marsh Engineering, Inc. filed a petition against Ernest L. Parker and Logan Nichols seeking various forms of relief for damages allegedly sustained in a business transaction involving the parties to the litigation. The facts giving rise to the litigation relate back to 1981 when Barnett and Parker, who is a lawyer, began an attorney-client relationship which subsequently developed into a personal and business relationship. In 1985, Barnett, Parker, and two other individuals acquired all of the stock in Campbell Wells Corporation at the cost of $2,052,500.00. The purchasers financed part of the purchase price through a Lafayette, Louisiana bank.

On February 3, 1986, Barnett executed an Act of Cash Sale and Assumption (act of transfer) transferring his stock to Parker. The act of transfer, which was prepared by Parker, provided that, in exchange for the stock, Parker would assume Barnett's share of the Lafayette bank indebtedness and would pay Barnett $1,000.00. Barnett asserts that the act of transfer did not accurately state the terms of the agreement. He claims that Parker was to hold the stock in trust until he (Barnett) overcame certain financial difficulties. Parker asserts that the transfer was just what it purported to be—transfer of full ownership to him. When Parker refused to return the stock to Barnett, he filed this lawsuit.[1] In his original petition, Barnett premised his requests for relief on various grounds, including breach of contract, fraud, breach of fiduciary duty, failure of consideration, detrimental reliance, and nullity. Of particular importance to this litigation is the assertions in the original petition that, at all times during the original stock acquisition and the subsequent transfer giving rise to this litigation, Parker functioned as Barnett's legal advisor.[2]

In April of 2003, Barnett amended his original petition for the fifth time and added the following new defendants to the litigation:

1. Bean and Parker, a Louisiana law partnership which, in 1986, was comprised of James Wesley Bean and Ernest L. Parker (Law Firm),
2. New England Insurance Company (New England),[3] the professional liability insurance carrier for the partnership and the partners in 1986,
3. The Estate of James Wesley Bean (Estate), and
*1122 4. Llewellyn Beadle Bean, the widow of James Wesley Bean, and Bean's two daughters, Carolyn Bean Guilbeaux and Nancy Bean Sutton (Bean heirs).

In joining these defendants, Barnett asserted for the first time that both Parker and Bean had personally provided him with legal representation in the stock transactions, with Parker serving as general counsel. Specifically, Barnett asserted that both attorneys and the Law Firm breached the standard of care owed him as their client in a number of particulars, including the assertions that neither Parker nor Bean properly disclosed to him the relevant aspects of the transactions, the alleged conflicts of interests of the Law Firm, or of Barnett's need for independent counsel. Thus, all of the assertions were couched in terms of legal malpractice. Barnett further asserted that the Law Firm, the Estate, and the heirs are vicariously liable to him for the legal malpractice of both Parker and Bean, and that New England is liable to him pursuant to the terms of the professional liability insurance policy issued to the partners and the Law Firm.

On June 11, 2003, New England responded to Barnett's April 2003 pleading by filing a peremptory exception of no cause of action. In the exception, New England asserted that all of the claims against the new defendants were perempted by La.R.S. 9:5605. After a November 3, 2003 hearing, the trial court rendered judgment granting the exception and dismissing the six defendants from the litigation.[4] Barnett timely appealed this judgment.

OPINION

The function of the exception of no cause of action is to test the legal sufficiency of the petition by determining whether the law affords a remedy on the facts that are alleged in the petition. Everything on Wheels Subaru, Inc. v. Subaru S., Inc., 616 So.2d 1234 (La.1993). No evidence may be introduced to support or controvert the objection that the petition fails to state a cause of action. La.Code Civ.P. art. 931. Therefore, in considering a trial court ruling on an exception of no cause of action, the appellate court accepts the allegations of fact in the petition as true. The determination is based on whether the face of the petition shows the plaintiffs are legally entitled to the relief sought therein. Everything on Wheels Subaru, Inc., 616 So.2d 1234.

The trial court granted the exception of no cause of action based on its interpretation of La.R.S. 9:5605, which became effective after the purported transfer of the stock at issue, but before Barnett filed his original suit.[5] When originally enacted, La.R.S. 9:5605 read in its entirety as follows:

A. No action for damages against any attorney at law duly admitted to practice in this state, any partnership of such attorneys, or any professional law corporation, whether based upon tort, or breach of contract, or otherwise, arising out of an engagement to provide legal services shall be brought unless filed in a court of competent jurisdiction and proper venue within one year from the date of the alleged act, omission, or neglect, or within one year from the date *1123 that the alleged act, omission, or neglect is discovered or should have been discovered; however, even as to actions filed within one year from the date of such discovery, in all events such actions shall be filed at the latest within three years from the date of the alleged act, omission, or neglect.
B. The provisions of this Section shall apply to all persons whether or not infirm or under disability of any kind and including minors and interdicts.
C. The peremptive period provided in Subsection A of this Section shall not apply in cases of fraud, as defined in Civil Code Article 1953.

The legislature amended the statute by Acts 1992, No. 611, § 1, adding language to Paragraph A, re-designating Paragraphs B and C as Paragraphs D and E, and rewriting Paragraphs B and C. The statute now reads as follows:

A.

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Bluebook (online)
883 So. 2d 1119, 4 La.App. 3 Cir. 0509, 2004 La. App. LEXIS 2309, 2004 WL 2181425, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marsh-engineering-inc-v-parker-lactapp-2004.