Mavromatis v. Lou-Mar, Inc.

632 So. 2d 828, 1994 WL 42244
CourtLouisiana Court of Appeal
DecidedFebruary 11, 1994
Docket93-CA-0379, 93-CA-1212
StatusPublished
Cited by14 cases

This text of 632 So. 2d 828 (Mavromatis v. Lou-Mar, Inc.) 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
Mavromatis v. Lou-Mar, Inc., 632 So. 2d 828, 1994 WL 42244 (La. Ct. App. 1994).

Opinion

632 So.2d 828 (1994)

Steve MAVROMATIS, Michael Mavromatis and Stacy Mavromatis Wallace
v.
LOU-MAR, INC., d/b/a The Pearl Restaurant and Marie C. Parque Individually and as an Officer and Director of Lou-Mar, Inc.

Nos. 93-CA-0379, 93-CA-1212.

Court of Appeal of Louisiana, Fourth Circuit.

February 11, 1994.

*829 M. Richard Schroeder, Rosemarie Falcone, Douglas N. Currault, II, Jones, Walker, Waechter, Poitevent, Carrere & Denegre, New Orleans, for plaintiffs.

Jack M. Alltmont, Cary J. Amann, Sessions & Fishman, New Orleans, for defendants.

Before BARRY, ARMSTRONG and JONES, JJ.

ARMSTRONG, Judge.

These two consolidated appeals both arise from the same suit. One of them, No. 93-C-0379, *830 is taken from a judgment maintaining an exception of res judicata as to some of the claims in the petition. The other, No. 93-CA-1212, is taken from a judgment maintaining an exception of no cause of action as to other claims of the petition. The issue of res judicata is particularly difficult. The statute governing that issue is relatively new and the trial court, like this court, had little in the way of interpretive caselaw for guidance. However, after giving careful consideration to the view of the trial court, as well as the arguments of the parties, we believe res judicata should not be applied in this case. As we find both of the appealed-from judgments erroneous as a matter of law, we reverse and remand as to both appeals.

Elea "Louie" Mavromatis owned 51% of the stock in a corporation named Lou-Mar, Inc. and the remaining 49% of the stock was owned by Marie Parque. The name "Lou-Mar" is short for "Louie" and "Marie". The corporation operated The Pearl restaurant in New Orleans. Elea Mavromatis and Marie Parque had lived together, without marrying, for fifteen years at the time of Elea Mavromatis' death. Elea Mavromatis was survived by three adult children, Michael Mavromatis, Steve Mavromatis and Stacy Mavromatis Wallace.

Elea Mavromatis died intestate. A judgment of possession in his succession proceeding recognized his three children as his universal heirs. Thus, Elea Mavromatis' 51% of the stock of Lou-Mar, Inc. was inherited by his children.

A number of disputes arose between the three Mavromatis children, who are the plaintiffs-appellants in each appeal, and Marie Parque, who is the defendant appellee in each appeal. These disputes involved the 51% of the stock of Lou-Mar's, Inc., inherited by the three Mavromatis children, some small personal possessions of Elea Mavromatis inherited by the Mavromatis children but in the possession of Marie Parque, and the final disposition of the remains of Elea Mavromatis.

The Mavromatis children filed a suit for a writ of mandamus against Marie Parque as corporate secretary of Lou-Mar, Inc. seeking to compel her to call a Lou-Mar, Inc. stockholders' meeting and to register them in Lou-Mar, Inc.'s records as the owners of 51% of the corporate stock (presumably to facilitate their voting the stock at the stockholder's meeting they sought).

Lou-Mar, Inc.'s articles of incorporation contain a buy-sell provision which provides that the shares of either Elea Mavromatis or Marie Parque, whichever first dies, will be valued and purchased by Lou-Mar, Inc. Presumably because of this buy-sell provision, the trial court ruled against the Mavromatis children and in favor of Marie Parque as corporate secretary, in the suit for a writ of mandamus. Thus, mandamus was denied.

Lou-Mar, Inc. notified the Mavromatis children that 51% of the stock which they owned would be purchased by Lou-Mar, Inc. pursuant to the buy-sell provision. A valuation of the stock, prepared by an accounting firm, also was forwarded by Lou-Mar, Inc. to the Mavromatis children. Lou-Mar, Inc. further advised the Mavromatis children that it would reduce the amount it would pay for the Mavromatis children's stock by the amount of certain loans made by Lou-Mar, Inc. to Elea Mavromatis. The Mavromatis children took exception to the valuation of the stock and disputed the existence or effect of the debts of Elea Mavromatis to Lou-Mar, Inc. Consequently, the Mavromatis children filed a second suit against Marie Parque and Lou-Mar, Inc. seeking payment for their stock based upon a higher valuation of their stock and without reduction for the disputed debts of Elea Mavromatis to Lou-Mar, Inc. Both of the present consolidated appeals arise from this second suit.

This second suit also made claims not related to the Lou-Mar, Inc. stock. Specifically, the second suit alleged that Marie Parque had refused to turn over certain small possessions of Elea Mavromatis and that she had improperly disposed of Elea Mavromatis' remains. In particular, the second suit sought damages for intentional infliction of emotional distress. (These allegations as to the intentional infliction of emotional distress will be discussed in more detail below.)

Marie Parque and Lou-Mar, Inc. responded to the second suit with an exception of res *831 judicata as to the claims regarding the Lou-Mar, Inc. stock (i.e., the valuation and the price reduction.) The trial court maintained this exception of res judicata and dismissed all the claims as to the Lou-Mar, Inc. stock.

Louisiana's res judicata statute, as to which there is still little interpretive caselaw as it became effective only January 1, 1991, provides, in pertinent part:

except as otherwise provided by law, a valid and final judgment is conclusive between the same parties, except on appeal or other direct review, to the following extent:
* * * * * *
(2) if the judgment is in favor of the defendant, all causes of action existing at the time of the final judgment arising out of the transaction or occurrence that is the subject matter of the litigation are extinguished and merged in the judgment.

La.R.S. 13:4231(2). (several statutory exceptions, none applicable to the present case, are provided. La.R.S. 13:4232.)

The res judicata issue in the present case is whether the claims of the Mavromatis children's second suit regarding the Lou-Mar, Inc., stock arises out of the same "transaction or occurrence" as the first (mandamus) suit. Both sides advance reasonable positions. The Mavromatis children argue, in effect, that the "transaction or occurrence" that was the subject matter of the first suit was a matter of corporate governance, a stockholders meeting and stock registry, whereas the "transaction or occurrence" that was the subject matter of the second suit was the valuation and purchase of their stock under the buy-sell provision. Marie Parque argues, in effect, that both suits arise out of the Mavromatis children's inheritance of 51% of the Lou-Mar, Inc. stock, and that this stock inheritance is the "transaction or occurrence." Thus, Marie Parque argues that the Mavromatis children were required to include in their first suit all claims connected to their inheritance of 51% of the Lou-Mar, Inc. stock—by supplementing or amending their petition in the first suit if necessary. The trial court reasoned:

According to [the res judicata statute], the plaintiffs were required to assert in their first suit against the defendant all of their rights, and claim all of their remedies arising out of their inheritance of the stock and the corporation's exercise of its rights under the buy-sell agreement. Plaintiffs received written notice of the corporation's intent to exercise its rights under the buy-sell agreement.

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Bluebook (online)
632 So. 2d 828, 1994 WL 42244, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mavromatis-v-lou-mar-inc-lactapp-1994.