MD Care, Inc. v. Angelo

672 So. 2d 969, 1996 WL 127858
CourtLouisiana Court of Appeal
DecidedMarch 20, 1996
Docket95-C-2361, 95-C-2362
StatusPublished
Cited by12 cases

This text of 672 So. 2d 969 (MD Care, Inc. v. Angelo) 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
MD Care, Inc. v. Angelo, 672 So. 2d 969, 1996 WL 127858 (La. Ct. App. 1996).

Opinion

672 So.2d 969 (1996)

MD CARE, INC.
v.
John ANGELO, M.D., Robert C. Brown, M.D. and Family Medicine, Inc.

Nos. 95-C-2361, 95-C-2362.

Court of Appeal of Louisiana, Fourth Circuit.

March 20, 1996.

*970 Hailey, McNamara, Hall, Larmann & Papale, L.L.P., W. Marvin Hall, Rene E. Thorne, Metairie, for Relator.

Wessel & Associates, a Law Corporation, William F. Wessel, Charlotte Ann Lagarde, New Orleans, for Respondent.

Before BARRY, BYRNES, ARMSTRONG, WALTZER and LANDRIEU, JJ.

BARRY, Judge.

In separate but related applications for certiorari Dr. John Angelo seeks review of the denial of his exception of no cause of action and motion to compel. We consolidate the applications and grant certiorari.

Facts

MD Care, Inc. alleges that it entered into an agreement with defendant Robert Brown, M.D. MD Care was to take over Dr. Brown's medical practice, assume obligations under Dr. Brown's continuing contracts, and hire Dr. Brown in MD Care's clinic. MD Care does not allege a contract was signed. Dr. Angelo allegedly offered Dr. Brown money to cancel the agreement with MD Care and Dr. Brown accepted. MD Care alleges Drs. Brown and Angelo conspired to interfere with and breach the contract between MD Care and Dr. Brown.

The trial court denied Dr. Angelo's exception of no cause of action and motion to compel answers to interrogatories and production of documents. Dr. Angelo filed two applications for review.

EXCEPTION OF NO CAUSE OF ACTION (NO. 95-C-2361)

The exception of no cause of action tests the legal sufficiency of the petition, and the court must determine whether the law affords a remedy for the particular harm alleged. Durand v. McGaw, 93-2077 (La. App. 4 Cir. 3/29/94), 635 So.2d 409, 410, writ den. 94-1081 (La. 6/17/94), 640 So.2d 1318; Nehrenz v. Dunn, 593 So.2d 915, 917 (La. App. 4th Cir.1992). Well-pleaded facts are accepted as true. Lewis v. Aluminum Company of America, 588 So.2d 167, 169 (La. App. 4th Cir.1991), writ den. 592 So.2d 411 (La.1992). The petition must set forth the ultimate facts upon which a cause of action is based, and conclusions of law or fact are not considered. Butler v. Reeder, 93-764 (La. App. 5 Cir. 3/16/94), 635 So.2d 1206, 1207. No evidence may be admitted to support or controvert the exception. La.C.C.P. art. 931. If the petition states a cause of action on any ground or theory of recovery arising from the same transaction or occurrence, the exception should be overruled. Everything on Wheels Subaru, Inc. v. Subaru South, Inc., 616 So.2d 1234, 1242 (La.1993).

MD Care's petition alleges Dr. Brown agreed to begin his employment with MD Care on December 1, 1994. The petition further alleges:

*971 11.
The defendant, Angelo, thereupon [on December 2, 1994] made an offer to the defendant, Brown, to pay him a certain amount of money if he would cancel and renege on his contract with the plaintiff.
12.
Defendant, Brown, accepted the money and other promises and consideration offered by the defendant, Angelo....
* * * * * *
16.
The defendants all conspired with each other to interfere with and breach the contractual relationships that existed between the plaintiff and the defendants, Brown and Family Medicine, Inc. [Brown's corporation].
17.
Plaintiff is entitled to damages against the defendants jointly, severally and in solido for fraud, breach of contract, interference with contractual relationship....

Dr. Angelo argues the petition does not state a cause of action against him for breach of contract, fraud, or interference with a contract. MD Care responds that it states a cause of action for tortious interference with contract and abuse of rights.

Breach of Contract

The petition does not allege Dr. Angelo was privy to a contract, incurred a contractual obligation, or breached a contractual obligation. The petition does not state a cause of action against Dr. Angelo for breach of contract.

MD Care never contested that argument.

Fraud

Fraud is defined in La.C.C. art. 1953:

Fraud is a misrepresentation or a suppression of the truth made with the intention either to obtain an unjust advantage for one party or to cause a loss or inconvenience to the other. Fraud may also result from silence or inaction.

MD Care does not allege Dr. Angelo misrepresented or suppressed the truth. The petition fails to assert facts upon which the fraud claim is based. The allegation of fraud is a conclusion of law which does not support a cause of action for fraud. See La.C.C.P. art. 856, which dictates "the circumstances constituting fraud ... shall be alleged with particularity."

Tortious Interference With A Contract

The common law remedy for interference with a contract is based on the theory that there is a point beyond which no member of the community may go to intentionally meddle in the business affairs of another. 45 Am.Jur.2d, Interference, § 1. Under a more limited theory, a contract confers certain rights on the person with whom it is made and binds the parties, and also imposes on all the world the duty to respect that contractual obligation. Id.

Historically that remedy was not available in Louisiana. See Kline v. Eubanks, 109 La. 241, 33 So. 211 (1902). 9 to 5 Fashions, Inc. v. Spurney, 538 So.2d 228 (La.1989) recognized a narrowly defined cause of action for intentional interference with a contract and overruled jurisprudence which barred "absolutely any action based on a tortious interference with a contract" to the extent that jurisprudence conflicted with 9 to 5 Fashions. Id. at 234.

9 to 5 Fashions, a supplier of uniforms for Louisiana World Exposition, Inc. (LWE), alleged Spurney (the chief executive officer of LWE) committed numerous acts and omissions which interfered with the performance of 9 to 5 Fashion's obligations under a uniform supply contract. The trial court rendered judgment for 9 to 5 Fashions and the appellate court affirmed. The Supreme Court granted certiorari, defined the cause of action as intentional interference with contract, and reversed because the elements of that cause of action were not met.

The Court examined principles of fault. It held that a corporate officer owes a duty to a third person having a contractual relationship with the corporation to refrain from *972 intentionally causing the company to breach the contract or to make performance more burdensome, unless the officer has reasonable justification for his conduct. An officer who breaches that duty may be liable to the person whose contract right is damaged, a precept derived from the contemporary doctrine of interference with contractual relations in other jurisdictions. 9 to 5 Fashions, 538 So.2d at 231.

The limited intentional interference action in 9 to 5 Fashions arises from delictual principles and requires an intentional (rather than negligent) act of interference with the contractual rights of another.

Interference with contract, which had its modern inception in malice has remained almost entirely an intentional tort; and, in general, liability has not been extended to the various forms of negligence by which performance of a contract may be prevented or rendered more burdensome.

9 to 5 Fashions,

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Cite This Page — Counsel Stack

Bluebook (online)
672 So. 2d 969, 1996 WL 127858, Counsel Stack Legal Research, https://law.counselstack.com/opinion/md-care-inc-v-angelo-lactapp-1996.