Mid-South Analytical Labs v. Jones-Odom

912 So. 2d 101, 2005 La. App. LEXIS 2086, 2005 WL 2355410
Louisiana Court of Appeal·Decided September 23, 2005·No. 40,089-CA·Published·Cited by 6 cases

Opinion

912 So.2d 101 (2005)

MID-SOUTH ANALYTICAL LABS, INC., Plaintiff-Appellant
v.
JONES, ODOM, SPRUILL & DAVIS, LLP, Defendant-Appellee.

No. 40,089-CA.

Court of Appeal of Louisiana, Second Circuit.

September 23, 2005.

*102 Francis M. Gowen, Jr., Shreveport, for Appellant.

Jones, Odom, Davis & Politz, L.L.P., by Nyle A. Politz, James W. Davis, Shreveport, for Appellee.

Before CARAWAY, DREW and MOORE, JJ.

MOORE, J.

This is an appeal from the grant of a motion for partial summary judgment arising out of a suit for fees for analytical (soil testing) and consulting services. Mid-South Analytical Labs, Inc. (hereinafter *103 "Mid-South" or "plaintiff"), appeals the judgment of the trial court holding that $93,354.33 of its claim for payment for "professional services" fees and all $28,403.50 of its claim for payment for analytical services that it provided to the law firm of Jones, Odom, Spruill and Davis has prescribed. Jones, Odom, Spruill, and Davis (hereinafter "Jones-Odom" or "defendant") answered the appeal alleging that the trial court erred in denying that part of its motion for partial summary judgment that would limit the amount of any Mid-South recovery to $6,645.67 based upon an alleged agreement that Mid-South's consulting fees would not exceed $100,000, and in denying that part of its motion seeking dismissal of Mid-South's claim for attorney fees. For the following reasons, we reverse the judgment of the trial court in part, and remand for further proceedings in accordance herewith.

FACTS

The dispute in this case arose when the Jones-Odom law firm did not pay Mid-South for soil testing and consulting services it provided to Jones-Odom as its expert in the class action case captioned May v. Texaco, Inc. and Bank One.[1] Jones-Odom represented various claimants in the above suit for damages arising from alleged soil contamination caused from Texaco's refinery operations many years earlier on property that is now the Anderson Island subdivision in Shreveport. Mid-South was engaged to take soil samples in the area of concern, perform tests, evaluate the results, and consult with Jones-Odom regarding the case. Jones-Odom contends that most of the testing and professional services were performed between the period from July 19, 1997 and July 24, 1998; however, Mid-South contends there was additional work performed all the way into mid-January of 1999.

There was no written agreement between Mid-South and Jones-Odom, nor is there a record of testimony regarding the terms of the agreement. Mid-South billed Jones-Odom for the first time in April of 1999 when Larry Lott, the president and CEO of Mid-South, sent a letter dated April 23, 1999 to Jones-Odom along with a "Cost Summary for the Anderson Island Project" containing various invoices for all the analytical testing to date, and also a summary bill of the dates and times for consulting or professional services performed beginning July 19, 1997 until January 14, 1999. The invoices, dated April 4, 1999, totaled $28,403.50 for soil testing and $110,246.53 for the professional services. However, in the letter, Mr. Lott alluded to a previous verbal agreement that he would cap the consulting fees to a maximum of $100,000, and that he would honor that agreement, suggesting that Jones-Odom could become current by paying for the analytical testing on a "net 30" basis and $10,000 per month for the consulting (professional) services. Jones-Odom apparently never made any subsequent payment for either category.

On March 19, 2001, approximately 23 months after the bill was sent, Mid-South filed a petition captioned "Petition on Open Account" for the professional and analytical services rendered to Jones-Odom. Jones-Odom responded with a motion for partial summary judgment on grounds that most of the services (soil testing and consultation) had been performed more than three years prior to the filing of the petition, and, therefore all fees incurred prior to March 19, 1998 had prescribed. This amounted to the full $28,403.50 in analytical services and $93,354.33 of the *104 professional services according to Jones-Odom. Additionally, Jones-Odom moved for a partial summary judgment ruling that Mid-South could not recover more than $6,645.67, the difference between the alleged $100,000 cap on professional fees and the $93,354.33 that had prescribed. Finally, it sought a summary judgment ruling that Mid-South was not entitled to any attorney fees because it had not correctly stated the amount due as required by the statute and jurisprudence.

The trial court granted Jones-Odom's motion with respect to the prescribed fees totaling $28,403.50 and $93,354.33 of the professional fees, but it denied the motion limiting any recovery by Mid-South to $6,645.67 and excluding recovery of attorney fees authorized under the open account statute.

Mid-South filed the instant devolutive appeal on the prescription issue, and Jones-Odom has answered the appeal regarding those parts of its motion for partial summary judgment that were denied.

LAW

Summary judgment procedure is designed to secure the just, speedy and inexpensive determination of every action; the procedure is favored and shall be construed to accomplish these ends. La. C.C.P. art. 966(A)(2). Summary judgment shall be rendered forthwith if the pleadings, depositions, answers to interrogatories and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to material fact and that the mover is entitled to judgment as a matter of law. La. C.C.P. art. 966(B). Appellate courts review summary judgments de novo under the same criteria that govern the district court's consideration of whether summary judgment is appropriate. NAB Natural Resources, L.L.C. v. Willamette Industries, Inc., 28,555 (La.App. 2 Cir. 8/21/96), 679 So.2d 477.

The initial burden of proof in summary judgment remains with the mover to show that no genuine issue of material fact exists. Johnson v. Sunbelt Builders, Inc., 02-0959 (La.App. 3 Cir. 2/5/03), 838 So.2d 907. Under La. C.C.P. art. 966(C), once the mover has made a prima facie showing that the motion should be granted, the burden shifts to the non-moving party to present evidence demonstrating that material factual issues remain. Id. Despite the legislative mandate that summary judgments are now favored, factual inferences reasonably drawn from the evidence must be construed in favor of the party opposing the motion, and all doubt must be resolved in the opponent's favor. Willis v. Medders, 00-2507 (La.12/8/00), 775 So.2d 1049. The court must draw those inferences from the undisputed facts which are most favorable to the party opposing the motion. Independent Fire Insurance Co. v. Sunbeam Corp., 99-2181, 99-2257 (La.2/29/00), 755 So.2d 226. Summary judgment should be denied if (1) there is a genuine issue of fact and (2) it is material to the case. Smith v. Our Lady of the Lake Hosp., Inc., 93-2512 (La.7/5/94), 639 So.2d 730.

Open Account or Professional Services

The determinative issue in this case is when prescription commenced running on the amounts due. Mid-South contends that commencement of prescription ultimately turns on whether its agreement or relationship with Jones-Odom was an "open account," or an agreement to provide "professional services," both of which are subject to the three-year prescriptive period. La. C.C. art. 3494.[2] While the *105 remedy provided by the "open account" statute, La. R.S.

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Mid-South Analytical Labs v. Jones-Odom, 912 So. 2d 101, 2005 La. App. LEXIS 2086, 2005 WL 2355410 (La. Ct. App. 2005).

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