Miller v. ConAgra, Inc.

970 So. 2d 1268, 2007 WL 4245735
CourtLouisiana Court of Appeal
DecidedDecember 5, 2007
Docket2007-747
StatusPublished
Cited by6 cases

This text of 970 So. 2d 1268 (Miller v. ConAgra, 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
Miller v. ConAgra, Inc., 970 So. 2d 1268, 2007 WL 4245735 (La. Ct. App. 2007).

Opinion

970 So.2d 1268 (2007)

Gary L. MILLER
v.
CONAGRA, INC.

No. 2007-747.

Court of Appeal of Louisiana, Third Circuit.

December 5, 2007.

William P. Crews, Jr., Attorney at Law, Natchitoches, LA, for Defendant/Appellant, Pilgrim's Pride Corporation.

*1270 Craig A. Davis, Attorney at Law, Lafayette, LA, for Plaintiff/Appellee, Gary L. Miller.

Clayton E. Bailey, Baker & McKenzie, LLP, Dallas, TX, for Defendant/Appellant, Pilgrim's Pride Corporation.

Court composed of JOHN D. SAUNDERS, OSWALD A. DECUIR, and J. DAVID PAINTER, Judges.

DECUIR, Judge.

The defendant, Pilgrim's Pride Corporation, as successor corporation to ConAgra Poultry Company (referred to herein as "ConAgra"), appeals the judgment of the trial court holding it liable to the plaintiff, Gary Miller, for breach of contract and violations of the Louisiana Unfair Trade Practices Act (LUTPA), La.R.S. 51:1401 et seq. For the following reasons, we affirm.

Miller filed suit on July 22, 1998, seeking damages for breach of a Broiler Production Agreement dated July 23, 1993, whereby Miller agreed to raise broiler chickens for a ten-year period exclusively for ConAgra. In an amended petition filed in February of 2000, Miller alleged that ConAgra's actions constituted unfair trade practices entitling him to damages for both pecuniary and nonpecuniary losses, attorneys fees, and treble damages under state law.

Allegedly as a result of the termination of the contract, Miller was forced to declare bankruptcy, which he did in 1996. After a finding of no assets, a bankruptcy discharge was granted in 1997 and the bankruptcy matter was closed. This suit was filed the following year. After numerous delays, including continuances, pretrial hearings, a writ application to this court, and the initiation of arbitration which was never scheduled because of ConAgra's failure to pay the necessary fees, a bench trial was held in July of 2005.

Essentially, Miller's position was that ConAgra improperly terminated the Broiler Production Agreement after falsely accusing him of stealing chicken feed to give to his hogs. Miller alleged that ConAgra used strong-arm tactics, including the threat of criminal prosecution, to end the ten-year agreement after only six months because of ConAgra's loss of a large scale chicken customer. ConAgra disputed the breach of contract claim, contending that termination of the contract was justified based on Miller's theft of the chicken feed. The trial court found in Miller's favor. In written reasons for judgment, the court reviewed testimony from numerous witnesses who explained poultry farming and feeding operations, the reclamation of unused chicken feed, and the history of heavy-handedness by ConAgra among local poultry farmers. The court found that ConAgra's defense in this case simply fell apart from a lack of documentary evidence and inconsistent testimony from witnesses. ConAgra was unable to prove not only that Miller stole feed, but also that the contract was terminated because of the alleged theft. The court found that Miller did not steal feed, owned only two hogs, had no incentive to steal feed, and would have lost income from ConAgra's reclamation program had he stolen fresh usable supplies as alleged.

The trial court found ConAgra breached the contract with Miller unfairly, without just cause, and in bad faith. The court also found that ConAgra's tactics violated the LUTPA, rejecting ConAgra's exception of prescription on that issue. The court determined that ConAgra's continuing threats against Miller and repeated refusal to provide the requisite written documentation to terminate the contract constituted continuing violations of LUTPA, thereby preventing the running of prescription. The court assessed pecuniary *1271 damages at $559,996.41 and general damages at $75,000.00, which total was trebled pursuant to La.R.S. 51:1409(A). Attorneys fees of $238,497.18 and other costs were also awarded for a total of $2,141,249.10, plus legal interest from the date of judicial demand. The judgment was signed on January 9, 2006.

Immediately following the trial of this matter, and before the judgment was signed, this litigation was rife with activity. ConAgra filed an unsuccessful motion to stay the proceedings. Then, ConAgra removed the case to the United States Bankruptcy Court for the Western District of Louisiana, but the matter was remanded to state court shortly thereafter. Miller's bankruptcy case was reopened, and his claim against ConAgra was declared by consent judgment to be the property of the bankruptcy estate, whose interest was to be determined at a later date. ConAgra unsuccessfully filed a motion to dismiss based on judicial estoppel and an exception of no right of action. After judgment on the merits was signed on January 9, 2006, ConAgra filed a motion for new trial contesting the award of attorneys fees, the applicability of LUTPA, the failure to submit the claim to arbitration, and other complaints. Miller moved to strike the motion and also filed a thorough opposition. ConAgra's motion was denied without a hearing. ConAgra sought to associate new counsel from Texas. The trustee in Miller's bankruptcy case enrolled in the instant suit as a party plaintiff, but he later withdrew when the bankruptcy was converted from a Chapter 7 proceeding to a Chapter 11 proceeding. The trial court, upon motion by Miller, then set the appeal bond at $5,000,000.00, which the defendant excepted to as premature and excessive. Writs were taken to this court and to the supreme court, which resulted ultimately in a $4,000,000.00 bond set on January 30, 2007. This appeal ensued.

1. Jurisdiction, right of action, estoppel

The first issue raised by ConAgra in this appeal is whether Miller is the proper party to bring this suit. ConAgra argues that Miller lacks standing, or in the alternative, has no right of action, and that only the bankruptcy trustee can properly bring this claim. ConAgra also asserts a lack of subject matter jurisdiction arguing that these claims should be brought in federal bankruptcy court. These arguments are based on the previous bankruptcy proceeding wherein Miller's debts were discharged and the bankrupt estate was found to have no assets. Similarly, ConAgra raises the issue of judicial estoppel. Citing Jethroe v. Omnova Solutions, Inc., 412 F.3d 598 (5th Cir.2005), ConAgra contends that Miller's failure to list the potential recovery in this tort suit as an asset in his bankruptcy case bars him from pursuing this claim, since the two positions asserted by Miller are intentionally inconsistent.

In the trial court, ConAgra actually abandoned its exceptions in favor of its judicial estoppel argument; we nevertheless briefly address all of these arguments as we find then all to be without merit. We observe first that Miller's bankruptcy was concluded long before the instant suit was filed. There is no indication in the record that Miller was attempting to deceive the bankruptcy court; in fact, the evidence shows that while he had made some inquiries, no lawyer had agreed to take his breach of contract case at the time the bankruptcy was pending. The trial court relied on this fact to conclude that Miller's inconsistent position taken in state court was inadvertent, and we agree. There is, likewise, no indication in the record that Miller attempted to deceive the district court, the defendant, or the attorneys involved in this state court case *1272 regarding the fact of his bankruptcy.

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

Related

Duplechain v. Jalili
52 So. 3d 1072 (Louisiana Court of Appeal, 2010)
Kenneth Duplechain v. Firooz Jalili
Louisiana Court of Appeal, 2010
Wooley v. Lucksinger
14 So. 3d 311 (Louisiana Court of Appeal, 2009)
Miller v. Conagra, Inc.
991 So. 2d 445 (Supreme Court of Louisiana, 2008)
State v. Holland
970 So. 2d 1268 (Louisiana Court of Appeal, 2007)

Cite This Page — Counsel Stack

Bluebook (online)
970 So. 2d 1268, 2007 WL 4245735, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-conagra-inc-lactapp-2007.