Moseley v. Mustin

880 So. 2d 105, 2004 WL 1682110
CourtLouisiana Court of Appeal
DecidedJuly 28, 2004
Docket38,455-CA
StatusPublished
Cited by5 cases

This text of 880 So. 2d 105 (Moseley v. Mustin) 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
Moseley v. Mustin, 880 So. 2d 105, 2004 WL 1682110 (La. Ct. App. 2004).

Opinion

880 So.2d 105 (2004)

Don MOSELEY, Jr., Plaintiff-Appellant
v.
Harold S. MUSTIN, Jr., Defendant-Appellee.

No. 38,455-CA.

Court of Appeal of Louisiana, Second Circuit.

July 28, 2004.

*106 Jeffrey L. Little, Shreveport, for Appellant.

Aubrey R. Snell, for Appellee.

*107 Before BROWN, WILLIAMS and CARAWAY, JJ.

WILLIAMS, Judge.

This case involves a dispute over the split of commissions earned from the sale of New York Life Insurance Company ("New York Life") products. The plaintiff, Donald Moseley, Jr., filed suit against defendant, Harold Mustin, Jr., based on a December 1998 contract governing commission splits between the parties allegedly earned while they were working at New York Life. Plaintiff appeals the trial court's judgment in favor of the defendant, dismissing the plaintiff's claims. For the following reasons, we affirm.

FACTS

The plaintiff and the defendant were insurance agents for New York Life. Both parties testified that the defendant was much more experienced than the plaintiff as an insurance agent. The defendant and the plaintiff worked together on various files and shared some commissions on a 50/50 basis. The two men worked together for approximately two years before a disagreement arose between them in April 1998. The defendant testified that the disagreement began when the plaintiff informed him that he would be assisting another New York Life agent, who was one of the defendant's competitors within the company. The defendant testified at trial that immediately after he learned of the plaintiff's intentions, he met with the plaintiff at a local restaurant to discuss the apparent business conflict, but they could not agree on a solution. The defendant terminated their working relationship at that time, but they continued to share commissions on clients they had previously established together.

In the latter part of 1998, the plaintiff approached the defendant with a proposed agreement consisting of seven paragraphs that he drafted to govern future commission splits between the two of them. The defendant refused to sign this original draft. Based on the defendant's objections to some of the contents, the contract was revised and signed by both parties on November 30, 1998. The revised contract retained the terms and language used in the first two paragraphs of plaintiff's original draft. After a typographical error was discovered in this document, a corrected contract was signed by both parties on December 2, 1998. This final contract provided that the parties would split on a 50/50% basis future commissions earned from current joint clients, as well as any commissions earned from a project pending at Beaird Industries ("Beaird") to implement a payroll deduction/group benefits plan and a transfer of the union 401(k) pension fund.

Subsequently, the plaintiff complained that defendant had breached the written agreement by failing to pay plaintiff his share of commissions for certain policies sold both before and after the date of the contract. The plaintiff filed a petition for damages against the defendant, seeking an accounting and payment of sums allegedly due under the contract. The petition also claimed that defendant had made misrepresentations in obtaining the contract by not disclosing that he owed money to plaintiff for policies sold prior to the contract.

After a trial, the district court issued written reasons for judgment finding that the December 1998 contract governed the business arrangement between the parties as of the date of signing and that the defendant did not owe any money to plaintiff on any of his claims. The trial court rendered judgment dismissing plaintiff's claims. Plaintiff appeals the judgment.

*108 DISCUSSION

In several assignments of error, the plaintiff contends the trial court erred in finding that defendant did not owe any additional commission payments. Plaintiff argues that his right to one-half of the commissions from some pre-December 1998 policies is demonstrated by the parties' past practices and by the contract, which reflected such "past dealings."

Legal agreements have the effect of law upon the parties and the courts are bound to give legal effect to all such contracts according to the true intent of the parties. Pendleton v. Shell Oil Company, 408 So.2d 1341 (La.1982). A court of appeal may not set aside a trial court's finding of fact in the absence of manifest error or unless it is clearly wrong. In order to reverse a factfinder's determination, the reviewing court must review the record in its entirety and meet the following two-part test: 1) the appellate court must find from the record that a reasonable factual basis does not exist for the finding of the trial court, and 2) the appellate court must further determine that the record establishes that the finding is clearly wrong or manifestly erroneous. The issue to be resolved by a reviewing court is not whether the trier of fact was right or wrong, but whether the factfinder's conclusion was reasonable. McDuffie v. Riverwood International Corporation, 27,292 (La.App.2d Cir.8/23/95), 660 So.2d 158.

Interpretation of a contract is the determination of the common intent of the parties. LSA-C.C. art. 2045. Such intent is to be determined in accordance with the plain, ordinary and popular sense of the language used, and by construing the entirety of the document on a practical, reasonable and fair basis. McDuffie, supra; Lindsey v. Poole, 579 So.2d 1145 (La.App. 2d Cir.1991), writ denied, 588 So.2d 100 (La.1991). When the words of a contract are clear and explicit and lead to no absurd consequences, no further interpretation may be made in search of the parties' intent. LSA-C.C. art. 2046; Green v. New Orleans Saints, XXXX-XXXX (La.11/13/00), 781 So.2d 1199. Words of a contract must be given their generally prevailing meaning. LSA-C.C. art. 2047; Diefenthal v. Longue Vue Management Corp., 561 So.2d 44 (La.1990). In case of doubt that cannot be otherwise resolved, a provision in a contract must be interpreted against the party who furnished its text. LSA-C.C. art. 2056; Harris v. Housing Authority of the City of Mansfield, La., 27,771 (La.App.2d Cir.12/6/95), 665 So.2d 712.

The plaintiff's petition alleges that the December 1998 contract was meant to "memorialize the past dealings of the parties with regard to commissions derived from joint clients." However, the contract specifically states that it covers future commissions and does not allocate commissions earned prior to the contract date.

Nor does the record support plaintiff's apparent argument that the parties' prior pattern of practice established an unwritten agreement giving him the right to 50% of the commissions on some pre-December 1998 policies. There was conflicting testimony regarding such an arrangement. The defendant testified that before December 1998, the parties shared commissions on a case-by-case basis and that they did not have a general agreement or formula with regard to the split of commissions. In addition, defendant stated that any prior working relationship with the plaintiff was over at the time the contract was signed and that the written agreement concerned solely their practice in the future.

The plaintiff testified that the parties did not end their working relationship, but *109 continued forward with joint business in which the contract was one step in the process. Plaintiff acknowledged that the contract was meant to govern work with defendant for future commissions.

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

Related

Hollenshead Oil & Gas, LLC v. Gemini Explorations, Inc.
44 So. 3d 809 (Louisiana Court of Appeal, 2010)
Newsome v. Atmos Energy
938 So. 2d 1098 (Louisiana Court of Appeal, 2006)
NEWMAN MARCHIVE PART. v. City of Shreveport
923 So. 2d 852 (Louisiana Court of Appeal, 2006)
Mitchell v. Brown Builders
902 So. 2d 1288 (Louisiana Court of Appeal, 2005)
Duggan v. Bossier Federal Credit Union
892 So. 2d 169 (Louisiana Court of Appeal, 2005)

Cite This Page — Counsel Stack

Bluebook (online)
880 So. 2d 105, 2004 WL 1682110, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moseley-v-mustin-lactapp-2004.