Moss v. Guarisco

459 So. 2d 1
CourtLouisiana Court of Appeal
DecidedOctober 9, 1984
Docket83 CA 0973, 83 CA 0974
StatusPublished
Cited by6 cases

This text of 459 So. 2d 1 (Moss v. Guarisco) 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
Moss v. Guarisco, 459 So. 2d 1 (La. Ct. App. 1984).

Opinion

459 So.2d 1 (1984)

William J. MOSS
v.
Anthony J. GUARISCO, Sr., Sam C. Barbera, Jr., General Motors Corporation, Pontiac Motor Division, Guarisco Motor Company, Inc. and Guarisco-Barbera Pontiac-Cadillac-GMC, Inc.

Nos. 83 CA 0973, 83 CA 0974.

Court of Appeal of Louisiana, First Circuit.

October 9, 1984.
Rehearing Denied November 21, 1984.
Writ Denied January 25, 1985.

*2 Peter P. Piccione, Lafayette, and John E. Conery, Conery & Breaux, Franklin, for plaintiff.

Nathan A. Levy, Jr., Joseph R. Streva, Jr., and Lawrence Burleigh, Levy & Burleigh, Morgan City, for Anthony Guarisco, Sr.

George H. Robinson, Jr., Liskow & Lewis, Lafayette, for General Motors Corp.

Jerome J. Barbera, III, Thibodaux, for Guarisco-Barbera Pontiac-Cadillac-GMC and Sam J. Barbera.

Before EDWARDS, SHORTESS and SAVOIE, JJ.

SAVOIE, Judge.

Appellant, Anthony J. Guarisco, Sr., appeals the decision of the trial court in these consolidated cases for breach of contract brought by appellees, William J. Moss and Guarisco-Moss Motors, Inc.

These cases were previously before this court when Moss appealed the trial court's sustaining of the peremptory exception of no cause of action as to defendants, General Motors Corporation, Pontiac Motor Division, Sam C. Barbera, Jr., Guarisco-Barbera Pontiac-Cadillac-GMC, Inc., and Guarisco Motor Company. The only remaining defendant was Guarisco as to the breach of contract issue. At that time, the suits alleged breach of contract, inducement to breach contract, and illegal conspiracy in restraint of trade. This court affirmed the trial court's ruling and remanded the case solely for trial on the issue of breach of contract of the Moss-Guarisco buy-sell agreement as to Guarisco.[1]

FACTS

Anthony and John Guarisco each owned fifty percent of Guarisco Motors, Inc. in Morgan City, a franchised dealership for Pontiac, Cadillac and GMC. John held the franchise. In early 1978, Pontiac encouraged them to sell the dealership. All contact with General Motors concerning the dealership was handled through the Pontiac division in Memphis, Tennessee.

William Moss, sales manager for Service Chevrolet, Inc. of Lafayette, was interested in acquiring his own dealership and with his employer's permission was looking for one. Moss learned of the possible sale of Guarisco Motors and contacted Anthony Guarisco in early 1978 about purchasing that dealership. At that time, Guarisco advised Moss that the dealership would be for sale in the near future and suggested that he remain in contact. In August, 1978, Moss was informed by Guarisco that he had to buy out his brother's interest before he could formally act. Guarisco did agree to negotiate with Moss in the meantime. Moss then contacted Pontiac regarding the requirements for a transfer of the franchise from Guarisco to him. Pontiac informed him that a formal application accompanied by a written buy-sell agreement between Moss and Guarisco would have to be submitted for approval.

Moss and Guarisco met several times in October to discuss details of Guarisco's sale of the dealership to Moss. These discussions resulted in a formal buy-sell agreement, a copy of which Moss delivered to Guarisco at the dealership on October 18, 1978. Since Guarisco and his brother, John, were to formalize their partition on *3 October 20, thus making Guarisco 100% owner of the dealership, Guarisco signed the agreement on October 19, but dated it October 20, 1978. (The partition was finalized on November 3, 1978.) Moss also submitted documents for the formation of the corporation called for in the buy-sell agreement, but Guarisco never signed them. The buy-sell agreement was recorded in the St. Mary Parish public records on October 23, 1978. In accordance with the buy-sell agreement, Moss deposited $50,000 into Guaranty Bank and Trust Company of Morgan City on October 23, 1978.

Meanwhile, Barbera had been discussing with Guarisco the acquisition of the dealership. On October 13, he met with Pontiac officials in Memphis to discuss the matter. He had a letter of intent from Guarisco, dated October 11, 1978, to sell the dealership to him, Barbera. Apparently, all persons who inquired about the dealership were given similar letters.

On October 20, 1978, Moss telephoned Pontiac to inform them that he had mailed the application that day. The Pontiac zone business manager who handled applications for new dealerships took the call and set up an appointment for Moss to go to Memphis to discuss his qualifications. This Pontiac representative called Guarisco that day to inform him of Moss' application. Guarisco told the representative that he also wanted Barbera to be considered and that application would be submitted soon.

At this point, it is necessary to understand Pontiac's role and the manner in which a franchise is awarded. Pontiac had the absolute right to decide to whom a franchise will be awarded and unless Pontiac approved an applicant, there could be no sale of a dealership to that applicant. All of the parties were aware of this at all times. Normally, however, it was Pontiac's policy to have the present franchise holder recommend the applicant he preferred. If that applicant was acceptable, the franchise was awarded to him regardless of the qualifications of the other applicants. Moss was unaware of this policy and Guarisco's knowledge is unclear. Since Guarisco had also expressed an interest in Barbera, Pontiac returned Moss' application, unopened, on October 23, 1978, and called to inform Moss of their action.

Subsequently, Guarisco went to Memphis to confer with Pontiac. Guarisco told the representative that he had signed a buy-sell agreement with Moss, but he did not consider it binding. Pontiac again requested Guarisco to submit the name of the applicant he preferred. Later, on November 6, Guarisco wrote Pontiac to withdraw Moss' name from consideration and to state his preference for Barbera. Barbera, who was unaware of the Moss-Guarisco agreement, submitted his application and the Barbera-Guarisco buy-sell agreement dated November 17, 1978, to Pontiac. Eventually, the franchise was awarded to Barbera. In January, 1979, Guarisco and Barbera formed a corporation pursuant to their buy-sell agreement and operation of the new dealership was begun.

Moss filed suit on December 22, 1978 against Guarisco after Guarisco refused Moss' written demand for performance of the October 20, 1978 buy-sell agreement. Notice of lis pendens was filed in the St. Mary Parish public records simultaneously with the suit.

In anticipation of acquiring the Morgan City dealership, Moss quit his job with Service Chevrolet effective October 18, 1978. In 1977, Moss earned $31,865.00, had the use of an automobile and its expenses, an expense account, an opportunity to purchase family vehicles at cost and several other benefits. During his employment in 1978, he earned $45,398.00 and had the same benefits. He was unemployed from October 18, 1978 until he opened the Honda franchise in Lafayette known as Moss Motors, Inc. in December, 1979. Since that time, he has added several other franchises to that dealership and has been quite successful. As the result of that success, he has become involved in several other business interests which include the purchase of a condominium in Florida and the possible acquisition of a Jaguar dealership in Florida. At the time of trial, he was negotiating *4 for a Chevrolet dealership in Morgan City.

ACTION OF THE TRIAL COURT

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Bluebook (online)
459 So. 2d 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moss-v-guarisco-lactapp-1984.