Pelican Point Operations v. CHILDERS CO.

807 So. 2d 1171, 47 U.C.C. Rep. Serv. 2d (West) 453, 2000 La.App. 1 Cir. 2770, 2002 La. App. LEXIS 226, 2002 WL 228045
CourtLouisiana Court of Appeal
DecidedFebruary 15, 2002
Docket2000 CA 2770
StatusPublished
Cited by6 cases

This text of 807 So. 2d 1171 (Pelican Point Operations v. CHILDERS CO.) 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
Pelican Point Operations v. CHILDERS CO., 807 So. 2d 1171, 47 U.C.C. Rep. Serv. 2d (West) 453, 2000 La.App. 1 Cir. 2770, 2002 La. App. LEXIS 226, 2002 WL 228045 (La. Ct. App. 2002).

Opinion

807 So.2d 1171 (2002)

PELICAN POINT OPERATIONS, L.L.C.
v.
CARROLL CHILDERS COMPANY.

No. 2000 CA 2770.

Court of Appeal of Louisiana, First Circuit.

February 15, 2002.

*1172 Joseph C. Wiley, Gonzales, for Plaintiff/Appellee Pelican Point Operations, L.L.C.

Ricky L. Babin, Gonzales, for Defendant/Appellant Carroll Childers Company.

Before: FITZSIMMONS, DOWNING and LANIER, JJ.[1]

DOWNING, J.

Carroll Childers Company (Childers), a Texas corporation, appeals an adverse *1173 judgment wherein the trial court found it liable to Pelican Point Operations, L.L.C. (Pelican Point) for damages to Pelican Point property. In an attempt to collect the remaining balance due from a third party subcontractor on the pumping station that ran the Pelican Point golf course irrigation system, Childers resorted to self-help tactics and disabled the pumping station. Then the rain came and washed away much of the fertilizer/herbicide compound that had just been applied. The trial court awarded damages against Childers for the cost of making the pumping station workable, the cost of the lost fertilizer/herbicide, the cost of subsequent remediation and weed control, court costs and attorney fees. For the following reasons, we affirm.

FACTS AND PROCEDURAL HISTORY

In late February 1998 Childers sent notice to Pelican Point that Childers had a security interest[2] under the Uniform Commercial Code (UCC) in a pumping station that a subcontractor had installed to irrigate the Pelican Point golf course in Ascension Parish and that the pumping station was not completely paid for. Childers' correspondence informed Pelican Point that it would "reclaim the equipment" unless the balance was paid within ten days.

Pelican Point responded that it had paid all its bills and that collection efforts should be directed to the contractor or to the subcontractor that actually purchased the pumping station. Nonetheless, on March 3, 1998 a Childers representative entered the enclosed pumping stationing station at Pelican Point and disabled the irrigation system by removing fuses and disabling the computer program data that controlled the system.

The next morning, Childers' representative approached Pelican Point managers and offered to restart the pumping station if Pelican Point would make arrangements to pay the debt. When the Pelican Point managers refused and threatened to call the sheriff, the Childers representative left. Later, Childers sent a fax stating its actions were "in strict compliance with the Uniform Commercial Code." Texas law allows such self-help measures. Louisiana's version of the UCC, however, does not. See La. R.S. 10:9-503. Pelican Point's counsel advised Childers' counsel that self-help remedies are not permissible under Louisiana's version of the UCC and that Childers should immediately repair the pumping station. Despite negotiations over the next few days, including assurances that the general contractor who built the golf course would pay all outstanding sums due, Childers refused to replace the fuses and re-start the pumping station unless Pelican Point would waive all claims for damages resulting from Childers' employment of self-help tactics in shutting down the irrigation pumping station. Pelican Point refused Childers' conditions.

On March 6, 1998 Pelican Point filed a petition for injunction and damages against Childers. On that same day a heavy rain fell on the Pelican Point property and washed away large amounts of a fertilizer/pre-emergent herbicide compound known as Regal Star II, the application of which had just been completed the day the irrigation pumping station was disabled. Because of the immediate need to re-start the pumping station, Pelican Point hired another company to fix and restart the pumping station. The pumping *1174 station was finally operational eleven days after it had been shut down—without any help or cooperation from Childers.

As the litigation progressed, Childers filed a reconventional demand against Pelican Point claiming unjust enrichment. Pelican Point amended its petition alleging unfair and deceptive trade practices. The matter finally went to trial on December 14, 1999. After hearing the evidence and reviewing post-trial memoranda, the trial court ruled in favor of Pelican Point, awarding damages for the cost of making the pumping station workable, the cost of the lost fertilizer/herbicide, the cost of subsequent remediation and weed control, court costs and attorney fees.

Childers now appeals asserting five assignments of error: 1) that the trial court erred in not applying Texas law pursuant to conflicts of law provisions contained in the UCC; 2) that Pelican Point failed to meet its burden in proving that Childers' actions caused its damages; 3) that the trial court erred in granting Pelican Point double recovery for the cost of both the lost fertilizer/herbicide and the costs of remediating the golf course; 4) that Pelican Point failed to mitigate damages; and 5) that the trial court erred in awarding attorney fees to Pelican Point without statutory or contractual authority.

DISCUSSION

CONFLICT OF LAW

(ASSIGNMENT OF ERROR NO. 1)

Childers argues that Texas law, particularly Texas Business & Commercial Code Annotated § 9.503[3] (Tex.UCC) which allows a secured party to render equipment unusable, controls our analysis of this litigation. In so arguing Childers asserts that Louisiana does not have an "appropriate relation" to the "transactions" as required by La. R.S. 10:1-105(1) before Louisiana law would control. La. R.S. 10:1-105(1) as applicable in March 1998[4] specifically provides as follows:

Except as provided hereafter in this Section, when a transaction bears a reasonable relation to this state and also to another state or nation the parties may agree that the law either of this state or of such other state or nation shall govern their rights and duties. Failing such agreement this Title applies to transactions bearing an appropriate relation to this state. (Emphasis added.)

We note, however, that there is no agreement between Pelican Point and Childers. We also note that there was no transaction of any sort between Childers and Pelican Point. It appears, therefore, that La. R.S. 10:1-105(1) is inapplicable to the issues at hand.

Louisiana's conflicts of laws provisions contained in Book IV of the Civil Code are mindful of the purpose and policy of the Louisiana Commercial Laws contained in Title 10 of the revised statutes, particularly as set forth in La. R.S. 10:1-102(2)(c): "to promote uniformity of the law among the various jurisdictions." See Louisiana Civil Code article 3515 which applies to conflicts of laws not otherwise specifically governed by other code articles.[5]

*1175 In its petition, Pelican Point sued Childers alleging several acts of misconduct including trespass, theft, burglary and unfair and deceptive trade practices. Childers raised the defense that its conduct was permissible under the Texas version of the Uniform Commercial Code. While the nature of the dispute before us is based on claims of tortious conduct, Childers' defense is one that pertains to loss distribution and financial protection. Accordingly, we hold that La. C.C. art. 3544 governs our analysis of this specific issue. See Rigdon v. Pittsburgh Tank & Tower Company, Inc., 95-2611, p. 7 (La. App. 1 Cir.

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807 So. 2d 1171, 47 U.C.C. Rep. Serv. 2d (West) 453, 2000 La.App. 1 Cir. 2770, 2002 La. App. LEXIS 226, 2002 WL 228045, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pelican-point-operations-v-childers-co-lactapp-2002.