Porbeck v. Industrial Chemicals (US) Ltd.

134 So. 3d 234, 13 La.App. 3 Cir. 1241, 2014 WL 852796, 2014 La. App. LEXIS 589
CourtLouisiana Court of Appeal
DecidedMarch 5, 2014
DocketNo. 13-1241
StatusPublished
Cited by2 cases

This text of 134 So. 3d 234 (Porbeck v. Industrial Chemicals (US) Ltd.) 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
Porbeck v. Industrial Chemicals (US) Ltd., 134 So. 3d 234, 13 La.App. 3 Cir. 1241, 2014 WL 852796, 2014 La. App. LEXIS 589 (La. Ct. App. 2014).

Opinion

PETERS, J.

hThe defendant, Industrial Chemicals (US) Limited, appeals a trial court judgment awarding the plaintiff, Robert Por-beck, damages, penalties, and attorney fees based on the terms of an employment contract entered into by the parties. For the following reasons, we affirm the trial court’s award of severance pay and insurance benefits to Mr. Porbeck, but reverse the award of penalties and attorney fees and render judgment.

DISCUSSION OF THE RECORD

This matter stems from an employment relationship between Mr. Porbeck and Industrial Chemicals (US) Limited (ICL), which is a subsidiary of Industrial Chemicals Group Limited, a United Kingdom company. Mr. Porbeck began working for ICL as a processing engineering manager at ICL’s Lecompte, Louisiana facility on February 22, 2007, and ICL terminated his employment on October 31, 2011. The issue in this litigation involves the severance benefits, if any, owed to Mr. Porbeck.

With regard to the underlying facts in this litigation, the evidentiary record establishes that in the summer of 2006, Mr. Porbeck, who is a mechanical engineer, began performing consulting services for ICL in its production of aluminum chemicals. Initially, he devoted sixteen hours per week to his consulting activities. Approximately five months later, Renea Du-cote, ICL’s Lecompte plant manager, approached him concerning increasing his hours. As a result of the negotiations that followed, Mr. Porbeck quit his job with AFCO Steel and began working for ICL. It is undisputed that the terms of the employment contract entered into included a monthly salary to Mr. Porbeck of $8,500.00 ($102,000.00 annual salary); medical benefits for him and his wife; a customized work schedule which fallowed him to alternate weekly between the Le-compte plant and his Little Rock, Arkansas home; four weeks annual vacation; and travel and lodging expenses. Mr. Por-beck claims in this litigation that the contract also included a severance package comprised of eight months’ salary and eight months’ health insurance. ICL denies that the employment contract provided any severance benefits.

After ICL terminated his employment on October 31, 2011, Mr. Porbeck requested that ICL pay the severance benefits. ICL responded by continuing Mr. Por-beck’s medical benefits, but refused to continue paying his salary. When negotiation through email correspondence with various members of the ICL administration did not resolve the issue, Mr. Porbeck retained counsel who made demand on ICL, again without success.

On May 1, 2011, Mr. Porbeck filed suit against both ICL and Ms. Ducote,1 alleging breach of contract and seeking dam[236]*236ages equal to his claims under the severance package in the employment contract, as well as statutory penalties and attorney fees. The matter went to trial on February 5, 2013, and, following the close of evidence, the trial court orally ruled that a lawful, enforceable employment contract existed between Mr. Porbeck and ICL and that the contract included the severance package asserted by Mr. Porbeck. Having reached this factual conclusion, the trial court rendered judgment awarding Mr. Porbeck damages in the amount of $68,000.00 (the equivalent of salary for eight months) and $4,255.00 (the cost of health insurance for eight months).

At the completion of the evidence, the trial court took the penalties and attorney fee issues under advisement. In written reasons filed on May 9, 2013, the trial court concluded that the payment due under the severance package constituted | .¡wages pursuant to La.R.S. 23:631 and awarded Mr. Porbeck an additional $25,500.00 in statutory penalties and $7,500.00 in statutory attorney fees. On May 17, 2013, the trial court executed a judgment consistent with its factual findings and awards.

ICL perfected this appeal and raises five assignments of error:

1. The trial court erred by holding that the plaintiff had a valid and enforceable employment contract with ICL despite that his employment was “at-will” and without a fixed term.
2. The trial court erred by holding that the plaintiff was entitled to severance pay and health insurance benefits after the termination of his “at will” [sic] employment.
3. The trial court erred by holding that severance pay and health insurance benefits are “wages” pursuant to La. R.S. 23:631 and 632.
4. The trial court erred by holding that the plaintiff is entitled to penalties and attorney’s fees for his claims for severance pay and health insurance benefits despite the lack of affirmative pleading for those special damages and the lack of specific legal or contractual authority therefor.
5. The trial court erred by admitting the purported February 22, 2007 email (Trial Exhibit 8) into evidence despite plaintiffs failure to demonstrate authenticity.

OPINION

“A contract is an agreement by two or more parties whereby obligations are created, modified, or extinguished.” La.Civ. Code art. 1906. It is formed by the consent of the parties, via offer and acceptance. La.Civ.Code art. 1927.

Unless the law prescribes a certain formality for the intended contract, offer and acceptance may be made orally, in writing, or by action or inaction that under the circumstances is clearly indicative of consent.” Unless otherwise specified in the offer, there need not be conformity between the manner in which the offer is made and the manner in which the acceptance is made.

Id.

14A contract is interpreted by determining the common intent of the parties. La.Civ. Code art. 2045. It further has the force of law between the parties for claims arising from the contract. La.Civ.Code art. 1983. A trial court’s factual findings with regard to the intent of the parties is reviewed on appeal pursuant to the manifest error— clearly wrong standard of review. See Rosell v. ESCO, 549 So.2d 840 (La.1989).

“The employer-employee relationship is a contractual relationship. As such, an employer and employee may negotiate [237]*237the terms of an employment contract and agree to any terms not prohibited by law or public policy.” Newsom v. Global Data Systems, Inc., 12-412, p. 4 (La.App. 3 Cir. 12/12/12), 107 So.3d 781, 785, writ denied, 13-429 (La.4/5/13), 110 So.3d 595. A breach of a contract occurs when a party fails to perform in accordance with the contract terms, which failure results in damages to the other party. Favrot v. Favrot, 10-986 (La.App. 4 Cir. 2/9/11), 68 So.3d 1099, unit denied, 11-636 (La.5/6/11), 62 So.3d 127. The party seeking the performance of an obligation bears the burden of proving the existence of the obligation by a preponderance of the evidence. La.Civ.Code art. 1831; Natali v. Froeba, 98-1354 (La.App. 3 Cir. 3/3/99), 735 So.2d 30, writ denied, 99-1442 (La.9/17/99), 747 So.2d 1106.

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134 So. 3d 234, 13 La.App. 3 Cir. 1241, 2014 WL 852796, 2014 La. App. LEXIS 589, Counsel Stack Legal Research, https://law.counselstack.com/opinion/porbeck-v-industrial-chemicals-us-ltd-lactapp-2014.