Prejean v. Guillory

28 So. 3d 1174, 2010 WL 335315
CourtLouisiana Court of Appeal
DecidedJanuary 13, 2010
Docket09-495
StatusPublished
Cited by2 cases

This text of 28 So. 3d 1174 (Prejean v. Guillory) 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
Prejean v. Guillory, 28 So. 3d 1174, 2010 WL 335315 (La. Ct. App. 2010).

Opinion

SAUNDERS, Judge.

|! This is a case in which an employee of a former housing authority claims that her employment contract was enforceable against the entity that existed subsequent to the consolidation or merger of the former housing authority with a regional or consolidated housing authority. The employee claims that the regional or consolidated housing authority breached that contract by firing her prior to the term of her contract ending.

After a trial on the merits, the trial court found by applying La.Civ.Code arts. 1821 and 1823 that the employee failed to carry her burden to prove that her employment contract was assumed by the regional or consolidated housing authority. The employee appealed this judgment, alleging an error of law by the trial court by failing to consider La. R.S. 40:417. We reverse the trial court’s judgment and, after a de novo review of the record, render a judgment for the employee.

FACTS AND PROCEDURAL HISTORY:

In October of 1994, Kathy Prejean (Pre-jean) began working for the Broussard Housing Authority (BHA) without a contract. Prejean worked on the BHA’s Section 8 public housing. At the time of her hire, the BHA had only seventy-two homes that were owned by landlords and were occupied by tenets. Section 8 housing is a tenant-based program financed with vouchers consisting of federal funds through the Department of Housing and Urban Development (HUD) to provide suitable housing for tenants in homes offered by approved homeownersfiandlords. On February 15, 1995, the BHA hired Prejean as its Executive Director under a *1178 written contract for an initial five-year term, with the contract having a provision for an extension period for another five years.

When Prejean began working for the BHA in 1994, it was a “troubled” agency. |2A “troubled” agency is one that fails to use a certain percentage of all of its federally available funds to provide housing for tenants. After Prejean became the BHA’s Executive Director, it was never again classified as a “troubled” agency.

At HUD’s request, the BHA consolidated with the Vermillion Parish housing program. Prejean remained as the BHA Executive Director and, with this consolidation, was serving as the Executive Director of nearly 650 vouchers. On January 3, 2002, the BHA extended Prejean’s contract for up to seven years.

In early 2004, the BHA decided it wanted to transfer its Section 8 Housing program to the Lafayette Housing Authority (LHA). At the time, the BHA consisted entirely of Section 8 Housing. On April 13, 2004, the BHA held a meeting at City Hall in Broussard, Louisiana, where it approved a resolution to offer its Section 8 Housing to the LHA. Several members of the LHA attended that meeting, and subsequent to the BHA passing the resolution to transfer the Section 8 Housing, the LHA conducted a meeting wherein it accepted the BHA’s offer. The next day, Dominick Pittari, the New Orleans HUD Director, wrote the BHA’s chairperson advising that the BHA and the LHA had to comply with La. R.S. 40:411 for this consolidation.

The LHA and- the BHA responded on August 26, 2004, by filing a joint, ex parte, petition for declaratory judgment in the Fifteenth Judicial District Court for Lafayette Parish asking the court to find that La. R.S. 40:411 did not apply to the transfer of the BHA Section 8 Housing program to the LHA. On August 30, 2004, the petition was granted. Thereafter, the LHA exercised control over the BHA Section 8 Housing program, and Prejean continued with her duties. In November of 2004, Walter Guillory, the Executive Director of the LHA, assigned Tim Declouet to the |aBHA, in order to assess how the transition was going, to report to him, to stay in the Broussard office on a regular basis, and to serve as his “eyes and ears.”

That same month, Prejean was diagnosed with cancer of her right breast, for which she had a mastectomy. Prejean’s doctors gave her excuses from work after her November 2004 surgery until January 10, 2005. Then in February of 2005, Pre-jean was diagnosed with cancer of the left breast. On February 16, 2005, she had her left breast removed. Doctors then excused Prejean from work until July 25, 2005.

According to Prejean and her coworkers, despite the excuses from work, she continued working against her doctors’ advice, even though Declouet would, at times, tell her to go home and to continue doing things at the Broussard office as she had been doing them, as things were going smoothly. Prejean did so because she described herself as a workaholic who remained in daily contact with her office. Prejean and her coworkers testified that Prejean would either do her work at home or in the office, but that the work was completed adequately. Further, according to Prejean, she continued to work against her doctors’ orders because the work would keep her mind off of her medical condition.

In May of 2005, Guillory, then with knowledge of Prejean’s illness, looked into the human resource department’s medical file on Prejean and discovered that she was excused from work until July of that *1179 year. Without speaking with Prejean or Declouet to determine whether Prejean was actually doing her work, or if she was actually missing any time from her job, Guillory brought Prejean’s absenteeism to the LHA’s attention. On May 17, 2005, the LHA passed a resolution to terminate Prejean due to excessive absences. It sent Prejean a letter informing her of her termination that same day.

14On October 5, 2005, Prejean filed suit against Guillory and the LHA alleging tort claims and seeking a declaratory judgment that her employment contract with the BHA had survived the consolidation/merger between the BHA and the LHA. Further, after supplementing her petition, Prejean alleged that her employment contract was enforceable against the LHA, and that she was entitled to damages for the LHA’s breach of her employment contract. After an extensive trial on the merits, the trial court dismissed all of Preje-an’s claims based on her failure to carry her burden of proof as to any negligence by the LHA or Guillory. The trial court also found that Prejean failed to carry her burden to prove that she was entitled to enforce her employment contract against the LHA.

Prejean filed this appeal alleging that the trial court committed legal error in failing to apply La. R.S. 40:417. Prejean also alleges that should La. R.S. 40:417 be correctly applied to her claims, she is entitled to enforce her contract against the LHA and that she is entitled recovery of her wages, car allowance, health benefits, and any and all other benefits she received under the terms of her employment contract.

STANDARD OF REVIEW:

An appellate court’s review of a question of law is a simple decision whether the lower court’s decision is legally correct. Jim Walter Homes, Inc. v. Jessen, 98-1685 (La.App. 3 Cir. 3/31/99), 732 So.2d 699. If the lower court bases its decision on an erroneous application of law, that decision is not entitled to deference. Kem Search, Inc. v. Sheffield, 434 So.2d 1067 (La.1983). When such an error of law is committed, the appellate court should conduct a de novo review of the record. Lasha v. Olin Corp., 625 So.2d 1002 (La.1993).

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