River Birch, Inc. v. ROBIN & ASSOC., INC.

906 So. 2d 729, 2005 WL 1400136
CourtLouisiana Court of Appeal
DecidedJune 15, 2005
Docket2004 CA 1561, 2004 CA 1562
StatusPublished
Cited by8 cases

This text of 906 So. 2d 729 (River Birch, Inc. v. ROBIN & ASSOC., INC.) 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
River Birch, Inc. v. ROBIN & ASSOC., INC., 906 So. 2d 729, 2005 WL 1400136 (La. Ct. App. 2005).

Opinion

906 So.2d 729 (2005)

RIVER BIRCH, INCORPORATED
v.
ROBIN & ASSOCIATES, INC., et al.
DAR, Inc. d/b/a Robin & Associates
v.
River Birch Incorporated.

Nos. 2004 CA 1561, 2004 CA 1562.

Court of Appeal of Louisiana, First Circuit.

June 15, 2005.
Rehearing Denied July 21, 2005.

*730 Peter J. Butler, Peter J. Buter, Jr., Murphy J. Foster, III, Richard G. Passler, New Orleans, for Appellant River Birch Inc.

Jacob J. Amato, Jr., Robert G. Creely, Gretna, Thomas A. Casey, Jr., New Orleans, for Appellees Robin & Associates, Inc. and DAR, Inc.

Before: PARRO, KUHN, and WELCH, JJ.

WELCH, J.

The facts in this case are indisputable; the contract at issue is contained in the *731 record and provides the best evidence regarding the terms and conditions contained therein. Additionally, all communications had in connection with the contract were recorded and transcribed by the Federal Bureau of Investigation and are part of the record. The salient issue before us is the enforceability of the contract entered into on June 1, 1995, between parties sophisticated in both business and politics: the appellant, River Birch, Incorporated (River Birch), and the appellee, DAR, Inc. d/b/a Robin & Associates (Robin).[1] Pursuant to the contract, entitled "Governmental Public Relations Consulting Agreement," River Birch, through its president, Albert J. Ward, Jr. (Ward) engaged the lobbying services of Dan A. Robin (Mr. Robin) for the purpose of defeating specific legislative bills, one of which was filed by House Speaker John Alario, that posed a threat to and, if passed, would prohibit the Louisiana Department of Environmental Quality from issuing essential permits needed by River Birch to begin operations as a landfill business. The contract provided for a $50,000 fee payable to Robin by River Birch if the legislation was defeated (or amended so it would not apply to River Birch's property) and an additional undivided 4% ownership interest in the landfill, contingent on whether River Birch received all the necessary permits and began operations.

With Robin's involvement, just days after the contract was signed, the bills were successfully defeated. River Birch began operating a landfill on July 1, 1999, is fully operational and is currently "making millions." River Birch paid Robin the $50,000 fee but has refused to transfer the 4% undivided interest in River Birch to Robin. This litigation followed.

Notwithstanding the undisputed facts and the clear terms and conditions of the contract, River Birch attacks the validity of the contract on three separate bases. First, it maintains the contract is null and void because Robin's failure to report its lobbying relationship with River Birch as a client constitutes a violation of the Lobbying Act, in particular, La. R.S. 24:53. River Birch alternatively maintains that the contract is void for vices of consent: fraud, misrepresentation and/or duress. Thirdly, River Birch argues that the lobbying fee negotiated in the contract is so excessive as to "shock the conscience" and should be stricken as contra bonos mores.

The district court rejected all of River Birch's arguments, found the contract was valid and ordered specific performance by River Birch's transfer to Robin of the 4% undivided interest in River Birch provided for in the contract. On appeal, River Birch claims the trial court erred in finding the contract valid and re-urges the same three arguments in support of its claim that the contract is an absolute nullity and unenforceable.

After a thorough review of the record, we are convinced that the factual findings as well as the legal conclusions reached by the trial court are supported by the evidence and the law. Accordingly, we affirm that judgment. The trial court's written reasons more than adequately discuss and resolve the issues raised in River Birch's assignments of error numbers two and three, regarding the alleged invalidity of the contract based on vices of consent and contra bonos mores. Therefore, we adopt *732 these reasons and incorporate them into this opinion as Appendix A.

To the extent that the result reached in this case appears to overlook or even condone flagrant and intentional violations of the disclosure requirements of the Lobbying Act, and for the purpose of addressing opinions by the Board of Ethics containing misinterpretations of the law, we write separately to more fully address the issues raised in appellant's assignment of error number one.

ASSIGNMENT OF ERROR NUMBER ONE

River Birch alleges the trial court erred as a matter of law by failing to find that Robin's failure to register River Birch as its lobbying client after the contract was negotiated between them violated the disclosure requirements of the Lobbying Act and that this purported violation rendered the object of their contract "in violation of a rule of public order," making it an absolute nullity. Robin admits that it is a lobbying firm and that Mr. Robin is a lobbyist. However, with respect to its relationship with River Birch, Robin asserts it was not subject to the disclosure requirements of the Lobbying Act, which it argues applies only to lobbyists with expenditures of more than two hundred dollars. Alternatively, Robin argues the Lobbying Act and its disclosure requirements are irrelevant in determining the validity of the contract. Robin notes that the Lobbying Act does not govern or regulate the contents of contracts between lobbyists and their clients; therefore, the penalty provisions contained in the act for disclosure violations (which must be strictly construed as a matter of law) cannot be applied to invalidate an otherwise lawful contract. Robin maintains its contract with River Birch had a lawful cause — lobbying services aimed at defeating a legislative bill. Robin asserts it fulfilled its obligations under the contract in that the legislation was defeated and River Birch is now fully operational.

THE LOBBYING ACT

The Lobbying Act, La. R.S. 24:50, et seq., applies to "lobbyists," as defined in the act. La. R.S. 24:52. The Lobbying Act defines lobbyist as:

[A]ny person who is employed to act in a representative capacity for the purpose of lobbying if lobbying constitutes one of the duties of such employment, or any person who receives compensation of any kind to act in a representative capacity when one of the functions for which compensation is paid is lobbying and makes expenditures as herein defined of two hundred dollars or more in a calendar year for the purpose of lobbying.

La. R.S. 24:51(5). (Emphasis added.) "Expenditures" is defined in La. R.S. 24:51(2) as "the purchase of food, drink or refreshment for a legislator."

Lobbyists are required to register specific information,[2] in writing and under oath, with the secretary of the Senate or the clerk of the House of Representatives. La. R.S. 24:53(A) requires this registration within five days of employment as a lobbyist or within five days after the first action requiring his registration as a lobbyist. Additionally, La. R.S. 24:53(C) requires that within ten days after his registration and after each renewal, the lobbyist shall file a statement signed and under oath from each *733 person by whom he is employed and from each person whom he represents authorizing him to act as the lobbyist for the person. Pursuant to subsection (E), the lobbyist's registration expires annually on January 31st unless the lobbyist seeks a renewal.

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