River Parish Contractors, Inc. v. Savoie

101 So. 3d 495, 12 La.App. 5 Cir. 148, 2012 WL 3970394, 2012 La. App. LEXIS 1127
CourtLouisiana Court of Appeal
DecidedSeptember 11, 2012
DocketNo. 12-CA-148
StatusPublished
Cited by1 cases

This text of 101 So. 3d 495 (River Parish Contractors, Inc. v. Savoie) 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 Parish Contractors, Inc. v. Savoie, 101 So. 3d 495, 12 La.App. 5 Cir. 148, 2012 WL 3970394, 2012 La. App. LEXIS 1127 (La. Ct. App. 2012).

Opinion

SUSAN M. CHEHARDY, Judge.

UThis is a suit by a corporation for a writ of mandamus directing the defendant individual to transfer a suite at the LSU football stadium from his name into the corporate name. The district court rendered a default judgment in favor of the plaintiff corporation. The defendant appeals. We affirm.

FACTS

River Parish Contractors, Inc. (“RPC”), a domestic corporation, filed suit against Richard Allan Savoie on July 6, 2011. The petition made the following allegations:

Richard Savoie is not only a member of RPC’s board of directors, but also is an employee of RPC. In March 2002, RPC acquired and began paying for a suite, known as a “Tiger Den Suite,” at the LSU football stadium in Baton Rouge, Louisiana. The payments for the Tiger Den Suite included the option for payment for LSU football tickets as well as parking passes. Defendant Savoie, as principal and agent for RPC, was given the duty of securing the suite, tickets, and passes for RPC. The arrangements were transacted through Tiger Athletic Foundation (“TAF”) and were paid for by RPC.

The petition further alleged that at all material times, Savoie was acting as a director/agent/employee of RPC, and he did so from his primary office location in |aReserve, St. John the Baptist Parish, Louisiana. Savoie, however, used and provided the name “Richard Allan Savoie, The [497]*497Savoie Group” to TAF as the primary contact and owner of the suite.

The petition continued that at no time has Savoie or “The Savoie Group” paid for the Tiger Den Suite. Upon discovery of the information, RPC demanded that Sa-voie inform TAF and take the necessary steps to correct the error in name and ownership of the suite. Savoie, however, has failed and refused to do so. Further, TAF has refused to change the recognized named suite owner without the voluntary consent of Savoie or other legal remedy.

RPC asserted that Savoie’s actions and inactions show that Savoie is attempting to gain and has gained a personal benefit and asset with corporate funds, in violation of Louisiana law and of his good-faith fiduciary obligations to the corporation. RPC prayed for judgment in its favor against Savoie, issuing a writ of mandamus ordering the defendant to exercise his good faith fiduciary duty as a director of RPC to transfer the TAF Tiger Den Suite and all accompanying amenities to the name of River Parish Contractors, Inc.

The petition was served on Savoie on July 15, 2011, but he did not respond. RPC entered a preliminary default against him on August 29, 2011. The matter was taken up in open court on September 7, 2011, but Savoie did not appear. After RPC presented testimony of two witnesses and documentary evidence, the court granted a default judgment.

At the hearing for the confirmation of the preliminary default, counsel for RPC called Chad G. Bourgeois, who testified as follows: He is the CFO and Secretary/Treasurer on the Board of Directors of RPC. As such, he manages the financial aspects of the company. He is familiar with the day-to-day operations of the company and its books, as well as with the company’s business records kept in |4the day-to-day operations. Defendant Savoie is on the Board of Directors; he is the Vice President and he also handles the marketing/sales of the company.

Bourgeois was familiar with the company’s purchase of and payment for the football stadium suite and tickets. He said the payment for the suite is made in the form of a donation to TAF, but the payment for game tickets is made to the LSU Athletic Department.

Bourgeois produced copies of the invoices and checks from the prior three years: 2009, 2010, and 2011. The company’s records showed that for LSU football tickets, parking passes and associated items, RPC paid $10,923 in 2009, $11,360 in 2010, and $11,775 in 2011, all to the LSU Athletic Department. For the suite, RPC paid to TAF the sums of $59,492 in 2009, $58,571 in 2010, and $64,692 in 2011. The documents were introduced in evidence in globo as Exhibit P-1.

Bourgeois testified the amounts were all paid on checks drawn on the account of River Parish Contractors, Inc., except for one or two ticket payments made by a credit card in the name of River Parish Contractors, Inc.

Bourgeois said that Savoie was authorized, as part of his job duties as a marketing director, to institute any actions necessary to secure the suite and the tickets. Bourgeois said his understanding was that it was to be done in Savoie’s capacity as an officer and director of the company. Bourgeois was not aware of anyone in the company authorizing Savoie to secure either the suite or the tickets under his own name. The suite and the tickets were to be secured under the name of River Parish Contractors. Instead, Bourgeois noted, the invoices had “The Savoie Group” on them.

The next witness was Francis Guidry, Jr., who testified he is President of RPC. [498]*498He did not dispute any of Bourgeois’ testimony, and his testimony tracked that of Bourgeois. He further testified that as marketing director, Savoie was in | ^charge of business development for the company. Part of Savoie’s job duties was to obtain the LSU football suite and game tickets, and he invited potential clients or existing clients to games. That was part of the company’s marketing development. It was always understood that it was to be done as a part of his job duties for RPC.

Guidry said that Savoie was not authorized to secure either the suite or the tickets in his own name or on his own behalf. He said Savoie never paid for either the suite or the tickets. After discovering the suite and tickets were in the name of The Savoie Group, Guidry addressed the issue with Savoie and asked him to rectify the problem, but Savoie never did so. As a result, Guidry and Bourgeois, as officers of the corporation, entered into a corporate resolution to authorize the company to file suit against Savoie to compel him to change the name on the suite and the tickets to RPC’s name.

Guidry said Savoie never gave him any reason for his actions. Guidry testified further that he had checked the records of the Louisiana Secretary of State, but did not find any listing for a group called “the Savoie Group.”

The plaintiffs case concluded. The court then rendered judgment, stating,

Unless something doesn’t meet the eye here, based on the law, the record, and the testimony adduced at this morning’s hearing, I find that Mr. Savoie is clearly acting contrary to the will of the corporation, and the corporation had no other alternative but to file an action for a writ of mandamus against one of its own officers.... So I can see no reason why not to issue the alternative writ....

The judgment decreed that the defendant, Richard Allan Savoie, is in breach of his fiduciary obligation of good faith and fair dealing owed to the plaintiff corporation, as a director and officer of the corporation, for the acts and omissions complained of in the plaintiffs petition, in violation of La. R.S. 12:91(A), et seq.

|eThe judgment further decreed that an alternate writ of mandamus be issued, in accordance with La. C.C.P. art.

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101 So. 3d 495, 12 La.App. 5 Cir. 148, 2012 WL 3970394, 2012 La. App. LEXIS 1127, Counsel Stack Legal Research, https://law.counselstack.com/opinion/river-parish-contractors-inc-v-savoie-lactapp-2012.