Robledo v. Orr Motors of Louisiana, Inc.

582 So. 2d 892, 1991 La. App. LEXIS 1868, 1991 WL 108399
CourtLouisiana Court of Appeal
DecidedJune 19, 1991
Docket22,485-CA
StatusPublished
Cited by7 cases

This text of 582 So. 2d 892 (Robledo v. Orr Motors of Louisiana, 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
Robledo v. Orr Motors of Louisiana, Inc., 582 So. 2d 892, 1991 La. App. LEXIS 1868, 1991 WL 108399 (La. Ct. App. 1991).

Opinion

582 So.2d 892 (1991)

Rolando ROBLEDO, Plaintiff-Appellee,
v.
ORR MOTORS OF LOUISIANA, INC., Defendant-Appellant.

No. 22,485-CA.

Court of Appeal of Louisiana, Second Circuit.

June 19, 1991.

*893 Wiener, Weiss, Madison & Howell by James R. Madison, Shreveport, for defendant-appellant.

Richie & Richie by Byron A. Richie, Shreveport, for plaintiff-appellee.

Before MARVIN, C.J., and NORRIS and LINDSAY, JJ.

MARVIN, Chief Judge.

A corporate auto dealership, Orr Motors, appeals a judgment awarding its former employee, Robledo, damages for breach of a six-month employment contract, and penalty wages and attorney fees under LRS 23:632 for failure to timely pay the wages due upon termination.

Orr Motors contends the trial court was clearly wrong in its conclusions that Robledo was hired as a mechanic for six months and was discharged without cause. Orr Motors claims the clear error is shown by Robledo's deposition which Orr claims the trial court erroneously ruled was inadmissible. Orr Motors also complains of the penalty wage and attorney fee awards. Robledo answered the appeal to seek additional attorney fees for work done in the trial court and on appeal.

We amend to award attorney fees for the work done at and after trial and on appeal, limiting, however, the attorney fee award to the statutory penalty wage demands.

We affirm the judgment as amended.

FACTS

Orr Motors of Louisiana, Inc., after becoming the Acura dealer in Shreveport in December 1988, hired Robledo to work as a mechanic in the service department in January 1989. Robledo was a "certified Acura mechanic" who had worked for the previous owners of the Shreveport Acura dealership. He was not working for the dealership, however, when Orr became the dealer.

The critical factual issue is whether Robledo was hired for a six-month period. Robledo began working for Orr on January 9, 1989. Apparently through January, Robledo was paid weekly, at the rate of $13.50 per "flag hour," which is the amount of time that is allocated in an industry manual to accomplish particular mechanical work. The actual time spent by a mechanic may be more or less than the allocated "flag" time.

Keith Orr, a principal in the defendant corporation, testified Robledo was initially hired on a "straight commission" basis of $13.50 per flag hour. Robledo agreed that he was to be paid $13.50 per flag hour but testified he was hired with the understanding that he would be guaranteed at least $450 per week, the amount he would earn for about 33 flag hours, even if his flag hour pay did not reach $450 per week. Robledo was apparently paid less than $450 *894 per week for his first few weeks of work, although Orr's records show that he "flagged" more than 33 hours per week.

At the end of January 1989, Robledo discussed his employment with Keith Orr. Keith Orr testified Robledo was only "concerned about his income flow" because the new dealership's customer base was not yet established. Robledo said the "discussion" he had with Keith Orr resulted in Orr "verifying that I was going to have employment for six months." During this discussion Keith Orr and Robledo signed this agreement that was handwritten by Keith Orr on corporate stationery:

Rolando Robledo's pay plan is as follows:

1. 13.50 flag hour.
2. A guarantee of 1800.00 per month.
3. Whichever is greater.
4. Effective Jan. 1, 1989. Prorated for Jan.
23 work days
Rolando started on 9th at noon—that leaves 18.5 days ... = 1447.82 [guaranteed pay for Jan.]
This pay plan is good for 6 mos., at that time it will be evaluated by both parties.

After the written agreement was signed, Orr continued paying Robledo weekly for his flag hours and paid him an additional amount at the end of the month if his "flag hour" pay for the month was less than $1,800. Robledo's "flag hour" pay was less than $1,800 for February 1989 and more than $1,800 for March 1989. He "flagged" 25.60 hours in the first week of April and was fired, according to Orr, for lack of productivity on April 13. "Productivity" is measured by the relationship between flag hours and actual hours. See discussion, infra, under Cause For Termination section of this opinion. The next day, April 14, Orr gave Robledo its check for $95.31 for nine flag hours Robledo worked from April 10-13.

Robledo's supervisor, Carl Qualls, who gave Robledo the check on April 14, testified that Robledo did not question the amount of the check. Robledo testified he "immediately" told Qualls the check was not correct and asked if there was "another check somewhere in the building that [they] needed to be getting to me for this week's work." Orr had no other check for Robledo.

On June 5, 1989, Robledo wrote to Keith Orr at the dealership:

On April 13, 1989, your company fired me from my job as mechanic. At that time, I asked to be paid the $1,800.00 monthly guarantee which we previously agreed to. I have not yet received that payment. Additionally, I feel that I am entitled to the $1,800.00 for May and for June since you did promise me continued employment. Please let me know when I can come by the dealership and pick up my checks.

Keith Orr said he did not take the letter seriously and threw it away. Robledo's attorney sent the dealership another demand letter on June 21, 1989, claiming penalty wages and attorney fees under LRS 23:631-632 for its failure to pay Robledo $342.90 as the statutes required, this amount being the difference between Robledo's flag hour pay and the pro-rata share of his guaranteed pay from April 1-13. The June 26 demand letter also asserted Robledo's demand that he was guaranteed six months of employment by the written agreement that was signed in late January. Robledo demanded $4,590 for the period April 14-June 30 under the written agreement.

On June 29, 1989, Orr mailed Robledo a check for $2,336.34, which amount was for the guaranteed pay from April 1-13 ($342.90) and for penalty wages from June 6, when it received Robledo's first demand letter, through June 29, the date of the tender ($1,993.44). Orr also offered on June 29 to pay Robledo $500 in attorney fees for legal services through June 29. Robledo did not accept this offer.

Robledo cashed the $2,336.34 check from Orr and brought suit for $4,590 on the written agreement and for about $4,400 in statutory penalty wages from April 14-June 5, plus reasonable attorney fees.

Orr contended the written agreement was merely a six-month "pay plan" and *895 was not an agreement to employ Robledo for a definite term. Orr claimed the agreement simply guaranteed the amount of monthly pay if Robledo remained employed for six months. Alternatively, Orr contended that any employment contract was justifiably terminated because of Robledo's poor job performance. On the claim for penalty wages and attorney fees, Orr argued that its underpayment of wages at the time of Robledo's termination was a "good faith" oversight because Orr had no notice of demand for Robledo's pro-rata share of the April guaranteed pay until it received Robledo's June 5 demand letter on June 6.

The trial court resolved each issue in Robledo's favor, assigning written reasons, and awarded the amounts Robledo claimed for contractual damages and penalty wages, plus about $3,100 for legal services rendered through the day before trial.

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Bluebook (online)
582 So. 2d 892, 1991 La. App. LEXIS 1868, 1991 WL 108399, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robledo-v-orr-motors-of-louisiana-inc-lactapp-1991.