Rogers v. Horseshoe Entertainment

766 So. 2d 595, 2000 WL 1052982
CourtLouisiana Court of Appeal
DecidedAugust 1, 2000
Docket32,800-CA
StatusPublished
Cited by35 cases

This text of 766 So. 2d 595 (Rogers v. Horseshoe Entertainment) 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
Rogers v. Horseshoe Entertainment, 766 So. 2d 595, 2000 WL 1052982 (La. Ct. App. 2000).

Opinion

766 So.2d 595 (2000)

Harold Davey ROGERS and Susan Whipple Rogers, Plaintiffs-Appellees,
v.
HORSESHOE ENTERTAINMENT, et al., Defendants-Appellants.

No. 32,800-CA.

Court of Appeal of Louisiana, Second Circuit.

August 1, 2000.
Rehearing Denied September 21, 2000.

*598 Piper & Associates by Robert E. Piper, Jr., Shreveport, Poynter, Mannear & Colomb by W. Steven Mannear, Baton Rouge, Counsel for Defendants-Appellants.

Long Law Firm by Michael A. Patterson, Baton Rouge, Degravelles, Palmintier & Holthaus by John W. Degravelles, Hayes, Harkey, Smith & Cascioby by Joseph D. Cascio, Jr., Monroe, Counsel for Plaintiffs-Appellees.

Before NORRIS, C.J., and KOSTELKA and DREW, JJ.

NORRIS, Chief Judge.

Plaintiffs, Harold and Susan Rogers, brought suit to enforce a "Most Favored Nations" ("MFN") clause of an option contract (No. 32,800-CA). The Rogers also brought a second, subsequent legal malpractice suit against the law firm they had retained to draft the option contract and its insurer (No. 32,801-CA). After the suits were consolidated by the district court, summary judgments were granted on behalf of the Rogers in the contract suit and in favor of the law firm in the malpractice suit. Because the issues are factually interrelated, we have recounted the facts common to both cases in the instant opinion. For the reasons expressed below, we amend and enter a partial summary judgment in No. 32,800-CA. A separate judgment is also rendered this day affirming No. 32,801-CA.

Factual and Procedural Background

In early 1993, the Rogers were approached by Thomas Kenny, who held himself out as an agent of several individual relatives as well as a series of trusts created on behalf of the children of certain relatives and business associates of Jack Binion ("the Binion Group") and/or Horseshoe Entertainment, Inc., which was seeking a riverboat gaming license and casino hotel site in Bossier City at the time. Kenny sought an option on a tract of land the Rogers owned for the anticipated casino project. The Rogers retained Weems, Wright, Schimpf, Hayter & Carmouche, a local law firm, to assist them in negotiations and to draft the option contract. Inserted in the option contract, which was signed on February 26, 1993, was a MFN clause. This clause provided that if the Binion Group or its nominee exercised its option to purchase the property from the Rogers, and if, within one year of closing, the Binion Group or its nominee purchased another tract of real estate within one-quarter mile of the Rogers' tract at a higher price, then the Rogers would be entitled to the difference. Also on that day, Kenny and Horseshoe executed a "Nominee Title Holder Agreement" wherein the Binion Group acquired Kenny's rights and assumed any future obligations arising from the option agreement, which was attached in full to the Title Holder Agreement as an exhibit. On June 23, 1993, Kenny verbally advised the Rogers that the option would be exercised, and the sale was closed on June 25, 1993, with the Rogers receiving $300,000 for their property.

On December 16, 1993, the Binion Group entered into a transaction with Red River Motor Company to acquire a tract of real estate within one-quarter mile of the tract the Rogers sold them. As consideration, *599 Red River received $274,810.00 cash, title to another parcel of real estate, and improvements to other property. Formal title to all property acquired by the Binion Group in both the Rogers and Red River transactions was subsequently transferred to Horseshoe Entertainment, Inc.

On January 6, 1995, the Rogers filed suit against the Binion group as well as Horseshoe Entertainment, Inc. (collectively hereinafter "Horseshoe"), claiming that Red River received more per square foot for its property than Horseshoe paid them for their property, thereby triggering the MFN clause and entitling them to the difference. Twenty days later, on January 26, the Rogers filed a separate suit against the Weems firm, alleging legal malpractice in drafting the option contract.

Initially, the Horseshoe suit was before Judge Charles R. Scott. The Rogers filed for Summary Judgment in July, 1997, and Judge Scott denied the motion, stating that two issues of material fact remained unresolved: the valuation of the Red River property, and whether the Red River transaction was indeed an "act of exchange" rather than a "purchase" within the contemplation of the MFN clause. Subsequently, on September 24, 1998, the Horseshoe suit and the Weems malpractice suit were consolidated and assigned to Judge Roy L. Brun.

On October 5, 1998, after the Weems defendants filed a motion for summary judgment in the malpractice case, the Rogers filed a motion to re-urge their motion for summary judgment in the Horseshoe case, which Judge Brun subsequently granted in a written opinion after a hearing. The court also granted summary judgment to the Weems defendants in the same opinion. Horseshoe appeals the grant of summary judgment against it and the other named defendants; the Rogers appeal the grant of summary judgment in favor of the law firm, admittedly only if the Horseshoe judgment is reversed.

Applicable Law

A motion for summary judgment shall be granted if the pleadings, depositions, answers to interrogatories, and admissions on file, together with affidavits, if any, show that there is no genuine issue as to material fact and that the mover is entitled to judgment as a matter of law. La.C.C.P. art. 966. The party seeking summary judgment has the burden of affirmatively showing the absence of a genuine issue of material fact. A fact is material if its existence or nonexistence may be essential to the plaintiff's cause of action under the applicable theory of recovery. Hardy v. Bowie, 98-2821 (La.9/8/99), 744 So.2d 606; Barnett v. Staats, 25,357 (La.App.2d Cir.1/19/94), 631 So.2d 84.

Recent amendments to art. 966 were intended to bring Louisiana summary judgment procedure more closely into line with the Federal standard and abrogate judicial antipathy toward the motion. Hayes v. Autin, 96-287 (La.App. 3d Cir.12/26/96), 685 So.2d 691, writ denied 97-0281 (La.3/14/97), 690 So.2d 41. These enacted changes have leveled the playing field for the litigants; documentation submitted by the parties will now be scrutinized equally and the earlier overriding presumption in favor of trial on the merits has been removed. Koeppen v. Raz, 29,880 (La.App.2d Cir.10/29/97), 702 So.2d 337; Gardner v. LSU-MC, 29,946 (La. App.2d Cir.10/29/97), 702 So.2d 53. In fact, summary judgment procedure is now favored to secure the just, speedy, and inexpensive determinations of all except certain disallowed actions. La. C.C.P. art. 966 A(2).

The current summary judgment standard as articulated in Hayes, supra, was expressly adopted by the legislature; in fact, any prior jurisprudence inconsistent with Hayes has been legislatively overruled. See, Acts of 1997, No. 483, § 4. Under this new standard, although the initial burden of proof still remains with the mover to show that no genuine issue of *600 material fact exists, once the mover has made a prima facie showing that the motion should be granted, the burden shifts to the non-moving party to present evidence demonstrating that genuine material issues of fact remain. La. C.C. art. 966 C(2); Hayes, supra at 694-695.

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766 So. 2d 595, 2000 WL 1052982, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rogers-v-horseshoe-entertainment-lactapp-2000.