Roussel Pump & Electric Co. v. Sanderson

216 So. 2d 650
CourtLouisiana Court of Appeal
DecidedDecember 2, 1968
Docket3174
StatusPublished
Cited by7 cases

This text of 216 So. 2d 650 (Roussel Pump & Electric Co. v. Sanderson) 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
Roussel Pump & Electric Co. v. Sanderson, 216 So. 2d 650 (La. Ct. App. 1968).

Opinion

216 So.2d 650 (1968)

ROUSSEL PUMP & ELECTRIC CO., Inc.
v.
Carl G. SANDERSON, Edmond Q. Parson, and the New York Air Brake Company.

No. 3174.

Court of Appeal of Louisiana, Fourth Circuit.

December 2, 1968.
Rehearing Denied January 6, 1969.

*651 Sessions, Fishman, Rosenson, Snellings & Boisfontaine, Cicero C. Sessions, Robert E. Winn and Maurice Burk, New Orleans, for plaintiff-appellant.

Montgomery, Barnett, Brown & Read, Wood Brown, III, New Orleans, for defendants-appellees.

Before SAMUEL, BARNETTE and JOHNSON, JJ.

*652 BARNETTE, Judge.

This is an appeal from a judgment granting a motion for summary judgment insofar as it affects appellant's claim in tort against appellee. The issues ex contractu are still pending in the district court and are not before us at this time. Defendant-appellee, The New York Air Brake Company (Aurora Pump Division) now Aurora Pump Unit of the General Signal Corporation, hereinafter referred to as Aurora, in motion for summary judgment, in effect contends that plaintiff, Roussel Pump & Electric Co., Inc. (Roussel), has no cause of action against it under the particular facts of this case. Aurora contends that the pleadings, depositions, and answers to interrogatories show there is no material issue of fact in dispute and therefore it is entitled to summary judgment as a matter of law.

Aurora is a manufacturer of industrial pumps. In a large measure its sales are carried on by the use of local organizations performing either or both sales representation or distributionship functions within a particular sales area. For some time prior to 1962 the local franchise dealer for Aurora products was Leo Roussel, doing business as a sole proprietorship under the name of Roussel Pump & Electric Co. The agreement between Aurora and Roussel gave the latter an exclusive franchise to sell and distribute Aurora products in certain defined territories of Louisiana and Mississippi.

On April 1, 1962, Leo Roussel died and his assets devolved upon his wife and children. The business was taken over and operated by his wife, Therese Roussel.

On July 1, 1962, a new written franchise agreement was entered into between Aurora and Mrs. Roussel, acting as sole proprietor of Roussel Pump & Electric Co. This contract provided, inter alia, that it could be cancelled at any time for good cause. It further provided that it could be cancelled on the anniversary date without assigning any cause whatever if proper notice of 30 days was given.

In August, 1963, Roussel Pump & Electric Co., Inc., was chartered as a domestic corporation doing business in Orleans Parish, Louisiana. For all practical purposes this corporation took over the operation of the franchise dealership, although no formal notification was given to Aurora nor any transfer of the franchise ever formally made to the corporation. Mrs. Roussel was the controlling stockholder in the corporation.

At the time of incorporation of Roussel and until March, 1965, defendants Carl G. Sanderson and Edmond Q. Parson were in the employ of the company and constituted its entire sales force. In addition to selling, they supervised installation and repairs of the pumps and all other pertinent matters involving the franchise. For all practical purposes they ran the corporation. Upon incorporation of the company, Sanderson became vice-president.

On March 3, 1965, Sanderson and Parson tendered their resignations to Mrs. Roussel although both continued to work for the corporation for about a week thereafter.

The record reveals that prior to March 3, 1965, Parson and Sanderson initiated steps to establish a partnership that would engage in selling and distributing industrial pumps. Application for occupational licenses was made in January, 1965. A business location was established at Parson's home in January, 1965, and later moved to a permanent location in Jefferson Parish. At this same time stationery was acquired carrying the firm name of Parson and Sanderson. However, it appears that the partnership did not engage in actual selling until the latter part of March, 1965.

By letter dated March 11, 1965, Aurora informed Mrs. Roussel that it was cancelling the franchise agreement and that after May 14, 1965, all future orders were to be forwarded to the firm of Parson and *653 Sanderson. No cause was given for the cancellation as required by the agreement. Plaintiff immediately brought suit to enjoin the attempted cancellation, and by letter of April 6, 1965, defendant withdrew its notice of cancellation. However, on May 6, 1965, Aurora again notified plaintiff of its intent to terminate the franchise as of July 1, 1965, the anniversary date of the agreement. On July 9, 1965, defendant informed plaintiff that the new distributor for Aurora products in the Louisiana-Mississippi area was the firm of Parson and Sanderson. Aurora has been doing business with the Parson and Sanderson firm since that date.

Plaintiff filed this suit contending that Parson and Sanderson, with the cooperation and assistance of Aurora, violated their fiduciary relationship with appellant; that they conspired with Aurora to violate its contract with plaintiff; and that Aurora, Sanderson, and Parson conspired to and jointly acted to interfere with the business relationship existing between plaintiff and Aurora on the one hand and plaintiff and its employees on the other. Plaintiff further contends that defendants' actions fall with the purview of LSA-C.C. arts. 2315 and 2324 and it is entitled to relief ex delicto. Defendant Aurora through motion for summary judgment sought dismissal of the suit contending plaintiff had neither a cause of action against it in tort nor in contract. The trial court maintained the motion for summary judgment and dismissed plaintiff's suit against Aurora only insofar as it sought damages ex delicto. Its right to try the issues of damages ex contractu was fully reserved. Thus, the only issue before us on this appeal is whether there exists a genuine issue of material fact so as to preclude summary disposition of plaintiff's claim in tort against Aurora.

Summary judgment procedure is not intended to be used as a device to avoid trial or to deny a litigant his day in court as long as there remains a "genuine" and "material" issue of fact. If these conditions are met and the motion for summary judgment is properly and timely filed and the mover is entitled to judgment as a matter of law, the motion for summary judgment should be maintained. LSA-C.C.P. art. 966.

In this case the plaintiff strongly contends there are genuine issues of fact relative to the alleged conspiracy and that such facts are material to the case. The defendant Aurora first denies there is any issue of fact, and secondly, as if in the alternative, that even so, such issue of fact is not material and it is entitled to judgment as a matter of law.

Bearing in mind that we are concerned here only with the issue of damages ex delicto and the correctness of the summary judgment to that limited extent, we have carefully examined the allegations of plaintiff's petition to determine just what "conspiracy" or other tortious act is charged to the defendant Aurora.

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216 So. 2d 650, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roussel-pump-electric-co-v-sanderson-lactapp-1968.