Salley v. COLONIAL MARINE INDUS.

680 So. 2d 1242, 1996 WL 519833
CourtLouisiana Court of Appeal
DecidedSeptember 11, 1996
Docket95-CA-2215
StatusPublished
Cited by15 cases

This text of 680 So. 2d 1242 (Salley v. COLONIAL MARINE INDUS.) 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
Salley v. COLONIAL MARINE INDUS., 680 So. 2d 1242, 1996 WL 519833 (La. Ct. App. 1996).

Opinion

680 So.2d 1242 (1996)

Fred E. SALLEY, d/b/a Salley & Associates
v.
COLONIAL MARINE INDUSTRIES, INC. and Colonial Oil Industries, Inc.

No. 95-CA-2215.

Court of Appeal of Louisiana, Fourth Circuit.

September 11, 1996.

*1243 Lee M. Peacocke, Salley & Associates, New Orleans, for Plaintiff/Appellant Fred E. Salley.

John C. Anjier, Liskow & Lewis, New Orleans, George L. Lewis, Adams & Ellis, Savannah, GA, for Defendants/Appellants, Colonial Oil Industries, Inc. and Colonial Marine Industries, Inc.

Before CIACCIO, WALTZER and MURRAY, JJ.

MURRAY, Judge.

Fred E. Salley, d/b/a Salley & Associates, a sole proprietorship law firm, filed a suit on open account against two Georgia corporations, Colonial Marine Industries, Inc. ("Colonial Marine") and Colonial Oil Industries, Inc. ("Colonial Oil"), seeking recovery of $15,195.31 for legal services rendered from November 19, 1992 through April 29, 1993. Both corporations filed exceptions of lack of personal jurisdiction asserting that neither had sufficient contacts with this state to justify defending a suit in a Louisiana court. The exceptions were overruled. The defendants *1244 then answered the suit, denying liability because Mr. Salley had been retained on behalf of a separate but related corporation, Colonial/Gulfship Marine, Inc. ("Colonial Gulfship"). Following a bench trial, judgment was rendered against both defendants for the amount claimed plus interest, but denying Mr. Salley's claim for attorney fees under the open account statute.

Mr. Salley appeals the denial of his claim for attorney fees and seeks an additional award for this appeal. Colonial Marine and Colonial Oil appeal the trial court's failure to maintain their exceptions to personal jurisdiction as well as the judgment on the merits.

FACTS

The trial testimony and documentary evidence establish the following facts:

Colonial Oil, a Georgia corporation headquartered in Savannah, is a wholesale petroleum operating company owned by the Demere family and headed by Robert Demere, Jr. It is also the parent corporation of a group of wholly-owned subsidiaries, at one time including Colonial Marine, Colonial Gulfship and Colonial ATL (Bermuda) Ltd. ("Colonial ATL").

Colonial Marine, also incorporated in Georgia and operating out of Savannah, was formed in March 1991 in order to acquire the operating assets, effective April 1, 1991, of another company. John B. Demere, Robert Demere's brother, was President and Chairman of the Board of Colonial Marine until May 1, 1993, when he began working for another Colonial Oil subsidiary. According to John Demere, Colonial Marine was "a marine service company, acting as an agent and managing agents and technical managers" in the shipping industry.

Gulfship Marine, Inc. ("Gulfship Marine") was a Texas corporation owned by Kenneth P. Mayeux. Colonial Gulfship was incorporated by the Demere family in Texas in July 1992 in anticipation of the purchase of the net operating assets of Gulfship Marine from Mr. Mayeux. John Demere acted on behalf of Colonial Oil in negotiating for the eventual purchase of Gulfship Marine, and at an unspecified date became Vice President, then Vice Chairman and Director, of Colonial Gulfship in addition to his position at Colonial Marine.

In late July 1992, John Demere phoned Kenneth Nash at his New Orleans-area residence to offer him the position of part-time cargo claims consultant "for a company which Colonial Marine Industries was taking over in New Orleans."[1] In this initial phone call, Mr. Demere identified himself as the President of Colonial Marine, but he did not name any particular entity for which Mr. Nash would be working. He explained that he was dissatisfied with the current claims processing in the newly acquired firm and wanted Mr. Nash to start immediately, replacing Larry Mackey.

A few days later, Mr. Nash reported for work at an office in New Orleans' International Trade Mart. "Colonial Gulfship" was painted on the office door. Mr. Nash began at once to review files and current operations, and by the time Mr. Demere phoned later that day he was able to report that Mr. Mackey's help would be needed for a transition period: the files were "in shambles" and unanswered correspondence "had been sitting there in the basket for weeks." Additionally, there was no schedule of claims pending, the amounts at issue and/or potential settlement values, etc.

As Mr. Nash endeavored to organize things over the next few weeks, he had almost daily phone contacts with John Demere to obtain information and instructions.[2] Mr. Demere told him to sign claims correspondence for "Colonial/Gulfship Marine, as agents for Antilles Lloyd (Bermuda)." Mr. Nash was to obtain authorization from Kenneth Mayeux for any settlements he negotiated, but the settlement checks would be *1245 issued from Colonial Marine in Savannah. The only stationery Mr. Nash used during the entire time that he worked for John Demere was Colonial Gulfship letterhead. He eventually was furnished a "company car" that he picked up at Colonial Gulfship's office in Houston. The title identified Gulfship Marine as the owner, but Mr. Nash recalled that it was insured through Colonial Oil.

As an independent contractor, Mr. Nash sent a monthly invoice for his services and parking expenses to Scott Ransom, Vice President of Finance and Administration for Colonial Marine, and was paid by checks from that firm. Francis Brown, Vice President of Finance for Colonial Oil, testified that there were always separate bank accounts for Colonial Oil and Colonial Marine, but Colonial Marine's "major account was handled out of Colonial Oil." He explained that Mr. Nash was paid through and by Colonial Marine because "[a]s various types of agents for different shipping interests as Colonial Marine Industries is, they routinely collect funds and disburse payments on behalf of these various customers. Some sort of legal term, some sort of agency relationship."

In late October Mr. Nash became concerned that the handling of certain claims by Gulfship Marine might expose Colonial Gulfship, Colonial Marine and/or Colonial Oil to liability for these claims.[3] Mr. Nash discussed his concerns with John Demere, and suggested that he be allowed to consult an attorney other than the attorneys handling the litigation of the claims at issue. Mr. Demere testified that although he felt there was no apparent liability, he agreed that Mr. Nash could consult Fred Salley, a New Orleans lawyer who was known to Mr. Nash through various marine trade associations.

Mr. Nash met with Mr. Salley on November 19, 1992, to discuss his concerns and to review the available documents. This meeting took place at Mr. Nash's office. According to Mr. Salley, after he had seen the state of affairs and had an idea of the source of the problems, he made it clear to Mr. Nash that he would not work for Mr. Mayeux or any of his companies, especially since expedited service was requested. Mr. Nash, who described himself as a consultant for Colonial Marine, assured Mr. Salley that he would not be working for Kenneth Mayeux, but for John Demere in Savannah. Since Mr. Salley was familiar with the Colonial "group" from his years of admiralty practice, he accepted the employment. He understood that he was to focus primarily on whether the stale and apparently mishandled cargo claims could "end up being a liability for any of the Colonial side of the deal, which was Colonial Marine Industries and Colonial Oil."

The following day Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
680 So. 2d 1242, 1996 WL 519833, Counsel Stack Legal Research, https://law.counselstack.com/opinion/salley-v-colonial-marine-indus-lactapp-1996.