Sorrento Companies v. Honeywell Intern.

916 So. 2d 1156, 2004 WL 3525608
CourtLouisiana Court of Appeal
DecidedSeptember 23, 2005
Docket2004 CA 1884
StatusPublished
Cited by15 cases

This text of 916 So. 2d 1156 (Sorrento Companies v. Honeywell Intern.) 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
Sorrento Companies v. Honeywell Intern., 916 So. 2d 1156, 2004 WL 3525608 (La. Ct. App. 2005).

Opinion

916 So.2d 1156 (2005)

SORRENTO COMPANIES, INC. D/B/A Louisiana Stone & Aggregate
v.
HONEYWELL INTERNATIONAL, INC., Bear Industries, Inc., Barry Moore, II, Meric Daigle, & Moore Testing & Inspection.

No. 2004 CA 1884.

Court of Appeal of Louisiana, First Circuit.

September 23, 2005.

*1159 Guy E. Wall, Paul E. Bullington, Jonathan R. Cook, New Orleans, Counsel for Plaintiffs/1st Appellants Sorrento Companies, Inc. d/b/a Louisiana Stone & Aggregate.

Troy J. Charpentier, Baton Rouge, Counsel for Defendant/2nd Appellant Honeywell International, Inc.

David M. Cohn, M. Virginia Kelly, Baton Rouge, Counsel for Defendants/Appellees Bear Industries, Inc., Barry L. Moore, Sr.,[1] and Moore Testing & Inspection.

Before: KUHN, GUIDRY, and PETTIGREW, JJ.

GUIDRY, J.

In the instant action, plaintiff appeals the trial court's granting of defendants' exceptions raising the objections of improper cumulation of actions and improper venue. Additionally, defendant, Honeywell International, Inc., appeals the trial court's granting of a preliminary injunction in favor of plaintiff. For the reasons that follow, we affirm in part and reverse in part the judgment of the trial court.

FACTS AND PROCEDURAL HISTORY

On July 1, 1990, Louisiana Synthetic Aggregates, Inc., predecessor to Sorrento Companies d/b/a Louisiana Stone and Aggregate (LSA), and Allied-Signal, Inc., predecessor to Honeywell International, Inc. (Honeywell), entered into a contract, whereby Honeywell gave LSA the exclusive right to purchase and remove fluorogypsum[2] from Honeywell's Geismar, Louisiana, plant. The duration of this contract was for nine years and six months commencing on July 1, 1990, and from year to year thereafter, subject to cancellation effective January 1, 2000, or any January 1 thereafter by either party with ninety-day written notice. Additionally, the contract provided that Honeywell could earlier terminate the contract for other enumerated reasons. Specifically, the contract provided that if LSA failed to achieve and maintain *1160 certain levels of fluorogypsum removal, LSA would lose its exclusive rights and Honeywell could terminate the contract. Further, Honeywell and LSA entered into a lease agreement, whereby Honeywell leased a ten-acre track of land to LSA to be used for processing, storage, and transporting of fluorogypsum generated by Honeywell.

Thereafter, on May 17, 1996, Honeywell sent a letter to LSA, receipt of which is disputed, stating that since LSA had failed to achieve or maintain the contractually required levels, Honeywell was exercising its option to revoke LSA's exclusive rights to the fluorogypsum; however, all other conditions and requirements of the contract were to remain in effect. In March of 2002, Honeywell again sent a letter to LSA indicating that because it produces more fluorogypsum than LSA can handle, it would place an advertisement in the Baton Rouge Advocate newspaper requesting proposals to determine if other parties were interested in mining and marketing this product. Further, Honeywell indicated that if the successful proposal was from someone other than LSA, then Honeywell would proceed with termination of their contract. Thereafter, Honeywell sent a letter to LSA in March of 2003 indicating that the contract was being terminated. However, because of an outstanding contract that LSA had with F.G. Sullivan for a Louisiana Department of Transportation and Development project on Highway 190 in Pointe Coupee, Louisiana, Honeywell agreed to extend the contract through July 31, 2003. Honeywell sent a final letter to LSA dated July 1, 2003, indicating that Honeywell would not extend the contract beyond the July 31, 2003 date. However, this letter also indicated that Honeywell was in the process of negotiating with other contractors for the mining and marketing of fluorogypsum, and had no objection to LSA making arrangements with the new contractor to allow LSA to continue to supply F.G. Sullivan with material for its Highway 190 project.

The new contractor selected by Honeywell to continue mining and marketing fluorogypsum was Bear Industries, a company owned and controlled by Barry Moore, Sr. and his sons. Barry Moore, Sr., through his company Barry L. Moore & Associates,[3] performed testing of materials, including Florolite, for LSA during LSA's contract with Honeywell, and at times prior thereto.

After LSA became aware that Honeywell was terminating its contract and that Bear Industries had been selected as the new contractor, LSA filed suit against Honeywell, Meric J. Daigle, Bear Industries, Barry L. Moore, Sr., and Moore Testing & Inspection claiming: Honeywell was not entitled to terminate the fluorogypsum agreement or lease; Honeywell modified the terms of the fluorogypsum agreement; Moore Testing & Inspection, Barry Moore, Sr., and Bear Industries (collectively Moore defendants) misappropriated LSA's trade secrets and intellectual property, breached their obligations to LSA, breached their duty of good faith and fair dealing, committed unfair trade practices, and committed tortious interference with contract. In their petition, LSA sought a temporary restraining order, preliminary injunction, declaratory judgment, and damages. Thereafter, Honeywell and the Moore defendants filed exceptions to LSA's petition. Following a hearing, the *1161 trial court signed a judgment granting the exceptions raising the objections of improper cumulation of actions and improper venue and denying all other exceptions. Additionally, the trial court granted a preliminary injunction in part in favor of LSA, enjoining Honeywell from barring or restricting access to LSA to process and mine sufficient fluorogypsum to fulfill its contractual requirements with F.G. Sullivan.

LSA now appeals from this judgment asserting that the trial court erred in granting the defendants' exceptions raising the objections of improper cumulation of actions and improper venue. Additionally, Honeywell appeals from the trial court's granting in part of LSA's preliminary injunction.

DISCUSSION

Improper Cumulation of Actions and Improper Venue

Whether a plaintiff may cumulate two or more causes of action against multiple defendants is governed by La. C.C.P. art. 463, which provides:

Two or more parties may be joined in the same suit, either as plaintiffs or as defendants, if:
(1) There is a community of interest between the parties joined;
(2) Each of the actions cumulated is within the jurisdiction of the court and is brought in the proper venue; and
(3) All of the actions cumulated are mutually consistent and employ the same form of procedure.

To determine whether the defendants in the instant matter have a community of interest, the question must be asked: do the cumulated causes of action arise out of the same facts, or do they present the same factual and legal issues. First Guaranty Bank v. Carter, 563 So.2d 1240, 1242 (La.App. 1st Cir.1990).

LSA asserts that a community of interest exists because the defendants conspired or acted in concert to violate LSA's exclusive contract rights and misappropriate LSA's trade secrets, i.e. Florolite mining process. However, from our review of the record, particularly the testimony and documentary evidence admitted at the hearing, we do not find that the trial court manifestly erred in determining that there was insufficient evidence to establish a conspiracy.

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916 So. 2d 1156, 2004 WL 3525608, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sorrento-companies-v-honeywell-intern-lactapp-2005.