Stephen Medwick, Maxwell Perry, Brandon Russell, and Scott Peluso v. MADCON Corporation

Louisiana Court of Appeal·Decided August 8, 2022·No. 2021CA1620·Unknown

Opinion

STATE OF LOUISIANA

COURT OF APPEAL

FIRST CIRCUIT

NO. 2021 CA 1620

STEPHEN MEDWICK, MAXWELL PERRY, BRANDON RUSSELL AND SCOTT PELUSO

VERSUS

1

G

1 tMADCON CORPORATION

Judgment Rendered: AUG 0 8 2022

On Appeal from the

22nd Judicial District Court

In and for the Parish of St. Tammany State of Louisiana

Trial Court No. 2019- 14775

Honorable Raymond S. Childress, Judge Presiding

Jeannette M. Delise Attorneys for Plaintiffs -Appellees, Bobby J. Delise Stephen Medwick, Maxwell Perry and New Orleans, LA Scott Peluso and

Alton J. Hall, Jr. Covington, LA

Jason P. Waguespack Attorneys for Defendant -Appellant, Kathleen K. Charvet MADCON Corporation Wendell F. Hall New Orleans, LA and

Tom W. Thornhill Slidell, LA

BEFORE: WHIPPLE, C. J., PENZATO, AND HESTER, JJ.

HESTER, J.

In this suit for breach of contract and detrimental reliance, defendant,

MADCON Corporation, appeals the trial court' s judgment awarding damages to plaintiffs, Stephen Medwick, Maxwell Perry, and Scott Peluso. For the reasons that

follow, we vacate the trial court' s judgment and render judgment as set forth below.

FACTS AND PROCEDURAL HISTORY

Defendant, MADCON Corporation, is a Louisiana -based international

commercial diving contractor, providing highly technical and patented marine and subsurface work to the offshore gas industry. Bruce Trader is the president and

owner of MADCON, which has been in business since 1987. In late 2018,

MADCON secured a contract to perform subsurface work for a foreign company in Africa (the " Project") and began the process of staffing commercial divers for the Project in early 2019. Plaintiffs, all commercial divers, were offered positions on the Project.

On January 21, 2019, Mr. Trader sent a letter to Mr. Perry, offering him a position as a tender on the Project, which stated as follows:

I am excited to offer you a position on the CBG Loading Jetty Repair Project in Guinea, West Africa.

Please take time to review our offer. It includes important details about your compensation, benefits and the terms and conditions of your anticipated employment with MADCON Corporation.

MADCON is offering you a position as one of our Tenders. This position requires both diving and non -diving duties. Please be advised, working hours and duties will fluctuate with tides, weather, and local logistics. MADCON' s goal is completing the project within 90 days.

The pay for this position is a flat day rate of $335. 00 per day. You will be paid via direct deposit on a bi-weekly basis. Of course, meals, lodging, travel expenses, etc., will be paid by MADCON.

Your compensation will also include a bonus of $ 12, 700. 00 if the project is completed within 90 working days.

If the project is completed in less than 90 days, then you will still receive your full 90 days of pay at the day rate above, plus you will receive the bonus listed above.

N

TENDER POSITION

1$

91 12, 262. 07 98 9, 196.55 105 $ 6, 131. 03 112 $ 3, 065.52 92 11, 824. 14 99 8, 758.62 106 $ 5, 693. 10 113 $ 2, 627. 59 93 11,386.21 100 8, 320.63 107 $ 5, 255. 17 114 $ 2, 189. 66

34 10, 348. 28 101 7', 882x6 708 $ 4, 817. 24 115 $ 1, 75. 72 95 10,510.34 102 7, 444.83 109 $ 4, 379. 31 116 $ 1, 313. 79

96 1{}, 072. 41 103 7, 006.30 110 $ 3, 941. 38 117 $ 875. F6 97 9, 634. 48 104 6, 568.97 711 $ 3, 503.45 118 $ 437.93

In addition to the compensation detailed above, you will receive a 5, 000. 00 bonus if you complete the project without any safety incidents.

Please indicate your agreement with these terms and accept this offer by signing, dating, and returning this agreement on or before January 22, 2019.

I look forward to working with you on this project.

On January 22, 2019, an identical letter was sent to Mr. Medwick with the only differences being that Mr. Medwick was offered a position as one of

MADCON' s divers at a rate of $445. 00 per day with a bonus of $16, 500. 00 ( and an altered bonus adjustment table), and Mr. Medwick was asked to indicate his

agreement with the terms on or before January 23, 2019. Later, on April 1, 2019,

Mr. Peluso was sent the same letter, but was offered the position of diver tender at a

rate of $370.00 per day with a bonus of $14, 000. 00 ( and an altered bonus adjustment table) and asked to indicate his agreement with the terms on or before April 3, 2019.

Tracy Dean Curl, an employee of MADCON who helped line up personnel for the Project, explained that the offers contained an incentive. If the Project was completed within 90 days, which was the projection, the plaintiffs would receive the

stated amount of the bonus. However, every day after that, the incentive would decrease until it was null and void.

There is no dispute that all three plaintiffs accepted the positions offered by MADCON for the Project. All three plaintiffs also attended MADCON' s pre job

meeting at the beginning of April 2019 for the personnel going to Africa.

When Mr. Medwick received his offer letter, it was his understanding that the Project was to get underway in February 2019, which would have him working through April. According to Mr. Medwick, he would have returned from Africa in time for the prime time of his year.' However, Mr. Medwick was not called out for

the Project in February or March. Around the time of the April meeting, Mr. Medwick reached out to Mr. Trader to ask about releasing funds to him in order to cover his bills while waiting for the Project to commence, noting that he was required to pass up several offshore jobs due to the implied scheduling conflicts with the Project and due to the Project being postponed. Mr. Medwick later received

3, 000. 00 from MADCON. Ultimately, in late May, Mr. Medwick accepted a full- time, salaried position in the Houston area.

Similarly, after receiving his offer, Mr. Perry understood that they would be leaving for Africa in February or early March, but the date kept being pushed back every few weeks. Mr. Perry attended the April meeting, at which time he understood that the Project would commence in a week or two. By May, Mr. Perry received word that two supervisors and a diver went to Africa to start securing everything for the job site. However, in June or July of 2019, Mr. Perry realized that the MADCON job was not going to happen for him, so he secured a full-time position with another company.

Mr. Peluso, who received his offer letter in April and attended the prejob

meeting shortly thereafter, was under the assumption that he would be standing by, waiting for a phone call to leave. While he understood that there would be a lag period before the Project commenced, Mr. Peluso ended up standing by much longer than anticipated. He called MADCON and left messages four or five times between

May and June of 2019, but never received any calls or communication in return. By

1 Commercial diving in the Gulf of Mexico is, generally, a seasonal job with most of the work being performed April through December and not much work available in the wintertime.

G!

June 2019, Mr. Peluso had not received the call to go to Africa, so he took a job with

another company.

Ultimately, the Project commenced in late July or August 2019, and none of the plaintiffs went to Africa or performed any work on the Project. On September

11, 2019, plaintiffs2 instituted this action for damages against MADCON, alleging that after accepting offers from MADCON for employment in connection with the Project, they each " undertook to plan their professional and personal lives" around

the Project, making themselves available to fulfill their obligations with MADCON through mid -summer 2019. Plaintiffs alleged that for several months, MADCON notified them that " all was going as planned, with the exception of [the] timing of commencement of the [ P] roject, and that [ plaintiffs] were to be ` standing by' for

notification for deployment and departure." However, despite MADCON' s

assurances regarding commencement of the Project, plaintiffs were never called out

Free access — add to your briefcase to read the full text and ask questions with AI

Stephen Medwick, Maxwell Perry, Brandon Russell, and Scott Peluso v. MADCON Corporation, (La. Ct. App. 2022).

Stephen Medwick, Maxwell Perry, Brandon Russell, and Scott Peluso v. MADCON Corporation (Stephen Medwick, Maxwell Perry, Brandon Russell, and Scott Peluso v. MADCON Corporation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Suire v. Lafayette City-Parish Government
907 So. 2d 37 (Supreme Court of Louisiana, 2005)
Oubre v. Eslaih
869 So. 2d 71 (Supreme Court of Louisiana, 2004)
Ferrell v. Fireman's Fund Ins. Co.
650 So. 2d 742 (Supreme Court of Louisiana, 1995)
May v. Harris Management Corp.
928 So. 2d 140 (Louisiana Court of Appeal, 2005)
Quebedeaux v. Dow Chemical Co.
820 So. 2d 542 (Supreme Court of Louisiana, 2002)
Hampton v. Hampton, Inc.
713 So. 2d 1185 (Louisiana Court of Appeal, 1998)
Estate of Mayeaux v. Glover
31 So. 3d 1090 (Louisiana Court of Appeal, 2010)
Michael O. Read v. Willwoods Community
165 So. 3d 883 (Supreme Court of Louisiana, 2015)
Luther v. Iom Co.
130 So. 3d 817 (Supreme Court of Louisiana, 2013)
Amer v. Roberts
184 So. 3d 123 (Louisiana Court of Appeal, 2015)
Rathe v. Rathe
256 So. 3d 1001 (Louisiana Court of Appeal, 2018)