Sullivan v. Wallace

766 So. 2d 654, 2000 WL 1192156
CourtLouisiana Court of Appeal
DecidedAugust 23, 2000
Docket33,387-CA
StatusPublished
Cited by8 cases

This text of 766 So. 2d 654 (Sullivan v. Wallace) 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
Sullivan v. Wallace, 766 So. 2d 654, 2000 WL 1192156 (La. Ct. App. 2000).

Opinion

766 So.2d 654 (2000)

Janice S. SULLIVAN, Plaintiff-Appellant,
v.
Priscilla WALLACE, et al., Defendants-Appellees.

No. 33,387-CA.

Court of Appeal of Louisiana, Second Circuit.

August 23, 2000.
Writ Denied November 17, 2000.

*656 J. Craig Jones, Craig R. Hill, Oakdale, Counsel for Appellant.

Charles E. Weaver, Counsel for Appellee, Priscilla Wallace.

James L. Fortson, Jr., Shreveport, Counsel for Appellee, Bruce W. Sullivan.

Daniel W. Newell, Claiborne, Counsel for Appellee, Eddie R. Harmon.

M. Shane Craighead, Daniel W. Newell, Homer, Counsel for Appellee, Harmon Wood Co., Inc.

Paul D. Spillers, Monroe, Counsel for Appellee, Northeast Louisiana Forest Landowners Association.

Robert A. Mahtook, Jr., Counsel for Appellee, Scottsdale Insurance Co.

Otho L. Waltman, Jr., Ruston, Counsel for Appellee, Willamette Industries, Inc.

Before WILLIAMS, KOSTELKA and DREW, JJ.

WILLIAMS, Judge.

The plaintiff, Janice Sullivan, appeals a partial summary judgment rendered in favor of the defendants, Harmon Wood Company, Inc. ("Harmon Wood"), and Eddie R. Harmon ("Harmon"), the president of the corporation. The district court dismissed the plaintiff's claims for trespass, negligence *657 and statutory treble damages against Harmon Wood, and all claims against Harmon individually. For the following reasons, we affirm in part, reverse in part and remand.

FACTS

During their marriage, Janice and Bruce Sullivan purchased a 120-acre tract of wooded land located in Claiborne Parish, Louisiana. After their divorce in 1991, the couple retained co-ownership in indivision of this land during a dispute concerning the partition of community property. Bruce Sullivan later bought a parcel of adjacent land as his separate property, where he resided.

In 1994, Mr. Sullivan contacted Eddie Harmon, an officer of Harmon Wood, who agreed to purchase and remove previously cut logs from the Sullivan tract. Harmon did not question Mr. Sullivan about other possible owners of the land from which the logs would be removed, and did not inspect the public records to determine the ownership of the property. At various locations around the 120-acre tract, signs were posted with the printed words "Tree Farm" and the name "Bruce Sullivan."

During the period from February 1994 to March 1995, Harmon Wood removed logs from the Sullivan tract. At the direction of Bruce Sullivan, Harmon Wood issued a series of checks in the total amount of $29,901 to Priscilla Wallace as payment for timber removed from the 120-acre tract. Harmon Wood also paid Bruce Sullivan $33,364 for logs removed. However, Janice Sullivan did not receive any payments for the wood taken from the co-owned land.

In March 1995, Janice Sullivan visited the property and discovered that timber had been cut and removed without her knowledge. Mrs. Sullivan contacted Harmon, informed him that the land was the subject of litigation, demanded that Harmon Wood stop removing timber from the Sullivan land and requested information about the transaction. In response, Harmon Wood ceased the removal of logs from the 120-acre tract and identified those who were paid for the timber.

Subsequently, the plaintiff, Janice Sullivan, filed a petition for damages against the defendants, Harmon Wood, Eddie Harmon, Bruce Sullivan and Priscilla Wallace. The plaintiff alleged that Harmon Wood and Eddie Harmon, individually were liable for trespass, conversion, negligence and statutory treble damages. The defendants, Harmon Wood and Eddie Harmon, filed a motion for partial summary judgment seeking dismissal of the trespass, negligence and treble damage claims against Harmon Wood and dismissal of all claims against Eddie Harmon individually.

Following a hearing, the district court granted partial summary judgment in favor of Harmon Wood, and dismissed all claims against Eddie Harmon. This court dismissed the plaintiff's initial appeal after the district judge failed to give reasons as to why the partial judgment should be immediately appealed pursuant to LSA-C.C.P. art. 1915. Sullivan v. Wallace, 31,908-CA (La.App.2d Cir.11/12/98). Thereafter, the district court certified the judgment as final for purposes of immediate appeal. The plaintiff appeals the judgment.

DISCUSSION

The plaintiff contends the district court erred in granting partial summary judgment dismissing her trespass and negligence claims against Harmon Wood. Plaintiff argues that issues of material fact remain unresolved.

Summary judgment shall be rendered if the pleadings, depositions, answers to interrogatories, admissions on file, and any affidavits, show that there is no genuine issue of material fact and that the mover is entitled to judgment as a matter of law. LSA-C.C.P. art. 966. The mover has the burden of establishing the absence of a genuine issue of material fact. If the movant will not bear the burden of proof at *658 trial on the matter, the mover is required to point out to the court the absence of factual support for one or more elements essential to the adverse party's claim or action. LSA-C.C.P. art. 966(C)(2). Appellate courts review summary judgments de novo under the same criteria that govern the district court's consideration of whether summary judgment is appropriate. NAB Natural Resources v. Willamette Industries, Inc., 28,555 (La.App.2d Cir.8/21/96), 679 So.2d 477.

Individual Liability of Eddie Harmon

The plaintiff contends the district court erred in dismissing all claims against Eddie Harmon individually. Plaintiff argues that summary judgment was not appropriate because Harmon failed to maintain a separate legal identity apart from that of the corporation.

Corporations are distinct legal entities separate from the individuals who comprise them, and shareholders are generally not liable for the debts of the corporation. Riggins v. Dixie Shoring Co., Inc., 590 So.2d 1164 (La.1991). In a few limited situations, a litigant can reach a shareholder by "piercing the corporate veil," rendering the individual liable for the corporation's obligations. If the plaintiff does not allege shareholder fraud, she bears a heavy burden of proving that the requisite corporate formalities have been disregarded to such an extent that the corporation ceases to be distinguishable from its shareholders. Riggins, supra.

In the present case, the evidence shows that Eddie Harmon is an officer and shareholder of Harmon Wood, a corporation licensed to do business in Louisiana. The plaintiff has not alleged that Eddie Harmon committed fraud, personally trespassed or physically removed timber. Nor has the plaintiff produced any factual support to establish that she will be able to satisfy her evidentiary burden of proving at trial that Harmon failed to follow the statutory requirements for transacting corporate affairs, such as maintaining corporate bank accounts and filing corporate tax returns. To the contrary, the evidence shows that the corporation issued checks to pay for the logs removed and prepared corporate tax disclosure forms. Based upon this record, the district court could reasonably find that at all relevant times, Eddie Harmon acted to preserve the separate identity of the corporate entity. Consequently, we cannot say the district court erred in granting summary judgment dismissing plaintiffs claims against Eddie Harmon individually. The assignment of error lacks merit.

Trespass

Trespass is defined as an unlawful physical invasion of the property of another.

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

Related

Environmental Processing Systems, L.C. v. Fpl Farming Ltd.
457 S.W.3d 414 (Texas Supreme Court, 2015)
Sullivan v. Wallace
51 So. 3d 702 (Supreme Court of Louisiana, 2010)
Cole-Gill v. Moore
862 So. 2d 1197 (Louisiana Court of Appeal, 2003)
Sullivan v. Wallace
859 So. 2d 245 (Louisiana Court of Appeal, 2003)
Powell v. Dorris
814 So. 2d 763 (Louisiana Court of Appeal, 2002)
Davis v. Culpepper
794 So. 2d 68 (Louisiana Court of Appeal, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
766 So. 2d 654, 2000 WL 1192156, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sullivan-v-wallace-lactapp-2000.