Universal Services and Associates, LLC v. Wade Grundmeyer and Vls Environmental Solutions, LLC A/K/A Vls Recovery Services, LLC

CourtLouisiana Court of Appeal
DecidedSeptember 12, 2023
Docket2023-CA-0196
StatusPublished

This text of Universal Services and Associates, LLC v. Wade Grundmeyer and Vls Environmental Solutions, LLC A/K/A Vls Recovery Services, LLC (Universal Services and Associates, LLC v. Wade Grundmeyer and Vls Environmental Solutions, LLC A/K/A Vls Recovery Services, LLC) 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
Universal Services and Associates, LLC v. Wade Grundmeyer and Vls Environmental Solutions, LLC A/K/A Vls Recovery Services, LLC, (La. Ct. App. 2023).

Opinion

UNIVERSAL SERVICES AND * NO. 2023-CA-0196 ASSOCIATES, LLC * VERSUS COURT OF APPEAL * WADE GRUNDMEYER AND FOURTH CIRCUIT VLS ENVIRONMENTAL * SOLUTIONS, LLC A/K/A VLS STATE OF LOUISIANA RECOVERY SERVICES, LLC *******

APPEAL FROM CIVIL DISTRICT COURT, ORLEANS PARISH NO. 2022-04896, DIVISION “B” Honorable Richard G. Perque, Judge Pro Tempore ****** Judge Joy Cossich Lobrano ****** (Court composed of Chief Judge Terri F. Love, Judge Joy Cossich Lobrano, Judge Tiffany Gautier Chase)

Clarence F. Favret, III James C. Cronvich Jordan T. LeBlanc FAVRET CARRIERE CRONVICH 650 Poydras Street, Suite 2300 New Orleans, LA 70130

COUNSEL FOR PLAINTIFF/APPELLEE

Loretta G. Mince Michael R. Dodson FISHMAN HAYGOOD, L.L.P. 201 St. Charles Avenue, 46th Floor New Orleans, LA 70170-4600

COUNSEL FOR DEFENDANT/APPELLANT

APPEAL DISMISSED

SEPTEMBER 12, 2023 JCL This appeal arises from a family business dispute. Defendant/appellant,

TFL Wade Grundmeyer (“Grundmeyer”), appeals the December 12, 2022 judgment of

TGC the district court, granting the exception of no cause of action regarding

Grundmeyer’s reconventional demand. We dismiss the appeal.

Grundmeyer is the former chief executive officer of plaintiff/appellee,

Universal Services and Associates, LLC (“Universal”). Universal terminated his

employment, and Grundmeyer is presently an employee of co-defendant, VLS

Environmental Solutions, LLC (“VLS”). On June 1, 2022, Universal filed a

petition for damages, alleging that Grundmeyer misappropriated funds and that,

along with VLS, he used Universal’s confidential operational information and

diverted business opportunities from Universal. On August 8, 2022, Grundmeyer

filed an answer, affirmative defenses, and reconventional demand against

Universal, alleging defamation and violations of the Louisiana Unfair Trade

Practices Act (“LUTPA”).1 On September 27, 2022, Universal filed a special

1 On August 15, 2022, VLS separately filed an answer, affirmative defenses, and reconventional

demand against Universal, which is not at issue in this appeal.

1 motion to strike and exception of no cause of action in response to Grundmeyer’s

reconventional demand. A hearing went forward on November 18, 2022. On

December 12, 2022, the district court rendered judgment granting the exception of

no cause of action and finding the special motion to strike moot. This appeal

followed.

While Universal did not file a formal motion to dismiss Grundmeyer’s

appeal, Universal contends in its brief that the December 12, 2022 judgment is

interlocutory and non-appealable. We agree.

The judgment on appeal contains the following language:

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Universal Services and Associates’ Exception of No Cause of Action is SUSTAINED, dismissing the claims asserted in Wade [Grundmeyer’s] Reconventional Demand. Wade Grundmeyer shall have fifteen (15) days from November 18, 2022 to amend and properly state a cause of action that is violative under the Louisiana Unfair Trade Practices.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that if no amendment is filed within the stated time, Judgment entered in favor of Plaintiff, Universal Services and Associates, LLC, and against Defendant, Wade Grundmeyer, dismissing all claims asserted in his Original Reconventional Demand, dismissing all claims therein, will be final.

The judgment orders Grundmeyer to amend his reconventional demand, and

states that, should Grundmeyer fail to file such amendment, the dismissal of the

reconventional demand will be final.

“According to Louisiana Code of Civil Procedure article 2083, an appealable

judgment must be either a final judgment or an interlocutory judgment for which

2 an appeal is ‘expressly provided by law.’” Menard v. Barrie, 13-1284, p. 4 (La.

App. 4 Cir. 3/5/14), 137 So.3d 679, 680.2 “A judgment that does not determine the

merits but only preliminary matters in the course of the action is an interlocutory

judgment.” La. C.C.P. art. 1841. “A judgment that determines the merits in whole

or in part is a final judgment.” Id.

This Court has long held that a judgment ordering a party to amend a

pleading is not final or appealable, even where the judgment states that failure to

amend shall result in the pleading’s dismissal. See Taylor v. Consol. Rail Corp.,

391 So.2d 1351, 1352 (La. App. 4th Cir. 1980); Coulon v. Gaylord Broadcasting,

408 So.2d 16, 17 (La. App. 4th Cir. 1981). The judgment does not dismiss the suit

or demand; “[i]t does nothing more than order or permit an amendment within a

delay allowed by the court as provided by Code of Civil Procedure Article 934.”

Taylor, 391 So.2d at 1352.3 “The language of La. [C.C.P.] art. 934 and Louisiana

jurisprudence reflect that the lapse of the time to amend does not automatically

result in dismissal of the plaintiff’s [here, the plaintiff-in-reconvention’s] claims;

rather, some action on behalf of the trial court or defendants [here, the defendant-

in-reconvention] is required.” Jones v. Cisneros, 20-0582, pp. 4-5 (La. App. 4 Cir.

4/7/21), 315 So.3d 959, 962 (quoting Henry v. Board of Supervisors of Louisiana

Cmty. & Technical Coll. Sys., 19-1672, pp. 7-8 (La. App. 1 Cir. 9/18/20), 313

2 “An interlocutory judgment is appealable only when expressly provided by law.” La. C.C.P.

art. 2083(C). 3 “If the grounds of the objection raised through the exception cannot be so removed, or if the

plaintiff fails to comply with the order to amend, the action, claim, demand, issue, or theory shall be dismissed.” La. C.C.P. art. 934.

3 So.3d 1009, 1014). “[E]ven if the delay period within which to amend has passed,

the plaintiff may still amend unless the defendant has moved for procedural

dismissal.” Jones, 20-0582, p. 5, 315 So.3d at 962 (quoting Henry, 19-1672, p. 8,

313 So.3d at 1014).4

This Court described a judgment “maintaining an exception and ordering the

[party] to amend within a certain time on pain of dismissal” as a “conditional

judgment.” Joseph v. Wasserman, 17-0603, p. 7 (La. App. 4 Cir. 1/10/18), 237

So.3d 14, 20 (quoting Falgoust v. Luck, 477 So.2d 822, 823-24 (La. App. 5th Cir.

1985) and citing Spencer v. Burglass, 288 So.2d 68, 69 (La. App. 4th Cir. 1974);

Taylor, 391 So.2d at 1352; Coulon, 408 So.2d at 17). “This is not a judgment of

dismissal but only presents the possibility of dismissal conditioned on future non-

compliance.” Falgoust, 477 So.2d at 823. A conditional judgment, “without a

subsequent judgment setting out final dismissal, does not fit the criteria for an

appealable judgment.” Joseph, 17-0603, p. 7, 237 So.3d at 20 (quoting Falgoust,

477 So.2d at 823). Moreover, a judgment ordering amendment of a pleading “is

incapable of being designated as final pursuant to [La. C.C.P.] art. 1915(B)

because it does not rule, in whole or in part, on the merits of the suit and is, at best,

an interlocutory ruling.” Hernandez v. Excel Contractors, Inc., 18-1091, p. 13 (La.

App. 1 Cir. 3/13/19), 275 So.3d 278, 286-87 (citing Cole v. Sabine Bancshares,

4 See also Landry v. Les Fontaine Funeral Home, Inc., 99-1157, p. 4 (La. App. 3 Cir. 12/8/99),

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Related

Walton v. State
3 So. 3d 1000 (Supreme Court of Florida, 2009)
Taylor v. Consol. Rail Corp.
391 So. 2d 1351 (Louisiana Court of Appeal, 1980)
Spencer v. Burglass
288 So. 2d 68 (Louisiana Court of Appeal, 1974)
Coulon v. Gaylord Broadcasting
408 So. 2d 16 (Louisiana Court of Appeal, 1981)
Stelluto v. Stelluto
914 So. 2d 34 (Supreme Court of Louisiana, 2005)
Menard v. Barrie
137 So. 3d 679 (Louisiana Court of Appeal, 2014)
Mandina, Inc. v. O'Brien
156 So. 3d 99 (Louisiana Court of Appeal, 2013)
Cole v. Sabine Bancshares, Inc.
205 So. 3d 995 (Louisiana Court of Appeal, 2016)
Urquhart v. Spencer
204 So. 3d 1074 (Louisiana Court of Appeal, 2016)
Falgoust v. Luck
477 So. 2d 822 (Louisiana Court of Appeal, 1985)
Joseph v. Wasserman
237 So. 3d 14 (Louisiana Court of Appeal, 2018)
Landry v. Les Fontaine Funeral Home, Inc.
755 So. 2d 901 (Louisiana Court of Appeal, 1999)

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Bluebook (online)
Universal Services and Associates, LLC v. Wade Grundmeyer and Vls Environmental Solutions, LLC A/K/A Vls Recovery Services, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/universal-services-and-associates-llc-v-wade-grundmeyer-and-vls-lactapp-2023.