Velazquez v. Landcoast Insulation, Inc.

999 So. 2d 318, 8 La.App. 3 Cir. 804, 2008 La. App. LEXIS 1664, 2008 WL 5159202
CourtLouisiana Court of Appeal
DecidedDecember 10, 2008
Docket08-804
StatusPublished
Cited by4 cases

This text of 999 So. 2d 318 (Velazquez v. Landcoast Insulation, Inc.) 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
Velazquez v. Landcoast Insulation, Inc., 999 So. 2d 318, 8 La.App. 3 Cir. 804, 2008 La. App. LEXIS 1664, 2008 WL 5159202 (La. Ct. App. 2008).

Opinion

999 So.2d 318 (2008)

Antonio J. VELAZQUEZ, et al.
v.
LANDCOAST INSULATION, INC.

No. 08-804.

Court of Appeal of Louisiana, Third Circuit.

December 10, 2008.

*319 Burton Enoch Cestia, Jr., Burton & Cestia, New Iberia, LA, Andrew Ryan, Diamond, McCarthy, LLP, Dallas, TX, for Plaintiffs/Appellants, Antonio J. Velazquez Nina Lynn-Jetton Velazquez.

Nora Montgomery Stelly, Allen & Gooch, Lafayette, LA, for Defendant/Appellee, Landcoast Insulation, Inc.

Court composed of MICHAEL G. SULLIVAN, ELIZABETH A. PICKETT, and CHRIS J. ROY, Judges.

CHRIS J. ROY, SR.,[1] Judge Pro Tem.

Plaintiffs, Antonio J. Velazquez and Nina Lynn-Jetton Velazquez, individually *320 and as the natural tutors of Laney Mae Velazquez, appeal the trial court's decision granting the exceptions of res judicata and prescription filed by defendant/appellee, Landcoast Insulation, Inc., f/k/a Imacco Insulation, Inc.[2] For the following reasons, we affirm in part and reverse in part.

FACTS

The facts giving rise to this lawsuit remain very much at issue in this action. The details are not set out here because they are not material to the issues at hand.

The lawsuit arises out of Velazquez's former employment with Landcoast. Velazquez had once served as the Chief Financial Officer of the company, but was demoted to another accounting-related position. On April 29, 2005, Landcoast terminated Velazquez's employment without notice, allegedly for cause. Although Velazquez represented to Landcoast that he had returned all company property, Landcoast allegedly had reason to believe Velazquez retained some of its company information and/or items. Based on this belief, Landcoast asked the Iberia Parish Sheriff's Department to conduct an investigation. On May 16, 2005, the IPSO executed a search warrant at Velazquez's home.

PROCEDURAL HISTORY

Velazquez filed suit in the United States District Court on February 1, 2006, alleging a claim under the False Claims Act (31 U.S.C. § 3730(h)), civil rights violations under 42 U.S.C. § 1983, violations of the Fourth and Fifth Amendments of the U.S. Constitution, and a variety of state law claims. In response, Landcoast filed a motion for judgment on the pleadings under Fed.R.Civ.P. 12(c); the motion was denied on September 18, 2006. Landcoast then filed a motion for summary judgment on February 12, 2007.

Meanwhile, Velazquez filed suit in the 16th Judicial District Court for Iberia Parish on May 11, 2006, alleging a claim under La.R.S. 23:967 (the "whistle blower" statute), along with the federal claims, constitutional violations, and state law claims listed in his federal court complaint. Landcoast filed exceptions of lis pendens, prescription, and no cause of action. Velazquez filed a motion to voluntarily dismiss the state court suit, without prejudice, on October 6, 2006.

While that motion for voluntary dismissal without prejudice was pending in the state court, the federal court granted the motion for summary judgment as to the federal claims on March 22, 2007. Declining pendent jurisdiction, the federal court dismissed the state law claims without prejudice.

Shortly after the federal court's decision, on May 24, 2007, the state trial court signed the order to voluntarily dismiss the state court claims without prejudice. After the denial of a motion to reinstate the state court action, Velazquez filed a second lawsuit in the 16th Judicial District Court on June 19, 2007; this suit was virtually identical to the earlier-filed state court action, which had been voluntarily dismissed without prejudice.

Landcoast responded with exceptions of res judicata and prescription. The trial court granted those exceptions on November 9, 2007. Velazquez now appeals that ruling.

ASSIGNMENTS OF ERROR

Velazquez alleges four grounds of error:

1) The trial court erred by applying the state law of res judicata to Velazquez's federal lawsuit;

*321 2) The trial court erroneously granted the exception of res judicata because, under federal law, a dismissal without prejudice does not prohibit the refiling of claims in state court;

3) The trial court erred by granting the exception of prescription because:

a) the timely filed federal court suit interrupted prescription;
b) interruption continued until dismissal of the federal court suit on March 22, 2007;
c) the federal court's dismissal without prejudice began a new one-year prescriptive period in which Velazquez could bring a new lawsuit in state court; and
d) Velazquez's second lawsuit in state court commenced within one year of the federal court's dismissal without prejudice.

4) The trial court erred in denying the motion for reconsideration of the order granting the exceptions.

STANDARD OF REVIEW

The standard of review of a ruling sustaining an exception of res judicata is manifest error when the exception is raised prior to the case being submitted and evidence is received from both parties. State ex rel. Sabine River Auth. v. Meyer & Assocs. Inc., 07-214 (La.App. 3 Cir. 10/3/07), 967 So.2d 585. Likewise, the manifest error rule controls appellate review of an exception of prescription. Bell v. Am. Intern. Group, 06-1242 (La.App. 3 Cir. 2/7/07), 950 So.2d 164.

DISCUSSION

First, it is necessary to identify the scope of this appeal. The second-filed state court action, the subject of this appeal, alleged a violation of La.R.S. 23:967; violation of the Fourth and Fifth Amendments to the U.S. Constitution; and various state law claims, including false imprisonment, invasion of privacy, libel and slander, battery, assault, trespass, conversion of chattels, and any other type of emotional distress. Landcoast's exceptions, granted by the trial court, argue that res judicata bars the constitutional claims and the claim under La.R.S. 23:967, and that the claim under La.R.S. 23:967 was prescribed.

Landcoast has filed no objection, and the trial court has made no ruling, addressing any of Velazquez's remaining state court claims, which remain pending, intact, and viable. Thus, this appeal deals only with the constitutional claims and the claim under La.R.S. 23:967.

Res Judicata

Velazquez correctly argues that the federal law of res judicata applies here. When a state court addresses whether the decision of a federal court exercising federal question jurisdiction has a preclusive effect on a state court claim, the federal law of res judicata must be applied. Terrebonne Fuel & Lube v. Placid Refining Co., 95-0654, 95-0671 (La.1/16/96), 666 So.2d 624, on remand, 93-2364 (La.App. 4 Cir. 10/2/96), 681 So.2d 1292, writ denied, 96-2625 (La.12/13/96), 692 So.2d 1066. Res judicata applies in federal law when: 1) both cases involve the same parties; 2) a court of competent jurisdiction rendered the prior judgment; 3) the prior decision was a final judgment; and 4) both cases involve the same cause of action. Id.

Velazquez, in his reply brief to this court, acknowledges that his claim under the False Claims Act and his civil rights claims are barred by res judicata and cannot be revived in this state court proceeding.

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Cite This Page — Counsel Stack

Bluebook (online)
999 So. 2d 318, 8 La.App. 3 Cir. 804, 2008 La. App. LEXIS 1664, 2008 WL 5159202, Counsel Stack Legal Research, https://law.counselstack.com/opinion/velazquez-v-landcoast-insulation-inc-lactapp-2008.