Weinmann v. Duhon

997 So. 2d 647, 2008 WL 4737184
CourtLouisiana Court of Appeal
DecidedOctober 28, 2008
Docket08-CA-186
StatusPublished
Cited by3 cases

This text of 997 So. 2d 647 (Weinmann v. Duhon) 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
Weinmann v. Duhon, 997 So. 2d 647, 2008 WL 4737184 (La. Ct. App. 2008).

Opinion

997 So.2d 647 (2008)

Robert T. WEINMANN and Cindy Howson wife of Robert T. Weinmann
v.
Troy DUHON, Michael Seago, David R.H. Williams and Allen Krake.

No. 08-CA-186.

Court of Appeal of Louisiana, Fifth Circuit.

October 28, 2008.

*649 Brian C. Bossier, Erin H. Boyd, Blue Williams, L.L.P., Metairie, Louisiana, for Plaintiff/Appellee and 2nd Appellant.

T. Carey Wicker, III, New Orleans, William W. Hall, Metairie, Louisiana, Edwin A. Stoutz, Jr., Attorney at Law, New Orleans, Louisiana, Franz L. Zibilich, Attorney at Law, Metairie, Louisiana, for Defendants/Appellants.

Panel composed of Judges EDWARD A. DUFRESNE, JR., MARION F. EDWARDS, and MADELINE JASMINE, Pro Tempore.

MARION F. EDWARDS, Judge.

The appeal before this Court is part of extended litigation involving the dissolution of Regency Motors of Metairie, L.L.C. ("Regency"). Regency was organized by Robert Weinmann ("Weinmann") (40 percent), Michael Seago ("Seago") (35 percent), and Troy Duhon ("Duhon") (25 percent) in June of 1997. In February of 1998, two new members, David Williams ("Williams") and Allen Krake ("Krake") were added. They purchased 5 percent and 10 percent of the company, respectively, from Seago. Weinmann transferred 10 percent of his share to his wife, Cindy Weinmann.

There was disagreement from the beginning about how the company should be managed. The Seago Interests (Seago, Williams, Duhon, and Krake), with 60 percent of the company opposed the Weinmanns and expelled them from the company. As a result, Robert and Cindy Weinmann filed an action for dissolution of Regency in 1999. After a hearing on that matter, the trial court made several rulings, including a finding that the Operating Agreement was valid as to all the members except Duhon who had not signed it, Cindy Weinmann was a valid member of the company pursuant to the Operating Agreement, and the expulsion of Robert and Cindy Weinmann from the company was invalid. The trial court also denied the Weinmanns' request to dissolve the LLC. That judgment was appealed to this Court.

On appeal, we vacated the trial court's judgment and remanded the matter for further proceedings.[1] In that opinion we found that the trial court erred legally in setting aside various provisions of the agreement between the parties and in not ordering its dissolution. We found the Weinmanns were entitled to dissolution in accordance with Louisiana's Limited Liability Company Law and that the trial judge erred in denying that request.[2]

Subsequently, on January 16, 2003, the parties entered into a written Settlement Agreement. Handwritten changes were made to the original typed document, and it is signed by all parties except Duhon and Krake. Seago signed for those two *650 parties with the notation, "Mike Seago as per proxy."

The settlement agreement is clearly meant to settle all the matters litigated among the parties as it contains the following language: "the parties do hereby wish to settle all litigation currently pending against each other under the terms set forth below[.]" The settlement agreement also appears to be an attempt to set up a sale of Regency to the Weinmanns for 60 percent of the appraised value of the company. The new company formed by the Weinmanns eventually became Veterans Ford. The agreement further states that the "Operating Agreement is in full force and effect as to all members," and that "Regency will make Weinmanns whole," which includes the following provision: "Any and all payments to or benefits received by the Seago Interests (including salaries or consulting fees) will be considered distributions. A distribution will be made to the Weinmanns in an amount to bring them up to their proportionate share of total distributions."

Additionally, the settlement agreement is subject to certain requirements, including the following: "5. All interests and assets purchased would be free of liens and encumbrances except as noted on the records of the LLC and specifically assumed by the Weinmanns. 6. Approval of Ford."

On February 21, 2003, the parties executed a second document, which is a written Agreement to Purchase. This document is a more formal document than the Settlement Agreement and sets forth the conditions of a sale of Regency to Weinmann. One attachment to this Purchase Agreement is a resolution of the company to authorize Seago to execute the Purchase Agreement on behalf of Regency, which is signed by all parties. (Seago again signed for Duhon and Krake). By the terms of the agreement, the Weinmanns agreed to pay Regency 80 percent of the value of the inventory and all personal assets of Regency as well as the value of the good will of the Regency minus $400,000.

On April 15, 2003, the Weinmanns filed a "Motion To Enforce Settlement And Motion For Sanctions," in which the Weinmanns alleged that the failure of defendants to adhere to the terms of the two agreements was affecting the value of the business as well as the relationship between Regency and Ford Motor Company ("Ford"). From the testimony, it is clear that Ford Motor Company was aware of the discord among the members of the L.L.C. that owned Regency and wished to have the ownership issue settled.

After an expedited hearing on the motion, the trial court appointed Patrick K. Schmidt to appraise Regency in accordance with the goodwill section of the Agreement to Purchase. Shortly afterward, the trial court rendered an order to the parties to submit certain documents to the court for purposes of the appraisal.

On July 28, 2003, the parties entered into an Amendment to the Purchase Agreement. In that document it was agreed by the parties that the fair market value of the ongoing business of Regency amounted to $425,246.33, and the goodwill value was $4,321,333.33. In accordance with the original Purchase Agreement, that amount was reduced by $400,000.

The sale was approved by Ford on November 10, 2003, subject to the receipt of certain documents no later than December 18, 2003. The sale was set for December 8, 2003.

On December 3, 2003, the Weinmanns filed a "Motion For Specific Performance And For Sanctions" alleging that defendants have used "stalling tactics" including failing to evaluate the furniture, fixtures *651 and equipment of Regency, and in refusing to pay the Weinmanns the amount necessary to "make them whole" in accordance with the Settlement Agreement. The motion also states Krake indicated that the defendants would not attend the closing on December 8, 2003. The Weinmanns again asked the court for an expedited hearing.

In response, all defendants, with the exception of Williams,[3] filed "Exceptions Of Prematurity And Unauthorized Use Of Summary Proceeding" in which they argued that Regency has not refused to attend the closing of the sale. A letter attached to that motion suggests the Seago Interests and the Weinmanns were at odds concerning the amount owed to the Weinmanns under the Settlement Agreement.

After a hearing, the trial court rendered judgment granting the Weinmanns' motion for specific performance and ordered all parties, except Williams, to appear at the closing and to execute all documents required. The trial court also ordered $1,000,000 to be placed in escrow at the closing, and ordered a hearing on the disposition of these escrowed funds at a later date. The trial court also denied sanctions. It appears the trial court made this ruling to ensure that the sale would go through and the dealership would not be lost because of the extremely acrimonious relationship among the parties.

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Cite This Page — Counsel Stack

Bluebook (online)
997 So. 2d 647, 2008 WL 4737184, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weinmann-v-duhon-lactapp-2008.