Yamaha Motor Corp. USA v. Bonfanti Industries, Inc.

589 So. 2d 575, 1991 WL 226493
CourtLouisiana Court of Appeal
DecidedOctober 18, 1991
DocketCA 90 1504
StatusPublished
Cited by17 cases

This text of 589 So. 2d 575 (Yamaha Motor Corp. USA v. Bonfanti Industries, 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
Yamaha Motor Corp. USA v. Bonfanti Industries, Inc., 589 So. 2d 575, 1991 WL 226493 (La. Ct. App. 1991).

Opinion

589 So.2d 575 (1991)

YAMAHA MOTOR CORPORATION, U.S.A.
v.
BONFANTI INDUSTRIES, INC., d/b/a Bonfanti Marine and the Louisiana Used Motor Vehicle and Parts Commission.

No. CA 90 1504.

Court of Appeal of Louisiana, First Circuit.

October 18, 1991.

Harry J. Philips, Jr., Baton Rouge, for plaintiff-appellee Yamaha Motor Corp., U.S.A.

William A. Morvant, Baton Rouge, for defendant-appellant Bonfanti Industries, Inc., d/b/a Bonfanti Marine, et al.

*576 Before SHORTESS, LANIER and CRAIN, JJ.

LANIER, Judge.

This action is a petition for judicial review of an administrative decision by the Louisiana Used Motor Vehicle and Parts Commission (Commission). Bonfanti Industries, Inc. (Bonfanti), a marine products dealer, filed a complaint with the Commission asserting that Yamaha Motor Corporation, U.S.A. (Yamaha), a marine products distributor, violated La.R.S. 32:774(J)(3)[1] because Yamaha, without just cause or provocation, failed to renew its dealership contract with Bonfanti. Yamaha responded that its dealership contract with Bonfanti was executed before the effective date of Act 168 of 1987 (Act 168) which enacted La.R.S. 32:774(J)(3), Act 168 could not be applied retroactively to affect the substantive contractual rights of Yamaha, and the Yamaha-Bonfanti contract expired by its own terms. The Commission ruled that Act 168 applied to the Yamaha-Bonfanti contract, and Yamaha did not have just cause or provocation to cancel (refuse to renew) its dealership contract with Bonfanti. Yamaha appealed to the Nineteenth Judicial District Court (19th JDC). La.R.S. 32:776(B). Bonfanti filed a peremptory exception raising the objection of res judicata asserting that the question of the retroactivity of Act 168 was definitively decided against Yamaha in a prior judicial proceeding between the parties. The 19th JDC overruled the exception. Yamaha filed a motion for summary judgment based on a joint stipulation of facts executed by the parties. The 19th JDC ruled as a matter of law that Act 168 could not be applied retroactively to the Yamaha-Bonfanti dealership contract, granted the summary judgment, and dismissed Bonfanti's claims against Yamaha with prejudice. Bonfanti took this suspensive appeal.

UNDISPUTED FACTS

Yamaha and Bonfanti entered into a dealership contract effective September 3, 1986. The contract provided for termination at any time for cause. The contract further provided that in the absence of cause it would automatically terminate on a date certain with the following language:

5. TERMINATION

5.1 Effectiveness. This Agreement shall be effective upon the execution by Dealer and by an authorized officer of Yamaha at Cypress, California, and shall automatically terminate on September 30, 1987, unless terminated earlier as provided herein. Yamaha in its sole discretion may renew this Agreement. (Underscoring in original)

La.R.S. 32:774(J)(3) was enacted by Acts 1987, No. 168 and provided as follows:

It shall be unlawful and shall constitute a violation of the Unfair Trade Practice and Consumer Protection Law for a manufacturer or distributor of marine products to unfairly, without just cause or provocation, cancel the franchise of any marine dealer without just cause and without written notice delivered to the marine dealer no less than ninety days prior to such cancellation. The nonrenewal of a franchise or selling agreement with a marine dealer, or his successor, without just cause or provocation or the refusal to approve a qualified transferee or qualified successor to the marine dealer as provided for in the franchise or selling agreement shall be deemed an evasion of this Subparagraph and shall constitute an unfair cancellation, notwithstanding any contrary provision of the franchise or selling agreement. It shall not be an unlawful violation if the cancellation arises out of financial default of the marine dealer or conviction of a crime punishable by imprisonment when the offense for which the dealer was convicted includes fraudulent activity of the dealer. (Emphasis added)

Acts 1987, No. 168 does not specify an effective date, and, pursuant to La.Const. *577 of 1974, art. III, § 19, it became effective on September 1, 1987.

By letter dated October 13, 1987, Yamaha told Bonfanti it did not intend to renew the 1986 dealership agreement.

OBJECTION OF RES JUDICATA

(Assignment of error 1)

Bonfanti asserts the doctrine of res judicata prevents Yamaha from contesting the subject matter jurisdiction of the Commission and the retroactive application of Act 168 because of the final and definitive judgment rendered in Yamaha v. Bonfanti and the Commission, number 334,425 on the docket of the 19th JDC (Yamaha I), and the trial court in the instant case (Yamaha II) committed error by overruling Bonfanti's peremptory exception raising the objection of res judicata. A review of the record in Yamaha I is essential to adjudicate this assignment of error.

Yamaha I was filed by Yamaha against Bonfanti and the Commission on August 26, 1988. Yamaha I is an action for a declaratory judgment,[2] La.C.C.P. art. 1871 et seq., seeking rulings that the Commission "is without subject matter jurisdiction or authority to hear, decide or adjudicate a dispute between Yamaha and Bonfanti ... arising out of the termination of the Agreement..." and Act 168 "is not applicable to the Agreement which was executed prior to the effective date of said act." The petition alleges that on April 5, 1988, Bonfanti filed a complaint against Yamaha with the Commission alleging that the refusal of Yamaha to renew the dealership contract was a violation of La.R.S. 32:774(J)(3) for which the Commission could grant relief.[3] On September 15, 1988, Bonfanti filed a declinatory exception raising the objection of lis pendens,[4] La.C.C.P. art. 925(3), and a dilatory exception raising the objection of prematurity, La.C.C.P. art. 926(1). In this pleading, Bonfanti asserted "the rights and legal relationships between Yamaha and Bonfanti Marine are directly affected and controlled by LSA-R.S. 32:771 et seq.", the Commission "is empowered to conduct a hearing to determine whether a violation of any provision of ... Title 32 has occurred", and that "the present action by petitioner is premature until the resolution of that administrative proceeding and the exhaustion of all available administrative remedies." On March 2, 1989, the trial court signed an amended judgment that (1) overruled the declinatory exception, (2) sustained the dilatory exception raising the objection of prematurity, and (3) dismissed Yamaha I without prejudice. No reasons for judgment are in the Yamaha I record.

Bonfanti asserts that Yamaha II "is a dispute concerning the same parties, is based on the same cause of action, and demands the same thing as was previously presented to the court in ..." Yamaha I. Bonfanti contends that because Yamaha I was an action for a declaratory judgment and was dismissed for prematurity does not preclude the application of the doctrine of res judicata. Finally, Bonfanti claims that the "judgment in suit number 334,425 [Yamaha I] clearly and affirmatively *578 addressed and adjudicated the issues regarding the subject matter jurisdiction of the LUMVC [Commission] to hear the claim of Bonfanti Marine as well as the proper application of Act 168 of 1987."

La.C.C.P. art. 1841 provides as follows:

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

Related

Opinion Number
Louisiana Attorney General Reports, 2004
Glover v. Ryder Truck Rental, Inc.
769 So. 2d 1224 (Louisiana Court of Appeal, 2000)
Karno v. Trustees of the Louisiana State Employees' Retirement System
757 So. 2d 696 (Louisiana Court of Appeal, 1999)
CROWN BEVERAGE v. Dixie Brewing Co.
695 So. 2d 1090 (Louisiana Court of Appeal, 1997)
Pappy's Investment Group of Lake Charles, Inc. v. City of Lake Charles
677 So. 2d 1145 (Louisiana Court of Appeal, 1996)
Manuel v. La. Sheriff's Risk Mgmt. Fund
664 So. 2d 81 (Supreme Court of Louisiana, 1995)
State v. Piazza
655 So. 2d 1357 (Louisiana Court of Appeal, 1995)
City of Zwolle v. Polk
643 So. 2d 201 (Louisiana Court of Appeal, 1994)
Rousselle v. Plaquemines Parish School Bd.
633 So. 2d 1235 (Supreme Court of Louisiana, 1994)
Rousselle v. Plaquemines Parish School Board
620 So. 2d 946 (Louisiana Court of Appeal, 1993)
State, Department of Transportation & Development v. Berry
609 So. 2d 1100 (Louisiana Court of Appeal, 1992)
St. Paul Fire & Marine Insurance Co. v. Smith
609 So. 2d 809 (Supreme Court of Louisiana, 1992)
St. Paul Fire & Marine Ins. Co. v. Smith
609 So. 2d 809 (Supreme Court of Louisiana, 1992)
Pacificorp Capital, Inc. v. STATE EX REL. DIVISION OF ADMINISTRATION
604 So. 2d 710 (Louisiana Court of Appeal, 1992)
Pardue v. Gomez
597 So. 2d 567 (Louisiana Court of Appeal, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
589 So. 2d 575, 1991 WL 226493, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yamaha-motor-corp-usa-v-bonfanti-industries-inc-lactapp-1991.