PAUL A. BONIN, Judge.
Semmes Favrot sued his brother, James, initially seeking injunctive relief. Being mostly unsuccessful, he then amended his suit to claim that James had breached
In response to our inquiry whether we had appellate jurisdiction to consider the partial summary judgment, which had not been designated as a final judgment by the trial court, Semmes and James jointly agreed that a ruling which affirmed the judgment would effectively terminate this litigation. We now convert Semmes' appeal to an application for supervisory relief and grant the application.
Following our de novo review of the partial summary judgment, we agree that essential elements necessary to Semmes' claims are absent such that no genuine issue of material fact exists and that James is entitled to judgment as a matter of law. We, therefore, amend the judgment in order to dismiss Semmes' lawsuit with prejudice and affirm the judgment as amended. We explain our decision in greater detail in the following parts.
In this Part we explain why we cannot exercise our appellate jurisdiction, and why, if we are to give full consideration to this matter at this time,
The Louisiana Constitution of 1974 provides for our appellate jurisdiction and our supervisory jurisdiction. See LA. CONST. ART. 5, § 10(A). "Appeal is the exercise of the right of a party to have a judgment of a trial court revised, modified, set aside, or reversed by an appellate court." LA. C.C.P. ART. 2082. "Supervisory writs may be applied for and granted in accordance with the constitution and rules of the supreme court and other courts exercising appellate jurisdiction." LA. C.C.P. ART. 2201. As we have observed, "the difference between supervisory jurisdiction and appellate jurisdiction is that the former is discretionary on the part of the appellate court while the latter is invocable by the litigant as a matter of right." Livingston Downs Racing Ass'n, Inc. v. Louisiana State Racing Com'n, 96-1215, p. 3 (La.App. 4 Cir. 6/5/96), 675 So.2d 1214, 1216.
"A final judgment is appealable in all cases in which appeals are given by law, whether rendered after hearing, by default, or by reformation under Article 1814." LA. C.C.P. ART. 2083 A. "A judgment that determines the merits in whole or in part is a final judgment." LA. C.C.P. ART. 1841. "No appeal may be taken from a partial final judgment under Article 1915(B) until the judgment has been designated a final judgment under Article 1915(B). An appeal may be taken from a final judgment under Article 1915(A) without the judgment being so designated." LA. C.C.P. ART. 1911.
"A judgment that does not determine the merits but only preliminary matters in
Therefore, in order to determine whether a particular judgment or order is appealable as of right, it must be determined whether the judgment is (1) a final judgment which has determined the merits in whole, LA. C.C.P. ART. 1911; (2) a partial final judgment which does not require designation as a final judgment, LA. C.C.P. ART. 1915 A; (3) a partial judgment which requires designation as a final judgment, LA. C.C.P. ART. 1915 B(1); (4) an interlocutory judgment from which an appeal is expressly provided by law, LA. C.C.P. ART. 2083 C, or (5) an interlocutory judgment from which an appeal is not expressly provided by law, id. See also LaDonte A. Murphy, Access to Appellate Review: Writs, Appeals, and Interlocutory Judgments, 34 S.U.L.Rev. 27 (2007).
A partial judgment which requires designation as a final judgment by the trial court (the third category, ante) but which has not received such a designation is not an appealable judgment. See LA. C.C.P. ART. 1915 B(2) ("In the absence of such a determination and designation, [any such order or decision] ... shall not constitute a final judgment for the purpose of an immediate appeal.") Such an undesignated judgment, like an interlocutory judgment, "may be revised at any time prior to rendition of the judgment adjudicating all the claims and the rights and liabilities of all the parties." LA. C.C.P. ART. 1915 B(2); see, e.g., Regions Bank v. Weber, 10-1169, p. 1 (La.App. 4 Cir. 12/15/10), 53 So.3d 1284 ("An interlocutory judgment may be reconsidered or revised upon proper motion at any time until the rendition of a final judgment."), citing to Magallanes v. Norfolk Southern Railway Co., 09-0605, p. 4 (La.App. 4 Cir. 10/14/09), 23 So.3d 985, 988. See also Roger A. Stetter, LOUISIANA CIVIL APPELLATE PROCEDURE, § 3:20 (2010-2011 ed.) ("Any partial judgment that does not dismiss a party and that is not expressly authorized by Article 1915 is interlocutory in character rather than final.").
Insisting that a partial judgment be designated as final because "there is no just reason for delay" allows us to enforce the "policy against multiple appeals and piecemeal litigation." R.J. Messinger, Inc. v. Rosenblum, 04-1664, p. 13 (La.3/2/05), 894 So.2d 1113, 1122; see also 1 Frank L. Maraist & Harry T. Lemmon, Louisiana Civil Law Treatise-Civil Procedure, § 14.3, p. 363 (1999). Such insistence also helps to "ensure that our courts operate under principles of sound judicial administration to promote judicial efficiency and economy." Id.
The judgment which Semmes "appeals" was a partial summary judgment. The judgment did not dismiss any party. See LA. C.C.P. ART. 1915 A(1). The judgment purports only to dismiss Semmes' claims for breach of contract and for tortious interference with a contract. "A summary judgment may be rendered dispositive of a particular issue, theory of recovery, cause of action, or defense, in favor of one or more parties, even though the granting of the summary judgment does not dispose of the entire case." LA.
Without a designation as a final judgment, the proper procedural vehicle for the review of this partial summary judgment was for Semmes to apply for a supervisory writ. LA. C.C.P. ART. 2201; see also Lalla v. Calamar, N.V., 08-0952, p. 6 (La.App. 4 Cir. 2/11/09), 5 So.3d 927, 931. "A court of appeal has plenary power to exercise supervisory jurisdiction over district courts and may do so at any time, according to the discretion of the court." Herlitz Constr. Co., Inc. v. Hotel Investors of New Iberia, Inc., 396 So.2d 878, 878 (La.1981). Thus, we have the discretion to consider this judgment under our supervisory authority. And we have in similar circumstances converted "appeals" of nonappealable judgments to applications for supervisory writs in those cases in which the motions for appeal were filed within the thirty-day period allowed for the filing of applications for supervisory writs. See Ordoyne v. Ordoyne, 07-0235 (La.App. 4 Cir. 4/2/08), 982 So.2d 899; Ganier v. Inglewood Homes, Inc., 06-0642 (La.App. 4 Cir. 11/8/06), 944 So.2d 753; Rule 4-3, Uniform Rules-Courts of Appeal. In Francois v. Gibeault, 10-0180, p. 2 (La. App. 4 Cir. 8/25/10), 47 So.3d 998, 1000, we stated:
Semmes, too, filed his motion for appeal within the delays allowed for applying for supervisory writs.
We, moreover, are persuaded by the parties' joint representation,
Therefore, we convert Semmes' appeal to an application for a writ of supervisory review and grant the writ.
In this Part we briefly address the standard for our review of a summary judgment. We review a summary judgment de novo. See King v. Parish National Bank, 04-0337, p. 7 (La.10/19/04), 885 So.2d 540, 545.
The burden of proof to show that there is no genuine issue of material fact and that the mover is entitled to judgment as a matter of law is on the mover. See LA. C.C.P. ART. 966 C. But, when the movant will not bear the burden of proof at a trial on the merits, the burden of proof "on the motion does not require him to negate all essential elements of the adverse party's claim, ... but rather to point out to the court that there is an absence of factual support for one or more elements essential to the adverse party's claims ..." LA. C.C.P. ART. 966 C(2); King, 04-0337, p. 8, 885 So.2d at 545.
Once the mover has pointed out such absence, the adverse party must "produce factual support sufficient to establish that he will be able to satisfy his evidentiary burden at trial." Id. If the adverse party will be unable to satisfy his evidentiary burden at trial, "there is no genuine issue of material fact." Id. See also Brungardt v. Summitt, 08-0577, pp. 10-11 (La.App. 4 Cir. 4/8/09), 7 So.3d 879, 886-887.
Here, as we will elaborate, James will not have the burden of proof at trial on either the breach of contract claim or the tortious interference claim.
In this Part we set forth some background facts to aid in understanding the controversy as well as particularly describe the agreements or contracts around which the brothers are arguing.
Many years ago Mortimer Favrot, a Tulane- and Harvard-educated architect, founded a real estate development firm along with Henry Shane. The firm has grown over the years and maintains an extensive presence in the New Orleans metropolitan area. The Favrot-Shane firm operates through many companies and subsidiaries. Until these events, Mortimer and Mr. Shane each owned one-half of the firm. These gentlemen began to plan for their retirement and for an orderly succession in the management and control of their firm. They each agreed to the other's plans for the transfer of their respective interests.
James had been working in the family business since he had finished school and was a trusted associate of his father. Mortimer described James as an expert in real estate acquisition, development, and finance; indeed, he characterized James as the most important person in the firm after himself and Mr. Shane.
Semmes had been engaged in the private practice of law.
Later, on October 22, 2003, the father and sons executed an employment compensation agreement in which Mr. Shane intervened, which primarily provided for the calculation of the salaries and the allocation of other income from the firm to the brothers. This agreement expressly contemplated that the brothers' employment with the firm could be involuntarily terminated "in the sole discretion" of the firm as well as that either brother could voluntarily withdraw from his employment. This agreement also supplied the start date for Semmes' full-time employment as January 1, 2004.
The brothers soon started squabbling. Their disagreements escalated and the nature of their disputes intensified. Separately they each had recourse to their father first to mediate, then to intervene, and finally to choose between them. On some unspecified date in March 2005, Mortimer fired Semmes. James continued his full-time employment with the firm and, because of Semmes' involuntary termination, was entitled to purchase 100% of the stock to be sold by Mortimer.
After Semmes' firing, Mortimer and James modified the stock transfer agreement on terms more onerous to James. In this renegotiated agreement, a portion of the purchase price paid by James would be paid to a trust fund from which all of Mortimer's children, including Semmes, benefit. Also, Mortimer has extended to Semmes a $1,000,000 line of credit in order to engage in entrepreneurial activities, and Semmes has drawn on the credit line. Additionally, the firm refers legal work to Semmes on a fee-basis.
Semmes directs this action against only James; he has not sued his father.
Initially, Semmes' suit was for injunctive relief.
Later, Semmes amended his lawsuit by seeking damages from James on the breach of contract and tortious interference claims. James filed his motion for partial summary judgment in which he sought the dismissal of the claims. Semmes opposed the motion. After a hearing, the trial court granted the summary judgment, dismissing the two claims. Semmes filed a devolutive appeal.
In this Part we explain why James is entitled to judgment as a matter of law on Semmes' breach of contract claim. At the outset we note that "[t]he burden of proof in an action for breach of contract is on the party claiming rights under the contract." Vignette Publications, Inc. v. Harborview Enterprises, Inc., 00-1711, p. 3 (La.App. 4 Cir. 9/12/01), 799 So.2d 531, 534.
While Semmes argues that good faith binds the brothers "to cooperate with each other in order to attain the mutual end for which they entered the agreement," he acknowledges that the stock transfer agreement has "inherently conflicting interests" and that a sole remaining brother would receive a "substantial financial benefit." Critically, however, Semmes admittedly can point to no obligation expressed in the agreement which James is bound to perform for Semmes. So Semmes argues only that this so-called breach of contract claim arises out of James' failure to perform what Semmes characterizes as James' "implied obligation of good faith in performing under the 2003 Agreements."
"Contracts must be performed in good faith." LA. CIVIL CODE ART. 1983. But Semmes misapprehends the meaning of that codal provision. He argues that "good faith" is an obligation, independent and additional, to any specified obligation arising from the contract and that a breach of this so-called good-faith obligation is the same as a breach of contract. We disagree.
"A contract is an agreement by two or more parties whereby obligations are created, modified, or extinguished." LA. CIVIL CODE ART. 1906. "An obligation is a legal relationship whereby a person, called the obligor, is bound to render a performance in favor of another, called the obligee. Performance consists of giving, doing, or not doing something." LA. CIVIL CODE ART. 1906. Thus, a contract is a source of obligations. LA. CIVIL CODE ART. 1757.
But Semmes acknowledges that he is unable to identify in the stock transfer agreement (or the other agreements) any obligation for which James is bound to render performance in his favor. We have examined the stock transfer agreement and the compensation agreement as well as the oral agreement for at-will employment in order to identify what, if any, obligation James is bound to perform in favor of Semmes. Like Semmes and James, we too are unable to identify any legal relationship whereby James qua obligor is bound to render a performance in favor of Semmes qua obligee. See LA. CIVIL CODE ART. 1906. James need not give, do, or not do something in favor of Semmes. While James and Semmes are obligors of Mortimer, and they each owe a
The parties focus on the provisions of the stock transfer agreement, which we have previously described. As far as Semmes' claim under consideration matters, the essence of that agreement is that if Semmes, once having commenced fulltime employment with the Favrot-Shane firm, and James, already in such employment, were to continue in full-time employment for a three-year period with the firm, at the end of the period their father, Mortimer, would sell 45% of his shares to Semmes and 55% to James; if only one of the two sons fulfilled the condition, then Mortimer would sell to that brother 100% of the stock.
We observe that the obligations under the stock transfer agreement are all subject to suspensive conditions. A condition is suspensive when the obligation, which is dependent upon an uncertain event, cannot be enforced until the uncertain event occurs. See LA. CIVIL CODE ART. 1767. At the time of the agreement, there were suspensive conditions which had to be fulfilled, i.e., the uncertain events had to occur, before the obligations must be performed: (1) Semmes' hiring as a full-time employee, (2) James' continued employment as a full-time employee, and (3) the continuous employment of James and/or Semmes for three years. Only upon the occurrence of these uncertain events would Mortimer be able to enforce James' performance to purchase stock or Semmes' performance to purchase stock; reciprocally, not until the occurrence could either James or Semmes enforce the provision that Mortimer sell his stock. These contractual obligations are reciprocal between the father and each son, and between each son and his father. See LA. CIVIL CODE ART. 1908. But there is no obligation between the brothers.
In order to clarify whether James is bound to Semmes under the provisions of the stock transfer agreement which we have under current consideration, we consult LA. CIVIL CODE ART. 1787, which provides:
On the one hand, James and Semmes are different obligors owing a separate performance to one obligee, Mortimer. Each son's obligation to perform is not conditioned upon the other's performance. On the other hand, Mortimer is one obligor who owes separate performance to each of his sons, who are different obligees. The resulting effect is the same as a separate obligation owed to each obligee by an obligor and by each obligor to an obligee. Thus, when an obligation is several, there is no resulting obligation between obligors or between obligees.
The essential elements of a breach of contract claim are (1) the obligor's undertaking
Semmes, however, strenuously argues that James failed to perform his Article 1983 obligation of good faith. Semmes asserts that James' good faith obligation is to not prevent Semmes from obtaining the benefits he expected from the stock transfer agreement. Professor Litvinoff describes such a meaning of good faith:
Saul Litvinoff, Good Faith, 71 TUL. L.REV. 1645, 1665-1666 (June 1997) (emphasis added).
In the sphere of morality there is little doubt that contracting parties, especially reciprocal obligors and obligees such as the brothers Semmes and James, ought to conduct their affairs in such a spirit.
Judicial inquiry, however, into an obligor's (or even in some cases an obligee's
Thus, judicial determination of good-faith (or bad-faith) failure to perform a conventional obligation is always preceded by a finding that there was a failure to perform, or a breach of the contract. See, e.g., Delaney v. Whitney Nat'l Bank, 96-2144, p. 18 (La.App. 4 Cir. 11/12/97), 703 So.2d 709, 718 (where terms of a nonqualified retirement plan and an Excess Plan agreement between employer and employee were at issue, the evidence showed "disagreement and confusion" but not "deliberate malice." This court stated, "Bad faith generally implies actual or constructive fraud or a refusal to fulfill contractual obligations, not an honest mistake as to actual rights or duties."); Adams v. First Nat'l Bank of Commerce, 94-0486, p. 2 (La.App. 4 Cir. 9/29/94), 644 So.2d 219, 222 (where a home mortgage note was at issue, "a breach of contract occurs if contractual discretion is exercised in bad faith, a term connoting fraud, deception, or sinisterly-motivated nonfulfillment of an obligation." (emphasis in original)); Roba, Inc. v. Courtney, 09-0508, p. 10 (La.App. 1 Cir. 8/10/10), 47 So.3d 500, 508 (where a breach of contract for right of way on land was at issue, bad faith consisted of "designed breach of ... [a contract] from some motive of interest or ill will"); MKR Services, L.L.C. v. Dean Hart Constr., L.L.C., 44,456, p. 7 (La.App. 2 Cir. 7/8/09), 16 So.3d 562, 566 (where a breach of contract for construction of an apartment complex was at issue, "The term bad faith means more than mere bad judgment or negligence, it implies the conscious doing of a wrong for dishonest or morally questionable motives."); Nat'l Building & Contracting Co., Inc., v. Alerion Bank & Trust Co., 99-2561, p. 9 (La.App. 4 Cir. 11/8/00), 772 So.2d 938, 943 (where a construction loan agreement was at issue, obligors in bad faith owed "all damages foreseeable or not that were a direct consequence of their failure to perform under the agreements with NBC"); Galloway v. Tenneco Oil Co., 313 So.2d 317, 321 (La.App. 4th Cir.1975) (where a written option to purchase land was at issue, "if the debtor is not in bad faith the creditor is entitled [only] to loss of profits that were contemplated or foreseen by the parties at the time of the agreement.").
We conclude that James carried his burden to point out the absence of an essential element for a breach of contract claim and that because Semmes admits that James was not bound to him for the performance of any contractual obligation which James failed to perform, Semmes is unable to produce facts to show that he could prove a breach of contract claim. Accordingly, James is entitled to judgment as a matter of law.
In this Part we begin by noting that the only contract to which Semmes was a party, which James could have arguably been accused of tortiously interfering with, is a contract for at-will employment. Both the stock transfer agreement and the employment compensation agreement were subject to Semmes' oral at-will employment contract with the firm. "The employer-employee relationship is a contractual relationship. As such, an employer
Our law, however, does not recognize a cause of action for tortious interference with such at-will employment.
Until our Supreme Court's decision in 9 to 5 Fashions, Inc. v. Spurney, Louisiana courts had expressed that any action based on tortious interference with a contract was absolutely barred. See 9 to 5 Fashions, Inc. v. Spurney, 538 So.2d 228, 234 (La.1989). And in that case the Supreme Court recognized "only a corporate officer's duty to refrain from intentional and unjustified interference with the contractual relation between his employer and a third person." Id. (emphasis added);
The essential elements of a tortious interference with contract claim are (1) the existence of a contract or a legally protected interest between the plaintiff and the corporation; (2) the corporate officer's knowledge of the contract; (3) the officer's intentional inducement or causation of the corporation to breach the contract or his intentional rendition of its performance impossible or more burdensome; (4) absence of justification on the part of the officer; (5) causation of damages to the plaintiff by the breach of contract or difficulty of its performance brought about by the officer. See 9 to 5 Fashions, Inc., supra at 234. The plaintiff bears the burden of proof on each element. See Sun Drilling Products, Inc. v. Rayborn, 00-1884 (La.App. 4 Cir. 2001), 798 So.2d 1141, 1155-1159.
The gravamen of Semmes' complaint is that James importuned their father to terminate Semmes' employment with the Favrot-Shane firm. Semmes did not terminate his employment voluntarily. But "[a] man is at liberty to dismiss a hired servant attached to his person or family, without assigning any reason for doing so. The servant is also free to depart without assigning any cause." LA. CIVIL CODE ART. 2747. See also Quebedeaux, id. (stating, "When the employer and employee are silent on the terms of the employment contract, the civil code provides the default rule of employment-at-will."). "When an employee's job is for an indefinite term, the employment is terminable at the will of either the employer or the employee and an employer is at liberty to dismiss an employee at any time for any reason without incurring liability for the discharge." Williams v. Touro Infirmary, 578 So.2d 1006, 1009 (La.App. 4th Cir.1991).
An at-will employee simply has no "legally protected interest in his employment necessary for a claim for tortious interference with a contract." Durand v. McGaw, 93-2077, p. 4 (La.App. 4 Cir. 3/29/94), 635 So.2d 409, 411; see also Mendonca v. Tidewater Inc., 05-1166 (La.App. 4 Cir. 5/31/06), 933 So.2d 233.
But he argues that the decision of our court in Bains v. Young Men's Christian Ass'n of Greater New Orleans, 06-1423 (La.App. 4 Cir. 10/3/07), 969 So.2d 646, has modified, if not abrogated, the precept that an at-will employee whose employment has been terminated by his employer can assert no claim for tortious interference with his contract of employment. We disagree.
Bains is wholly distinguishable from Semmes' claim. The plaintiff in Bains understood that she had been offered employment by the defendant, who was her prospective employer. She argued that "since she was not yet an employee, the at will article [La. Civil Code art. 2747] should not apply to her." Bains, 06-1423, p. 9, 969 So.2d at 652. The Bains plaintiff asserted her cause of action under a theory of detrimental reliance. Bains, 06-1423 at p. 6, 969 So.2d at 650. This court expanded its consideration of a possible
Semmes' claim against James which we have under consideration in this Part, sounds in tort. The source of liability is LA. CIVIL CODE ART. 2315: "Every act whatever of man that causes damage to another obliges him by whose fault it happened to repair it." See also 9 to 5 Fashions, 538 So.2d at 231. Because this kind of claim is restricted to one "against a corporate officer for intentional and unjustified interference with contractual relations," 9 to 5 Fashions, 538 So.2d at 234; see also Green v. The Administrators of the Tulane Educational Fund, 1999 WL 203262 *6 (E.D.La.4/8/99), we conclude that our decision in Bains is wholly inapplicable and does not modify in any way Louisiana law that an at-will employee has no legally protected interest in his employment and that he has no cause of action for intentional and unjustified interference by a
We conclude that James carried his burden to point out the absence of an essential element for a tortious interference of contract claim and that, because Semmes admits that he was an at-will employee of the firm, Semmes is unable to produce facts to show that he could prove tortious interference with a contract claim. See Mendonca, 05-1166 at pp. 3-4, 933 So.2d at 235. Because Semmes' at-will employment is uncontested and because Bains has no application to at-will employment contracts, on this claim James is entitled to judgment as a matter of law.
We convert Semmes Favrot's appeal to an application for supervisory writs and grant the writ. We amend and affirm as amended the summary judgment and, accordingly, there is judgment herein in favor of James P. Favrot and against T. Semmes Favrot, dismissing with prejudice his suit.