Global Constr. & Equip., L.L.C. v. Rathborne Properties, L.L.C.
274 So. 3d 837
La. Ct. App.2019Background
- Global Solutions Enterprises, LLC (Global), run by Michelle Hebert, leased commercial premises from Rathborne Properties from 2006–2015 and had a history of intermittent late payments.
- In September 2015 Hebert emailed Rathborne stating Global would vacate by October 15 and would pay all sums owed before leaving; Rathborne's agent responded by arranging showings and a "for lease" sign.
- Rathborne filed a writ of sequestration on September 29, 2015; deputies and Rathborne's attorney seized Global's movable property on October 1, 2015.
- Hebert paid $16,343 to halt the seizure; Rathborne indicated the sequestration petition would be dismissed but never filed a dismissal.
- Global and Hebert sued for damages (wrongful sequestration, emotional distress, unjust enrichment, abuse of process); Rathborne counterclaimed for unpaid rent and property damages.
- Trial court found an agreement to forbear (accepting Hebert's proposal), held the sequestration wrongful, awarded Global/Hebert damages including attorney’s fees; on appeal the court affirmed most awards but reversed the award of $5,000 general damages to Hebert and amended the total judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Existence of forbearance agreement | Hebert: her Sept. 11 email offer to vacate and pay was accepted (by words/actions) | Rathborne: no acceptance; agent’s inaction or actions didn’t create agreement | Trial court credited Hebert; appellate court found no manifest error and upheld existence of agreement |
| Award of general damages to Hebert for emotional harm | Hebert: wrongful sequestration caused severe embarrassment, distress; recoverable | Rathborne: no basis for individual damages absent proof of intent to inflict severe distress | Court reversed award: insufficient evidence of intentional infliction of severe emotional distress; recovery for seizure of Global’s property inapplicable to Hebert personally |
| Damages for premises condition (reconventional demand) | Rathborne: seek $6,032.35 for damage beyond normal wear and tear | Global: deny some items as wear and tear; contest amounts | Trial court assessed evidence, awarded $2,103.33 for specific damage; appellate court found no manifest error and affirmed |
| Attorney’s fees under La. C.C.P. art. 3506 | Hebert/Global: fees for dissolving wrongful writ recoverable, including fees through trial; seek additional fees on appeal | Rathborne: fees improperly include work on damage claims, not solely dissolution | Court held pleadings sufficed as reconventional demand; affirmed $16,671.50 award for attorney’s fees, declined additional appellate fee award |
Key Cases Cited
- Rosell v. ESCO, 549 So.2d 840 (La. 1989) (appellate review of trial court factual findings governed by manifest error/clearly wrong standard)
- White v. Monsanto Co., 585 So.2d 1205 (La. 1991) (elements for intentional infliction of emotional distress)
- First Nat'l Bank v. Pearl River Fabricators, Inc., 971 So.2d 302 (La. 2007) (procedural rules construed to afford litigants day in court; pleadings not dispositive of substance)
- McDermott, Inc. v. M-Elec. & Const. Co., 496 So.2d 1105 (La. App. 4th Cir.) (contract can be formed by action or inaction implying consent)
- Sid-Mar's Rest. & Lounge, Inc. v. State ex rel. Governor, 182 So.3d 390 (La. App. 5th Cir. 2015) (questions of law reviewed de novo)