166 So. 3d 285
La. Ct. App.2014Background
- Former business partners, William Newton and Thomas Brenan, formed LLCs NSB Properties, L.L.C, NSB IV, and NB Properties, L.L.C.
- Judy Stevens, Brenan’s sister-in-law, served as day-to-day manager for the LLCs beginning in 2003.
- Newton sold his interest in Newton & Associates in 2006 and cofounded Coface Collections North America; Brenan remained as a consultant and later became Coface’s manager as needed.
- In 2011, Newton formed James, Clark & Associates, LLC and acquired its assets, which led to litigation regarding non-compete and alleged misappropriations.
- Brenan reconvened against the LLCs, alleging LUTPA violations and conspiracy by Newton and his attorney in filing the original suit.
- The trial court granted Newton’s Motion for Summary Judgment on Brenan’s LUTPA claim; the judgment was affirmed on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether LUTPA dismissal was correct | Brenan argues Newton’s suit was retaliatory and violated LUTPA | Newton contends underlying conduct did not constitute LUTPA violations | Yes; LUTPA claim properly dismissed |
| Whether Brenan’s LUTPA claim requires competitor status | Brenan contends LUTPA protection applies irrespective of competition | Newton argues LUTPA does not protect retaliatory litigation unless it involves unfair competition | Competitor status not required; but conduct not unfair under LUTPA |
| Whether the trial court’s reasons for judgment affect the outcome | Written reasons could be erroneous but do not alter the judgment | Erroneous reasons may undermine credibility but not the legal result | Erroneous reasons do not affect the judgment’s validity |
Key Cases Cited
- Hines v. Garrett, 876 So.2d 764 (La. 2004) (standard for reviewing summary judgment de novo)
- Ferrara v. City of Shreveport, 702 So.2d 723 (La. App. 2 Cir. 1997) (unfair or deceptive acts must offend public policy)
- Camp, Dresser & McKee, Inc. v. Steimle and Associates, Inc., 652 So.2d 44 (La. App. 5 Cir. 1995) (unfairness elements under LUTPA must be established case-by-case)
- NOLA 180 v. Treasure Chest Casino, 91 So.3d 446 (La. App. 5 Cir. 2012) (pressing LUTPA requires public policy violation; not all unfair acts qualify)
- Quality Environmental Processes, Inc. v. I.P. Petroleum Co., Inc., 144 So.3d 1011 (La. 2014) (discovery violations do not automatically violate LUTPA)