R-Plex Enterprises, LLC v. Desvignes
61 So. 3d 37
La. Ct. App.2011Background
- Plaintiffs own 1355 St. Bernard Ave; Joubert manages and leased to Club 1355, with Desvignes as guarantor.
- Five one-year leases; final lease July 1, 2005–June 30, 2006; walk-through July 3, 2006.
- June 29, 2007 plaintiffs filed suit for removal of contents, remodeling, interference with property, and breach.
- Defendants asserted res judicata and no cause of action, claiming claims should have been in reconventional demand in First City Court.
- Alterations occurred under 2003–2004 lease; as-is clause argued property returned in same condition.
- First City Court settlement: Joubert refunded deposit; Desvignes absolved Joubert; plaintiffs not party; no express authority.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Res judicata applicability and binding authority | Joubert lacked express authority to compromise; plaintiffs not bound. | Compromise bound plaintiffs through agency. | Res judicata invalid; compromise not binding. |
| No cause of action sufficiency | Petition states breach and torts; sufficient to state a claim. | As-Is clause and prior lease bar the claims. | Reversed; petition stated viable claim; remand for proceedings. |
Key Cases Cited
- Chevron USA, Inc. v. State, 993 So.2d 187 (La. 2008) (five elements for res judicata; essential considerations)
- Myers v. National Union Fire Ins., 43 So.3d 207 (La.App. 4 Cir. 2010) (final judgment res judicata; cross-referencing elements)
- Silva v. State Farm Mut. Auto. Ins. Co., 38 So.3d 934 (La.App. 5 Cir. 2010) (compromise may form basis of res judicata)
- Ortego v. State, Dept. of Trans. and Dev., 689 So.2d 1358 (La. 1997) (binding authority on settlements and agency)
- Townsend v. Square, 643 So.2d 787 (La.App. 4 Cir. 1994) (attorney authority vs. client consent)