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121 So. 3d 1246
La. Ct. App.
2013
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Background

  • Plaintiff Patricia Villareal sued 6494 Homes, LLC on a promissory note and for recognition of security interest; note amount originally $390,000 secured by a mortgage on multiple properties.
  • The LLC signed the original note; Lasiter signed in his capacity as LLC manager; the LLC answered with a general denial.
  • Plaintiff filed an amended petition adding Lasiter individually, asserting a partnership with Lasiter and breaches of fiduciary duties.
  • The amended petition alleged additional notes and mortgages and sought profits as to two projects and recognition of security interests.
  • Lasiter moved to strike or dismiss via peremptory exception of no cause of action; the trial court granted the exception.
  • On appeal, the court reversed and remanded, holding plaintiff stated a valid cause of action against Lasiter personally for breach of a partnership and fiduciary duties.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Villareal can state an individual claim against Lasiter for a partnership breach Villareal asserts a partnership existed between her and Lasiter as individuals. Lasiter contends he acted only in his LLC capacity and bears no personal liability. Yes; petition states a valid individual partnership claim against Lasiter.
Whether a fiduciary-duty breach claim against Lasiter as a partner is viable As a partner, Lasiter owed fiduciary duties to Villareal. Lasiter argues no personal liability and no partnership with Villareal. Viable at this stage; fiduciary-duty claim survives the exception.
Appropriate de novo review standard for an exception of no cause of action De novo review should recognize plaintiff’s pleadings as true. Court should apply standard for exceptions to determine sufficiency. De novo review applied; court found error in granting the exception.
Effect of LLC documentation on individual liability Allegations show actions by Lasiter individually beyond LLC capacity. Documents show transactions through the LLC. no personal liability. Court allowed an individual claim despite LLC documents, based on pleadings.

Key Cases Cited

  • Rangel v. Denny, 104 So.3d 68 (La. App. 2d Cir. 2012) (review of no-cause-of-action exception; burdens and standards on petition)
  • City of New Orleans v. Board of Directors of La. State Museum, 739 So.2d 748 (La. 1999) (burden on exception and deference to petition’s allegations)
  • In re Succession of Carroll, 72 So.3d 384 (La. App. 2d Cir. 2011) (no-cause-of-action standard; consideration of pleadings and evidence in context)
  • Short v. Short, 912 So.2d 82 (La. App. 2d Cir. 2006) (allowing enlargement of pleadings via admitted evidence)
  • Tedeton v. Tedeton, 87 So.3d 914 (La. App. 2d Cir. 2012) (no-partnership determination; individualized case evaluation)
  • Harris v. Wallette, 538 So.2d 728 (La. App. 2d Cir. 1989) (existence of partnership; fiduciary duties among partners)
Read the full case

Case Details

Case Name: Villareal v. 6494 Homes, LLC
Court Name: Louisiana Court of Appeal
Date Published: Aug 7, 2013
Citations: 121 So. 3d 1246; 2013 La. App. LEXIS 1585; 2013 WL 4008767; No. 48,302-CA
Docket Number: No. 48,302-CA
Court Abbreviation: La. Ct. App.
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