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