midpage
70 So. 3d 955
La. Ct. App.
2011
Read the full case

Background

  • Zullo filed suit on Nov 15, 2005 alleging breach of contract and fraud regarding an investment to purchase vending machines.
  • He paid $21,750 for eight machines; defendants later proposed 8 more machines for $20,000, which he also paid.
  • Defendants delivered only six functioning machines and one non-functioning; machines delivered were not those listed and owners claimed to own them were not clearly established.
  • Plaintiff alleged defendants owned or leased machines and misrepresented ownership, leading to fraud and contractual breach; corporate form (Team Vending, Inc.) allegedly used as alter ego for personal liability.
  • Trial court on Apr 9, 2009 found fraud against Paradela and Team Vending; damages awarded $5,000 plus costs; March 10, 2010 awarded attorney fees of $17,750.76, total $22,750.76, with costs open pending earnings evidence.
  • Subsequent rulings on July 22 and July 27, 2010 addressed satisfaction of judgment, offsets for profits from machines, and recalculated remaining amounts owed

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether attorney's fees were properly awarded Zullo Paradela Yes; trial court had authority under LSA-C.C. art. 1958 to award attorney fees
Whether profits from machines could offset the damages and costs Zullo Paradela Profits could offset costs and attorney fees; later reversal found misapplication requiring recalculation
Whether the March 10, 2010 calculation properly reflected offsets Zullo Paradela Trial court miscalculated; amended amount = $17,300.76 for costs and attorney fees plus $5,000 damages

Key Cases Cited

  • In re Tutorship of Blanque, 722 So.2d 1132 (La. App. 5th Cir. 1998) (attorney fees generally not costs absent contract or statute)
  • Skannal v. Bamburg, 33 So.3d 227 (La. App. 2 Cir. 2010) (alter ego and personal liability concepts; application to fraud cases)
  • Simmons v. Clark, 8 So.3d 102 (La. App. 5 Cir. 2009) (fraud damages and related remedies in corporate contexts)
Read the full case

Case Details

Case Name: Zullo v. PARADELA
Court Name: Louisiana Court of Appeal
Date Published: Jun 14, 2011
Citations: 70 So. 3d 955; 10 La.App. 5 Cir. 918; 2011 WL 2328267; 2011 La. App. LEXIS 770; 10-CA-918
Docket Number: 10-CA-918
Court Abbreviation: La. Ct. App.
Log In