70 So. 3d 955
La. Ct. App.2011Background
- 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)