BREACH OF FIDUCIARY DUTIES - Total Transportation, Inc. v. Capital Marine Supply and Lucy Marine Services, 29th Judicial District Court for the Parish of St. Charles, State of Louisiana, docket number 50-628, Division “E,” Honorable Robert Chiasson.
This litigation involved a claim initiated by Total Transportation, Inc. against joint members in a limited liability company in a midstream cargo transfer business which the formerly joined. Capital Marine Supply exercised its alleged rights under the operating agreement to seek dissolution of the company on ninety (90) day notice. Plaintiff claimed that in the guise of liquidating the company CMS breached its fiduciary duties and squeezed TTI out of a business which it had established itself as being profitable. CMS assumed the business operation for itself and continued to operate it and retain 100 percent of the profits. Plaintiff also asserted claims against CMS managers of the business claiming they also violated their fiduciary duties.
After a lengthy trial on the merits, the court found that CMS and the CMS managers had violated their fiduciary duties. The court found that even though under the operating agreement CMS had a right to dissolve the business it could not do so for an improper purpose. A judgment in the amount of $1,640,113.00 was awarded in this matter.
DEFECTIVE MACHINERY - Milchem, Inc. v. National Electric Coil Division of McGraw-Edison, Civil District Court, Parish of Orleans, State of Louisiana, No. 82-8104 "L".
This case involved a claim by Milchem, a Baker-Hughes subsidiary, against National Electric Coil Division of McGraw-Edison. Milchem purchased a used wound electric motor, which was used to operate a large barite grinding mill. Barite is used in offshore drilling operations. The motor did not operate properly, resulting in a breakdown of the mill and an inability to grind barite and sell it. Milchem sought damages for motor replacement, as well as lost profits. The case involved a number of complex technical depositions concerning the manner in which the electric motor was wound. Apparently, the defendant had received advise from a technical advisory service in connection with the winding of the motor; however, defendant had apparently given the wrong information to the advisory service about the motor. The case involved a number of complex, technical depositions concerning wound electrical motors, which are not in common use. Additionally, plaintiff's counsel was able to develop a complex financial model to show loss of profits from the inability to sell barite during the period of time when production could not be accomplished. This case was settled for a significant sum prior to trial.
COMPLEX LITIGATION - Dauphin Island Gathering Partners v. Torch, Inc., American Arbitration Association Case No. B 70 110 0178 94D, Administrator: Darryl Wolfe.
Torch, Inc. is a pipe-laying and offshore fabrication company. It was sued by its client, Dolphin Island Gathering Partners relating to an offshore pipe-laying and construction contract. Torch filed a counter-claim in these proceedings for invoices submitted under various provisions of the contract between the parties.
After a six-day trial before a American Arbitration Association panel, the panel denied most of DIGP’s claims and found that that most of Torch’s counter-claims were valid. Therefore, Torch received a monetary award at the outcome of the proceedings.
This case involved substantial expert testimony concerning the actual construction work itself and construction practices in the offshore environment. The case was heard in Houston, Texas, however, Alabama law was applicable to the contract entered into by the parties. The case involved approximately 40,000 documents which were provided approximately six weeks prior to the hearing. No further discovery was allowed by the arbitration panel
DEFECTIVE MATERIALS - Masonite Corporation; 24th Judicial District Court for the Parish of Jefferson, State of Louisiana
This case involved a claim against Masonite Corporation by owners of an apartment complex regarding alleged defective siding. Masonite was able to show that the hardboard siding deteriorated due to improper installation as well as improper maintenance. The case was settled for a small amount of cash and additional hardboard siding with no warranties with the delivery of the product.
VIOLATION OF INTELLECTUAL PROPERTY RIGHTS - Chevron, USA v. Innovative Business Solutions, Inc., American Arbitration Association Case No. 70L 117 0143 95 B, Administrator: Carol G. Buchanan
This case involved a claim by Chevron USA against IBS for damages and intellectual property rights relating to software which was licensed to Chevron for land management of its oil and gas properties. The software was re-written with Chevron’s collaboration to tailor it to Chevron’s business model. Chevron claimed that it had intellectual property rights to the software and that IBS had defects in the software provided. During the course of the litigation, IBS asserted that Chevron had made an unauthorized derivative work and rewrote the software from Cobalt to Windows code; IBS sought to enjoin Chevron from further used of the software. This case involved trade secrets, copyright, breach of contract, and business tort issues.
The case settled favorably to IBS prior to trial. The terms of the settlement are confidential.
BUSINESS LITIGATION - Ocean Salvage Corp. v. Dynamic Offshore Craft, Inc., et al. Civil District Court, Parish of Orleans, State of Louisiana, No. 91-14118 "K".
This case involved a claim by Ocean Salvage against Dynamic Offshore Craft, Inc. in connection with a salvage contract in the Gulf of Mexico. Ocean Salvage claimed that prior to entering into the contract, they were not provided with accurate information concerning bottom conditions. This caused a lengthened period of time to complete the contract which was required before any payment was due. The case settled after a considerable amount of discovery and motion practice.
DEFECTIVE PRODUCT - Chiconny Electronic Corporation; United States District Court for the Eastern District of Louisiana, State of Louisiana.
This case involved a suit by a computer hardware distributor alleging that Chiconny Electronic, a Taiwanese computer manufacturer, had manufactured and sold defective laptop computers to it for retail. Plaintiff claimed it had lost income as a result of the allegedly defective computers. While the evidence revealed that a few computers had problems, these were sent back to Chiconny, properly repaired and returned. Defendant was able to show that there was no loss of income by plaintiff as a result of any defects in the laptop computers. The case settled for a minimal sum.
DEFECTIVE PRODUCTS - Lacoste Builders v. Croft Metals, Inc. and Zurich American Insurance Company, in the United States District Court for the Eastern District of Louisiana, No.. 01-1860 c/w 01-2312, Section “G,”(C), Judge Ginger Berrigan presiding.
Plaintiff, Lacoste Builders, LLC brought this action against Croft Metals, Inc. and Zurich American Insurance Company alleging damages for alleged defective windows sold and installed by Croft Metals involving various residences and buildings which were constructed by Lacoste. Zurich filed a Motion for Summary Judgment to limit its exposure under its comprehensive general liability (CGL) policies which it issued to Croft. In representing Croft, we were able to defeat motions for summary judgment filed by Zurich and establish that full coverage was afforded to Croft for the claims being brought by plaintiff, Lacoste Builders.
GENERAL BUSINESS TORTS - ALFA Financial Corporation d/b/a OFC Capital v. Salon Senoj, Inc. and Susan Jones, 22nd Judicial District Court for the Parish of St. Tammany, 2003-10375, Honorable Peter Garcia presiding.
A default judgment was rendered against defendant Jones in 2003. The Court found that the recently filed Motion for New Trial was timely filed since there was an address error in the mailing of the Judgment which must be mailed to the “last known address” of the defendant. The Court further found that Judgment exceeded the original relief requested, set aside the default judgment and ordered a new trial.
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