Justia Louisiana Supreme Court Opinion Summaries

After a bench trial, defendant Ashaki Kelly was convicted of molestation of a juvenile and sentenced to fifteen years at hard labor, without benefit of parole, probation, or suspension of sentence. The Supreme Court granted defendant’s writ application to determine whether the evidence presented at trial was sufficient to support his conviction, and whether the court of appeal erroneously vacated defendant’s sentence as illegally lenient on errors patent review. After review, the Supreme Court affirmed that portion of the court of appeal’s ruling which upheld defendant’s conviction. However, the Court found that the court of appeal failed to conduct a proper errors patent review and erred in vacating defendant’s sentence. View "Louisiana v. Kelly" on Justia Law

This matter involved the interpretation and application of the Uniform Local Sales Tax Code (ULSTC). Yesterdays of Lake Charles, Inc. (Yesterdays) and Cowboy’s Nightlife, Inc. (Cowboy’s) were cash-based bars or nightclubs located adjacent to each other in Calcasieu Parish. The clubs were audited in 2009, by the Calcasieu Parish School System Sales and Use Tax Department ("Collector) for years 2005 through 2008, on the basis that the clubs had violated their duties as tax collection agents for the Calcasieu Parish School System. The trial court found ambiguity in the language of the ULSTC requiring the plaintiff nightclubs to “keep and preserve suitable records” of all sales and expenditures. The trial court then found the tax collector had failed to show that the records actually kept by the clubs, in this case, bank statements and deposit slips, were not "suitable records" within the meaning of the ULSTC. The trial court further found the tax collector’s assessment was arbitrary and that the tax collector had failed to establish that its methodology for auditing the taxpayer was proper. Accordingly, the trial court: (1) ordered the tax collector to refund amounts paid under protest by the clubs; (2) determined that prescription had run on the sales taxes for the years 2005 and 2006 for one of the clubs, aside from those taxes admittedly withheld by the clubs; and (3) denied the tax collector’s motion for new trial and awarded attorney fees to the clubs. After its review, the Supreme Court reversed the trial court’s judgment ordering a refund of the taxes and interest paid under protest by the clubs. Furthermore, the Court reversed the trial court’s award of attorney fees. In all other respects, the judgment of the trial court was affirmed, and the matter was remanded to the trial court for further proceedings. View "Yesterdays of Lake Charles, Inc. v. Calcasieu Parish Sales & Use Tax Dept." on Justia Law

The Judiciary Commission of Louisiana recommended that Justice of the Peace Stacie Myers, Pointe Coupee Parish District 4 be removed from office. This recommendation stemmed from the justice of the peace failing to comply with a Supreme Court order to pay a civil penalty for violation of the financial reporting requirements imposed by law, and totally disregarding the actions and legal proceedings connected therewith. The Supreme Court found the record established by clear and convincing evidence that the conduct of the justice of the peace, which was willful and deliberate, violated Canons 1 and 2(A) of the Code of Judicial Conduct, as well as the constitutional standard in La. Const. art. V, sec. 25(C). The Court ordered that she be removed from office, her office be declared vacant, and she be ordered to reimburse and pay the Commission $288 in costs incurred in the investigation and prosecution of this case in addition to any costs and penalties previously imposed. View "In re: Justice of the Peace Stacie P. Myers, Pointe Coupee Paris, District 4" on Justia Law

Lamar Contractors, Inc. was general contractor on a construction project, and entered into a subcontract with Kacco, Inc. to provide metal framing and drywall work on the project. The subcontract included a “pay-if-paid” payment provision, which afforded Lamar ten days to remit payment to its subcontractors after receipt of payment from the owner. Kacco began work on the project but experienced recurring problems with providing manpower and paying for supplies. Kacco submitted an invoice for work that reflected that forty-five percent of the work had been performed. Lamar paid the invoice prior to receiving payment from the owner. Lamar sent Kacco an email noting its concerns with whether Kacco would be able to perform under the subcontract. Kacco notified Lamar that Kacco was waiting on another payment so that it could order and pay for supplies to finish the project. Lamar had received payment from the owner on January 26; however, pursuant to the subcontract, Lamar was not required to make payment to Kacco until February 9, ten business days later. Lamar officially terminated Kacco’s subcontract in a letter dated February 5. After termination of the subcontract with Kacco, Lamar hired another contractor to complete the work. Lamar then sued Kacco for breach of the subcontract. Kacco countersued Lamar for allegedly failing to pay for work performed under the contract, and that failure to pay caused it to breach. After a bench trial, the district court entered judgment on the main demand for Lamar for $24,116.67 with interest, $7,681.75 for attorney’s fees, and $3,105.81 in costs. Additionally, the district court entered a judgment in the amount of $60,020.00 plus interest in favor of Kacco on its countersuit. Lamar appealed but the court of appeal affirmed. Under the circumstances of this case, it was clear to the Supreme Court that Lamar did not violate any obligation owed under the contract to make payment to Kacco and could not have negligently contributed to Lamar’s breach of its obligations under the contract. Accordingly, the district court erred in reducing Lamar’s award of damages. The case was remanded for further proceedings. View "Lamar Contractors, Inc. v. Kacco, Inc." on Justia Law

The Louisiana Supreme Court granted certiorari in this case to determine whether the Alexandria Municipal Fire and Police Civil Service Board properly excluded a firefighter’s alleged failed breath alcohol test results, resulting in the firefighter’s reinstatement to employment after the City of Alexandria had terminated him. The trial court reversed the Board’s decision, finding the Board should have considered the breath alcohol test results. The court of appeal overturned the trial court, reinstating the firefighter’s employment. After its review, the Supreme Court found the Board’s exclusion of the breath test results was incorrect and further, the court of appeal was in error in reversing the trial court’s ruling that the breath alcohol test results were admissible. Therefore, the trial court’s judgment reversing the Board’s decision was reinstated, and the case was remanded back to the Board for proper consideration of the breath alcohol test results. View "City of Alexandria v. Dixon" on Justia Law

This matter stemmed from a public works project for the construction of a gymnasium in Terrytown. JaRoy Construction Inc. served as the general contractor, and pursuant to statute, furnished a surety bond to Jefferson Parish. Ohio Casualty Insurance Company was the surety. JaRoy entered into a written subcontract with Pierce Foundations, Inc. to provide and install pilings for the project. Once finished, Pierce alleged JaRoy failed to pay certain funds due under the subcontract. Pierce sued both JaRoy and Ohio Casualty Insurance, alleging they were jointly and severally liable to Pierce. JaRoy filed for bankruptcy, leaving only Ohio Casualty Insurance as party to the suit. When the project was substantially completed, the Jefferson Parish government filed a notice of acceptance of work with the Jefferson Parish mortgage records office. This occurred over a year after Pierce amended its lawsuit to add Ohio Casualty as a defendant. Pierce never filed a sworn statement of claim in the mortgage records. Ohio Casualty filed a motion for summary judgment, contending that Pierce was required to comply with statutory notice and recordation, and because it failed to do so within 45 days of Jefferson Parish’s acceptance of the project, Pierce could not recover from Ohio Casualty. Pierce argued that the statute did not affect its right to proceed in contract. After a bench trial, the trial court rendered judgment in favor of Pierce for sums owed under the contract plus judicial interest from the date of the original judgment. Ohio Casualty appealed, arguing that the trial court erred in not dismissing Pierce's claims. The court of appeal reversed and ruled in Ohio Casualty's favor. The Supreme Court, however, disagreed and affirmed the trial court judgment. View "Pierce Foundations, Inc. v. JaRoy Construction, Inc." on Justia Law

Nelson Industrial Steam Company (“NISCO”) was in the business of generating electric power in Lake Charles. In order to comply with state and federal environmental regulations, NISCO introduces limestone into its power generation process; the limestone acts as a “scrubbing agent.” The limestone chemically reacts with sulfur to make ash, which NISCO then sells to LA Ash, for a profit of roughly $6.8 million annually. LA Ash sells the ash to its customers for varying commercial purposes, including roads, construction projects, environmental remediation, etc. NISCO appealed when taxes were collected on its purchase of limestone over four tax periods. NISCO claimed its purchase of limestone was subject to the “further processing exclusion” of La. R.S. 47:301(10)(c)(i)(aa), which narrowed the scope of taxable sales. The Louisiana Supreme Court granted NISCO’s writ application to determine the taxability of the limestone. The trial court ruled in the Tax Collectors' favor. After its review, the Supreme Court found that NISCO’s by-product of ash was the appropriate end product to analyze for purposes of determining the “further processing exclusion’s” applicability to the purchase of limestone. Moreover, under a proper “purpose” test, the third prong of the three-part inquiry enunciated in "International Paper v. Bridges," (972 So.2d 1121(2008)) was satisfied, "as evidenced by NISCO’s choice of manufacturing process and technology, its contractual language utilized in its purchasing of the limestone, and its subsequent marketing and sale of the ash." Therefore the Court reversed the trial court and ruled in favor of NISCO. View "Bridges v. Nelson Industrial Steam Co." on Justia Law

David Caballero filed a Petition for Partition of Property against his former wife, Teresa Caballero seeking to partition the community property acquired during the marriage. The Family Court amended its judgment to award Teresa over $1.5 million, which included her claim to have of David's alleged underpaid income from Home Servicing, LLC (Home). David filed a devolutive appeal from the amended judgment which pending. Because David did not file a suspensive appeal, Teresa sought to enforce the judgment against him. Teresa requested issuance of a writ of fieri fascias seizing David’s alleged membership interest in Home. Teresa asserted that 56.8% of Home’s membership interests were owned by Prime Acquisitions, L.L.C. (“Prime”), which was wholly owned by David. Teresa further asserted that prior to the court’s amended judgment, David caused Prime to donate its interest in Home to himself via an Act of Distribution and then formally dissolved Prime. Thus, according to Teresa, all of Prime’s remaining assets and liabilities devolved to David pursuant to the laws governing dissolution of limited liability companies. Teresa filed a notice of a corporate and records deposition, and issued a subpoena duces tecum seeking certain business records from Home. Following limited, unsuccessful settlement discussions regarding the scope of documents to be produced pursuant to the subpoena, Home filed an exception of lack of subject matter jurisdiction and a motion to quash the subpoena duces tecum, arguing the Family Court did not have subject matter jurisdiction over a third party in a garnishment proceeding. After a hearing, the Family Court overruled the exception of lack of subject matter jurisdiction and deferred ruling on the motion to quash. The court of appeal reversed the Family Court’s ruling and sustained Home’s exception of lack of subject matter jurisdiction. Teresa then sought certiorari review from the Supreme Court. Finding that the Family Court had jurisdiction, the Supreme Court reversed the court of appeals and remanded the case for further proceedings. View "Caballero v. Caballero" on Justia Law

At issue before the Louisiana Supreme Court was whether the materials, machinery, and equipment that became part of an inland marine drilling barge during its reconstruction following a fire were exempt from sales and use tax. La. R.S. 47:305.1(A) exempted these materials when vessels were “built in Louisiana.” The Louisiana Department of Revenue promulgated LAC 61:I:4403(A) and (B)(2) to clarify that certain reconstruction projects fell within the scope of the statutory exemption. The lower courts found the regulation exceeded the scope of the statute and declared it unconstitutional. The Supreme Court granted review to determine the constitutionality of LAC 61:I:4403(A) and (B)(2), and to review its application to the facts at issue. After this review, the Court found the regulation constitutional and applicable to the facts in this case. Accordingly, the Court reversed the court of appeal’s judgment and rendered judgment in favor of the taxpayer. View "Coastal Drilling Company v. Dufrene" on Justia Law

The Louisiana Supreme Court granted plaintiffs' writs in consolidated cases to review the appellate court's interpretation of the Medical Malpractice Act provision LSA-R.S. 40:1231.8(A)(2)(b) directing that a request for review of a malpractice claim "shall be deemed filed on the date of receipt of the request stamped and certified by the division of administration." The Louisiana Division of Administration (“DOA”) maintained, and the appellate court agreed, that Section 1231.8(A)(2)(b) required that a request for review to be “stamped and certified” by the DOA prior to being considered “received.” This construction rendered the plaintiffs’ electronically-transmitted requests untimely, as prescribed, despite having been filed via facsimile transmission before midnight on the last day of the prescriptive period, though after the DOA’s regular business hours. After review, the Supreme Court found that when LSA-R.S. 40:1231.8(A)(2)(b) was read in conjunction with Louisiana’s Uniform Electronic Transmission Act (“UETA”), LSA-R.S. 9:2601 et seq., it was clear that the plaintiffs’ facsimile-transmitted requests for review were “received” by the DOA when transmitted into the DOA’s facsimile transmission system on the last day of the prescriptive period, and the plaintiffs’ requests for review were not prescribed. View "In re: Medical Review Panel for the Claim of Peighton Miller, et al. v. Tulane Lakeside Hospital" on Justia Law