Palowsky v. Ouachita National Bank

Lender Liability – Wrongful Seizure

Our client, Palowsky, alleged that Ouachita National Bank had illegally seized his stock portfolio.  Suit was filed in the Fourth Judicial District Court. Palowsky alleged that a bank officer obtained his signature on a guaranty through extortion.  The extortion had been proven in a separate proceeding.  After a lengthy trial, the jury returned a verdict in favor of Palowsky.  The Judgment, which included judicial interest, totaled $42.5 million. The parties reached a confidential settlement shortly after the jury verdict was rendered.

Result: $42.5 million Judgment* – Confidential Settlement

The Rhodes Co. v. Citizens Utilities

Anti-Trust – Class Action

In this class action lawsuit, we represented The Rhodes Company and other parties similarly situated.  Suit was filed in the Twenty-Fourth Judicial District Court. It was alleged that the defendant had engaged in concerted action or a conspiracy with a subsidiary company to illegally fix the price of gas.  The Public Service Commission intervened. The defendant entered into a settlement which required it to reimburse rate payers $27.5 million.  Additionally, the trial court approved $2 million for attorney fees.

Result: $27.5 million Settlement

Crowe v. People’s Homestead

RICO

In this racketeering case, our client claimed that he had been defrauded by an officer and bank board member of People’s Homestead with reference to a partnership agreement and related loan agreement. After investigation, we believed the wrongful conduct rose to the level of racketeering activity under the Federal Racketeering Influenced and Corrupt Organization Act.  Suit was filed in the United States District Court for the Western District of Louisiana. After a jury trial, the trial court entered a Judgment in favor of our client in the amount of $25.5 million.

Result: $25.5 million Judgment* – Confidential Settlement

Monroe Surgical Hospital v. St. Francis Medical Center

Anti-Trust, Breach of Fiduciary Duty

Our client, Monroe Surgical Hospital alleged that one of its competitors, St. Francis, entered into a conspiracy to restrain trade in the full-service hospital market in Northeast Louisiana.  It was alleged that the concerted action took place between St. Francis, its Chief Executive Officer and another officer who also sat on MSH’s board.

Plaintiff retained renowned anti-trust economist, Frank Gollop of Boston, MA, to prepare an anti-trust and damage analysis.  According to Dr. Gollop’s analysis, Monroe Surgical Hospital sustained damages in the amount of $30 million.  Under the Louisiana anti-trust statute, that baseline damage would be tripled to $90 million.  After computing accumulated judicial interest and attorney fees, it was estimated that St. Francis’ total exposure was in excess of $150 million.  A good synopsis of the facts of the case and the legal principles to be applied is found at 147 So.3d 1234.  In that published opinion, the Louisiana Second Circuit Court of Appeal cleared the way for the case to proceed to jury trial.  It should be noted that the anti-trust cause of action occurred before the Louisiana Legislature adopted the federal Copperweld doctrine.

Result: Confidential Settlement

Willett Trust v. Albritton

Breach of Trust

In this action, we represented the heirs to a trust.  It was alleged that the trustee (the bank) committed a breach of trust when it sold certain properties out of the trust to insiders for a fraction of the true value of the property. Prior to trial, a settlement agreement totaling $6 million was reached.

Result: $6 million Settlement

Hollybrook Cottonseed Processing, LLC v. Carver

Redhibition (Defective Product)

Our client, Hollybrook Cottonseed Processing, alleged that it sustained substantial damage when its cottonseed processing plant was shut down because of defective equipment manufactured and supplied by one of the defendants. After two lengthy jury trials, a final Judgment was entered in favor of Hollybrook and against the defendants’ insurer for $6 million.  The District Court found that Hollybrook’s claim for attorney fees was not a covered loss under the policy. The matter proceeded to the U.S. Fifth Circuit Court of Appeal.  In a published opinion, the Fifth Circuit affirmed the jury verdict but reversed the ruling of the District Court , and ruled that plaintiff’s claim for attorney fees was a covered loss under the defendant’s insurance policy.  The matter was remanded to the District Court to determine an award for attorney fees.  The opinion is reported at 772 F.3d 1031.

On remand, and subsequent appeal, the U.S. Fifth Circuit reversed the district court’s award of $757,940 in attorney fees and entered an award to Hollybrook for reasonable attorney fees in the amount of $1,714,940. In making its award the Fifth Circuit made the following observation: “The facts were complicated and highly contested.  The two attorneys representing Hollybrook have practiced since 1977 and 1987 respectively and have handled numerous jury trials throughout their careers.  The ‘ultimate result’ was a total vindication of Hollybrook’s suit: the jury found damages to exceed $6 million, and Hollybrook has actually recovered over $5 million.”  662 Fed. Appx 282 at 287.

Result: $6 million Jury Verdict and Judgment

JRL Enterprises v. Bachmann

Breach of Fiduciary Duty

In this action our client, JRL Enterprises, alleged the defendant, a member of the Board of Directors of JRL Enterprises, had engaged in acts constituting a breach of fiduciary duty.  It was alleged that the defendant worked in concert with plaintiff’s lender in its attempt to take control of the corporation and, in doing so, caused damages.

Result: $3.575 million Settlement

National Building v. Bank One

Lender Liability

Our client, National Building, was a construction company engaged to build condominiums in Madisonville, LA.  The client alleged that it entered into an agreement with the lender that funds would not be distributed from the construction loan without the client’s permission.  The client alleged that substantial funds were released without the client’s permission.  After a trial, the court found in favor of our client.  The Judgment, with accrued interest, exceeded $3 million.

Result: $3 million Judgment*

Hess Construction v. Chapel Hill

Breach of Contract

Our client, Hess Construction Company, entered into a contract with Chapel Hill to screen gravel at a gravel pit located in South Louisiana.  Hess Construction alleged that Chapel Hill breached its contract by terminating Hess’ services.  Chapel Hill countered that Hess Construction had breached its contract which caused Chapel Hill substantial damages. Suit was filed in the United States District Court for the Eastern District of Louisiana. A jury verdict in favor of Hess Construction was rendered in the amount of $1.4 million.  The Judgment was affirmed on appeal.

Result: $1.4 million Judgment

JRL Enterprises v. Procorp Associates

Breach of Fiduciary Duty

In this case our client, JRL Enterprises, alleged that the defendant breached its fiduciary duty to the plaintiff in the manner in which it executed its contract to provide personnel management services.  It was alleged that the defendant engaged in a concerted action in connection with others to assist in the unlawful takeover of the corporation.  Suit was filed in the United States District Court for the Eastern District of Louisiana. After a jury trial, a verdict and Judgment were entered in the amount of $1.5 million.  The Judgment was paid by the defendant.

Result: $1.8 million Judgment*

Fordoche v. Texaco

Breach of Oilfield Joint Operating Agreement

Our client was a party to numerous oilfield joint operating agreements related to a large field in Louisiana.  Texaco was the majority participant in all of the JOAs.  It was alleged that when Texaco sold its interest in the field, it failed to honor the right of first refusal clause in each of the JOAs.  Suit was filed in the United States District Court for the Middle District of Louisiana.  After substantial discovery, Texaco moved for a summary judgment which was granted by the District Court.  On Appeal, the U.S. Fifth Circuit reversed the Judgment and in its opinion suggested strongly that summary judgment should be granted to the plaintiff.  We argued that our client was entitled to all of the oil and gas profits from the time the right of first refusal should have been granted and also to all future loss profits from Texaco’s interest. The Fifth Circuit opinion is reported at 463 F.3d 388. After the Fifth Circuit opinion was rendered, the parties entered in to a confidential settlement.

Result: Confidential Settlement

Rodriguez v. Louisiana Medical Mutual

Medical Malpractice

Death of a nine-month old. 24^th Judicial District Court for the Parish of Jefferson. 620 So.2d 335.

Result: $1.3 million Jury Verdict

Stowe v. Gulf States Utilities

Wrongful Death

Pipeline Explosion. 13^th Judicial District Court for the Parish of Evangeline.

Result: $1.5 million Settlement

Little v. Boston Scientific

Paralysis and Disability – Products Liability Action for Defective Medical Device

24^th Judicial District Court for the Parish of Jefferson. 8 So.3d 591

Result: Confidential Settlement

DiStefano v. Otis Elevator

Negligence Action for Faulty Maintenance of Defective Elevator that Caused Injury

U.S. District Court for the Eastern District of Louisiana.

Result: $407,396 Jury Award