American Supply Co. of Morgan City, Inc. v. Genina Marine Services, Inc.

• Decision Date: 29 May 1985
• Docket Number: No. 84,84
• Citation: 470 So.2d 964
• Parties: AMERICAN SUPPLY CO. OF MORGAN CITY, INC. v. GENINA MARINE SERVICES, INC. CA 0125.
• Court: Court of Appeal of Louisiana — District of US

Page 964

470 So.2d 964

AMERICAN SUPPLY CO. OF MORGAN CITY, INC. v. GENINA MARINE SERVICES, INC.

No. 84 CA 0125.

Court of Appeal of Louisiana First Circuit.

May 29, 1985.

Rehearing Denied June 27, 1985.

Robert S. Robertson, Robert S. Robertson, Ltd., Morgan City, for plaintiff.

H.P. Rowley, III, New Orleans, for defendant.

Before WATKINS, CRAIN and ALFORD, JJ.

WATKINS, Judge.

This is an action on open account brought by American Supply Co. of Morgan City, Inc., against Genina Marine Services, Inc. The trial court rendered judgment in favor of American Supply in the sum of $7,212.56 with interest and attorney's fees. Genina appealed, and American Supply answered the appeal, seeking damages for a frivolous appeal. We affirm.

A third corporation, Briley Marine, purchased the items reflected on the open account. American Supply contends Briley Marine purchased the items as Genina's agent. There is no dispute as to the accuracy of the items shown on the copies of the invoices introduced to prove the account. However, Genina contends Briley Marine was not Genina's agent and that the account was not proved in accordance with law.

The record reflects that the president of Genina, Brightman Kornegay, was an invalid, and that his business affairs were managed first by his wife and then (after his son's graduation from Tulane University) by his son, Brightman, Jr. An agreement was entered into by Genina and Briley Marine by which Briley Marine would purchase provisions for Genina's vessels at Morgan City, in a general way manage the vessels, and pay the receipts over to Genina. This arrangement lasted for several years, from 1978 until April of 1983. Briley Marine made purchases from American Supply on behalf of Genina on the basis of work orders made up by Briley Marine, and received invoices from American Supply. Brightman, Jr., or occasionally his father or his father's nurse, would pick up the invoices which American Supply had prepared, which Briley left in a box in Briley Marine's office designated for Genina. Genina would then pay American Supply directly. Over the period 1978-1983, according to Herbert LeBlanc, former purchasing director of Briley Marine, between $70,000 and $100,000 of purchases were made under this system. Finally Briley Marine filed for bankruptcy under Chapter 11 of the Bankruptcy Act. A relatively small amount of invoices, $7,212.56, had not been paid to American Supply when bankruptcy was filed for by Briley Marine. On this sum, American Supply demanded payment by letter addressed to Genina, and delivered to Briley. This is the principal amount for which judgment was rendered.

It is quite clear that an agency relationship was established by which Briley Marine made purchases on open account on behalf of Genina as principal and with Briley Marine as Genina's agent. Between $70,000 and $100,000 worth of goods were purchased by Briley Marine on behalf of Genina from American under this arrangement. Brightman, Jr., picked up the invoices at Briley Marine's office in a box designated for Genina and paid them, with the exception of the amount sued upon herein. A working agency relationship was established. We thus find that Briley Marine made the purchases in question from American Supply acting as Genina's agent.

Genina contends, however, that the copies of invoices introduced in evidence were wrongfully admitted into evidence, and hence that American Supply...