Louisiana Supreme Court Rules Against Touro Infirmary

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The Louisiana Supreme Court recently ruled against Touro Infirmary in a breach of contract case entitled Mendy Properties, LC v. Touro Infirmary, 2010-CC-0666. The Louisiana Supreme Court, in a May 28, 2010 decision, ruled against Touro Infirmary and in favor of Mendy Properties, LC by upholding the rulings of the Fourth Circuit Court of Appeals and the Civil District Court for the Parish of Orleans. The court denied Touro Infirmary’s efforts to force a settlement of its case with Mendy Properties for $325,000.00

Thank God this is America, a country of laws, and where the law also works for the little guy and not just the big corporations.

The Louisiana Supreme Court recently ruled against Touro Infirmary in a breach of contract case entitled Mendy Properties, LC v. Touro Infirmary, 2010-CC-0666. It its May 28, 2010 decision, the Supreme Court ruled in favor of Mendy Properties and against Touro by upholding the rulings of the Fourth Circuit Court of Appeals and the Civil District Court for the Parish of Orleans, and denied Touro’s Motion to Enforce Settlement.

Mendy Properties, LC v. Touro Infirmary was started on November 7, 2008 with Mendy Properties suing Touro for Breach of Contract and other violation of Louisiana law due to Touro’s alleged disregard of the parties’ Lease agreement. Mendy Properties, among other things, is seeking specific performance of various contract terms as well monetary damages for Touro’s alleged breach of their Lease.

The parties entered into an agreement to settle the case for $325,000.00 in early November 2009. Mendy Properties conditioned the settlement on receipt of the settlement funds on or before November 12, 2009. Touro, however, did not tender the funds timely. Mendy Properties received the $325,000.00 wired into its attorneys’ account a day late, on November 13, 2010 and promptly returned the funds. Rather than apologize to Mendy Properties and its owners for their failure to honor the parties’ agreement yet again, Touro and its attorneys decided file Motion to Enforce Settlement to force Mendy Properties to accept the settlement funds, abide by the settlement terms and forcibly dismiss the case.

In conjunction with its Motion to Enforce Settlement Agreement, Touro also filed a Motion to Dismiss Case with Prejudice, Motion for Reimbursement of Bank Fees and Interest Earned, and Motion for Attorney’s Fees and Costs, all related to Plaintiff’s supposed repudiation of the settlement agreement. Mendy Properties filed an opposition arguing that Touro had no legal basis for it Motions as Touro failed to meet a precondition of the settlement—timely delivery of the $325,000.00.

Touro’s Motion to Enforce Settlement and related motions came before Orleans Parish Judge Lloyd Medley Jr. on December 11, 2009. After taking the matter on advisement, Judge Medley ruled in favor of Mendy Properties and denied Touro’s Motion. In denying Touro’s motion, Judge Lloyd J. Medley found that there was no legally enforceable agreement or a meeting of the minds. “The funds were not received timely according to the request that was made by Mendy Properties and the settlement was conditioned upon timely receipt of the funds.” As result, Mendy Properties’ offer was “null and void” as it did not receive the funds on or before November 12, 2009.

Finding Judge Medley’s decision unpalatable and “contrary to both the applicable facts and law,” Touro filed an appeal in the form of supervisory writs with the Fourth Circuit Court of Appeal: Mendy Properties, and LC v. Touro Infirmary, NO. 2010-C-0083.

The Fourth Circuit which found that the trial court did not commit any error in denying Touro’s Motion. It also rejected Touro’s arguments and denied Touro’s writ application. The panel that handled the writ application were the Honorable James F. McKay, III, Max N. Tobias, Jr. and Roland L. Belsome, Fourth Circuit Court of Appeal Judges.

Not satisfied with the Fourth Circuit’s denial of its appeal, Touro lodged yet another appeal, with the Louisiana Supreme Court, and requesting that it overturn both the Fourth Circuit Court Of Appeal and Judge Medley. Again, the Supreme Court rejected Touro’s arguments and denied Touro’s application for supervisory writs.

The Louisiana Supreme Court, in a 6-1 opinion, ruled against Touro and in favor of Mendy Properties. The Supreme Court found not one error in the rulings of the Fourth Circuit or Judge Medley.

Said, Edward B. Mendy, Owner and Managing Member of Mendy Properties, “Sometimes one just has to stand up on principle and fight for what is right. We here today because Touro never had any regard for its agreements with us or our contractual rights. Even when Touro finally faced reality and agreed to settle the case for $325,000.00, it would not take us seriously enough to send the money timely. If the tardiness of their wire was not intentional as they now suggest, all Touro had to do was apologize for sending the money late. It is human to make mistakes. Instead, they decided to show us yet again that they show us they were the boss by forcing the settlement on us. Thank God this is America, a country of laws, and where the law also works for the little guy and not just the big corporations.”

Mendy Properties is represented by Edward B. Mendy and his firm, Mendy & Beekman, PLLC. New Orleans attorneys Ann LeBlanc and Kathryn Caraway, of Caraway & LeBlanc, LLC are representing Touro in the case.

About Mendy Properties, LC
Mendy Properties, LC is a small family-owed real estate investment and management company owned by the Mendy Family, including Edward B. Mendy. The company focuses on commercial real estate.

About Touro Infirmary
Founded in 1852 was funded in 1854 by an endowment from Judah Touro, Touro is one of the largest hospitals in Louisiana and a community based, not-for-profit, faith-based hospital. Touro is best known for its Family Birthing Center and Neonatal Intensive Care Unit. It is also known for its cancer, diabetes, heart disease, and rehabilitation programs. Its Neuroscience Center is one of the most advanced in the city.
Touro entered into an alliance with Children’s Hospital of New Orleans on July 13, 2009, finalized their merger and forming a two hospital, non-profit hospital system following the approval of government agencies. Children’s Hospital’s parent corporation, Louisiana Children’s Medical Center (LCMC), became the common parent corporation of both Touro and Children's Hospital. Steve Worley, President & CEO of Children’s Hospital of over 23 years and also CEO of LCMC since its inception in 1997, became head of the newly created system. James Montgomery was selected as President and CEO of Touro.

Media Contacts:
Edward Mendy
Mendy & Beekman, PLLC
One Liberty Center
Suite 3600
Philadelphia, PA 19103
(267) 675-7100

Charles Mendy
Mendy Properties, LC
3634 Coliseum Street
New Orleans, LA 70115
(504) 628-7463

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Edward B. Mendy
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