Summary
The Louisiana Fourth Circuit Court of Appeal reviewed the dismissal of Systems Engineering and Security, Inc.'s claims arising from alleged misrepresentations concerning Science & Engineering Associates' eligibility as a small business for a government contract. The majority held that the petition adequately alleged claims for intentional or fraudulent misrepresentation, negligent misrepresentation, and oblique and revocatory actions, and reversed and remanded. Two judges dissented, concluding that the petition failed to state causes of action and that the alleged misrepresentations were legally immaterial.
Topics
Practice areas
Questions Presented
- Whether the petition adequately stated a cause of action for intentional or fraudulent misrepresentation.
- Whether the petition adequately stated a cause of action for negligent misrepresentation.
- Whether the petition adequately stated causes of action for oblique and revocatory actions.
- Whether the trial court improperly considered matters outside the petition in sustaining the exception of no cause of action.
Holdings
- The petition stated a cause of action because it alleged a material misrepresentation, an intent to deceive, reliance by the GSA and SES, and resulting injury.
- The petition stated a cause of action for negligent misrepresentation sufficient to overcome an exception of no cause of action.
- The petition stated causes of action for oblique and revocatory actions because it alleged that SEA made distributions to Apogen that caused or contributed to SEA's insolvency and that SES, as a creditor, could seek relief.
- The trial court must determine only whether the facts alleged in the petition, accepted as true and considered within the petition's four corners, disclose a legal remedy; it may not resolve the merits or introduce evidence.
Key quotations
“When determining whether to sustain an exception of no cause of action, the four corners of the petition bind the trial court.” (962 So. 2d at 1091)
“Whether SES can prove such a claim against the Appellees is not an issue to be considered when determining if an exception of no cause of action should be sustained.” (962 So. 2d at 1092)
“For the reasons discussed we find that SES has competently pled viable causes of action under Louisiana state law.” (962 So. 2d at 1092)
Factual background
The General Services Administration issued a 2000 request for quotation for a blanket purchase agreement restricted to small businesses. Science & Engineering Associates and Systems Engineering and Security submitted proposals, and the GSA awarded the agreement to SEA. SES alleged that SEA and its president, Robert Savoie, falsely represented SEA's small-business status and that SES learned of the alleged misrepresentation in October 2004.
Procedural history
Systems Engineering and Security, Inc. sued Science & Engineering Associates, Inc., Apogen, Inc., and Robert Savoie over alleged misrepresentations concerning SEA's status as a small business in connection with a federal government contract. The trial court sustained an exception of no cause of action and dismissed the claims with prejudice. The Louisiana Fourth Circuit reversed and remanded for further proceedings.
Remand instructions
The matter was remanded to the trial court for further proceedings.