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Broadmoor Realty Co. v. French Market Corp.

Citations: 496 So. 2d 415; 1986 La. App. LEXIS 7755Docket: No. CA-5165

Court: Louisiana Court of Appeal; October 9, 1986; Louisiana; State Appellate Court

Narrative Opinion Summary

The case involves an appeal by Arthur C. Dale, Jr., doing business as Broadmoor Realty Company, against the French Market Corporation (F.M.C.) and its President, following the dismissal of his lawsuit by the trial court. Dale, employed by F.M.C. as a Ground Patrol Supervisor, also operated as a real estate broker through Broadmoor Realty. A conflict of interest was identified when Dale attempted to represent potential tenants before F.M.C., as advised by the New Orleans City Attorney, citing violations of the New Orleans Code of Ethics. This led to a prohibition against Dale transacting business with F.M.C., resulting in alleged financial damages and a lawsuit for compensation. The trial court granted summary judgment to F.M.C., determining that no genuine issues of material fact existed and that Dale's actions violated ethical codes preventing public servants from engaging in transactions with their agency where they hold a substantial economic interest. The court's decision was based on R.S. 42:1113(A), which prevents conflicts of interest by barring public servants from certain contractual engagements. The appellate court affirmed the trial court's decision, thus dismissing Dale's claims.

Legal Issues Addressed

Code of Ethics for Governmental Employees

Application: The Code prohibits public servants from engaging in transactions where they have a substantial economic interest with their agency, preventing potential conflicts of interest.

Reasoning: Under the Code, Dale’s actions would constitute breaches, specifically that public servants cannot engage in transactions where they have a substantial economic interest with their agency.

Prohibition of Public Servants from Certain Contracts

Application: R.S. 42:1113(A) precludes public servants from entering contracts under their agency's jurisdiction, aiming to prevent conflicts of interest.

Reasoning: R.S. 42:1113(A) prohibits public servants, with specific exemptions, from bidding on or entering contracts that fall under their agency's jurisdiction.

Summary Judgment Standard

Application: Summary judgment is appropriate when there are no genuine issues of material fact, and the moving party is entitled to judgment as a matter of law.

Reasoning: The F.M.C. successfully moved for summary judgment, which is appropriate when no genuine issues of material fact exist and the mover is entitled to judgment as a matter of law.