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LOUISIANA RECORD

Wednesday, November 6, 2024

Plaintiff accuses fuel corporation of fraud in marina POS system deal, wins appeal

State Court
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The Pointe of Slidell, LLC has filed a lawsuit against 360 Fuel Corporation, alleging breach of contract, fraud, and violations of the Louisiana Unfair Trade Practices Act (LUTPA). The complaint was filed by The Pointe in the Civil District Court for Orleans Parish on April 1, 2021. The case is presided over by Judge Sidney H. Cates.

The dispute centers around a transaction in which The Pointe's sole member, Louis Faust, ordered gas pumps for a marina rehabilitation project in Slidell, Louisiana. Upon delivery, Faust discovered that the pumps were pre-fitted with credit card processing devices from 360 Fuel Corp., contrary to his original plans to use a different supplier. After meeting with William Prosperie from 360 Fuel Corp., Faust was persuaded to purchase an entire point-of-sale (POS) system from the company, believing it would integrate seamlessly with the marina’s operations.

However, issues arose when 360 Fuel Corp. failed to deliver the promised POS system before the marina's scheduled opening on February 1, 2021. Instead of a comprehensive system, The Pointe received a basic touchscreen computer lacking essential inventory tracking and accounting software. Despite numerous attempts to resolve the issue and return the equipment for a refund, Prosperie and 360 Fuel Corp. failed to respond or provide restitution.

The Pointe subsequently returned all equipment via Federal Express but never received a refund. Further investigation revealed that multiple entities under variations of "360Fuel" were registered with the Secretary of State’s office, all controlled by Prosperie. These entities often had misleading or non-existent business addresses, complicating service of process.

In February 2022, The Pointe amended its petition to include Prosperie individually as a defendant due to difficulties in serving him through his corporate entities. A curator was appointed by the court to facilitate service and communication with Prosperie. Despite these efforts, Prosperie claimed ignorance of the lawsuit until just before a summary judgment hearing on March 31, 2023.

At this hearing, Judge Cates granted summary judgment in favor of The Pointe and awarded treble damages under LUTPA due to fraudulent practices by Prosperie and his companies. The court found that Prosperie's actions were deceptive and intended to defraud The Pointe by misrepresenting their capabilities and failing to deliver on contractual promises.

Prosperie's appeal focused on procedural errors and personal liability arguments but was ultimately dismissed by the appellate court. Judges Roland L. Belsome, Rachael D. Johnson, and Karen K. Herman affirmed the trial court's decision while amending it slightly to confirm that Prosperie had received notice from the Attorney General as required under LUTPA.

Plaintiffs are seeking treble damages along with attorney fees and costs due to what they describe as immoral and unscrupulous business practices by Prosperie and his affiliated entities.

The attorneys involved include Julie Quinn from Quinn Law representing The Pointe of Slidell LLC (plaintiff), while William G. Cherbonnier Jr., Donald J. Miester Jr., represent 360 Fuel Corporation (defendant). Case ID is NO-2023-CA-0660.

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