A heated legal battle over the management of multiple family business entities has escalated to the Louisiana Court of Appeal. The case, filed by Paddy Crosby as the trustee of two family trusts along with Aaron and Lauren Guidry, was lodged against Crosby Enterprises, LLC, and several related entities on January 17, 2023.
The plaintiffs allege that the defendants breached fiduciary duties, grossly mismanaged corporate assets, and used fraudulent signatures to inflate financial conditions. They seek relief for these grievances through a lawsuit filed in the 17th Judicial District Court of Lafourche Parish. However, a recent ruling from Judge Christopher J. Boudreaux dismissed most claims due to an arbitration clause found in the operating agreements of the involved entities.
The origins of this dispute trace back to 1976 when Vinton J. Crosby founded Crosby Boat Company. Over nearly five decades, this entity evolved into Crosby Enterprises, LLC, which now oversees numerous subsidiaries in marine transportation. The named defendants include Kurt Crosby (Vinton's son) and Farrel Trosclair (CFO of several Crosby Entities). According to court documents, "In 2022, the plaintiffs learned of potential problems regarding the state of the financial condition of the Crosby Entities." This discovery led them to file their lawsuit earlier this year.
The plaintiffs claim that their signatures were falsely used on documents presented to banks and accuse Kurt Crosby and Farrel Trosclair of various misconducts including gross mismanagement and wasting corporate assets. In response, the defendants argued that all disputes should be resolved through arbitration as stipulated in their operating agreements. These agreements mandate binding arbitration for any disputes arising from them.
Despite acknowledging that arbitration was appropriate for most claims, the plaintiffs argued that their lawsuit should have been stayed rather than dismissed outright. They contend that dismissing their claims without prejudice would allow them to refile after arbitration proceedings are completed.
On August 18, 2023, Judge Boudreaux ruled in favor of arbitration but dismissed claims against all but two defendants—Bertucci Contracting Company LLC and Tala Marine LLC—whose agreements lacked arbitration clauses. Dissatisfied with this outcome, the plaintiffs filed a motion for devolutive appeal on October 24, 2023.
The defendants countered by filing a motion to dismiss this appeal on grounds that it lacked appellate jurisdiction due to its interlocutory nature. However, citing Louisiana Code Civ. P. art. 1915(A)(1), which allows appeals from judgments dismissing suits without prejudice as final judgments if they completely resolve some parties' claims while leaving others pending; Judge Boudreaux's ruling was deemed appealable.
Representing both sides are notable attorneys: Yvette A D’Aunoy from New Orleans leads for plaintiffs while Jerald P Block represents defendants alongside Sarah M Lambert & Matthew P Hymel from Thibodaux among others.