Graham v. Murphy

IN THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT _______________ No. 00-30872 Summary Calendar _______________ MAURICE JULIAN GRAHAM, Plaintiff-Appellant, VERSUS MICHAEL W. MURPHY; CADILLAC OF METARIE, INC.; MURPHY-GRAHAM, INC.; MURPHY-GRAHAM NISSAN, INC., Defendants-Appellees. _________________________ Appeal from the United States District Court for the Eastern District of Louisiana _________________________ April 3, 2001 Before SMITH, BENAVIDES, “Murphy-Graham”), on Graham’s claims aris- and DENNIS, Circuit Judges. ing out of the business dealings among the par- ties. The district court found, in a well- PER CURIAM:* reasoned opinion, that under the plain Maurice Graham appeals a summary language of a release clause, Graham waived judgment in favor of Michael Murphy, Cadillac all the claims at issue. of Metarie, Inc., Murphy-Graham, Inc. and Murphy-Graham Nissan, Inc. (collectively, Graham and Murphy entered into a business relationship to own and manage car dea- * lerships, forming Murphy-Graham. In his per- Pursuant to 5TH CIR. R. 47.5, the court has sonal capacity, Graham loaned money to determined that this opinion should not be published and is not precedent except under the limited Murphy-Graham, acting in his capacity as of- circumstances set forth in 5TH CIR. R. 47.5.4. ficer and director to approve and execute the agreements on behalf of Murphy-Graham. AFFIRMED. When the relationship between Murphy and Graham soured, Graham entered into an agreement with Murphy-Graham for Murphy- Graham to buy out Graham’s interest in the business. As part of that agreement, Graham agreed to waive all future claims arising out of the relationship: For and in consideration of the purchase price, Julian Graham does hereby waive, release, acquit, and forever discharge any and all claims, rights, or interests he may have in any action at law or in equity, against Michael W. Murphy and [Murphy-Graham] arising from or in any way related to Julian Graham’s position as a shareholder, officer, director, and/or employee of [Murphy-Graham] . . . . The parties agree that the language is un- ambiguous and that, under Louisiana law, we may not look outsi de the four corners of the contract. See LA. CIV. CODE ANN. art. 2046. Graham contends, however, that the loans re- late to his status as a creditor of Murphy- Graham, not as an shareholder, officer, director, or employee, as required to fall under the release clause. Nonetheless, Murphy- Graham assertsSSand Graham does not contestSSthat Graham, acting in his capacity as officer and director of Murphy-Graham, either executed or authorized each of the loans on behalf of the corporation. For that reason alone, the loans arose from his position as director and officer of Murphy- Graham, placing them well within the subject matter of the release clause. The district court therefore properly granted summary judgment, because any claims relating to the loans between Graham and Murphy-Graham are barred by the defense of release. 2