Construction company sues former VP for stealing business:Lawsuit

Baton Rouge LA

19 June, 2021

1:12 AM

Description

A Baton Rouge construction company is suing its former vice president for allegedly stealing the company’s business for personal gain. In December 2020, Coastal Bridge LLC filed a lawsuit in the 18th Judicial District Court of Iberville Parish against Devon Overall, the company’s former vice president of the Marine/Structures Division. The lawsuit alleges that Overall was negotiating with his father over the purchase of another construction company, Coastal Contractors Inc., while continuing to work at Coastal Bridge. Overall then used his influence at Coastal Bridge to steal clients and a crucial land lease for the advantage of his own family business, the lawsuit said. “Coastal Bridge is entitled to all damages suffered as a result of this breach of fiduciary duty, including but not limited to lost profits, equipment rental and depreciation, and for essentially driving Coastal Bridge out of business it had enjoyed at least from the 1980's at the Plaquemine Yard location,” the lawsuit said. Overall’s job as vice president included the management and renewal of a land lease at Plaquemine Yard, a property that is “essential to the operations of Coastal Bridge.” Overall used that position to change the lease terms for the advantage of his own company, Coastal Contractors, the lawsuit said. To accomplish that, Overall “made blatant misrepresentations” about Coastal Bridge to A. Wilbert’s Sons, the owners of Plaquemine Yard, the lawsuit said. “Specifically, Overall touted Wilbert's long-standing relationship as being with the Overalls as opposed to Coastal Bridge and that the Overalls were now operating as Coastal Contractors doing bridge construction work,” the lawsuit said. “He further represented that Coastal Bridge had been purchased by an employee in the road division and that all parties had agreed that Coastal Contractors would take over the bridge division and Coastal Bridge would continue with the road division. This statement by Overall is false.” Sometime during April of 2019, Overall signed a new lease with Wilbert's in favor of Coastal Contractors for the Plaquemine Yard, the lawsuit said. Once the lease was secured, Overall then spent 2019 on “a campaign to divert business from Coastal Bridge to Coastal Contractors,” the lawsuit said. “He used his Coastal Bridge position (email, letterhead, etc.) when it suited him and switched to his Coastal Contractors' position when that became advantageous,” the lawsuit said. Overall convinced two Coastal Bridge clients to take their business to Coastal Contractors instead, according to the lawsuit. Using his Coastal Bridge email and cell number, Overall made “blatant misrepresentations” to both companies in order to funnel work to his own company, the lawsuit said. He even took $6,000 of Coastal Bridge work and invoiced it for Coastal Contractors, sending an email to Mammoet as “Devon Overall, CEO/President of Coastal Contractors Inc.,” the lawsuit said. When a Coastal Bridge employee inquired about unapproved work for Mammoet, Overall denied any knowledge of it, the lawsuit said. Kelly C. Sills, President of Coastal Bridge, first learned that the lease for the Plaquemine Yard had been converted by Coastal Contractors on January 15, 2020. Sills and his company Coastal Bridge are now demanding damages for Overall’s breach of duty and for causing harm to the business. “The diversion and appropriation of business from Coastal Bridge to Coastal Contactors of work at the Plaquemine Yard and conversion of the lease essential to such business, constitutes a breach of Overall’s fiduciary duty to Coastal Bridge,” the lawsuit said. “Coastal Bridge is entitled to all damages suffered as a result of this breach of fiduciary duty, including but not limited to lost profits, equipment rental and depreciation, and for essentially driving Coastal Bridge out of business it had enjoyed at least from the 1980's at the Plaquemine Yard location.” None of the allegations have been proven in court. We will keep you apprised as this controversy unfolds.