Scully takes Pelican case to appeals court
THIBODAUX — Jonathan Scully is heading back to court in an effort to regain control of 10 companies he founded before they were taken over by a Lafourche Parish business interest.
Scully has filed documents with the Louisiana 1st Circuit Court of Appeal, seeking to overturn January district court rulings that send his dispute with businessman Ross Laris and his Millennium Supply Boats to arbitration.
At issue is a deal between Scully and Laris in which Millennium would receive a controlling interest in 10 St. Mary businesses, all bearing the name Pelican. They were involved in equipment rental, construction and labor services, and more.
Scully maintains he gave up control of the companies in exchange for the promise of up to $45 million in loans needed for expansion of the businesses. Pelican eventually received no more than $2.5 million in funding from the companies’ new owners.
Attorneys for Loris maintain that the deal gave Millennium the sole discretion over how much or whether to lend Pelican money.
In January, 17th Judicial District Court Judge Rebecca Robichaux ruled in favor of Loris and Millennium’s request to send the dispute to arbitration and turned down Scully’s request to have the contract declared void.
Scully hopes to have those rulings overturned.
Instead of being able to expand his Pelican companies, Scully said, he saw them burdened with debt payments for equipment purchases made to benefit his new investors, not Pelican.
And in April 2024, having lost majority ownership in what he says were one-sided deals, Scully was fired from his post as manager of the businesses.
According to Scully's court filings, Laris told Scully in 2021 that he would soon sell his insurance business. He offered to invest $50 million in Pelican Companies, with which Laris was familiar as its insurance agent, in exchange for a 50% ownership stake.
Based on that offer, Pelican spent $200,000 hiring new employees, leasing land for a lot to house the new equipment, and other expenses. But Laris delayed making any investment until, in May 2021, a letter of intent introduced Millennium as an entity controlled by Laris and offering funding of $5 million for operating expenses and $45 million for equipment in return for a 50.1% ownership interest in the Pelican companies.
Laris told Scully he wanted the majority ownership share in case Scully “would start doing drugs.”
Scully was to remain as president in charge of Pelican’s day-to-day management.
In September 2021, Laris presented Scully with a contract calling for a single loan or line of credit of $45 million, which could be used only at the discretion of Laris or Millennium. The defendants would still get the 50.1% ownership share.
Those conditions should make the contract null, Scully argued.
Laris gave Scully a payment of $1 million and insisted that Scully sign the contract without waiting for a review by legal counsel or others. Scully signed the contract, “believing Laris was a reputable and truthful man. …”
Later, Laris told Scully the he and MSB never had $45 million to lend and had no intention of lending the money, Scully’s court filing said.
Scully was also bound to personally guarantee any amounts lent to Pelican by MSB or Laris.
At the signing of the contract and personal guaranty, Laris told Scully, “You are mine now.” Subsequently, Laris used the personal guaranty as a threat to ruin Scully “whenever convenient to Laris to coerce Scully into going along with actions demanding by Laris …,” according to Scully’s filing. After Pelican received $2 million under the contract, Laris created a company called LAC Equipment LLC. LAC used Pelican employees to begin buying $10 million in equipment on credit. Asked by Scully why the money wasn’t lent to Pelican for equipment purchases, Laris first said it was easier to acquire credit and to avoid liens and other complications. Later, Laris admitted that using LAC was better for him and would provide a tax write-off, according to Scully’s filing.
Laris began to require Pelican to lease LAC equipment to Pelican’s customers and demanded that Pelican pay hundreds of thousands each month to LAC to pay off loans. The payments strained Pelican’s finances. Laris refused to provide more operating capital, telling Scully, “You can’t come running to daddy every time you need money.”
Laris ordered Scully to hire a salesperson for $150,000 a year, even though that salary was more than Scully was paid. The salesperson, a relative of Laris, stopped making in-person sales calls within a year.
When another rental company was considering a merger or acquisition with Pelican, the suitor wanted Pelican’s operating agreements. Scully said there were no operating contracts for any of the Pelican companies after September 2021, but Laris produced the agreements and, again citing the personal guaranty provision, said Scully’s refusal to sign them would not be good for Scully.
The deal with the suitor fell through after Laris refused to put up $1 million in working capital that the suitor asked for, Scully's pleading says.
Late in 2023, Laris proposed a merger between Pelican America and Intak, a Texas company in which Laris held a majority interest. A draft operating agreement reduced Scully’s ownership share to 16%, and Scully objected.
After another attempt to acquire an investor failed, again over objections by Scully, a representative of Laris and MSB told Pelican employees that Scully was no longer in charge.
He was accused of failing to pay sales taxes and payroll withholding.
“The only reason we failed to pay it is because we didn’t have any money,” Scully said in an interview earlier this year. “That was a result of Laris not putting up the $42 million.”
In his filing with the 1st Circuit, Scully’s attorney repeated his argument that the deal should be voided because Millennium was to gain control in exchange for the loan but was also given the power to decide how much to lend.
The Scully appeal also says the trial court erred by refusing to admit documents related to the transfer of ownership supporting Scully’s argument.
Laris’ attorneys have also accused Scully of interfering in Pelican management after his ouster. A hearing was set for June 24 on Laris and Millennium’s request to force Scully to give access to a Google Space account containing business records. That hearing was delayed with no rescheduled date in the court record.