Ackel v. Academy Louisiana Co.

821 So. 2d 109, 2001 La.App. 5 Cir. 1188, 2002 La. App. LEXIS 1452, 2002 WL 992573
CourtLouisiana Court of Appeal
DecidedMay 15, 2002
DocketNo. 01-CA-1188
StatusPublished

This text of 821 So. 2d 109 (Ackel v. Academy Louisiana Co.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ackel v. Academy Louisiana Co., 821 So. 2d 109, 2001 La.App. 5 Cir. 1188, 2002 La. App. LEXIS 1452, 2002 WL 992573 (La. Ct. App. 2002).

Opinions

| ¡¡DALEY, Judge.

On appeal are two separate Summary Judgments. This suit concerns a breach of lease agreement. Jeannette Ackel, lessor, sued Academy Leasing Company, the lessee, for -breach of a lease agreement to lease shopping center space owned by Ack-el in Metairie at 8920 Veterans Boulevard. Ackel added Jefferson Parish to the suit, alleging that a Jefferson Parish ordinance regulating commercial traffic on residential streets was unconstitutional and/or unconstitutionally enforced; against Jefferson Parish, Ackel prayed for injunctive relief and damages for lost revenue. During the proceedings, Ackel was granted injunctive relief from enforcement of the ordinance. Academy filed Summary Judgment against Ackel on the lease dispute in December of 2000, and Jefferson Parish moved for Summary Judgment against Ackel on the issue of the ordinance in January ' of 2001. Both motions were heard on February 21, 2001. Summary Judgment was granted in favor of Academy and against Ackel, and in favor of the Parish against Ackel.

1¿Ackel appeals the grant of both motions, arguing that the granting of Summary Judgment in Academy’s favor was dependent on the trial court’s evaluation of Academy’s good faith and intent, issues inappropriate for determination under Summary Judgment. Ackel also appeals the Summary Judgment granted in favor of Jefferson Parish. After thorough consideration, we reverse the Summary Judgment in favor of Academy and remand, but affirm the Summary Judgment in favor of Jefferson Parish, though for different reasons than stated by the trial court.

Ackel and Academy entered into a lease of the commercial retail space on March 13, 1997. The lease required Ackel to perform certain improvements to the space and required Academy to provide other improvements. The parties entered into a First Amended lease on June 11, 1997, because both parties had problems fulfilling their obligations under the terms of the original lease. The First Amendment gave a deadline of August 15, 1997 for Ackel to complete her portion of the im[111]*111provements. Ackel alleges that the parties met at Ruth Chris’s Restaurant in January of 1998, and at that meeting Academy’s representatives agreed to accept the improvements required of Ackel as of that date, though it was after the deadline established in the First Amendment. On January 31, 1998, however, Academy wrote to Ackel seeking to cancel the lease because the improvements required were not completed before the date in the First Amendment. Ackel then sued Academy for breach of the lease; according to Ackel, though, in an effort to keep the deal going, the parties entered into a Second Amendment to the lease dated November 12, 1998. This second amendment to the lease required that building permits for improvements to the premises had to be issued by January 31, 1999. The Second Amendment gave Academy the right to cancel the lease if Jefferson Parish did not issue the building permits on or before January 31. Academy was required, by the specific terms of the | ¡¡Second Amendment, to use diligence and good faith in its efforts to secure the permits. It is an undisputed fact that the Parish issued no building permits to Academy by this deadline.

The trial court granted Summary Judgment to Academy, dismissing Mrs. Ackel’s suit for breach of lease because the required building permits were in fact not issued by January 3f, 1999. On appeal, Ackel argues that the trial court did not consider the language in the Second Amendment that required Academy’s diligence and good faith when seeking the building permits. Mrs. Ackel contends that a determination of good faith and intent is inappropriate for Summary Judgment. Jefferson Parish argued in its Motion for Summary Judgment that Academy withdrew its application for a building permit sometime in June of 1999.

JUDGMENT IN FAVOR OF ACADEMY

The pertinent paragraph of the Second Amendment reads:

11. Tenant has informed Landlord that the issuance of its building permit for the construction of its store at the premises has been delayed. Landlord has offered to work with Tenant to assist Tenant in its dealings with the applicable governmental officials. Tenant shall diligently and in good faith pursue the necessary building permit and shall reasonably cooperate with Landlord in connection therewith.
(Emphasis added.)

[112]*112It is an undisputed material fact that the building permit(s) were in fact NOT issued on or before January 31,1999.

We agree with Ackel that Academy’s use of good faith and diligence in securing the permits by the deadline is a requirement of the Second Amendment. A reading of the Second Amendment Paragraph 11 only gives Academy the right to cancel the Amendment IF, despite its good faith and diligence, it failed to receive the building permits.

Ackel argues that Academy knew in October of 1998, a month before it executed the Second Amendment, that there were problems with its building plans and that Jefferson Parish had already communicated to Academy that their plans would not get approval, and yet Academy took no steps to address these problems. Summary Judgment is not appropriate for determinations of subjective facts like good faith, intent, etc. Penalber v. Blount, 550 So.2d 577. (La.1989).

Academy cites Carrier v. Grey Wolf Drilling, 2000-1335 (La.1/18/01), 776 So.2d 439, arguing that Penalber is outdated law. They are incorrect. Carrier involved a suit for intentional tort brought by the employee’s decedents against his employer. The court found that the factual evidence was undisputed, and that plaintiffs failed to present evidence that the employer desired to hurt the decedent or that they knew their conduct was substantially certain to cause him injury; hence, Summary Judgment was appropriate. The court did state that if the plaintiffs had 17been able to demonstrate a factual dispute concerning defendants’ intent, Summary Judgment would be inappropriate under Penalber.

The trial court erred in its finding that the mere fact that building permits were not issued gave Academy the right to cancel the Second Amendment, without consideration of the good faith and diligence of Academy in attempting to procure the permits. We vacate that judgment and remand for trial with evidence regarding Academy’s knowledge, diligence, and good faith efforts to get the building permits, including any evidence that they withdrew their permit applications before an approval/denial was obtained from the Parish.

JEFFERSON PARISH’S SUMMARY JUDGMENT

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Related

Bundrick v. Lafayette Parish Police Jury
462 So. 2d 1319 (Louisiana Court of Appeal, 1985)
Carrier v. Grey Wolf Drilling Co.
776 So. 2d 439 (Supreme Court of Louisiana, 2001)
Vallo v. Gayle Oil Co., Inc.
646 So. 2d 859 (Supreme Court of Louisiana, 1994)
Penalber v. Blount
550 So. 2d 577 (Supreme Court of Louisiana, 1989)
Louisiana Materials Co. v. Cronvich
249 So. 2d 123 (Supreme Court of Louisiana, 1971)

Cite This Page — Counsel Stack

Bluebook (online)
821 So. 2d 109, 2001 La.App. 5 Cir. 1188, 2002 La. App. LEXIS 1452, 2002 WL 992573, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ackel-v-academy-louisiana-co-lactapp-2002.