Anderson v. Moreno's Air Conditioning, Inc.

140 So. 3d 841, 14 La.App. 3 Cir. 27, 2014 WL 2515196, 2014 La. App. LEXIS 1481
CourtLouisiana Court of Appeal
DecidedJune 4, 2014
DocketNo. 14-27
StatusPublished
Cited by3 cases

This text of 140 So. 3d 841 (Anderson v. Moreno's Air Conditioning, Inc.) 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
Anderson v. Moreno's Air Conditioning, Inc., 140 So. 3d 841, 14 La.App. 3 Cir. 27, 2014 WL 2515196, 2014 La. App. LEXIS 1481 (La. Ct. App. 2014).

Opinion

CONERY, Judge.

| j Evelyn Anderson (“Evelyn”) appears on behalf of her deceased parents, Fred and Elsie Moreno, in the capacity of the succession representative of their Estates (“the Estates”).1 Evelyn appeals the trial court’s judgment denying the Estates’ claims for pre-petition interest on the court’s $75,000.00 award for unpaid back rent against Moreno’s Air Conditioning, Inc. (“MACI”). Neither party appeals the amount of the award, but Evelyn appeals the failure of the trial court to render judgment in solido against Willie and Dora Moreno individually as co-owners of the property located at East Napoleon Street in Sulphur, Louisiana (“Property”). Evelyn also appeals the trial court’s denial of the Estates’ claim for damages to the Property, in addition to the Estates’ claims for fraud, discovery sanctions, and attorney fees against both MACI and Willie and Dora Moreno, individually.

After a trial on the merits, the trial court found in favor of the Estates against MACI only and awarded unpaid back rent to the Estates from 2001 to February 1, 2012, in the amount of $1,000.00 per month for a total amount of $75,000.00 with interest from the date of judicial demand. All other claims made by Evelyn on behalf of the Estates were denied by the trial court. For the following reasons, we affirm.

FACTS AND PROCEDURAL HISTORY

This case encompasses complex issues involving closely held family business enterprises. We adopt as our own the following pertinent portions of the factual and procedural history of this case, as contained in the trial court’s March 4, 2013 [845]*845reasons, rendered after a two day bench trial and the trial court’s review of | apost-trial memoranda. In the trial court’s reasons, Dora is referred to as “Patsy.” Thus, Willie and Dora Moreno are referred to as “Willie/Patsy” in the quoted trial court reasons and will be referred to as such in our opinion.

Moreno’s Air Conditioning, Inc. (MACI) is a family owned business founded by Fred Moreno and operated for years by him and his brother, Willie Moreno. MACI operated from 1721 East Napoleon Street in Sulphur, Louisiana since its inception in 1968. This property was owned by Fred and his wife, Elsie, until 1983 when Willie and his wife, Patsy, became 50% co-owners of the property. Also at this time, shares in MACI had the same ownership percentages-50% — Fred/Elsie and 50% — Willie/Patsy. Fred retired in 1998, at which time the Fred/Elsie MACI shares were gifted to their son, Kenneth Moreno, and Willie/Patsy’s shares were reduced to 25% and their son, Allen Paul Moreno, became a 25% shareholder.
Elsie passed away in 2000 and her daughter, Evelyn Anderson, was appointed executrix of Elsie’s estate. Fred passed away in 2008 and Evelyn became the executrix of his estate, but had held his power of attorney since 2006.
This litigation arises out of the fact that although MACI is a distinct legal entity from its owners, and its owners had distinct roles as corporate managers and landownersAessors, these distinctions were ignored for decades. This arrangement worked well until the owners, and their interests, changed.
MACI operated at the East Napoleon location at all relevant times under a verbal month-to-month lease. There are no notes, corporate minutes or other documentation to reflect any understandings at any time regarding rent, maintenance or other common lessorfles-see issues. By 2009, the relationship between Evelyn Anderson and MACI’s management had deteriorated to the point that MACI quit paying any rent whatsoever to the landownersAessors. This eventually led to the filing of Suit No. 2011-1882, styled “Petition for Partition of Co-owned Property with a Demand for Accounting Reimbursements” and a later eviction action by the estates against MACI.
An Act of Partition among the parties dated January 23, 2012 resolved the partition issues in this case and memorialized the following exchange: Camilyn Apartments and Moreno’s Air Conditioning property at 1721 East Napoleon Street, Sulphur, Louisiana in exchange for the Moss Bluff Lumberyard. Among other things, the partition states: “The said properties are equivalent in value, considering the percentages of ownership of the property partitioned herein.” The Act of Partition also provides:
|sThe said parties do hereby reserve to themselves, their heirs and assigns, all claims for damages for an accounting, all other claims for damages, or other claims, accruing during or arising from or relative to their co-ownership of the properties partitioned herein. However, each of the parties to this partition agreement waives and relinquishes in perpetuity any claim or causes of action to rescind or vacate this partition and exchange agreement and the transfers of property herein made for any reason including but not limited to failure of consideration or failure to pay any indebtedness assumed by either, and each of the parties hereby also waives any and all [846]*846rights under any resolutory conditions relative thereto, and reserving to each only their right to a personal cause of action against the other for any breach thereof.

Suit No. 2012-386 was filed on January 31, 2012 and styled “Petition for Unpaid Rent for an Accounting, Damages, and Reimbursements.” This suit seeks unpaid rent dating back to 2000 in the amount of $91,661.00, damages to the property improvements in the form of deterioration above normal wear and tear totaling $238,354.34 (much of it allegedly caused by Hurricane Rita), loss of rental opportunity due to the Plaintiffs’ alleged inability to find a new tenant because of the property’s poor condition and attorneys’ fees based on fraud and/or La. C.C.P. art. 1472 (discovery sanction).

ASSIGNMENTS OF ERROR

The Estates assert the following six assignments of error on appeal:

1. The Trial Court erred by failing to award pre-[p]etition interest on rent.
2. The Trial Court erred by dismissing all other claims for damages against all Defendants.
3. The Trial Court erred by dismissing claims for damages against the co-owners, Willie and Dora Moreno.
4. The Trial Court erred by dismissing claims for fraud against the Defendants.
5. The Trial Court erred by refusing to allow evidence that showed fraud in this case and a general pattern or practice toward Plaintiffs.
6. The Trial Court erred by failing to award Attorneys’ Fees.

| ¿Standard of Review

The proper standard of review is whether the trial court committed an error of law or made a factual finding that was manifestly erroneous or clearly wrong. Gibson v. State, 99-1730 (La.4/11/00), 758 So.2d 782, cert. denied, 531 U.S. 1052, 121 S.Ct. 656, 148 L.Ed.2d 559 (2000). The supreme court’s two-part test for appellate review of a factual finding requires: “1) The appellate court must find from the record that there is a reasonable factual basis for the finding of the trial court, and 2) The appellate court must further determine that the record establishes that the finding is not clearly wrong (manifestly erroneous).” Mart v. Hill, 505 So.2d 1120, 1127 (La.1987). The reviewing court must review the record in its entirety to make this determination. Stobart v. State, DOTD,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
140 So. 3d 841, 14 La.App. 3 Cir. 27, 2014 WL 2515196, 2014 La. App. LEXIS 1481, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-v-morenos-air-conditioning-inc-lactapp-2014.