Bernard Co. v. Factory Outlet Shoes of New Orleans, Inc.

503 So. 2d 647, 1987 La. App. LEXIS 8660
CourtLouisiana Court of Appeal
DecidedFebruary 12, 1987
DocketNo. CA-5251
StatusPublished
Cited by1 cases

This text of 503 So. 2d 647 (Bernard Co. v. Factory Outlet Shoes of New Orleans, 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
Bernard Co. v. Factory Outlet Shoes of New Orleans, Inc., 503 So. 2d 647, 1987 La. App. LEXIS 8660 (La. Ct. App. 1987).

Opinion

ARMSTRONG, Judge.

Plaintiff, Bernard Company, Inc., (“Bernard”) is the owner and lessor of a five-story building located at 727-29 Canal Street. Defendant, Factory Outlet Shoes of New Orleans, Inc. (“Factory Outlet”) is the lessee of said building. Plaintiff filed suit against the defendant seeking actual and liquidated damages for defendant’s failure to properly maintain the building and to timely vacate the premises at the expiration of the lease. After a trial on the merits, the trial court awarded plaintiff $60,843.00 in total damages. It is from this judgment that defendant appeals. We affirm.

The record reflects that Bernard executed a lease agreement with Factory Outlet for Bernard’s building. The term of the lease was for five years, beginning on September 1, 1965. Prior to the lease agreement Factory Outlet subleased from Bernard’s tenant for a period of two years.

The lease agreement was renewed in May 1968 and extended twice, the last extension expiring on August 31, 1981. In anticipation of the lease expiration, Bernard caused the building to be inspected in July and August 1981. Extensive damage was found both to the interior and exterior of the building, as well as to the elevator and central air-conditioning unit. Alleging that the damage was caused by Factory Outlet’s failure to maintain the building, Bernard sued for $108,000.00. This amount included a liquidated damages claim based upon Factory Outlet’s failure to timely surrender the building, thus causing an eleven day delay in the new tenant’s ability to take possession. The trial court rendered judgment in favor of Bernard awarding $60,843.00 in total damages.

Appellant first claims that Bernard acquiesced in any deficiencies in appellant’s maintenance of the leased premises.

The original lease and its extensions in pertinent part reads as follows:

The said premises and appurtenances, including locks, keys, and lighting, heating and plumbing systems, and fixtures and attachments, are delivered in good order and lessee is obligated to keep all of same in like good order during the term of this lease; to keep in repair all plumbing, even when injured by freezing; to keep the chimney’s, drains and plumbing [649]*649clean and to deliver them at the expiration of this lease_ Lease, p. 1, par. 2, April 1963.

The parties agree that the terms of the net lease imposed a duty upon Factory Outlet to repair and maintain the building during its occupancy. Appellant argues, however, that during the eighteen years of its occupancy the building was subject to periodic inspections, including that of Bernard’s agents; that any requests for repairs by the lessor had been effected; and that, in fact, Factory Outlet expended considerable funds over the years in maintaining the building. Thus, appellant concludes, if any deficiencies in maintenance existed at the termination of the lease, Bernard acquiesced to the deficiencies by its knowledge of the defects and by renewing and extending the lease.

In support of its position appellant relies on Matthews v. Alsworth, 45 La.Ann. 465, 12 So. 518 (1983) and Copping v. Bertolino, 245 So.2d 735 (La.App. 4th Cir.1971). We find both of these cases inapplicable to the facts before us. Matthews dealt with a subsequent landlord’s attempt to obtain damages from the lessee of the previous lessors. The court found that although the former lessors to the defendant had renewed the lease prior to their sale of the property to the plaintiff, they reserved no rights at the lease renewal, nor was reference made to any violation of the lease. The former lessors, under these circumstances, were found to have acquiesced in the defendant’s acts as a lessee. The court held that rights of action for damages, violations and rent against former owners and against all tenants under prior leases are not assignable nor transferrable to the subsequent lessor without specific provisions in the terms of the lease.

In Coping the court held that the lessor’s knowledge of the lessee’s failure to install a fire extinguisher constituted acquiescence on the part of the lessor thus defeating his attempt to cancel an on-going lease.

In the instant case, Bernard does not seek to cancel a lease nor does it claim transferred rights from a prior lessor against the former lessor’s tenant. Bernard seeks damages for Factory Outlet’s failure to return the leased property in good order, excepting for ordinary wear and tear. We do not find that the lessor’s alleged knowledge of damage to his property waives the lessee’s duty to return the property in good order at the expiration of the lease. LSA-C.C. Arts. 2719 and 2720. Dietz v. Superior Oil Co., 252 So.2d 198 (La.App. 3rd Cir.1971), writ denied 259 La. 945, 253 So.2d 383 (1971).

In addition we note that the May 16,1968 lease contained the following typed rider:

This is an extension or reneweal of a lease, covering a prior period, bearing on the same premises and it is agreed and understood by the parties hereto that any default or violation by lessee in any obligation or condition of the lease, covering the prior period, shall constitute a default or violation under the within lease.

The May 16, 1968 lease was extended on May 28, 1975 and on November 15, 1976. Each extension incorporated the terms, convenants and conditions of the May 1968 lease including the above rider. Pursuant to this provision, Factory Outlet agreed that any default or violation by them of the 1963 lease continued to be a default or violation of the May 1968 lease and its extensions. Accordingly, we hold that Bernard did not acquiesce in any violation of a prior lease when it executed the 1968 lease and subsequent extensions.

Appellant also claims that the trial court erred by awarding damages to Bernard for remedial work which was not performed and which Bernard had no obligation to perform. Appellant points out that of the total award to Bernard, $45,490.00 represented compensation for damaged items which Bernard had not repaired as of the date of trial. Appellant characterizes the judgment award as “exemplary or punitive damages”. He argues that Bernard was not entitled to compensation for the maintenance deficiencies because the repairs were not required by the lease executed with the replacement tenant, nor were they neces[650]*650sary for the preservation of the building. We disagree.

The testimony and evidence presented at trial clearly establishes that Factory Outlet surrendered the building to the lessor in a state of disrepair. The judgment award represented the estimated cost of repairing maintenance deficiencies rather than an award of exemplary or punitive damages. Factory Outlet’s responsibility to Bernard to respond in damages for failing to maintain the property in good condition is not somehow absolved by Bernard’s subsequent lease with a new tenant. Likewise, Bernard’s failure to repair the deficiencies prior to trial does not waive Factory Outlet’s underlying duty to comply with the terms of the lease nor would it affect the ultimate assessment or award of damages. Factory Outlet was required to maintain and surrender the building in good order. We find no error on the part of the trial court in its award of damages based upon its finding that Factory Outlet failed to comply with the terms of the lease.

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Bluebook (online)
503 So. 2d 647, 1987 La. App. LEXIS 8660, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bernard-co-v-factory-outlet-shoes-of-new-orleans-inc-lactapp-1987.