Bill Garrett Leasing, Inc. v. General Lumber & Supply Co.

164 So. 2d 364
CourtLouisiana Court of Appeal
DecidedJune 30, 1964
Docket6124
StatusPublished
Cited by11 cases

This text of 164 So. 2d 364 (Bill Garrett Leasing, Inc. v. General Lumber & Supply 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
Bill Garrett Leasing, Inc. v. General Lumber & Supply Co., 164 So. 2d 364 (La. Ct. App. 1964).

Opinion

164 So.2d 364 (1964)

BILL GARRETT LEASING, INC., Plaintiff-Appellee,
v.
GENERAL LUMBER & SUPPLY CO., Inc., Defendant-Appellant.

No. 6124.

Court of Appeal of Louisiana, First Circuit.

April 6, 1964.
Rehearing Denied June 1, 1964.
Writ Refused June 30, 1964.

Cooley & Cooley, by David E. Cooley, Slidell, for appellant.

Sidney W. Provensal, Slidell, for appellee.

Before ELLIS, LOTTINGER, HERGET, LANDRY and REID, JJ.

ELLIS, Judge.

Plaintiff filed suit upon a written contract by which he leased to the defendant a 1961 Chevrolet panel "Corvant" (truck) which stipulated it was for a period of 36 months at a monthly rental of $85.11, and alleged that upon the signing of the said lease defendant paid the rent for the first month, March 9, 1961, and also for the last month of said lease; that the defendant paid the rental for each month as agreed upon through the month of September, 1962 but failed to pay the rental for the months of October, November and December, 1962 and has not paid the rental for the month of January, 1963 nor any other rents due. Plaintiff further alleged because of the failure of the defendant to pay the rent as agreed upon in the written lease or rental agreement attached to its petition that it was now in default and in accordance with the terms of said agreement plaintiff had the right to terminate the lease or rental agreement and require the lessee to surrender forthwith the leased vehicle to lessor "... and it now exercises that right." Plaintiff also alleged under the terms of the agreement the entire unpaid rent for the balance of the lease was due and payable, with interest after default at the rate of 6% per annum and all costs and expenses including attorney fees, and that a fair value of such attorney fees was 25% of the amount due in principal and interest. Accordingly, plaintiff prayed for a judgment ordering the defendant to deliver to it the vehicle described in the petition *365 and for judgment in the full sum of $1377.76 together with 6% interest from October, 1962 until paid and an additional sum of 25% of the principal and interest as attorney fees and for all costs of the suit.

The defendant in its answer admitted the written agreement, alleged it was the best evidence of its contents, admitted they had failed to pay the rent for the months of October, November, and December of 1962 and January and February of 1963 but denied there was any other rent due as the lease had been terminated as of February 9, 1963 "on which date respondent surrendered the leased vehicle to plaintiff in accord with plaintiff's demand and said vehicle is now in plaintiff's possession." Defendant further alleged that the lease being terminated and the plaintiff having taken possession of the leased property it was not entitled to any rent for the unexpired term after February 9, 1963, and the defendant is entitled to recover the rent for the last month of the term which it had paid in advance.

The case was duly tried, judgment was rendered in favor of the plaintiff and against the defendant for the full amount of the rent due unpaid and for the entire duration, 36 months, of the lease agreement, in the full sum of $1377.76, together with 6% interest thereon from October, 1962 until paid and 25% of the principal and interest due as attorney fees, together with all costs.

In this court, counsel for defendant-appellant in his brief and argument admits the plaintiff was entitled to a judgment for the rent for October, November, and December, 1962 and for January and the first eight days of February, 1963, subject to a credit of $86.11 for rent for the month of February, 1964 which it paid in advance, and therefore this appeal is only from that portion of the judgment "which awards plaintiff-appellee rent for the period February 9, 1963 to March 1, 1964". As stated by counsel for defendant-appellant in his brief, there is no dispute whatsoever about the facts necessary to a decision on this appeal, and the sole issue before the court is a question of law, "Can a lessor evict lessee and also recover rent for the term of the lease to accrue after date of eviction?"

The lower court answered the question as follows:

"Under the terms of the lease agreement, plaintiff has a right not only to repossess the leased vehicle but also to collect the unpaid rental for the balance of the lease term with interest and attorney fees. Although this would appear to be a harsh remedy, it is within the terms of the agreement entered into by the parties hereto."

The pertinent part of the contract condition at issue in this case and necessary to a determination of the one issue before the court reads as follows:

"11. (a) Time is of the essence of this agreement. In the event the Lessee shall be in default of any of the payments hereunder or in any of the terms, conditions or provisions hereof, * * * then Lessor shall have the right to terminate this agreement and at its option, may require the Lessee to surrender forthwith the leased vehicle(s) to Lessor. In the event of any such default all rights of Lessee hereunder shall terminate and in event of Lessee's failure to surrender the leased vehicle(s) may repossess said vehicle(s) together with all equipment and accessories attached thereto with or without notice or legal process, and without prejudice to such other remedies as Lessor may have for the collection of any sum or sums to become due. Upon any such default the entire unpaid rent for the balance of the lease term shall become due and payable together with interest after default at the rate of six per cent (6%) per annum and all costs and expenses including attorney's fees. Lessor may at its option sell, to the highest bidder, the leased vehicle(s) and retain the entire *366 sale proceeds as liquidated damages hereunder. Sale of the leased vehicle(s) shall not affect lessor's right, in the event of a deficiency in sale proceeds, to recover any of the above and other damages which Lessor shall have sustained by reason of the breach by Lessee of any of the covenants or terms of this lease."

The law governing leases in this state makes no distinction between movable or immovable property. Counsel for plaintiff-appellee apparently contends the clause of the contract, supra, confers upon the lessor the right to terminate the contract of lease and take possession of the leased property and also to secure judgment for the entire unpaid rent for the balance of the leased term, for the contract provides that such rent "shall become due and payable, together with interest after default at the rate of 6% per annum, and all costs and expenses including attorney fees." This is an acceleration clause common to nearly all leases. As we interpret the provision of the contract, supra, it confers upon the lessor upon the non-payment of the rent by the lessee the right to terminate the lease agreement and "at its option" it may require the lessee to surrender forthwith the leased vehicle. The contract further provides upon failure to pay the rent and in the event of the lessee's failure to surrender the leased vehicle the lessor may attach the vehicle "without prejudice to such other remedies as lessor may have for the collection of any sum or sums to become due." Then follows the acceleration clause which gives him the right to collect the entire unpaid rent for the balance of the lease term, and additionally, the lessor may at its option sell to the highest bidder the leased vehicle and retain the entire sale proceeds as liquidated damages hereunder.

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

Related

Bordelon Leasing, Inc. v. Thibodeaux Air Conditioning Sales, Inc.
386 So. 2d 120 (Louisiana Court of Appeal, 1980)
Frank Nero Auto Lease, Inc. v. Townsend
411 N.E.2d 507 (Ohio Court of Appeals, 1979)
United States Leasing Corporation v. Keiler
290 So. 2d 427 (Louisiana Court of Appeal, 1974)
Mid-Continent Refrigerator Company v. Williams
285 So. 2d 247 (Louisiana Court of Appeal, 1973)
Executive Car Leasing Co. of New Orleans v. Alodex Corp.
265 So. 2d 288 (Louisiana Court of Appeal, 1972)
Clay-Dutton, Inc. v. Coleman
219 So. 2d 307 (Louisiana Court of Appeal, 1969)
Baton Rouge Wood Products, Inc. v. Ezell
194 So. 2d 372 (Louisiana Court of Appeal, 1966)
RJ Ducote Contractor, Inc. v. LH Bossier, Inc.
192 So. 2d 179 (Louisiana Court of Appeal, 1966)
Lemoine v. Devillier
189 So. 2d 694 (Louisiana Court of Appeal, 1966)
Bill Garrett Leasing, Inc. v. General Lumber & Supply Co.
165 So. 2d 485 (Supreme Court of Louisiana, 1964)

Cite This Page — Counsel Stack

Bluebook (online)
164 So. 2d 364, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bill-garrett-leasing-inc-v-general-lumber-supply-co-lactapp-1964.