BLAISE PARKING, ETC. v. Project Square 221

409 So. 2d 691, 1982 La. App. LEXIS 6670
CourtLouisiana Court of Appeal
DecidedJanuary 12, 1982
Docket12336
StatusPublished
Cited by8 cases

This text of 409 So. 2d 691 (BLAISE PARKING, ETC. v. Project Square 221) 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
BLAISE PARKING, ETC. v. Project Square 221, 409 So. 2d 691, 1982 La. App. LEXIS 6670 (La. Ct. App. 1982).

Opinion

409 So.2d 691 (1982)

BLAISE PARKING AND ENTERPRISES CORPORATION
v.
PROJECT SQUARE 221.

No. 12336.

Court of Appeal of Louisiana, Fourth Circuit.

January 12, 1982.

*692 Charles E. McHale, Jr., Charles J. Rivet, New Orleans, for plaintiff-appellee.

A. Morgan Brian, Jr., and James A. Burton, Simon, Peragine, Smith & Redfearn, New Orleans, for defendant-appellant.

Before SCHOTT, GARRISON and KLEES, JJ.

SCHOTT, Judge.

This case is a sequel to Blaise Parking & Enterprise Corporation v. Project, 349 So.2d 387 (La.App. 4th Cir. 1977) writs refused 351 So.2d 178. Having obtained a final declaratory judgment that Project had violated the terms of a lease agreement between the parties, Blaise instituted this action to collect the damages it sustained because of Project's past breaches and attorney fees it incurred. The trial judge awarded Blaise $37,048.06 for damages and $41,209.00 attorney fees. The issues on this appeal are 1) whether a party to a lease who has obtained a declaratory judgment decreeing that the other party has been violating the lease may recover attorney fees incurred in bringing the original action; 2) whether a party may obtain a judgment for damages sustained from acts of the other party found to be violations of the lease in the declaratory judgment; 3) whether evidence to some extent based on speculation is adequate to support some amount of damages; and 4) whether the award for damages, though considerably less than the amount estimated by an economist, was within the discretion of the trial court.

As can be seen in our previous decision, this case involves the lease of a ten level parking garage in a fifty story office building owned by Project in New Orleans. Blaise as lessee was to operate and manage the garage, but Project had the option to lease back parking spaces which it would make available to its tenants on a monthly contract basis. Project ultimately leased back its full quota of spaces, all but 22 of 781 spaces in the garage, but early on problems developed between the parties including the question of "oversell."

*693 This problem stems from the acknowledged fact that while there are a given number of contract parkers in a garage such as this there is never a time when 100% of the space sold to contract parkers is actually used by them. The dispute between the parties was over which could "oversell" the garage. Project brought the dispute to a head when it insisted that Blaise issue to it 53 magnetic cards for entry to and exit from the garage over above the 531 contracts it had, at that time, opted to lease back from Blaise. We previously held that Blaise was entitled to the oversell and Project was not entitled to the extra cards.

Additionally, Project had taken other action which we previously held was in violation of the lease by failing to provide Blaise with the names and addresses of its contract parkers and by painting green and installing signs in an area of the garage in an effort to reserve that area for a special class of contract parkers.

Finally, in the previous case, we reversed Blaise's right to have the trial court fix reasonable attorney fees upon Blaise filing a petition for further declaratory relief under LSA C.C.P. Art. 1878.

Project specifies error in the trial court's awarding Blaise attorney fees based on the prior declaratory judgment action as well as the present action; dismissing Project's alternative claim for an offset of its own attorney fees in the sum of $7,000.00, and dismissing Project's exception of no cause of action to Blaise's claim for damages based on Project's breach of contract. Project also contends that the damages awarded were not supported by the evidence.

ATTORNEY FEES

The contract between the parties provides as follows:

"IN THE EVENT OF DEFAULT by LESSOR or LESSEE pursuant to the terms and provisions of this lease, including the non-payment of any rental, CONTRACT PARKING RENT or otherwise, due by one to the other, the defaulting party shall be responsible to the other for reasonable attorneys' fees in the event such default is not cured within the grace periods herein provided and in the event of any default, other than a default which can be cured by the payment of money, which cannot by its nature be cured within the grace period of thirty (30) days hereinabove provided, such grace period shall be extended provided the obligated party commences to cure such default within said thirty (30) day period and diligently proceeds to its curing thereafter without interruption."

Project first argues that this language does not contemplate attorney fees for type of breaches it committed because the paragraph is located in a part of the lease whose attention is primarily devoted to Project's obligations to pay rent and other charges and to provide insurance coverage. This argument lacks merit. The quoted provision is at the end of a three page section entitled "Default" and was obviously intended as a catch-all for any default.

Project next argues that an award of attorney fees for services performed prior to the declaratory judgment becoming final is inconsistent with the pleadings Blaise filed for declaratory judgment and is inimical to the purpose of a declaratory judgment action. As to the pleadings in the first action, Project's position has some validity. Blaise did not allege that Project was in default but couched its allegations in such terms as "controversies have arisen between the parties;" their "inability ... to resolve ... differences relative to the interpretation of the contracts;" Project's threats "to place [Blaise] in default under the lease contracts;" and a particularization of acts which Project claims to have the right to do and which Blaise has protested.

However, the judgment of the trial court in the previous case as well as this court's previous decision show that the issues of default were tried and led to the conclusion that Project had no right to paint the green spaces, refuse to supply Blaise with the names and addresses of contract parkers *694 and have extra magnetic cards. Regardless of the pleadings the issue of Project's default was tried pursuant to C.C.P. Art. 1154.

The record shows that Blaise repeatedly warned Project that it was in default as required by the quoted default clause from the lease. Early on Blaise demanded the names and addresses of contract parkers as a tool to deal with the problem of multiple egress (to be discussed in detail hereafter). When Project demanded the 53 extra cards, Blaise issued them under protest with the warning that this would cause Blaise to sustain losses. As soon as Blaise discovered that Project had painted and marked off the green area it notified Project of the default and promised action to recover damages. Thus, under the terms of the lease Blaise was entitled to claim attorney fees.

Louisiana's Declaratory Judgment Act found in C.C.P. Arts. 1871 et seq., sanctions an award for attorney fees. Art. 1872 which authorizes the winning party to seek "further relief" when appropriate. Project cites Burton v. Lumbermens Mutual Casualty Co., 152 So.2d 235 (La.App. 4th Cir. 1963), writs refused 244 La. 895, 154 So.2d 767 as authority for the proposition that attorney fees may not be awarded under these circumstances, but the case is clearly to the contrary. There, the court held that attorney fees incurred by Ohio Casualty Company in defending Lumbermens' insured could not be awarded to Ohio in the original declaratory judgment suit brought by the insured pursuant to Art.

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Bluebook (online)
409 So. 2d 691, 1982 La. App. LEXIS 6670, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blaise-parking-etc-v-project-square-221-lactapp-1982.