Bonfanti v. Davis

487 So. 2d 165
CourtLouisiana Court of Appeal
DecidedApril 18, 1986
Docket85-20
StatusPublished
Cited by9 cases

This text of 487 So. 2d 165 (Bonfanti v. Davis) 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
Bonfanti v. Davis, 487 So. 2d 165 (La. Ct. App. 1986).

Opinion

487 So.2d 165 (1986)

Dominic S. BONFANTI, Plaintiff-Appellant-Appellee,
v.
James D. DAVIS, Defendant-Appellee-Appellant.

No. 85-20.

Court of Appeal of Louisiana, Third Circuit.

April 18, 1986.

*166 Shows, Clegg & Cohn, David M. Cohn, Baton Rouge, for plaintiff-appellant-appellee.

W.T. Armitage, Jr., Alexandria, for defendant-appellee-appellant.

Before GUIDRY, FORET and HOOD[*], JJ.

FORET, Judge.

This is a suit on a written lease. Plaintiff, Dominic Bonfanti, filed suit against defendant, James Davis, seeking past-due rent, interest on that rent, and attorney's fees. The trial court rendered judgment in favor of plaintiff for past-due rent and $1,000 in attorney's fees, but denied recovery of any interest. Both plaintiff and defendant appealed and have raised several issues:

(1) Whether the lease was void for lack of a certain and definite price;
*167 (2) Whether plaintiff was entitled to legal interest on the past-due rental installments;
(3) Whether plaintiff was entitled to the full amount of attorney's fees stipulated in the lease;
(4) Whether the court abused its discretion in failing to tax as costs of court the expert witness fee of one of plaintiff's witnesses.

FACTS

Plaintiff, Dominic Bonfanti, leased immovable property to defendant, James Davis, and several other lessees. The lessees intended to operate a commercial establishment on the premises and apparently did so for a time.

Under the terms of the lease, all of the lessees bound themselves in solido for its performance. The lease was for a period of 43 months beginning March 1, 1979 and ending September 30, 1982. The lessees failed to pay any rent due after October 1, 1981. However, the premises were turned over to plaintiff and re-let beginning August 1, 1982[1].

Under the lease, the rent due from March 1, 1981 to February 28, 1982 was $1,000 per month "plus an amount equal to any increase in the Cost of Living Index over the Base Index in existence as of January 1, 1980." The rent due for the remaining period of the lease was also set at $1,000 per month plus an amount equal to any increase in the cost of living index over the base index. In the event it was necessary for plaintiff to institute legal proceedings for any rental payments, the lease provided for an attorney fee of 25% of the amount collected in connection with that litigation.

VALIDITY OF THE LEASE

The price is a necessary element of a lease and must be certain and determinate. LSA-C.C. art. 2671. Here, the lease provided, in pertinent part:

"... rental for the next twelve (12) months of this sub-lease from March 1, 1981 to February 28, 1982, shall be ONE THOUSAND AND NO/100 ($1000.00) DOLLARS per month payable in advance on the 1st day of each month beginning March 1, 1981 plus an amount equal to any increase in the Cost of Living Index over the Base Index in existence as of January 1, 1980; rental for the remaining period from March 1, 1982 to September 30, 1982 shall also be ONE THOUSAND AND NO/100 ($1,000.00) DOLLARS per month payable in advance on the 1st day of each month beginning March 1, 1982, plus an amount equal to any increase in the Cost of Living Index over the Base Index in existence as of January 1, 1980."

Under the lease, the rent included an amount based on any increase in the cost of living index. Such a stipulation will not render the rent uncertain if the amount can be readily ascertained and determined from facts or circumstances not within the control of the parties. Mouton v. P.A.B., Inc., 450 So.2d 410 (La.App. 3 Cir.1984). Here, the gravamen of defendant's contention is that the rental is uncertain because there exists two cost of living indexes (C.P. I.): The All Urban Consumers' Index and the Urban Wage Earners and Clerical Workers' Index. The lease did not specify which index would be used to calculate excess rental. Although the difference between the two indexes is not great, it does fluctuate from year to year.

In point of fact, plaintiff's accountant actually used the Urban Wage Earners and Clerical Workers' C.P.I. Use of this index resulted in a slightly lower figure than would have resulted from the use of the All Urban Consumers' C.P.I. In a letter dated April 13, 1981, plaintiff informed defendant that due to a rise in the cost of living index, the rent for the period between March 1, 1981 and February 29, 1982 would be $1,128. In this letter, plaintiff set forth the C.P.I. figures used and informed defendant of sources from which he could *168 obtain the index figures. Defendant paid this rent without protest.

Defendant is an attorney, and the lease he entered into was for commercial purposes. He was certainly not an unsophisticated layman. The difference in the rent which would have resulted from the use of one or the other C.P.I. was extremely small. The C.P.I. defendant used resulted in a smaller increase in the rent than would have resulted from the use of the other C.P.I. Moreover, plaintiff informed defendant of the actual figures used to compute the increase in April of 1981. Under the circumstances, we find that the rent was not so indeterminate as to nullify the lease.

Additionally, we note that the term of the lease began on March 1, 1979 and was to run until September 30, 1982. The rentals due under the lease were apparently never questioned until payments ceased during the latter part of 1981. At that time, the major portion of the lease's term had already expired and the lease had less than one year to run. A decision to void the lease at such a late date would unfairly penalize plaintiff. As we have already said, plaintiff had in fact informed defendant of the C.P.I. figures actually used to compute the increase in rent, and defendant had paid the rent so computed without protest. Under the circumstances, a reasonable interpretation of the intentions of the parties leads to the conclusion that they intended that the increase in rent be based on the increase in the Urban Wage Earners and Clerical Workers' C.P.I. Where a contract is capable of construction in accordance with justice and fair dealing, courts will adopt such a construction instead of one entailing loss to a party to the contract. Haymon v. Holliday, 405 So.2d 1304 (La. App. 3 Cir.1981).

INTEREST DUE UNDER THE LEASE

The lease provided for 18% per annum simple interest on past rental installments not paid when due. At the time the lease was entered into, LSA-C.C. art. 2924 provided that the maximum rate of conventional interest could not exceed 8% per annum[2]. Clearly, the interest as provided by the lease was usurious.

Any contract for the payment of interest in excess of that authorized by law shall result in the forfeiture of the entire interest so contracted. LSA-R.S. 9:3501. In Smith v. Ducote, 398 So.2d 190 (La.App. 3 Cir.1981), writ refused, 405 So.2d 531 (La. 1981), we held that even when contractual interest is forfeited under R.S. 9:3501, the creditor is still entitled to legal interest from date of maturity of the indebtedness. This decision, however, appears to be in conflict with an earlier Supreme Court decision, Thrift Funds of Baton Rouge, Inc. v. Jones, 274 So.2d 150 (La.1973)[3]. In Thrift Funds, the Court decided that R.S. 9:3501 required the forfeiture of all interest, whether such be stipulated interest, capitalized interest, or other charges for the use of or the delay in paying money, however so denoted.

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Bluebook (online)
487 So. 2d 165, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bonfanti-v-davis-lactapp-1986.