CA One/Pampy's v. Brown

982 So. 2d 909, 2007 La.App. 4 Cir. 1377, 2008 La. App. LEXIS 508, 2008 WL 902908
CourtLouisiana Court of Appeal
DecidedApril 2, 2008
Docket2007-CA-1377
StatusPublished
Cited by8 cases

This text of 982 So. 2d 909 (CA One/Pampy's v. Brown) 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
CA One/Pampy's v. Brown, 982 So. 2d 909, 2007 La.App. 4 Cir. 1377, 2008 La. App. LEXIS 508, 2008 WL 902908 (La. Ct. App. 2008).

Opinion

982 So.2d 909 (2008)

CA ONE/PAMPY'S
v.
Shirley BROWN, et al.

No. 2007-CA-1377.

Court of Appeal of Louisiana, Fourth Circuit.

April 2, 2008.

*910 Joseph I. Giarrusso, III, Liskow & Lewis, and Roy J. Rodney, Jr., John K. Etter, Rodney Law Firm, LLC, New Orleans, LA, for Plaintiff/Appellee.

Louis R. Koerner, Jr., Koerner Law Firm, Houma, LA, for Defendants/Appellants.

*911 (Court composed of Chief Judge JOAN BERNARD ARMSTRONG, Judge DENNIS R. BAGNERIS SR., Judge MAX N. TOBIAS, JR.)

MAX N. TOBIAS, JR., Judge.

Shirley Brown ("Brown") and S.B. Shirlee AMC Co., Inc. d/b/a Mrs. Burk's Kitchen ("Burk's") timely appeal an adverse judgment in favor of CA One/Pampy's ("Pampy's"), dismissing their action for nullity on a motion for summary judgment. After reviewing the record de novo, we affirm the trial court's judgment.

By agreement dated 8 July 1999, Pampy's was named the master concessionaire at the New Orleans International Airport. Pursuant to the terms of the concession agreement, Pampy's had the right to sublease locations in the airport to conduct food and business operations. On 6 September 2000, Pampy's exercised this right and together with Brown signed a Sublease Agreement ("Sublease") for Burk's to operate a food concession business at the airport. The Sublease specifically referenced and described the subleased premises as "Lot A." A map attached to and made a part of the Sublease Agreement identified the exact location of the subleased premises as "Taxi Lot A, Taxi Stand # 2."

In relevant part, the Sublease required:

§ 5.2 Burk's was obligated to pay each month's portion of the Minimum Annual Guarantee to Pampy's "in advance on the first day of each calendar month," in addition to eight percent of its Gross Concession Revenues "on or before the 10th of the following month" to the extent that the Gross Concession Revenues exceeded the Minimum Annual Guarantee for the month.

§ 5.6 Burk's had to report its gross concession revenues to Pampy's on or before the 10th day of each month.

§ 7.6 Burks' agreed to keep the subleased facility "in a neat, clean, safe, sanitary and orderly condition at all times."

§ 7.8(a) Burk's had "to use the Subleased Facility in accordance with all applicable federal, state and local laws."

§§ 8.2 and 8.3 Burk's was required to pay for electricity and other services within seven days of receiving an invoice.

§ 15.1 Events of Default. The following events shall be deemed to be events of default ("Events of Default") by Operator under this Agreement:

(a) Operator [Burk's] fails to pay Fees and Additional Fees to Concessionaire under Sections 5 [Fees] and/or 8 [Utilities and Services] hereof or any other sums due hereunder for a period exceeding three (3) days following receipt of written notice of default;
(b) Operator fails to completely and promptly comply with or observe or perform any other term, covenant or provision hereunder and fails to cure such default within twenty (20) days following receipt of written notice of any such default.

§ 15.2 Remedies afforded Pampy's in the event of default by Burk's:

Upon the occurrence of any Event of Default specified in the Agreement, in addition to any other remedies available at law, Concessionaire [Pampy's] shall have the option to pursue any one or more of the following remedies without any additional notice or demand whatsoever:
(a) Terminate this Agreement without discharging any of the Operator's [Burk's] obligations hereunder and exclude Operator [Burk's] from the Subleased Facility;
(b) Without terminating this Agreement, exclude Operator [Burk's] from *912 the Subleased Facility and use its best efforts to lease such Subleased Facility to another tenant for the account of the Operator . . .
(c) Terminate this Agreement, in which event the Concessionaire may repossess the Subleased Facility and be entitled to recovery, in addition to any sums or damages for which Operator may be liable to Concessionaire, as damages a sum of money equal to the excess of the value of the rent to be paid by Operator for the balance of the Term hereof over the fair market value . . .

§ 24 Standard "merger" clause, making the Sublease the final and binding agreement as between the parties. In short, the Sublease "constitutes the sole and exclusive agreement of the parties hereto and supersedes any prior understanding or arrangement, either verbal or otherwise, between [Pampy's] and [Burk's] concerning the Subleased Facility."

§ 28.8 Burk's agreed that in the event it defaulted, venue would be proper in New Orleans:

This Agreement shall be governed and construed pursuant to the laws of the State of Louisiana. All disputes between [Pampy's] and [Burk's] shall have jurisdiction in the State of Louisiana, and venue in Orleans Parish, Louisiana. The parties agree that said forum is the most convenient forum for the purposes of enforcing this Agreement.

The Sublease was approved by the New Orleans Aviation Board ("NOAB") on 6 September 2000, with an addendum specifically authorizing Pampy's, "upon the occurrence of any of the Events of Default described in the Sublease Agreement," to evict Burk's:

The Board further acknowledges that upon the occurrence of any of the events of Default described in the Sublease Agreement, Concessionaire [Pampy's] shall have the unilateral and unconditional right to terminate the Sublease Agreement and re-enter and repossess the Subleased Premises and thereafter operate same under the terms and conditions of the Concession Agreement, including compliance with DBE participation and provided that it pays the Board full Rent (provided for thereunder) with respect to Gross Sales generated thereafter as a result of such action.

The record establishes that, pursuant to the Sublease, Burk's began operating a food concession business on 27 January 2001, selling food to taxi cab drivers waiting for passengers at the airport. On 13 March 2001, Pampy's notified Burk's that, in contravention of the Sublease, its sales reports for the month of February 2001 were missing eight days of sales and that Burk's was not reporting vending machine sales. Then, on 22 March 2001, Pampy's notified Burk's that the Health Department had found significant violations at its concession facility, and advised that Burk's had ten days to take corrective action. These health code violations were, likewise, in contravention of the Sublease.

By letter dated 16 April 2001, Pampy's sent written notice to Burk's advising that its February 2001 rent check was returned by the bank due to insufficient funds, and that its March 2001 rent check was past due. The letter further alerted Burk's that if payment were not received within five days, it would be considered in default of the Sublease for nonpayment of rent and Pampy's would be forced to turn the matter over to its attorneys. Copies of this letter were sent to the NOAB's designated representatives and legal counsel.

A Rule to Evict Tenant was filed on 24 April 2001 by Pampy's against Brown and *913 Burk's, which was set for hearing on 27 April 2001. Pampy's asserted that Burk's was in default of the Sublease for nonpayment of rent, failure to submit the requisite monthly sales reports, and for violations of the Health and Safety Code. While Burk's was properly served with the rule, it made no appearance at the trial of the rule.

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982 So. 2d 909, 2007 La.App. 4 Cir. 1377, 2008 La. App. LEXIS 508, 2008 WL 902908, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ca-onepampys-v-brown-lactapp-2008.