Cane River Shopping Center v. Monsour

443 So. 2d 602
CourtLouisiana Court of Appeal
DecidedAugust 15, 1983
Docket83-23
StatusPublished
Cited by5 cases

This text of 443 So. 2d 602 (Cane River Shopping Center v. Monsour) 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
Cane River Shopping Center v. Monsour, 443 So. 2d 602 (La. Ct. App. 1983).

Opinion

443 So.2d 602 (1983)

CANE RIVER SHOPPING CENTER, Plaintiff-Appellant,
v.
Glen MONSOUR, d/b/a Cane Country Casuals, et al., Defendants-Appellees.

No. 83-23.

Court of Appeal of Louisiana, Third Circuit.

May 25, 1983.
On Rehearing August 15, 1983.
Writ Denied November 11, 1983.

Whitehead & McCoy, Kenneth D. McCoy, Jr., Natchitoches, for plaintiff-appellant.

*603 Smith, Ford & Clark, Chris Smith, III, Daryl Gold, Leesville, for defendants-appellees.

Before GUIDRY, STOKER and LABORDE, JJ.

GUIDRY, Judge.

Plaintiff, Charles M. Gremillion-781, a Louisiana partnership in commendam, d/b/a Cane River Shopping Center (hereafter Cane River), filed this suit against Glen Monsour, William Harrel West and Iva Lois Davis West to collect delinquent rental payments due under a contract of lease. Monsour subsequently filed for and obtained relief under Chapter 7 of the United States Bankruptcy Code. Thereafter, he was not pursued as a party defendant in this matter. Mrs. West answered, setting forth a defense of general denial, together with affirmative defenses of the assignment of the lease, release and estoppel. Mr. West also answered setting forth the same defenses, and filed an alternative third party demand against Mrs. West (from whom he was divorced) for indemnity. At the close of the evidence, the trial judge ruled in favor of Mr. and Mrs. West and against Cane River, dismissing its demand; and, in favor of Mrs. West against Mr. West dismissing his third party demand. Cane River appealed; Mr. and Mrs. West neither appealed nor answered the appeal.

The facts of this case are undisputed. On January 19, 1978, Mr. and Mrs. West leased the premises identified as Shop "L" of the Cane River Shopping Center in Natchitoches, Louisiana, from Charles M. Gremillion. This lease was for a five year term and provided for a rental of $6,656.25 per year, payable in monthly installments of $554.68, plus $14.79 per month for common area maintenance. Subsequently, Gremillion assigned the lessor's interest in the lease to Charles M. Gremillion-781, a Louisiana partnership in commendam, d/b/a Cane River Shopping Center.

Mr. and Mrs. West operated a business known as "The Fox Trot", on the leased premises until they sold the business and assigned their leasehold interest to Glen Monsour on September 30, 1980. Pursuant to the specific terms of the lease, the lessee was contractually bound to obtain the consent of the lessor in order to assign or sublet to a third party. Monsour obtained written consent to the assignment from Cane River. Thereafter, Glen Monsour began operation of a business known as "Cane Country Casuals" on the leased premises. Monsour began to experience financial difficulty in the operation of his business and became delinquent in making his monthly rental payments. In an effort to help Monsour financially, on February 20, 1982, Cane River agreed to a termination of the lease for Shop "L" and entered into a new lease with him for a new location. At that time, a total of $5,080.84 unpaid rental had accrued under the original lease. This is the amount for which plaintiff sues.

There was no contact between Cane River and the Wests from September 30, 1980, the date of the assignment, until May of 1982, when a demand letter was sent by Cane River's attorney.

The only issues presented on appeal are whether (1) the trial court erred in finding that the Wests had been discharged from their obligations under the lease of January 19, 1978; and, (2) if so, whether the circumstances of this case warrant application of the doctrine of estoppel.

The trial judge did not favor us with written reasons for judgment. The majority of his oral reasons are devoted to finding that the transaction between the Wests and Monsour was an assignment rather than a sublease, even though that fact was not in dispute. At any rate, the trial judge's reasons do not make clear whether he based his dismissal of plaintiff's claim on the legal conclusion that lessee's assignment of his leasehold interest to a third party with the lessor's consent, without more, discharges the original lessee, or whether he reached the factual conclusion that the circumstances surrounding the transaction clearly indicated the intent of *604 the lessor to novate. The former conclusion would be clearly contrary to the law and jurisprudence of this state. LSA-C.C. Art. 2130 and Arts. 2185 et seq, infra. Counsel for Mrs. West[1] contends that the trial judge's decision is based on the latter conclusion.

The following articles of the Louisiana Civil Code are applicable:

"Art. 2130. Methods of extinguishment. Obligations are extinguished:
By payment.
By novation.
By voluntary remission.
By compensation.
By confusion.
By the loss of the thing.
Art. 2185. Novation, definition. Novation is a contract, consisting of two stipulations; one to extinguish an existing obligation, the other to substitute a new one in its place.
Art. 2189. Methods of effecting novation. Novation takes place in three ways: ...
2. When a new debtor is substituted to the old one, who is discharged by the creditor.
Art. 2190. Capacity for novation; presumption against novation. Novation can be made only by persons capable of contracting; it is not presumed; the intention to make it must clearly result from the terms of the agreement, or by a full discharge of the original debt.
Art. 2191. Novation by substitution of new debtor. Novation by the substitution of a new debtor may take place without the concurrence of the former debtor.
Art. 2192. Discharge of original debtor. The delegation, by which a debtor gives to the creditor another debtor who obliges himself towards such creditor, does not operate a novation, unless the creditor has expressly declared that he intends to discharge his debtor who has made the delegation.
Art. 2194. Indication of another person to make or receive payment. The mere indication made by a debtor of a person who is to pay in his place, does not operate a novation.
The same is to be observed of the mere indication made by the creditor of a person who is to receive for him."

In Placid Oil Company v. Taylor, 325 So.2d 313, at 316 (La.App. 3rd Cir.1975), writ refused, 329 So.2d 455 (La.1976), we set out the following considerations in determining whether a novation has been effected:

"The determining factor in deciding whether a novation has been effected is the intention of the parties. The intention to novate may be shown by the character of the transaction, and by the facts and circumstances surrounding it, as well as by the terms of the agreement itself. The burden of proof to establish novation is on the person who claims it Antoine v. Elder Realty Company, 255 So.2d 625 (La.App. 3 Cir.1971); Midlo & Lehmann v. Kotz, 195 So.2d 383 (La. App. 4 Cir.1967)."

While the testimony at trial shows that the Wests may have believed they had been discharged from their obligations under the lease, they failed to bring forth convincing proof that Cane River intended to effect a novation by consenting to the assignment. There was no express declaration of novation or discharge. LSA-C.C. Arts. 2185, 2192 and 2196, supra.

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Bluebook (online)
443 So. 2d 602, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cane-river-shopping-center-v-monsour-lactapp-1983.