CHALMETTE AMUSEMENT CO., INC. v. Alphonso

983 So. 2d 239, 2008 WL 1777233
CourtLouisiana Court of Appeal
DecidedApril 16, 2008
Docket2007-CA-1512
StatusPublished
Cited by4 cases

This text of 983 So. 2d 239 (CHALMETTE AMUSEMENT CO., INC. v. Alphonso) 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
CHALMETTE AMUSEMENT CO., INC. v. Alphonso, 983 So. 2d 239, 2008 WL 1777233 (La. Ct. App. 2008).

Opinion

983 So.2d 239 (2008)

CHALMETTE AMUSEMENT COMPANY, INC.
v.
Lionel J. ALPHONSO d/b/a De Pope Launch & Tavern, De Pope Launch & Tavern, Inc., J & R Amusement Company, Inc. and Lucky Coin Machine Co.

No. 2007-CA-1512.

Court of Appeal of Louisiana, Fourth Circuit.

April 16, 2008.

A. Scott Tillery, Tillery & Tillery, Metairie, LA, for Plaintiff/Appellant.

*240 Sidney D. Torres III, Roberta L. Burns, David C. Jarrell, Law Offices of Sidney D. Torres, III, APLC, Chalmette, LA, for J & R Amusement Company, Inc.

Daniel L. Dysart, Elizabeth R. Borne, Dysart & Tabary, L.L.P., Chalmette, LA, for Lionel J. Alphonso d/b/a De Pope Launch & Tavern, Inc.

(Court composed of Judge MAX N. TOBIAS, JR., Judge EDWIN A. LOMBARD, Judge LEON A. CANNIZZARO, JR.).

EDWIN A. LOMBARD, Judge.

This appeal is from the trial court judgment in favor of the defendants, Lionel J. Alphonso d/b/a De Pope Launch ("Mr. Alphonso"), Tavern and De Pope Launch and Tavern, Inc., ("De Pope Tavern"), and J & R Amusement Company ("J & R Amusement")[1] and against plaintiff/appellant, Chalmette Amusement Company, Inc., ("Chalmette Amusement") for a preliminary injunction. After review of the record in light of the applicable law and arguments of the parties, we affirm and remand.

Relevant Facts and Procedural History

On March 4, 2004, De Pope Tavern entered into a 5-year agreement with the appellant entitled "Chalmette Amusement Company Gaming Device and Facility Lease" in which De Pope Tavern, designated by the terms of the agreement as the lessor, agreed to lease to Chalmette Amusement, designated by the terms of the agreement as the lessee, "the necessary square footage of floor space . . . for the exclusive installation of video gaming devices." The agreement provided that (1) the gaming devices remained the sole property of the Chalmette Amusement; (2) Chalmette Amusement retained the option to terminate the lease "at any time the net proceeds is not adequate to pay for the cost of providing said devices"; (3) De Pope Tavern as lessor was required to provide all necessary electrical outlets and to "use all best efforts to allow the operation of said equipment during all usual business hours without hindrance"; and (4) in the event of any breach of the lease Chalmette Amusement had the option of "immediately terminat[ing] this Lease, and remov[ing] all of its devices without interference of any kind from the Lessor."

In August 2005, Hurricane Katrina swept through St. Bernard Parish and as a result of the six feet of water which flooded and destroyed the interior of De Pope Tavern, the video gaming and other amusement devices owned by Chalmette Amusement (and placed in De Pope Tavern in accordance with the terms of the March 2004 agreement) was ruined. At some point after the hurricane and prior to December 2005, Chalmette Amusement removed the tags issued by the Louisiana State Police from its ruined amusement devices and in December 2005 instructed Mr. Alphonso (who was in the process of gutting his building) to dispose of the ruined gaming devices as storm debris.

Subsequently, in the spring of 2006, Mr. Alphonso made the decision to reopen the De Pope Tavern. He entered into an agreement with J & R Amusement for installation of video poker machines in the De Pope Tavern. Thus, De Pope Tavern reopened in September 2006 with video gaming devices installed by J & R Amusement.

*241 On November 20, 2006, Chalmette Amusement filed a petition for temporary restraining order (TRO), preliminary injunction and permanent injunction, claiming that the agreement entered into on March 4, 2004, was a contract granting Chalmette Amusement the exclusive right to install and maintain video gaming devices at the De Pope Tavern and requesting that De Pope Tavern be enjoined from allowing J & R Amusement gaming devices on the premises, that J & R Amusement be required to remove their devices, and that Chalmette Amusement be allowed to reinstall its own gaming devices. Chalmette Amusement alleged breach of contract, contending that by contract entered into on March 4, 2004, Mr. Alphonso granted Chalmette Amusement the exclusive right for a five year period to install and maintain video gaming devices in De Pope Tavern and that Mr. Alphonso breached this contract when he reopened his business after Hurricane Katrina with gaming devices installed by J & R Amusement. In support of its petition, Chalmette Amusement attached a copy of the March 4, 2004, agreement between the parties, which it characterizes as a contract but which is entitled "Chalmette Amusement Company Video Gaming Device and Facility Lease" wherein, as stated above, the De Pope Tavern (designated as lessor) agreed to lease the necessary square footage of floor space to Chalmette Amusement (designated as lessee) for the exclusive installation of video gaming devices and, in consideration, "the Lessee agrees to divide the net proceeds from the use of the above described video gaming devices with the Lessor equally such that fifty (30%) [sic] shall be payable to the Lessor and fifty (70%) [sic] shall be payable to the Lessee."[2] In addition, Chalmette Amusement attached a second agreement (not at issue in this matter) pertaining to music and cigarette devices, dated October 20, 2002, and entered into for a five-year term.

On November 28, 2006, the trial judge signed the TRO and set the hearing date for the preliminary injunction. In light of the bond set, however, the appellant elected not to have the TRO issued and the matter proceeded to the hearing on the preliminary injunction.

On June 12, 2007, counsel for Mr. Alphonso and De Pope Tavern filed an opposition to the petition of Chalmette Amusement for TRO, preliminary injunction, and permanent injunction arguing that (1) any contract entered into by the parties was dissolved by Hurricane Katrina in accordance with La.Code Civ. Proc. art. 1875; and (2) the agreement dated March 4, 2004, is a lease and therefore, in accordance with La. Civ.Code art. 2714, was terminated when the leased devices were destroyed by Hurricane Katrina in August 2005. In responding memorandum, counsel for Chalmette Amusement argued that the contract between the parties was not a lease as defined by Article 2714 and, alternatively, that Article 2714 is not applicable because the leased premises were not destroyed.

On June 15, 2007, counsel for J & R Amusement filed a memorandum in opposition to the petition filed by Chalmette Amusement, arguing that (1) a hearing on a preliminary injunction is not the proper procedural vehicle for entertaining a mandatory injunction as to J & R and, notwithstanding this procedural defect, Chalmette Amusement is unable to sustain *242 the requisite burden of proving its entitlement to a mandatory injunction.

At the hearing on the petition for a preliminary injunction held on June 15, 2007, the trial judge heard the testimony of Michelle Alphonso and Thomas Paccacio, Jr., and admitted into evidence the deposition testimony of Mr. Alphonso, the deposition testimony of Troy Estopinal (the general manager of Chalmette Amusement), and the agreements between the parties dated March 4, 2005, and October 20, 2002.

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Cite This Page — Counsel Stack

Bluebook (online)
983 So. 2d 239, 2008 WL 1777233, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chalmette-amusement-co-inc-v-alphonso-lactapp-2008.