City of Donaldsonville v. Thiac

542 So. 2d 1111, 1989 La. App. LEXIS 635, 1989 WL 35239
CourtLouisiana Court of Appeal
DecidedApril 11, 1989
Docket88 CA 0319
StatusPublished
Cited by3 cases

This text of 542 So. 2d 1111 (City of Donaldsonville v. Thiac) 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
City of Donaldsonville v. Thiac, 542 So. 2d 1111, 1989 La. App. LEXIS 635, 1989 WL 35239 (La. Ct. App. 1989).

Opinion

542 So.2d 1111 (1989)

CITY OF DONALDSONVILLE
v.
E. Brandt THIAC.

No. 88 CA 0319.

Court of Appeal of Louisiana, First Circuit.

April 11, 1989.

Sidney Marchand, Donaldsonville, for City of Donaldsonville.

Malcolm Dugas, Donaldsonville, for E. Brandt Thiac.

Before WATKINS, CRAIN and ALFORD, JJ.

WATKINS, Judge.

Defendant, Brandt Thiac, appeals the trial court judgment evicting him from the property of plaintiff, City of Donaldsonville. We affirm.

FACTS

The City of Donaldsonville (City) leased a building and property known as the "Garment Factory" from the South Louisiana State Fair Association on September 12, 1973. The lease was for a term of 20 years, with an annual rent of One Dollar ($1.00).

On the same day the City executed a sublease to Cute Togs of New Orleans, Inc. (Cute Togs). The sublease was executed for the express purpose of securing a garment manufacturing business within Donaldsonville which would provide employment for its citizens. In connection with the lease the City Council of Donaldsonville resolved to appropriate the sum of Forty *1112 Thousand Dollars ($40,000.00) to make necessary renovations and repairs to the Garment Factory. The sublease to Cute Togs provided for a 10 year term with an option for the lessee to renew the lease, at the same rental of Two Hundred Fifty Dollars ($250.00) per month, for two additional periods of five years each. The lease also provided that:

Lessee shall not assign or sublease the leased premises or any part thereof, without the written approval of Lessor.
It is understood, however, that this provision shall not apply to any wholly owned subsidiary of the Lessee or any other legal entity in which Lessee or its stockholders own majority interest or stock. Should Lessee so assign or sublease, it shall nevertheless remain liable to Lessor for full payment of the rent according to the terms of this lease.

Pursuant to the sublease Cute Togs operated a garment manufacturing business on the leased property from November, 1973, until March of 1984, when the business ceased operations. In April of 1984, Brandt Thiac, a former officer and employee of Cute Togs, incorporated New Hope Industries, Inc. (New Hope), in which he was the sole shareholder. New Hope leased equipment from Cute Togs and began operating a garment manufacturing business at the garment factory. Mr. Thiac, acting as president of New Hope, informally contacted the Mayor and several councilmen to verify their approval of New Hope's occupancy of the garment factory. There being no challenge to New Hope's occupancy of the garment factory, New Hope paid rent directly to the City from April 1984,[1] until July of 1985, when New Hope ceased operation of its garment manufacturing business. Thereafter Mr. Thiac, individually, continued to pay the rent directly to the City.

During his occupancy of the garment factory Mr. Thiac was unable to reestablish any productive business on the premises. As a result, the building fell into disrepair, eventually having the electricity disconnected.

In the spring of 1986 the Mayor became concerned about the non-productive use of the garment factory and began searching for a garment business which would be interested in leasing the garment factory. With Mr. Thiac's permission he showed the factory to one prospective lessee. Apparently no further negotiations occurred. Thereafter, Mr. Thiac and Mayor Bourg had several discussions in the spring of 1986 wherein Mr. Thiac expressed an interest in remaining in the garment factory and requested 60 days in order to start a new business which would employ a substantial number of local residents. Mayor Bourg testified that he consented to Mr. Thiac's request, giving him until July of 1986, to comply.

Sometime in the fall of 1986, Mr. Thiac was contacted by Melamine Chemicals concerning a possible sublease of the garment factory to Melamine. Assuming he would need the City's approval to sublease the garment factory, Mr. Thiac drafted an agreement entitled "Lease Variance" which read as follows:

Pursuant to the lease agreement between the City of Donaldsonville, and E. Brandt Thiac, any sub-leasing of part and/or all of the property located at 601 D. Thibaut Drive, Donaldsonville, Louisiana, must be approved by the City Council of Donaldsonville, Louisiana. It is for this reason that this lease variance is submitted. The following signatures attest to the fact that the lease variance is granted.
________________________ CLAUDE "TOBY" BOURG, MAYOR ________________________ C.J. BELLINA COMM. OF FINANCE ________________________ PRINCE DAVIS, COMM. DIST. 1 ________________________ GEORGE SHAHEEN, COMM. DIST. 2 ________________________ GUY PORCHE COMM. DIST. 3

*1113 Thereafter, Mr. Thiac contacted and met individually with the four newly elected councilmen[2] to discuss and procure their signatures on the variance. The councilmen signed the variance, each assuming that Mr. Thiac had a valid lease with the City. Again, Mr. Thiac did not seek formal approval by the City Council; nor did he obtain the mayor's signature on the variance.

In October of 1986, the City Council, concerned about the non-business use of the garment factory, requested that its attorney investigate what the City's position was with respect to the sublease of the garment factory. Thereafter, on December 31, 1986, the City returned the November rent payment made by Mr. Thiac, together with written notice demanding that he vacate the premises. Mr. Thiac refused to vacate the premises, asserting that he had a valid lease with the City that had not been breached. Thereafter, on January 29, 1987, in accordance with LSA-C.C.P. art. 4701, the City filed a motion to show cause why Mr. Thiac should not be ordered to vacate the premises known as the "Garment Factory". In answer to the Motion and Order to Vacate, Mr. Thiac urged that he had become a legal and valid tenant through an assignment, sublease and/or a novation substituting himself for Cute Togs.

After hearing on the motion, the trial court ruled in favor of the City, ordering Mr. Thiac to vacate the premises. Mr. Thiac appealed the trial court judgment assigning the following errors:

I. The trial court committed an error of law in failing to find a novation occurred substituting E. Brandt Thiac and New Hope Industries, Inc. as lessee in place of Cute Togs of New Orleans, Inc.

II. The trial court committed an error of law in failing to recognize E. Brandt Thiac as the assignee of the lease.

III. The trial court committed an error of law in applying the State Open Meetings Law (LSA-R.S. 42:1, et seq.) and the laws concerning the lease of property by a municipality (LSA-R.S. 33:4712) to the facts of the case at bar.

IV. The trial court committed manifest error in failing to determine that the City of Donaldsonville was equitably estopped from evicting E. Brandt Thiac from the leased premises.

Before addressing the issue of whether Cute Togs assigned the lease to New Hope we must determine whether, in fact, Cute Togs exercised its option to renew its lease in 1983. Based on the following evidence we conclude that Cute Togs did renew its principal lease for an additional five years, extending the lease to November of 1988.

The record reveals that the City received two letters from Cute Togs in August of 1983, attempting to renew its lease.

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Bluebook (online)
542 So. 2d 1111, 1989 La. App. LEXIS 635, 1989 WL 35239, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-donaldsonville-v-thiac-lactapp-1989.