Copeland v. Drury

494 So. 2d 1189, 1986 La. App. LEXIS 7570
CourtLouisiana Court of Appeal
DecidedAugust 25, 1986
DocketNo. 85-CA-533
StatusPublished
Cited by2 cases

This text of 494 So. 2d 1189 (Copeland v. Drury) 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
Copeland v. Drury, 494 So. 2d 1189, 1986 La. App. LEXIS 7570 (La. Ct. App. 1986).

Opinion

GAUDIN, Judge.

This litigation concerns a lease entered into between (1) Gilbert E. Copeland and his son, Gilbert E. Copeland Jr., appellees, and (2) P. Michael Drury and Mark Deles-dernier Jr., d/b/a D & D Investments, appellants.

In a bifurcated bench trial in the 24th Judicial District Court, the trial judge found that D & D had violated terms of the lease agreement and that the Copelands were entitled to damages, the amount to be decided at a subsequent hearing. In the district court and now on appeal, D & D argues that the Copelands had in fact breached the lease and that D & D should be awarded damages.

The contract, although far from precise in several areas, was found by the trial judge to be legal and to place various obligations on the parties.

Carefully considering the testimony and the extensive documentary evidence, we cannot say that the trial judge erred either in deciding that the lease was binding or in factually finding that D & D had breached the agreement, and we affirm these determinations. The record, however, very distinctly supports a contravention by the Copelands,' and that part of the district court judgment remanding for the assessment of damages for D & D to pay is annulled and set aside.

The subject lease was entered into on July 23, 1979. D & D owned six side-by-side lots at the corner of Causeway Boulevard and 17th Street in Metairie, Louisiana, and the property was leased to the Cope-[1190]*1190lands for use as a restaurant. The lease stated:

“Lessor shall demolish all improvements other than existing slabs and driveways presently on the premises and Lessee will construct on the premises a building or buildings suitable for use as a food operation, provided that Lessee shall furnish all necessary insurance including liability, workman’s compensation, etc. during said construction. Lessor to provide ONE HUNDRED FIFTY THOUSAND AND NO/100 ($150,000.00) DOLLARS cash to construct one (1) 3,000 sq. ft. building; Lessee to pay for any cost overages in excess of ONE HUNDRED FIFTY THOUSAND AND NO/100 ($150,000.00) DOLLARS. Lessor shall provide funding for the $150,000.00 in three stage draws of thirty (30%) percent each and the last draw of 10% to be paid when Lessee provides Lessor with a clean lien and privilege certificate.”

Lease payments by the Copelands to D & D of $4,325.00 monthly were to start eight months after the agreement was executed in March, 1979.

Throughout the seven-day trial in early 1984, there was extensive testimony regarding the respective parties’ understanding of the agreement, but it is clear that D & D was to fund construction of the building only up to $150,000.00, payable in three 30 per cent installments and a final 10 per cent at the end, and that the Cope-lands were to use these funds to erect a 3,000 square foot building. Costs exceeding $150,000.00 were to borne by the Cope-lands.

The contract did not have a construction or a payment schedule, although obviously 90 per cent of the $150,000.00 was to be paid by D & D during construction and 10 per cent upon completion of the structure, and there was no provision as to when, if ever, the Copelands were to submit either a partial or full accounting to D & D.

When the lease was signed, D & D tendered $15,000.00 to the Copelands, the amount requested by them, which amounted to one-third of the initial 30 per cent draw. In late November or early December, 1979, the Copelands began to orally ask for the remainder of the first draw. D & D, however, was reluctant to make further monetary advances because two written requests (on September 5 and October 26, 1979) for plans and specifications of the building had been unsatisfied and also because the first $15,000.00 had not produced any apparent construction progress.

On August 1, 1979, the appellees had opened an account in the name of Copeland Food Systems, Inc. at the Hibernia National Bank with the deposit of D & D’s $15,-000.00 check. Almost immediately, all but $696.77 of this account was used for things not connected with construction of the building on D & D’s property.

In mid-December, 1979, preliminary plans for the building were supplied to D & D. This tender occurred several days or weeks after the Copelands started requesting the second part of the first draw. There were then various discussions and some meetings; and on March 26, 1980 a meeting was held in the law offices of Malcolm Ziegler, D & D’s representative. In attendance were Mr. Ziegler, Mr. Drury, Mr. Copeland Jr. and attorney Henry C. Vosbein Jr., who represented the Cope-lands and who was one-third silent partner in the undertaking. At that time, it was agreed that D & D was to pay two $15,-000.00 checks “ ... in a matter of days ...” The rest of the $150,000.00 was to be paid thusly:

$22,500.00 when framing completed,
$22,500.00 when building blocked in,
$30,000.00 when inside closed in,
$15,000.00 on acceptance, and
$15,000.00 when lien certificates furnished.

For the, first time, D & D and the Cope-lands had agreed on a payment schedule. Accordingly, D & D did forward $30,000.00 to the Copelands but very little construction work was ever done thereafter. Only the slab was completed.

On April 3,1980, Mr. Ziegler forwarded a revised building contract to Mr. Vosbein, [1191]*1191but no action was taken, with regard to this document. A followup letter from Mr. Ziegler to Mr. Vosbein on April 11, 1980 said:

“Pursuant to the meeting held in our offices on March 26th, at which time you, Gil Copeland, Jr., Mark Delesdernier, Jr., Mike Drury and the undersigned were present, and our subsequent telephone conversation on the following day, an agreement was reached relative to the construction and funding provisions of paragraph 8 of the lease and rental payments as provided under paragraph 3 of the lease. These agreements were subject to entering into written modifications, together with building contract relative to construction and financing.
“Pursuant to that, I have previously discussed with you preparation of a building contract under date of April 3rd, I forwarded to you a proposed building contract. In addition to this, my clients have paid unto Copeland Food Systems, Inc., since our meeting, a sum of $30,-000.00 to be applied to construction.
“An inspection of the site indicates that work has come to a standstill and that your clients are not actively pursuing completion of construction of the project. Unless a written amendment to the lease and building contract are entered into within five (5) days, as previously agreed upon, we will have no alternative but demand full payment of the rent in accordance with the provisions of paragraph 3 thereof, and upon failure of your client to timely pay the full amount of said rent to place them in default of the lease.
“Of course, I am hopeful that this will not be necessary, and that we can proceed in accordance with our previous agreements.”

On May 1, 1980, Mr. Vosbein’s letter to Mr. Drury stated, in part:

“Enclosed is Copeland Food Systems, Inc.

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Related

Copeland v. Drury
496 So. 2d 1044 (Supreme Court of Louisiana, 1986)

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Bluebook (online)
494 So. 2d 1189, 1986 La. App. LEXIS 7570, Counsel Stack Legal Research, https://law.counselstack.com/opinion/copeland-v-drury-lactapp-1986.