Cuoco v. Pik-A-Pak Grocery Corp.

379 So. 2d 856, 1980 La. App. LEXIS 3453
CourtLouisiana Court of Appeal
DecidedJanuary 10, 1980
Docket10677
StatusPublished
Cited by4 cases

This text of 379 So. 2d 856 (Cuoco v. Pik-A-Pak Grocery Corp.) 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
Cuoco v. Pik-A-Pak Grocery Corp., 379 So. 2d 856, 1980 La. App. LEXIS 3453 (La. Ct. App. 1980).

Opinion

379 So.2d 856 (1980)

Russell L. CUOCO
v.
PIK-A-PAK GROCERY CORPORATION.

No. 10677.

Court of Appeal of Louisiana, Fourth Circuit.

January 10, 1980.

*857 Milling, Benson, Woodward, Hillyer, Pierson, & Miller, James K. Irvin, Kennedy J. Gilly, Jr., New Orleans, for defendant-appellant.

Glenn C. McGovern, New Orleans, for plaintiff-appellee.

Before GARRISON, CHEHARDY and STOULIG, JJ.

GARRISON, Judge.

This case involves an action to evict a sub-lessee, Pik-a-Pak Grocery Corporation d/b/a Li'l General Stores, on the grounds of an alleged breach of a written contract of lease and two validly executed options. The trial court granted judgment evicting the sublessee, without ruling that a breach had occurred. Additionally, the trial court found that the sublease had not been executed by the parties to the action to evict, but rather had been executed between the sublessor-party, Russell Cuoco, and a nonparty, General Host Corporation, the parent corporation of Pik-a-Pak Grocery Corporation. This ruling was based on the trial court's findings that the options were void, that a new contract of lease had been confected and that—in the absence of a written lease between Pik-a-Pak and General Host which stipulated a duration—Pik-a-Pak Grocery Corporation possessed the premises on a month-to-month basis at the sufferance of General Host. Finally, the trial court held that Li'l General Stores was not a legal entity, Pik-a-Pak Grocery Corporation appealed the judgment of the trial court. We reverse.

We find that the trial court erred in failing to find that the options to lease had been validly executed. Both appellee and appellant state that a stipulation relative to the valid exercise of the two options had been entered into prior to trial. The parties agreed to the stipulation during a pre-trial hearing. However, the court reporter lost the transcript containing that stipulation. We believe that the loss of the pretrial stipulation is of no moment, as both parties stipulated at trial that the terms of lease were validly extended by both options and that Pik-a-Pak was the sublessee of Cuoco.[1]*858 Indeed plaintiff sued for eviction seeking a cancellation of the sublease and pleading the existence of the sublease.

Inasmuch the district court did not reject this stipulation it was bound by the admission. Indeed, counsel for plaintiff failed to object to its inclusion into evidence at trial. It is only on appeal that plaintiff commences an argument that the options were void.

An examination of the relevant correspondence further bolsters our conclusion that the parties contemplated execution of the options as opposed to confection of a new lease. The correspondence which extended the first option uses the language "with respect to that certain lease dated April 16, 1962 covering the captioned premises. The lease will be extended for a further term ..."[2] The correspondence which extended the second option uses the language "we do hereby agree to renew and extend that certain lease ..."[3] Indeed, there is little doubt that the agreement of the parties was an exercise of the option as opposed to confection of a new lease.

The trial court concluded that the options had not been executed as a result of two findings: First, the court found that the options were void because they failed to specify a future rental price. Second, the court found that "Li'l General Stores" was not a legal entity, hence it had no capacity to contract. We will address the former finding first.

The word "option" is a common law term which is used by civilians for the sake of brevity and expediency in describing a similar civilian concept. The proper civilian concept is a "unilateral promise to contract." The trial court's ruling on the question of rental price resulted from an erroneous juxtaposition of these two similar, but not identical, concepts:

"Similarity, however, is not the same as identity. In order to meet the requirements for the formation of a contract, a promise requires consideration at common law. At civil law, instead, the question is not whether a promise is supported by consideration, but whether an obligation has a cause and, from this viewpoint, a party's will to be bound is an effective cause.
"In both systems, however, an option is an onerous contract. At common law, this is so for the reason that consideration eliminates the otherwise gratuitous nature of the promise. At civil law, it is so because the promisor's interest in making the contemplated final contract suffices to give his obligation an onerous cause. The difference lies in the fact that, at common law, the element of onerousness, the consideration, is given to the promisor by the promisee, while, at civil law, the element of onerousness resides in the promisor's own will in the form of a motive.
"Finally, options are unilateral contracts under both systems of law. Here again, however, the reasons that make the contract unilateral differ. A unilateral promise to contract is a unilateral contract at civil law because it gives rise to only one obligation—the promisor's. An option contract is unilateral at common law because only the performance of one party is owed; the other has already performed when he gave consideration." 2 Litvinoff, Obligations § 105 (7 La.Civil Law Treatise, 1969).

The trial court appeared to believe that failure to stipulate the rental price was a lack of consideration, hence the option was *859 void. In Louisiana, however, causation, not consideration, is controlling. Even assuming arguendo that the options were fatally defective, the subsequent actions of the parties ratified the options as they were exercised.

We agree with the trial court that "Li'l General Stores" is not a legal person, but this finding is not evidence of a lack of capacity to contract. Additionally, we base this finding on reasons other than those enunciated by the trial court which held that "Li'l General Stores" was an operating division of General Host Corporation.

The sublessee was cited and appears as "Pik-a-Pak Grocery Corporation d/b/a Li'l General Stores." The appellation "Li'l General Stores" is the trade name of Pik-a-Pak Grocery Corporation as allowed by R.S. 51:211 as follows:

"D. The term `trade name' means a word, name, symbol, device or any combination thereof used by a person to identify his business, vocation or occupation and distinguishes it from the business, vocation or occupation of others.

"E. The term `person' as used herein means any ... corporation ..."

We hold that "Li'l General Stores" is the trade name of Pik-a-Pak Grocery Corporation, a legal entity having capacity to contract.

Having concluded that the two options were validly executed, thus extending the sublease between Russell Cuoco and Pik-a-Pak Grocery Corporation, we now turn to the second major issue in this case: Did the trial court err in ordering Pik-a-Pak's eviction? In answer to this question, we turn to the terms of the lease.

The sublease provided that Pik-a-Pak Grocery Corporation comply with all laws and ordinances in effect or to be enacted. It additionally provided the following crucial language:

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379 So. 2d 856, 1980 La. App. LEXIS 3453, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cuoco-v-pik-a-pak-grocery-corp-lactapp-1980.