D & D INVESTMENTS v. First Bank and Trust

831 So. 2d 488, 2002 WL 31425425
CourtLouisiana Court of Appeal
DecidedOctober 29, 2002
Docket02-CA-440
StatusPublished
Cited by2 cases

This text of 831 So. 2d 488 (D & D INVESTMENTS v. First Bank and Trust) 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
D & D INVESTMENTS v. First Bank and Trust, 831 So. 2d 488, 2002 WL 31425425 (La. Ct. App. 2002).

Opinion

831 So.2d 488 (2002)

D & D INVESTMENTS, A Partnership
v.
FIRST BANK AND TRUST formerly Automotive Bank and formerly Metro Bank.

No. 02-CA-440.

Court of Appeal of Louisiana, Fifth Circuit.

October 29, 2002.

*489 Jacob Kansas, New Orleans, LA, for Appellant, D & D Investments, A Partnership.

Phelps Dunar, LLP, Brent B. Barriere, Katherine M. Determan, Matthew A. Woolf, New Orleans, LA, Demartini, D'Aquila & Volk, Aaron F. Broussard, Kenner, LA, for Appellee, First Bank and Trust.

Panel composed of Judges JAMES L. CANNELLA, CLARENCE E. McMANUS and WALTER J. ROTHSCHILD.

*490 JAMES L. CANNELLA, Judge.

Plaintiff/Lessor, D & D Investments, appeals from the judgment rendered in favor of Defendant/Lessee, First Bank and Trust, Inc. (First Bank). For the reasons which follow, we affirm.

Lessor filed suit for eviction of First Bank on the grounds that First Bank had breached its lease in two respects: (1) non-payment of rent for the months of May and June of 2001, and (2) removal and destruction of the Lessor's property, a pylon with a mechanized rotating cube sign on top.

The leased property is located at 3235 North Causeway Boulevard in Metairie. In March of 1981, a vacant lot was originally leased to Southern Savings and Loan Association (Southern Savings), who constructed the improvements on the property including the pylon sign. Southern Savings failed and was taken over by the Resolution Trust Corporation. The premises, improvements and sign were eventually returned to Lessor and, thereby, became its property.

On July 29, 1993, Lessor leased the property and improvements to Automotive Bank. Before Automotive Bank opened, it merged with Metro Bank and sought and was granted permission to change the illuminated faces on the pylon sign to reflect the Metro Bank name and logo. The lease provided for any notices to Lessee to be in writing and delivered in person or sent by United States Certified or Registered Mail, return receipt requested, to Lessee at the leased premises. However, by letter dated November 9, 1993, Metro Bank requested that any notices be sent to its main office on Williams Boulevard in Kenner. By response letter, Lessor agreed to the notice location change.

On June 14, 2000, Lessor was notified by Metro Bank that it was merging with First Bank, that the merger should be complete by September and requested Lessor's consent according to the lease agreement. Lessor responded on July 24, 2000 that it had no objection to the merger. No further information was sent to Lessor concerning the merger or any changes of address. In fact, the physical change occurred between May and June of 2001.

Lessor alleged in its petition that it did not receive the May, 2001 rent from Lessee. On three previous occasions over the eight year period of the lease, when rent was late, the Lessee was immediately notified by Lessor and the rent was paid. This time, Lessor testified that, because the Lessor's managing partner was out of town most of the month, no action was taken. Then, on June 1, when the June rent was allegedly not received, Lessor sent a letter to Metro Bank at the Williams Boulevard location, headed "Lease Default/ North Causeway Branch." The letter provided

In accordance with our lease dated 7/29/93, rent is due on or before the first of the month. Our office has not received May or June rent for the above location on North Causeway. This is the third time we have had to notify you of a failure to pay rent on a timely basis. The lease terms are specific and outline our options under the "Default" provision contained within the document.

The lease provided that, in the event of default, the Lessor, after giving notice and allowing ten days to comply, had the option: (1) to cancel the lease; (2) to proceed one or more times for past due installments of rent; or (3) any other remedy provided by law. Lessor, near that same time, drove past the leased premise and discovered that the large pylon and sign had been removed and replaced with a First Bank sign. On June *491 19, 2001, after Lessee had failed to respond, Lessor delivered to the leased premises a "5 Day Notice to Vacate for Non-Payment of Rent." This notice referred to the non-payment of rent for May and June and contained a paragraph at the end concerning the removal of the sign. On June 22, 2001, First Bank attempted to tender replacement checks for rent payment for the months of May and June, 2001. Lessor refused the payments. First Bank also communicated its view that the lease gave the Lessee the right to replace the sign. On August 1, 2001, Lessor brought the present action for possession of the premises, or eviction.

Following a judge trial, the trial judge ruled in favor of First Bank and against the Lessor and denied the rule for eviction. In doing so, the trial judge made several factual findings and credibility determinations. He found that the Lessee did timely issue and mail checks to the Lessor for the May and June rent. He referred to the testimony of the Metro Bank employee, Stephanie Manuel, responsible for making the May rent payment. He expressly found her testimony to be credible and found that the May check was issued and mailed timely. The trial judge then referred to the testimony of the First Bank employee, Chantel Martin, responsible for making the June rent payment after the merger. He expressly found her testimony to be credible and found that the June check had been issued and mailed timely. The trial judge stated that, "The court has no doubt that both the May and June rent checks were mailed on a timely basis." He went on to note that Lessor admitted that rent under the current lease was well below its marketable value as "a possible motive to terminate the lease." The trial judge concluded that Lessor had not satisfied him that there had been "a failure to make timely payments of rent."

Concerning the sign, the trial judge did find that it was the property of the Lessor and that, under the lease, First Bank did not have the right to remove and destroy it without the Lessor's consent. However, he held that the removal and destruction of the sign did not constitute grounds for eviction. First, the trial judge noted that the Lessor had not complied with the required 10-day notice of default in the lease. Second, he noted that eviction was not favored under the law. The loss of the sign was a minor part of the lease, considering the stated purpose of the lease, and it could be quantified by monetary damages, so that eviction was not justified under the circumstances.

It is from this judgment that Lessor appeals. Lessor has assigned four errors, one concerning the late rent payments and three concerning the removal of the pylon and sign. First Bank has answered the appeal arguing entitlement to costs, expenses and attorneys' fees.

Rental Payment

Lessor argues herein that despite the trial judge's findings regarding the May and June rent checks, it is still entitled to eviction for breach of the lease because First Bank did not timely supply replacement checks after notification of non-receipt was sent on June 1. In other words, Lessor argues that First Bank's failure to timely cure the alleged default of non-payment of rent entitles it to the eviction.

Contrary to Lessor's interpretation of the trial judge's findings, First Bank points out that the trial court findings were broader than Lessor suggests.

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Bluebook (online)
831 So. 2d 488, 2002 WL 31425425, Counsel Stack Legal Research, https://law.counselstack.com/opinion/d-d-investments-v-first-bank-and-trust-lactapp-2002.