Dixie Services v. R & B Falcon Drilling USA

955 So. 2d 214, 2005 La.App. 4 Cir. 1212, 2007 La. App. LEXIS 743, 2007 WL 1191343
CourtLouisiana Court of Appeal
DecidedMarch 21, 2007
Docket2005-CA-1212, 2006-CA-1209
StatusPublished
Cited by17 cases

This text of 955 So. 2d 214 (Dixie Services v. R & B Falcon Drilling USA) 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
Dixie Services v. R & B Falcon Drilling USA, 955 So. 2d 214, 2005 La.App. 4 Cir. 1212, 2007 La. App. LEXIS 743, 2007 WL 1191343 (La. Ct. App. 2007).

Opinion

955 So.2d 214 (2007)

DIXIE SERVICES, L.L.C.
v.
R & B FALCON DRILLING USA, INC.

Nos. 2005-CA-1212, 2006-CA-1209.

Court of Appeal of Louisiana, Fourth Circuit.

March 21, 2007.

*216 George Pivach, II, Timothy Thriffiley, Pivach, Pivach, Hufft & Thriffiley, L.L.C., Belle Chasse, LA, for Plaintiff/Appellant.

Aldric C. Poirier, Jr., James W. Vitrano, Christopher T. Grace, III, Blue Williams, L.L.P., Metairie, LA, for R & B Falcon Drilling USA, Inc.

Richard J. Tomeny, Jr., Becknell & Tomeny Kenner, LA, for Marine Specialties, Inc.

(Court composed of Chief Judge JOAN BERNARD ARMSTRONG, Judge DENNIS R. BAGNERIS, SR., and Judge ROLAND L. BELSOME).

DENNIS R. BAGNERIS, SR., Judge.

The issue in this case is whether the Lessees of commercial property located in Plaquemines Parish are liable to Lessor for unpaid rent and damages. In the consolidation of this case, the issue is whether the district court erred considering a Motion to Assess Costs and Fix Attorney Fees. We affirm in part and reverse in part.

Facts and Procedural History

In November 1997, Dixie Services, LLC (hereinafter "Dixie"), as Lessor, and R & B Falcon Drilling USA, Inc. (formerly Falcon Workover Company, Inc. and hereinafter referred to as "Falcon") as Lessee, entered into a lease ("Lease") of real property located at 230 Gunther Lane, Belle Chasse, Louisiana. The Lease had an initial term of five (5) years, commencing on November 15, 1997 and continuing through November 14, 2002. A monthly rental of $6,500.00 was due during the primary term of five years.

The primary term of the Lease automatically renewed for a single, additional five (5) year period, unless Falcon timely elected *217 to not renew the Lease. The terms of any renewal term were to be identical to those contained in the Lease and in place during the initial term, except for an increase in the rents, commensurate with an index for inflation. In order to limit the Lease to its primary term and avoid the single renewal term, Falcon was required to provide written notice of cancellation to Dixie at least one hundred and twenty (120) days prior to the end of the primary term. Specifically, the Lease granted to Lessee, the "... right and privilege of canceling this Lease at the end of the primary term or any renewal period (if applicable) by notifying Lessor in writing by certified mail at least one hundred and twenty (120) days prior to the expiration of the primary term or any renewal period (if applicable)."

Falcon vacated the leased premises in February 1999. Thereafter, on March 29, 1999, Falcon entered into a sublease with Marine Specialties, Inc. ("Marine Specialties") ("Sublease") for the building and parking lot of the leased premises. The Sublease was for a one year term commencing April 1, 1999 and terminating on March 31, 2000 with a rental of $3,740 per month. Dixie acknowledged and accepted the terms of the Sublease including those pertaining to reduced rent and its limited term. Marine Specialties and Falcon executed one renewal to extend the Sublease through November 14, 2002 at an increased rent of $4,000.00 per month. Following expiration of the Sublease, Marine Specialties has continued to occupy the Leased premises on a month-to-month basis. Falcon continued to accept the monthly rental payments from Marine Specialties until Marine Specialties vacated the premises in August 2003. None of the payments were forwarded to Dixie.

Falcon, via certified mail dated July 30, 2002, advised Dixie of its election to cancel the lease. Because this notice was sent less than 120 days prior to the lease's expiration date of November 14, 2002, Dixie informed Falcon that the notice was deficient and that the monthly rental payments should continue for an additional five years or until November 14, 2007. However, Falcon stopped making rental payments at the expiration of the initial term and Dixie notified Falcon that they were in default of the lease on November 15, 2002. The building has remained vacant since Marine Specialties moved out in August 2003.

On January 3, 2003, Dixie filed suit against Falcon to accelerate all of the rent due under the terms of the lease. On November 19, 2003, Dixie filed its First Supplemental and Amending Petition alleging that Falcon and Marine Specialties had caused damage to the leased premises by failing to maintain the property, and sought damages against both defendants for the damage thus caused. On March 23, 2004, Dixie filed its Second Supplemental and Amending Petition seeking payment of the real estate taxes due and owing under the lease from the defendants.

After a two-day bench trial, the trial court rendered a judgment in favor of Dixie and against Falcon in the amount of $164,893.02 for 21.5 months of rent at the rate of $7,294.65 per month, and 21.5 months of unpaid property taxes. The trial court also rendered judgment in favor of Dixie and against Marine Specialties in the sum of $15,154.00 for damages sustained by the leased premises during the term of the lease in question. Thereafter, Dixie filed a Motion to Assess Costs and Fix Attorney's Fees. Although the Motion to Assess Costs was heard on June 16, 2005, no judgment has yet been rendered.

Dixie now appeals this final judgment. On appeal, Dixie alleges the following assignments *218 of error: (1) the trial court erred in finding that it had a duty to mitigate its damages; (2) the trial court erred in failing to award it rent and taxes for the property at issue for the entire five year term of the renewal of the lease; and (3) the trial court erred in failing to award it attorneys fees against Falcon and Marine Specialties as provided for under the terms of the lease.

Falcon filed an answer to the appeal alleging the following assignments of error: (1) the trial court erred in ruling that it did not timely and/or properly cancel/terminate the Lease at issue; (2) the trial court erred in applying the Louisiana law of mitigation, in quantifying Dixie's failure to mitigate and in its award of past due rents to Dixie; and (3) the trial court erred in failing to hold Marine Specialties liable to Falcon and/or jointly and severally liable with Falcon to Dixie.

Marine Specialties filed a brief alleging the following four assignments of error: (1) the trial court erred in awarding damages against it based upon its obligations under the Sublease in the amount of $1,928.00 dollars to replace curbing in the parking lot; (2) the trial court erred in awarding damages against it based upon its obligations under the Sublease in the amount of $1,221.00 to replace damaged grating; (3) the trial court erred in awarding damages against it based upon its obligations under the Sublease in the amount of $4,300.00 to repair two of the metal doors and replace one metal door; and (4) the trial court erred in awarding damages against it based upon its obligations under the Sublease in the amount of $7,705.00 to restore the premises to its original condition by removal of the office.

Procedural Discussion

Before addressing the substantive issues, we must discuss procedural and jurisdictional matters affecting this court's review in this appeal. Marine Specialties did not file an appeal of the judgment. Marine Specialties brief to this court shows intent to answer the appeal in order to have the judgment modified, revised, or reversed in part, and to have a more favorable judgment rendered on the issue of its liability. However, the brief did not accomplish that intent. See La. C.C.P. art. 2133(A).

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Cite This Page — Counsel Stack

Bluebook (online)
955 So. 2d 214, 2005 La.App. 4 Cir. 1212, 2007 La. App. LEXIS 743, 2007 WL 1191343, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dixie-services-v-r-b-falcon-drilling-usa-lactapp-2007.