Doullut v. Rush

77 So. 110, 142 La. 443, 1917 La. LEXIS 1701
Supreme Court of Louisiana·Decided October 29, 1917·No. No. 22689·Published·Cited by 19 cases

Opinion

Statement of the Case.

MONROE, O. J.

Relators obtained a judgment ordering the ejection of defendants, for nonpayment of rent, from certain premises, alleged to have been leased to them, and, a suspensive appeal having been granted therefrom, they invoke the supervisory jurisdiction of this court for the review and reversal of that ruling. The facts disclosed by the record are as follows:

Plaintiffs brought their action in ejectment in May, 1917, alleging that in November, 1916, they had leased the premises in question to defendants, by notarial act, for 22 months, at a rental payable monthly in advance and aggregating nearly $10,000; that defendants [445] .liad failed to pay the rent for March, April, and May and had been notified to vacate; wherefore, they prayed for judgment ordering them so to do and returning plaintiffs to possession.

Defendants, by way of exception and answer, alleged, in substance: That on March 13th plaintiffs had brought a suit against them (bearing the number 119/662 of the docket of the district court) claiming $9,000 as due them for rent under the contract now sued on; that defendants, for answer, averred that the instrument sued on was a contract of sale, and not of lease, and that they owed plaintiffs no rent; that the suit was still pending; that the judge to whom this proceeding was allotted declined to exercise jurisdiction, on the ground that it is part of said pending suit; that plaintiffs acquiesced in said ruling; and that, until the issue so presented therein shall have been determined, this proceeding is premature, being an attempt to force the trial of an issue already before the court by means of a summary proceeding, which is allowed only between parties occupying the relations of lessor and lessee. They therefore pleaded lis pendens, and, in the event that plea should be overruled, and only in that event, set up the matters of defense alleged in their answer in the suit No. 119/662.

In order, then, to make the present situation intelligible, we add the following statement of the cause of action and defense as set up in the suit No. 119/662 (the record in which has been made part of this proceeding), to wit:

Plaintiffs, invoking the notarial act, here relied on, sued upon a note, issued by defendants in conformity to the provisions of said act and which 'had matured on March 1st, and upon other notes, similarly issued, as upon a contract of lease and rent notes identified therewith, alleging that, defendants having failed to pay the note due March 1st at maturity, the whole amount of the rent, as represented by the other notes, had become due and exigible in accordance with the terms of the contract; and they caused a writ of provisional seizure to issue and prayed for judgment accordingly. Defendants answered, in substance, as follows:

That, though the act declared on purports, in some respects, “to be a lease, yet, in truth and in point of fact, as appears from the entire context of' said act and all the surrounding circumstances, it was, and such was the intention, declared repeatedly and stated at the time and subsequently, that it was a sale, pure and simple, of the Kneipp Water Cure, to defendants, for * * * $25,000, payable in monthly installments, . up to August 80, 1918, when the balance of the purchase price, at that period, was payable, cash; said monthly notes, although denominated and called rent notes, were, in point of fact, and so understood, * * * representing a part and portion of the purchase price of said property. That the sale of said property was put in the shape it was by plaintiffs, at their instance, simply for their convenience and for the purpose of securing the partial price of said property, and not with any idea or intention * * * of * * * contracting a lease. * * * That a reading of the act clearly shows the intent of the parties, and all the charges, obligations, and burdens placed upon defendants were those of an owner or purchaser of property, and not of a mere lessee. * * * That defendants never would have signed said act had they been informed that they were leasing, instead of buying, the said property, but plaintiffs assured defendants that it was a sale. That the alleged rent of said property ($500 a month) is extravagant and out of all reason. That said act should be declared and decreed * * * to be exactly * * * what it is— an act of sale, and not a lease. Treating it as a lease, it is unconscionable and against good morals, and means ruin to defendants, and would be a deception practiced on them, and their signatures to said act were_ obtained oil the express and repeated declaration of plaintiffs that it was a sale and that the mere form amounted to nothing, and that it was in that shape solely to protect, plaintiffs’ rights as vendors. * * * Defendants aver that said act is a sale and not a lease,” etc.

There is no specific allegation to the effect that defendants are entitled to retain possession of the property. The contract in question contains the usual provisions and stipulations which are to be found in contracts of lease, and others which are not so found and which are pertinent to contracts of sale. It is, however, declared to be a lease' [447] and it not only contains no language purporting to convey title from plaintiffs to defendants, but confers upon defendants the option to purchase the property upon certain specified conditions which appear not to have been complied with. Thus, it reads in part:

“Lessors hereby lease unto said lessees the above-described property for the term of 22 months. * * * This lease is made for and in consideration of a monthly rental, payable in advance and as follows.”

And then follow stipulations in regard to the giving of rent notes and the amounts and maturities of the same, after which we find:

“In addition to 'said rentals, the said lessees agree to pay all taxes, * * * all premiums of insurance, * * * all charges * * * for water and water service, and to comply with all city ordinances at their own expense. * * * The said lessees hereby agree to make all repairs necessary to the property to maintain and keep the property in proper and first class condition.
“The lessors will not be responsible for any damages whatsoever for any vices or defects of whatever character, and all .damages of whatever nature * * * are hereby assumed by the lessees. * * *
“If, during the term of this lease, the said building * * * be destroyed by fire, * * * or partially destroyed, so as-to render the premises leased wholly unfit for occupancy, * * * this lease shall come to an end. * * * The lessees shall, in such event, be entitled to a credit, * * * and the unearned portion of the rent ' notes shall be annulled. * * * Should the lessees, at any time, fail to pay the rent * * * as stipulated, the rent for the whole unexpired term * * * shall, without putting said lessees in default, become due and exigible. * * *

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Doullut v. Rush, 77 So. 110, 142 La. 443, 1917 La. LEXIS 1701 (La. 1917).

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