Earhart v. Brown

702 So. 2d 976, 1997 WL 665502
CourtLouisiana Court of Appeal
DecidedOctober 28, 1997
Docket97-CA-522, 97-CA-523
StatusPublished
Cited by6 cases

This text of 702 So. 2d 976 (Earhart v. Brown) 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
Earhart v. Brown, 702 So. 2d 976, 1997 WL 665502 (La. Ct. App. 1997).

Opinion

702 So.2d 976 (1997)

Magdalena EARHART and Succession of Mitchell S. Earhart
v.
Gregory G. BROWN and Jeffrey G. Brown.
Magdalena L. Earhart GROOME, Individually and as the Administratrix of the Succession of Mitchell S. Earhart
v.
G. BROWN, Jeffrey G. Brown, Brown's Enterprises, Tanknology Corporation International, Rittiner Equipment Company and Beacon Enterprises, Inc. and W.F. Breland, Sr.

Nos. 97-CA-522, 97-CA-523.

Court of Appeal of Louisiana, Fifth Circuit.

October 28, 1997.

*977 Santo A. Dileo, New Orleans, for Plaintiffs In Reconvention/Appellants Gregory G. Brown and Jeffrey G. Brown.

*978 Ferdinand J. Kleppner, Metairie, for Movers In Rule/Appellees Magdalena Earhart and Succession of Mitchell S. Earhart.

Before GAUDIN, C.J., and GOTHARD and CANNELLA, JJ.

GOTHARD, Judge.

Defendants, Jeffrey and Gregory Brown, appeal an adverse ruling in the trial court which ordered their eviction from leased commercial property owned by the plaintiffs, Magdalena and Mitchell Earhart. For reasons that follow, we affirm.

The record shows that the Earharts owned and operated a Phillips 66 service station located at 3801 Airline Highway until 1988, when because of illness, they decided to lease the station to the Browns. The 1988 lease was for a term of two years. At its expiration in 1990, the lease was renegotiated and renewed for a term of eleven years at a monthly rental of $2083.33.

The Browns successfully operated a gas station and an auto repair shop on the premises until January 4, 1995, at which time a flex hose on the dispenser for one of the underground tanks malfunctioned, causing the release of 750 to 1000 gallons of gasoline into the soil and the sewer system. The leak initially went undetected because a leak detector on the hose was improperly installed. After the leak was discovered, the Browns changed the flex hose and installed the leak detector properly.

Such incidents are investigated by the Department of Environmental Quality (DEQ), which ordered a site assessment report. The Earharts engaged the firm of Burk-Klienpeter for that purpose. As a result of the leak and information received subsequent to the leak, DEQ shut down the gas dispensing operations of the station on March 1, 1995. That action resulted in about a 50% reduction in business for the Browns, who now only had the auto repair and used cars sales portion of their business operational.

Because the underground gasoline storage tanks were not in conformance with DEQ regulations, all had to be removed. Three tanks located in the front of the station, two 6000 gallon steel tanks and one 8000 fiberglass tank, were removed. However, the smaller waste storage tank in the rear of the property is still in place. At the time of trial, the Browns were still repairing and selling used cars on the property, although they were no longer able to sell gasoline.

The Browns did not pay the $2083.33 rent for the month of March, 1995. On March 31, 1995, the parties met to discuss the situation. At that meeting there was some agreement for a reduction in rent, although the conditions and duration of that agreement are in dispute. The Earharts were represented at the meeting by their daughter, Mardel Groome[1], who testified at the hearing that rent was set at $1500.00 per month. Ms. Groome stated that she agreed to a reduction in rent out of consideration of the plight of the Browns. The $1500.00 figure was decided upon because the mortgage on the property was $1200.00. Thus, the $1500.00 figure would cover the cost of the mortgage and the real estate management fee. Later, when it became apparent that the tanks would have to be removed and the Browns would be unable to dispense gas for a longer period of time, the rent was reduced to $750.00. Ms. Groome testified she was able to reduce the rent because she convinced the mortgage company to temporarily accept interest only payments which amounted to $600.00. She was adamant that the rent for March and April was set at $1,500.00 and the reduction to $750.00 was only for the months of May, June and July.

Gregory Brown testified that he was told at the March 31st meeting the rent for March was past due. He stated that he told Ms. Groome he could only afford $750.00 per month, and she agreed to reduce the monthly rent to that amount beginning with the March, 1995 rental. The Browns paid $1,500.00 in April to cover the rental for *979 March and April. In May, June and July the Browns sent $700.00 per month.[2]

On June 26, 1995, counsel for the Browns sent a demand letter to the Earharts demanding repair or replacement of the tanks. On July 25, 1995, the Earharts sent a letter to the Browns informing them that the contaminated soil had been replaced and that DEQ would not allow automobile work or storage of vehicles which may possibly leak fluids over the new soil. The letter also informed the Browns that access to the underground storage tank in the rear of the property would be needed by the Earharts' contractors in order to remove the tank to complete decontamination of the site. The record shows that the storage tank, which is referred to in this letter and still remains, is on the back of the property, and was inaccessible to the contractors because it is the area the Browns use to store and repair old cars. The letter further advised the Browns of DEQ requirements regarding the weekly pumping of wells.

On July 31, 1995, Robert Talbot, the Earharts' real estate manager, sent a letter to the Browns requesting $1500.00 for payment of the March, 1995 rent, and $150.00 extra in rent for the months of May, June and July. The letter indicates that the $1500.00 paid in April was accepted as the April rental. The $150.00 was paid by the Browns, but the $1500.00 due for March was not. Nor did the Browns remove the obstructions to allow the contractor to remove the storage tank.

On September 20, 1995, counsel for the Earharts sent a demand letter to the Browns to which the Browns did not respond. On November 2, 1995, the Earharts filed this rule to evict. In the rule to evict, the Earharts allege that the Browns have violated the terms and conditions of the lease in that:

1. They have consistently failed to make rental payments in a timely manner;
2. They have failed to pay any rental for the months of March, 1995, and August, 1995, and have paid only a portion of the monthly rental for the months of September and October, 1995;
3. They have failed to produce evidence that they have caused storage tanks to be tested on a yearly basis in accordance with the requirements of Department of Environmental Quality Regulations;
4. They have failed to produce evidence of compliance with Department of Environmental Quality Regulations pertaining to required testing of gas lines and pumps;
5. They have failed to provide all repairs and maintenance for the leased site, including tanks, storage tanks and pumps.

The Browns answered the rule to evict with a general denial and asserted the following affirmative defenses:

1. That the Earharts have waived their right to assert untimeliness of rental payments due to their acceptance of the routinely late payments for the past seven years.
2. The reduced rentals paid after the January, 1995 spill were by agreement of the parties.
3. The Browns met their obligation by causing the tanks to be tested in 1991 and giving the report to the Earharts.
4.

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Cite This Page — Counsel Stack

Bluebook (online)
702 So. 2d 976, 1997 WL 665502, Counsel Stack Legal Research, https://law.counselstack.com/opinion/earhart-v-brown-lactapp-1997.