Expressway Texaco Service v. Orgeron

517 So. 2d 397, 1987 WL 3328
CourtLouisiana Court of Appeal
DecidedDecember 8, 1987
Docket87-CA-362
StatusPublished
Cited by1 cases

This text of 517 So. 2d 397 (Expressway Texaco Service v. Orgeron) 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
Expressway Texaco Service v. Orgeron, 517 So. 2d 397, 1987 WL 3328 (La. Ct. App. 1987).

Opinion

517 So.2d 397 (1987)

EXPRESSWAY TEXACO SERVICE, INC.
v.
Helen Pitre, Wife of/and Anthony E. ORGERON (a/k/a Tony P. Orgeron) and Helen Ann Orgeron.

No. 87-CA-362.

Court of Appeal of Louisiana, Fifth Circuit.

December 8, 1987.

*398 Jon A. Gegenheimer, Gretna, for appellants/ defendants.

Before KLIEBERT, WICKER and GOTHARD, JJ.

WICKER, Judge.

This appeal arises from a suit filed on behalf of Expressway Texaco Service, Inc. (Expressway), plaintiff/appellee against defendants/appellants Helen Pitre (Pitre), Anthony E. Orgeron (a/k/a Tony P. Orgeron) (Orgeron), and Helen Ann Orgeron (Helen) in which Expressway seeks damages for breach of a service station lease agreement. The defendants/appellants filed a third party demand against Texaco, Inc. (Texaco) and Expressway. The trial judge rendered judgment in favor of Expressway and against Pitre, Orgeron and Helen in the sum of $3,499.00 and dismissed the third party demand. The Orgerons now appeal. We revise in part and as revised affirm; we recognize the automatic 11 U.S.C. § 362(a) stay as it applies to Texaco.

On January 30, 1970 Oregon and Pitre, owners/lessors[1] of certain immovable property in Jefferson Parish, entered into a lease agreement with Texaco, the lessee. The lease involved a service station facility. The agreement expressly provides for a maintenance provision as follows:

(4)(a) During the term of this lease, lessee shall at lessee's expense make minor repairs to said premises, buildings and improvements, including repairs to plumbing, heating equipment, electrical wiring and fixtures, and replace broken windows, provided the aggregate cost of all repairs and/or replacement of windows required at any one time does not exceed $50.00. Lessee agrees to paint the buildings and improvements whenever it deems such painting necessary. [emphasis supplied]
(4)(b) Lessor agrees at lessor's expense to make all other repairs to the said premises, buildings and improvements, equipment and fixtures furnished by lessor, and to keep the same in good repair during the term of this lease, as well as to replace any equipment furnished by lessor which becomes worn-out or damaged and cannot in the opinion of lessee, be placed in first-class condition by reasonable repairs. In event lessor shall fail promptly to make repairs or replacements as provided for herein, lessee is authorized to make the necessary repairs or replacements and to apply accruing rentals to reimburse itself for such expenditures. Lessor agrees to obtain endorsement *399 of all fire insurance policies covering the premises waiving the insurer's subrogation rights against lessee and its sublessees. [emphasis supplied]

On October 28, 1982 Texaco assigned its rights under the January 30, 1970 lease[2] to Warbert R. Schneider (Schneider) effective November 1, 1982. Later, Schneider assigned his rights to the lease to Expressway, a company in which he is president and shareholder.

Schneider operated the station from 1970-1982 as Texaco's sublessee. From 1982 to the date of trial he operated the station subsequent to the assignments.

In 1985 Schneider informed the owners/lessors of a cracked and sinking concrete drive and requested that they repair the condition. When the owners/lessors failed to comply with his request, he filed suit against Helen and the Orgerons. The defendants contend that the deterioration of the concrete was caused by "improper and negligent workmanship" by Expressway and/or Texaco in 1981. In particular, they allege that no reinforced concrete was used in 1981 for the repairs undertaken at that time. Defendants filed a third party demand against Expressway and Texaco in connection with these allegations.

The trial court awarded the stipulated cost of repairs in the amount of $3,499.00 to Expressway and dismissed the third party demand filed by defendants.

Defendants/appellants now specify the following errors:

1. That the trial judge erred by misinterpreting subsection (4)(b) of the lease in concluding that the lessor is responsible for repairs, and

2. That the trial judge's conclusion that there was "no evidence whatsoever to indicate that some other third party or that lessee himself is responsible for in any way causing the damaged area."

11 U.S.C. § 362(a) AND THIRD PARTY DEFENDANT TEXACO:

At the outset we note that Texaco has filed a "voluntary petition for relief under Chapter 11, title 11, United States Code" on April 12, 1987, in case number 87B20142 in United States District Court for the Southern District of New York.[3] 11 U.S.C. § 362(a) provides for an automatic stay as follows:

Except as provided in subsection (b) of this section, a petition filed under sections 301, 302, or 303 of this title ... operates as a stay applicable to all entities, of—(1) the commencement or continuation, including the issuance or continuation, including the issuance or employment of process, or a judicial, administrative, or other proceeding against the debtor that was or could have commenced before the commencement of the case under this title, or to recover a claim against the debtor that arose before the commencement of the case under this title ... [emphasis supplied]

However, while a chapter 11 proceeding will operate to stay the commencement of this appeal as to Texaco, the third party defendant, it does not stay proceedings as to the other parties. 11 U.S.C. § 362(a); Wedgeworth v. Fibreboard Corp., 706 F.2d 541 (5th Cir.1983); Pitts v. Unarco Industries, Inc., 698 F.2d 313 (7th Cir.1983), cert. denied 464 U.S. 1003, 104 S.Ct. 509, 78 L.Ed.2d 698 (1983); Fortier v. Dona Anna Plaza Partners, 747 F.2d 1324 *400 (10th Cir.1984); Akers v. Bonifasi, 629 F.Supp. 1212 (M.D.Tenn.1984).

Therefore, this court recognizes the 11 U.S.C. § 362(a) automatic stay as it applies to proceedings against Texaco, the third party defendant and we will take no further action relative to Texaco until authorized to do so by the bankruptcy court. Assoc. of St. Croix Condominium Owners v. St. Croix Hotel Corp., 682 F.2d 446 (3rd Cir.1982); Clark Oil Company, Inc. v. Martin Exploration Co., 494 So.2d 1186 (La.App. 1st Cir.1983).

MAINTENANCE PROVISIONS IN LEASE:

The Orgerons contend that the portion of slab which failed was not furnished by them. Instead, it was an "improvement" furnished by a third party. Consequently, the Orgerons assert that the trial judge should have interpreted (4)(b) to mean that they as lessors were responsible only for repairs to "improvements ... furnished by lessors."

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Bluebook (online)
517 So. 2d 397, 1987 WL 3328, Counsel Stack Legal Research, https://law.counselstack.com/opinion/expressway-texaco-service-v-orgeron-lactapp-1987.