Franklin Southland Printing v. Noab

739 So. 2d 977, 1999 WL 557005
CourtLouisiana Court of Appeal
DecidedJuly 27, 1999
Docket99-CA-60
StatusPublished
Cited by10 cases

This text of 739 So. 2d 977 (Franklin Southland Printing v. Noab) 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
Franklin Southland Printing v. Noab, 739 So. 2d 977, 1999 WL 557005 (La. Ct. App. 1999).

Opinion

739 So.2d 977 (1999)

FRANKLIN SOUTHLAND PRINTING COMPANY, INC.
v.
The NEW ORLEANS AVIATION BOARD and The City of New Orleans.

No. 99-CA-60.

Court of Appeal of Louisiana, Fifth Circuit.

July 27, 1999.

*979 Ronald J. Vega, DeMartini, D'Aquila & Volk, Kenner, Louisiana, and Rebecca J. King, Paul J. Mirabile, Marlene Quarles, Alvin Moon, Middleberg, Riddle & Gianna, New Orleans, Louisiana, Attorneys for Defendants/Appellants.

Mack E. Barham, Jerry B. Jordan, Barham & Arceneaux, New Orleans, Louisiana, Attorneys for Plaintiff/Appellee.

Panel composed of Judges SOL GOTHARD, THOMAS F. DALEY and MARION F. EDWARDS.

GOTHARD, Judge.

Franklin Southland Printing Company, Inc. ("Southland") filed suit for inverse condemnation and appropriation of its leasehold interest and for damages against the New Orleans Aviation Board and the City of New Orleans ("NOAB"). Proceedings were instituted on December 12, 1995.

Plaintiff filed a motion for summary judgment on the issue of liability only on April 15, 1997. After hearing, on June 2, 1997, the trial judge rendered judgment in favor of plaintiff, establishing the liability of NOAB to pay just compensation to plaintiff. All issues related to the specific items and amount of just compensation were reserved for a trial on the merits.

NOAB filed for Motion in limine to prohibit evidence pertaining to damages allegedly incurred prior to September 5, 1996, the date of the purchase of the building and the termination of plaintiff's lease. This motion was orally denied by the trial court prior to the start of trial. A five day trial was held on August 13-15, 1997, September 26, 1997, and March 6, 1998. After taking the matter under advisement, the trial court rendered judgment in favor of plaintiff for a total amount of $1,300,038.40. No reasons for judgment were given by the trial court. NOAB appealed from this judgment.

FACTS

Richard Lizotte, president and majority stockholder, testified that he first took control of Southland Printing Company in 1991, and at that time the company was faltering. He began the process of turning the company around. In the beginning of 1992, he entered into a seven year lease with the owner of the R & S Building in Kenner. At that time, the building was located near the airport, in an area that was largely undeveloped.

In the fall of 1992, Southland purchased Franklin Printing Company. Included in the purchase was a Heidelberg Press. During that time period, Southland learned that the airport had future plans which would include appropriation of the property on which the R & S Building stood. He contacted the airport and inquired about relocation assistance, and was told that was not available until the building was purchased.

During the spring of 1993, Southland took steps to make the building suitable for the Heidelberg Press. The press was a large, vibration sensitive piece of machinery. Southland hired Gillen, who cut the slab under the press so that it was separate from the rest of the slab and sank 50 ft. pilings under the independent slab. By June 18, 1993, the Heidelberg Press was "up and running."

In early 1994, the airport began clearing and developing the property next to the R & S Building. With the use of bulldozers, graders, and dump trucks, fill was brought in and the elevation of the property was raised to where it would no longer flood. After the property was graded, the elevation was higher than that of the adjoining R & S Building.

In early 1994, Southland began to have problems with the Heidelberg Press. The maintenance company was called several times before the parties realized that the press was malfunctioning because of excessive vibrations. These excessive vibrations were attributed to the heavy equipment on the adjoining property and also to the addition of fill, which was pressing against *980 the pilings under the slab on which the Press sat, causing the pilings to move.

At that time, in the fall of 1994, Southland began a search for a place to relocate. After an extensive search, an appropriate piece of property was located in June of 1996, a lease was signed for a property on Catherine Street, near Airline Highway in Metairie, Louisiana. The property needed extensive work, estimated to be $550,000.00 to make it workable for the business. Mr. Lizotte testified that during this process he had been in contact with the airport, and he believed that he would get some relocation assistance.

In September of 1996, The New Orleans Aviation Board purchased the R & S Building, and gave Southland notice to vacate the premises. Mr. Lizotte testified that he was offered relocation assistance of around $162,000.00. Because the offer was insufficient to renovate the Catherine Street property, he was forced to terminate the lease. He stated that he was able to buy-out the lease from the owner for $53,000.00.

Mr. Lizotte located a building on 7 th Street, in Metairie Louisiana, which had formerly housed another printing company. This building had not been on the market at the time the Catherine Street lease was executed. After five months of searching, he was able to secure financing, and Southland executed a lease/purchase agreement in May of 1997. Renovations to the property started June 1, 1997, and the business began its move on July 31, 1997. During the first three days of trial, the move was still in progress. The estimated value of business loss caused by the move was $72,000.00.

Mr. Lizotte testified at trial that he continually sought assistance from defendants to help in the relocation of the business. His contact with defendant was Mr. Ellis Smith. Mr. Smith did not testify at trial.

David Demonte, CPA for Southland, testified that the value of the 1994 business disruption due to the downtime of the Heidelberg Press was $158,000.00. Ernest Folse, CPA, testified on behalf of defendants. He also found a business disruption in 1994 due to the malfunction of the Press, but he valued the loss at $98,000.00.

Dr. Kenneth Stokoe, an expert in civil engineering, soil dynamics, and foundation requirements for commercial printing presses, opined that disruption created by the malfunctioning Press and the ensuing financial loss was caused by the operation of the heavy equipment during the land clearing process, which caused vibration levels significantly above what the Press could tolerate. He also found that the placement of fill next to the R & S Building caused movement in the building's foundation.

Dr. Ewing Traughber, an expert in civil engineering, testified for defendants. He opined that the R & S Building was not suitable for the Press and that it was the heavy Press itself that caused the foundation problem. Roy Glapion, civil engineer, testified that the Press itself caused the vibration problems.

Dr. Wade Ragas was qualified as an expert in estimating losses as a result of a taking. He estimated the value of the leasehold taken by NOAB when the building was purchased at $311,000.00. He further opined that Southland had acted prudently during the relocation process.

On appeal, NOAB challenges specific findings and amounts of compensation. It is noted that the trial court, in its judgment, gave an in globo award, and did not specify each element of damage or the amount thereof. However, the plaintiff introduced as evidence at trial a document entitled "Summary of Just Compensation" which delineates each item of damage alleged. See Appendix # 1.

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Bluebook (online)
739 So. 2d 977, 1999 WL 557005, Counsel Stack Legal Research, https://law.counselstack.com/opinion/franklin-southland-printing-v-noab-lactapp-1999.