Karno v. Joseph Fein Caterer, Inc.

846 So. 2d 105, 2003 WL 1949114
CourtLouisiana Court of Appeal
DecidedApril 16, 2003
Docket2002-CA-1269
StatusPublished
Cited by2 cases

This text of 846 So. 2d 105 (Karno v. Joseph Fein Caterer, Inc.) 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
Karno v. Joseph Fein Caterer, Inc., 846 So. 2d 105, 2003 WL 1949114 (La. Ct. App. 2003).

Opinion

846 So.2d 105 (2003)

Billie KARNO, Testamentary Executrix of the Succession of Nick Karno and Rosemary Caracci, Successor to Frank Caracci
v.
JOSEPH FEIN CATERER, INC.

No. 2002-CA-1269.

Court of Appeal of Louisiana, Fourth Circuit.

April 16, 2003.

*107 Richard W. Martinez, Sue Buser, Martinez & Buser, LLC, New Orleans, LA, for Plaintiff/Appellant.

Alan M. Cohen, Charles L. Stern, Jr., Steeg and O'Connor, L.L.C., and Evangeline Vavrick, New Orleans, LA, for Defendant/Appellee.

(Court composed of Judge JOAN BERNARD ARMSTRONG, Judge PATRICIA RIVET MURRAY and Judge MAX N. TOBIAS JR.).

JOAN BERNARD ARMSTRONG, Judge.

This is an appeal from a judgment of the trial court declining to dissolve a commercial lease. The lessors claim that the lease should be dissolved because the lessee breached the lease in three respects. As to each of those three alleged breaches, the trial court found as a matter of fact that the lessee had not breached the lease and/or that any breach was only minor and "technical". The trial court found as a matter of law that, to the extent that there were any breaches of the lease, they did not justify dissolution of the lease. We hold that the trial court's findings of fact are not clearly wrong-manifestly erroneous and, therefore, may not be disturbed upon appeal. E.g., Stobart v. State, DOTD, 617 So.2d 880 (La.1993). We also agree with the trial court's legal determination that any violation of the lease was not sufficient (particularly in light of the large investment that the lessee made in the property) to justify dissolution of the lease. Thus, we will affirm the judgment of the trial court.

The lessors, originally Frank Caracci and Nick Karno and later their heirs and estate respectively, owned the leased premises which consist of a French Quarter building. The lessee, Joseph Fein Catering, Inc. ("JFC"), operated a restaurant, The Court of Two Sisters, in the leased premises. There were a series of three written leases extending cumulatively over a period of more than thirty years.

The first two leases provided that, if the lessee wished to make alterations to the leased premises, then the lessee must have the approval of the lessors. Those two leases did not require that the lessors' approval of alterations be in writing. The third lease differed somewhat in that the lessors' approval of alterations was to be in writing. During the term of the third lease, the lessee performed a $932,000 renovation of the leased premises which renovation included alterations of the leased premises. The trial court found that the lessee had obtained the lessors' oral approval, but not their written approval for the alterations. The lessors dispute that trial court finding of fact, and argue that the oral approval was conditioned upon increased rent but, as we will discuss in detail below, that finding of fact is not clearly wrong-manifestly erroneous.

The trial court also found that, during the time periods covered by all the leases, including the third lease with its requirement of written approval of alterations, the lessee had a number of times performed alterations of the premises based upon oral (not written) approval from the lessors and that the lessors had never taken any exception to the lessee so proceeding based upon only oral approval. Based upon that "prior course of conduct", the trial court found that the parties had modified the third lease so as to allow lessee's alterations to the premises to proceed based upon oral (not written) approval by the lessors.

The lessors dispute the trial court's finding of a modification, and argue that *108 the prior alterations were not so extensive as the alterations at issue, but, on the record below, this factual finding of the trial court is also not clearly wrong-manifestly erroneous. Also, the trial court was correct, as a matter of law, in that the parties' course of conduct can modify a term of a written lease. See generally Gravier Co. v. Satellite Business Systems, 519 So.2d 180 (La.App. 4th Cir.1987), writ denied, 521 So.2d 1150 (La.1988); Fontenot's Rice Drier, Inc. v. Farmers Rice Milling Co. Inc., 329 So.2d 494 (La.App. 3rd Cir.), writ denied, 333 So.2d 239 (La. 1976); Versailles Arms Apartments v. Pete, 545 So.2d 1193 (La.App. 4th Cir. 1989); Housing Authority of St. John the Baptist Parish v. Shepherd, 447 So.2d 1232 (La.App. 5th Cir.1984); O'Keefe v. Breaux Mart General Meyers, Inc., 499 So.2d 598 (La.App. 5th Cir.1986), writ denied, 503 So.2d 22 (La.1987); Eldemire v. Shilts, 442 So.2d 1351 (La.App. 3rd Cir.1983), writ denied, 445 So.2d 452 (La.1984).

In any event, the trial court also found that, because the lessors took neither any legal action nor made any objections to the alterations (beyond an initial attorney's letter) for over three years after becoming fully aware of the alterations, during which time the renovation was completed at the lessee's cost of over $932,000, the lessors had waived any right to obtain dissolution of the lease due to the lessee's failure to obtain the lessors' approval in written form. The lessors argue that, shortly into the renovation project, their attorney wrote to the lessee and objected to the alterations. However, the evidence is undisputed that, shortly after that attorney's letter, the lessee and lessors arranged for an inspection of the renovation work by the lessors and, after that inspection, the lessors made no further objection to the alterations for about three years. Under these circumstances, the trial court was neither clearly wrong-manifestly erroneous as a matter of fact, nor in error as a matter of law, in determining that the lessors had waived any right to obtain dissolution of the lease due to failure of the lessee to obtain the lessors' approval in written form. If the lessors continued to have any objection to the alterations after their inspection of the renovation work, then it was incumbent upon them to at least voice those objections after the inspection rather than remaining silent for about three years (continuing to accept rent) while the $932,000 renovation project was completed. See generally Eldemire, 442 So.2d at 1353; Himbola Manor Apartments v. Allen, 315 So.2d 790 (La.App. 3rd Cir.1975); Ford v. Independent Bakers Supply, Inc., 385 So.2d 580 (La.App. 4th Cir.1980); Faber v. Gay Times, Inc., 267 So.2d 252 (La.App. 4th Cir.1972); Walters v. Coen, 228 La. 931, 84 So.2d 464 (La. 1955); Canal Realty & Improvement Co., Inc. v. Pailet, 217 La. 376, 46 So.2d 303 (1950); Adam, Inc. v. Dividend, Inc., 447 So.2d 80 (La.App. 4th Cir.1984).

The most serious issue which the lessors raise as to the trial court's decision with respect to the alterations of the premises is the lessors' contention that the trial court was clearly wrong-manifestly erroneous in finding that Frank Caracci gave oral approval for the alterations. This is important because the trial court found only that the parties' course of conduct had modified the lease to allow oral rather than written approval of alterations. The trial court did not find that the parties' course of conduct eliminated altogether the requirement of lessors' approval of alterations.

However, it is clear from the record below that the trial court was not clearly wrong-manifestly erroneous in finding that Frank Caracci (who was deceased at the time of trial) gave oral approval for *109 the alterations.

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Bluebook (online)
846 So. 2d 105, 2003 WL 1949114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/karno-v-joseph-fein-caterer-inc-lactapp-2003.