Katz v. Innovator of America, Inc.

552 So. 2d 724, 1989 WL 140790
CourtLouisiana Court of Appeal
DecidedNovember 14, 1989
DocketCA 88 1428
StatusPublished
Cited by7 cases

This text of 552 So. 2d 724 (Katz v. Innovator of America, 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
Katz v. Innovator of America, Inc., 552 So. 2d 724, 1989 WL 140790 (La. Ct. App. 1989).

Opinion

552 So.2d 724 (1989)

Samuel B. KATZ and Marvin L. Jacobs d/b/a Village Square Shopping Center
v.
The INNOVATOR OF AMERICA, INC., Sterling P. Hebert, Jr. and Carey Edward LeGrange.

No. CA 88 1428.

Court of Appeal of Louisiana, First Circuit.

November 14, 1989.

*725 Stacey E. Grove, Baton Rouge, for plaintiff-appellee.

Steven Duplechain, Baton Rouge, for defendant-appellant.

Before LOTTINGER, CRAIN and LeBLANC, JJ.

LeBLANC, Judge.

This appeal is brought by defendant, Sterling P. Hebert, Jr., who claims that the trial court erred in granting plaintiffs' motion for summary judgment.

Plaintiffs, Samuel B. Katz and Marvin L. Jacobs, d/b/a Village Square Shopping Center (VSSC) leased a shop located in VSSC to the Innovator of America, Inc., for use as a clothing store. The lease, dated October 21, 1985, was signed on behalf of Innovator by Sterling P. Hebert, Jr. and Carey E. LeGrange, officers of the corporation. Additionally, Hebert and LeGrange, in their individual capacities, allegedly signed a guaranty, dated "... the ____ day of October, 1985", as security for the payments due under the lease.

According to the lease, Innovator was to pay a total of $2,100.00 monthly ($1,900.00 for rent, $140.00 for maintenance, and $60.00 for a merchants' association fee). In July and August of 1987, Innovator failed to pay the amounts due. Based on an acceleration clause in the lease, Katz and Jacobs filed suit against Innovator and the two officers for $33,600.00, the entire amount remaining due on the lease. Defendants answered and reconvened, alleging that plaintiffs failed to enforce a clause in the lease which required uniform business hours in VSSC. Defendants further alleged Innovator's business had suffered due to the breach, and therefore they prayed for $50,000.00 damages.

Thereafter, plaintiffs filed a motion for summary judgment on the main demand (i.e. the claim for the accelerated rent due under the lease). On February 17, 1988, the trial court granted plaintiffs' motion as to Innovator only.[1] Subsequently, on June 17, 1988, the trial court granted plaintiff's motion for summary judgment as to Sterling P. Hebert, Jr. Judgment was rendered against Mr. Hebert for $33,600.00, with legal interest from date of judicial demand, plus attorney's fees in the amount of $3,360.00. Mr. Hebert appeals this judgment, raising several assignments of error.

In his first assignment of error, Mr. Hebert asserts that the trial court erred by granting an improper partial summary judgment against him. More specifically, *726 Mr. Hebert contends that the trial court acted improperly in casting judgment against a surety before the validity of the principal obligation had been established. He argues that the trial court should have waited for the summary judgment against Innovator to become definitive before ruling on the motion for summary judgment against the guarantors, Mr. Hebert and Mr. LeGrange.

We note that the contract of guaranty is equivalent to a contract of suretyship. Guar. Bank & Trust Co. v. Jones, 489 So.2d 368 (La.App. 5th Cir.1986). We also recognize that the contract of suretyship represents an accessory promise which falls if the underlying obligation is extinguished. La.Civ.Code arts. 3035, 3059.[2] However, the accessorial nature of the contract of surety does not obligate the creditor to first proceed against the principal debtor rather than the surety to enforce a debt. Bordelon v. Smith, 506 So.2d 788 (La.App. 1st Cir.), writ denied, 512 So.2d 1178 (1987). The creditor may sue the surety only, or he may join the surety and the principal in the same suit and get a judgment against both. Id. However, the invalidity of the principal debt generally may be raised by the surety as a defense to the creditor's action. La.Civ.Code art. 3060.

Since plaintiffs could have sued Mr. Hebert alone for the amounts due under the lease rather than filing suit against Innovator, Hebert and LeGrange, we find no error in the trial court's technical use of the summary proceedings. See Code of Civ.P. art. 1915(A)(3).

Next, Mr. Hebert contends that two material issues of fact are raised concerning the guaranty contract. He claims that there is a question of fact regarding whether he received any consideration for the execution of the guaranty and that there is a question of fact regarding when the lease and guaranty were actually executed. After considering these arguments, we find there is no genuine issue as to material fact. La.Code Civ.P. art. 966.

With respect to the argument regarding consideration, appellant contends that the guaranty is null and void due to a lack of consideration for the contract. In an affidavit, Mr. Hebert asserted the following facts.

. . . . .
THAT neither he [Mr. Hebert] nor Carey Edward LeGrange, the other officer of Innovator, executed the lease on October 21, 1985, but in fact executed said lease in January or February, 1986;
THAT Innovator was in possession of and occupying the space which is the subject space described in the lease;
THAT Innovator had in fact continuously occupied the space which is the subject of the lease for many months prior to the actual execution of the instant lease in January or February, 1986;
THAT affiant received no consideration for the execution of the guaranty which is attached to the lease and which forms a part of the basis of the claim against affiant and which is dated October ___, 1985;
THAT in fact the guaranty was not executed until some time in February, 1986, many months after Innovator was in possession of and occupying the leased space;
. . . . .

By raising these facts, appellant seeks to modify the terms of the contracts in question by the use of parol evidence. Generally, parol evidence is inadmissible to vary or contradict the clear and unambiguous terms of a written instrument. However as between two parties to an instrument, parol evidence has always been admissible to establish the want or failure of consideration. Scafidi v. Johnson, 420 So.2d 1113 (La.1982); Hogan v. McKeithen, 527 So.2d 982 (La.App. 2d Cir.1988). Thus, we are able to consider appellant's allegations *727 set forth in his affidavit. Nevertheless, after considering the facts set forth in appellant's affidavit, we find no material issues of fact with respect to appellant's argument regarding lack of consideration for the guaranty.

Appellant claims that Innovator was already occupying the lease premises prior to the execution of the lease and guaranty and, as a result, when the lease and guaranty in dispute were executed there was no new or independent consideration to support the guaranty. This claim is meritless. The mere fact that Innovator may have been in possession of the leased premises prior to the execution of the lease and guaranty in question does not raise a material question of fact regarding consideration for the guaranty. Appellant does not allege that this occupancy was pursuant to a valid lease with a fixed term. The right of the corporation to occupy the premises for a three year fixed term is clearly adequate consideration to support the lease and guaranty.

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Cite This Page — Counsel Stack

Bluebook (online)
552 So. 2d 724, 1989 WL 140790, Counsel Stack Legal Research, https://law.counselstack.com/opinion/katz-v-innovator-of-america-inc-lactapp-1989.