Laura's Products, Inc. v. 600 Conti Street

982 So. 2d 934, 2008 WL 1043146
CourtLouisiana Court of Appeal
DecidedApril 9, 2008
Docket2007-CA-0819
StatusPublished
Cited by3 cases

This text of 982 So. 2d 934 (Laura's Products, Inc. v. 600 Conti Street) 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
Laura's Products, Inc. v. 600 Conti Street, 982 So. 2d 934, 2008 WL 1043146 (La. Ct. App. 2008).

Opinion

982 So.2d 934 (2008)

LAURA'S PRODUCTS, INC.
v.
600 CONTI STREET, LLC and William B. Alexander.

No. 2007-CA-0819.

Court of Appeal of Louisiana, Fourth Circuit.

April 9, 2008.

*935 Robert H. Matthews, Pauline M. Warriner, New Orleans, LA, for Plaintiff/Appellee.

Phillip A. Wittmann, Lesli D. Harris, John Mark Fezio, Stone Pigman Walther Wittmann L.L.C., New Orleans, LA, for Defendants/Appellants.

(Court composed of Judge PATRICIA RIVET MURRAY, Judge EDWIN A. LOMBARD, Judge ROLAND L. BELSOME).

PATRICIA RIVET MURRAY, Judge.

Defendants, William Alexander and 600 Conti Street, LLC, appeal the trial court's judgment finding they breached the lease agreement between them and the plaintiff/ lessee, Laura's Products, Inc., and awarding damages. For the reasons that follow, we affirm.

FACTS AND PROCEEDINGS BELOW

In May, 1997, Laura's Products, Inc. [hereinafter "Laura's"], executed a lease with H & M Realty Company for commercial space located on the first floor of 602-604 Conti Street, a building constructed in the 1800's in the New Orleans French Quarter. Albert Mintz, whose family owned the building, executed the lease documents on behalf of H & M Realty Company. Laura's, which at the time was owned by spouses John and Cheryl Dutton, *936 is a retail business that makes and sells candy. In 1999, the parties extended the lease, which was set to expire in 2000, until May 31, 2005. Laura's operated its business in that building, which is on the corner of Conti and Chartres Streets, until late April of 2001. Around that time, Mr. Mintz noticed that the exterior brick wall on the Conti Street side of the building was bowed out. He engaged a structural engineer, William Mouton, to examine the building. Mr. Mouton concluded that, due to the bowing out of the load-bearing wall, the building was in danger of immediate collapse. He reported his conclusion to Albert Mintz, who called Laura's on April 23, 2001 and informed the store manager that because of the dangerous condition of the building, Laura's personnel should vacate the building immediately. After calling Mr. and Mrs. Dutton to let them know what was happening, the store manager closed down Laura's and vacated the building.

With all the tenants evacuated from the building,[1] Mr. Mintz hired Mr. Mouton to supervise the temporary stabilization of the building and to give him an estimate on the cost of permanent repairs. Mr. Mouton ultimately recommended that Mr. Mintz reconstruct the exterior Conti wall at a cost of approximately $700,000. Rather than pursue the extensive reconstruction, Mr. Mintz decided to sell the building. On June 22, 2001, Mr. Mintz's company sold the building to 600 Conti Street, LLC, an entity owned by William Alexander. In the act of sale, Mr. Alexander expressly assumed all the obligations of Mr. Mintz as lessor under the lease agreement with Laura's. On June 25, 2001, Mr. Mintz sent a letter to John and Cheryl Dutton informing them of the sale of the building and of the fact that Mr. Alexander had assumed all of Mr. Mintz's responsibilities pertaining to the lease. Mr. Mintz further stated that Mr. Alexander had assured him that he would help John and Cheryl Dutton reestablish their business at that location.

Mr. Alexander hired an architect, Barry Fox, to assess the building, develop a plan for repair, and supervise the project. Structural repair work began on or about August 21, 2001. On September 18, 2001, Jackie McPherson, attorney for 600 Conti, LLC, sent John and Cheryl Dutton a letter notifying Laura's that their lease was cancelled by its own terms because the premises were wholly unfit for occupancy and could not be repaired within 120 days.

In October, 2003, Laura's filed the instant action against Mr. Alexander and 600 Conti Street, LLC, alleging defendants' breach of the lease agreement had caused them to suffer damages including loss of profits and expenses related to the relocation of their candy business to a less desirable location. The matter was tried before a jury on February 5-13, 2007. The jury returned a unanimous verdict in favor of Laura's, answering six specific interrogatories as follows:

(1) At the time plaintiffs were asked to leave in April, 2001, the building at 600 Conti Street was not wholly unfit for occupancy because of an event covered by lines 147 to 152 of the lease [the so-called "Fire or Casualty Clause"];
(2) The plaintiffs did not waive the implied warranty of fitness of the leased premises;
(3) The defendants breached the lease with Laura's by canceling it;
*937 (4) The defendants breached the implied warranty of fitness of the leased premises;
(5) As a result of defendants' actions, the plaintiffs suffered damages in the amount of $250,000.

On February 16, 2007, the trial court rendered a written judgment in accordance with the jury's verdict. Defendants now appeal that judgment.

ISSUES

Defendants argue that the trial court erred in three respects: (1) by failing to find that the plaintiffs waived the implied warranty of fitness as to the leased premises; (2) by failing to find that the defendants were entitled to cancel the lease under lines 147-152 (the "Fire or Casualty" provision); and alternatively, (3) by finding that plaintiffs suffered damages in the amount of $250,000 as a result of the defendants' breach of the lease. Answering the appeal, the plaintiffs raise an additional issue: that the trial court erred by failing to exclude the testimony of defendant's expert on damages, Harold Asher. According to plaintiffs' argument, if Mr. Asher's testimony had been excluded, the jury would have awarded double the amount of damages ($532,113). We address each issue in turn.

WAIVER OF IMPLIED WARRANTY OF FITNESS

At the time the lease between the plaintiffs and H & M was executed (and at the time the plaintiffs were evacuated from the building), Louisiana Civil Code article 2695 provided that every lessor warranted to the lessee that the thing leased was suitable for its intended purpose.[2] However, this implied warranty could be waived in the lease contract to the extent that the lessee agreed to assume liability for the condition of the leased premises. See La. Rev. Stat Ann. § 9:3221 (2001); Tassin v. Slidell Mini-Storage, 396 So.2d 1261, 1264 (La.1981).[3] In the instant case, lines 63-67 of the original lease state:

Lessee assumes responsibility for the condition of the premises and Lessor will not be responsible for damage caused by leaks in the roof, by bursting of pipes by freezing or otherwise, or by any vices or defects of the leased property or the consequences thereof, except in the case of positive neglect or failure to take action toward the remedying of such defects within reasonable time after having received written notice from Lessee of such defects and the damage caused thereby.

In addition, the rider to the lease states, in Paragraph 14:

Lessee accepts the leased premises in the condition the leased premises shall be at the time of delivery of occupancy without any repairs, replacements or improvements from or to be made by Lessor. During the term of this lease, as may be extended, Lessee will be responsible for and pay for all expenses and costs in connection with the repair, maintenance, replacement and improvement of the leased premises, excluding the roof.

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Cite This Page — Counsel Stack

Bluebook (online)
982 So. 2d 934, 2008 WL 1043146, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lauras-products-inc-v-600-conti-street-lactapp-2008.