Louisiana Purchase II Partners LLC v. J & E Partnership

834 So. 2d 604, 2002 La.App. 3 Cir. 0880, 2002 La. App. LEXIS 3927, 2002 WL 31829263
CourtLouisiana Court of Appeal
DecidedDecember 18, 2002
DocketNo. 02-0880
StatusPublished

This text of 834 So. 2d 604 (Louisiana Purchase II Partners LLC v. J & E Partnership) 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
Louisiana Purchase II Partners LLC v. J & E Partnership, 834 So. 2d 604, 2002 La.App. 3 Cir. 0880, 2002 La. App. LEXIS 3927, 2002 WL 31829263 (La. Ct. App. 2002).

Opinion

L SAUNDERS, Judge.

This cases arises from the execution, by the Plaintiff and the Defendant, of two agricultural leases of property in Catahou-la Parish, Louisiana. The Plaintiff, Louisiana Purchase II Partners (LAP) filed suit alleging that the Defendant, J & E Farm Partnership (J & E) failed to pay the required rent pursuant to the lease agreement. After LAP filed its complaint, J & E filed its Answer and Reconventional Demand, alleging damages for failure of LAP to provide adequate irrigation water to the leased premises and also negligence on the part of LAP. The Plaintiff then filed its Motion for Summary Judgment stating there was no genuine issue of material fact as to the issue of LAP’s responsibility to provide irrigation water to the premises. The trial court found that the lease was clear and unambiguous on this issue, thus the Motion for Summary Judgment was granted and J & E’s Reconventional Demand was subsequently dismissed. At this time, J & E appeals the Summary Judgment granted by the trial court in favor of LAP and dismissal of the Recon-ventional Demand.

FACTS AND PROCEDURAL BACKGROUND

The parties to this action are LAP, whose representatives are Mr. Gerald Keating, partner, and Dr. John Bryant, [606]*606farm manager, and J & E, whose representative is Jeffery H. Morris, partner. Morris’ father, Ivan 0. Morris Jr., attended negotiations of the leases and provided the labor and management for the 1998 rice crop.

The parties entered into two written leases wherein LAP agreed to lease to J & E 2,945 acres in Catahoula Parish for the 1998 crop year. The terms of each lease were identical except for the acreage and rental amounts. In the lease, LAP agreed to provide all equipment and materials necessary to provide “high quality water less than 500 ppm Sodium from wells watering no more than 150 acres each.” The leases [2were prepared by the Lessor, and their terms had an effective date of February 10, 1998. They were to continue for a period of four years, and provided for two semi-annual rent payments. The consideration for one lease was $108,936.00 and the second lease was $144,372.00. Paragraph 32 of the lease contained the following provision:

Lessor shall be responsible for replacement of equipment in the event of catastrophic damage from natural causes (including but not limited to, fire earthquake, tornado, windstorm, and lightning). The parties expressly acknowledge and agree that in no instance shall Lessor be liable for any crop loss due to equipment failure due to mechanical breakdown, catastrophic damage from natural causes, or underground water quantity or quality.

After the leases were signed, LAP caused to be drilled 24 wells on the leasehold; the first on March 26, 1998, and the last on May 21, 1998. The drillers were given well specifications by LAP to drill each well.

Installment payments under each lease were due June 1, 1998, and December 1, 1998. On June 1, 1998, $54,468.00 became due under the first lease and $72,186.00 became due under the second lease. On December 1, 1998, $54,468.00. became due under the first lease and $72, 186.00 became due under the second lease.

LAP filed suit on February 18, 1999, alleging that J & E failed to pay both of the December 1, 1998 installments due pursuant to the provisions of the two leases. LAP sought $121, 117.00, reasonable attorney fees, and court costs in its petition. On May 21, 1999, J & E filed an Answer listing its affirmative defenses and a Reconventional Demand for damages against LAP, alleging that LAP agreed to provide irrigation water and all irrigation equipment, pumping structures and other materials necessary to provide irrigation water to the leased premises, and that, as a result of LAP’s failure to do so, J & E sustained damages. J & E also alleged that LAP was negligent |,qon numerous grounds, all addressing aspects of LAP’s failure to properly provide the irrigation sufficient to sustain the rice crop. According to J & E, the wells drilled by LAP were not built deep enough to reach the water strata, therefore the wells did not deliver a sufficient amount of water to the crops, resulting in damage. Accordingly, J & E sought damages for costs incurred in mitigating its losses.

LAP filed its first Motion for Summary Judgment on August 30, 1999. LAP asserted that based upon Paragraph 32 of the lease, there was no genuine issue of material fact regarding LAP’s liability for damages because paragraph 32 provided that LAP would not be liable for damages resulting from “failure of the irrigation system.” The court denied the motion on February 28, 2000.

Next, on September 12, 2000, LAP moved for partial summary judgment asserting that LAP had in effect a liability insurance policy which would cover J & [607]*607E’s claim against it and that the unpaid rent, which by this time had been paid into the court registry by J & E, should be paid to LAP. This motion was also denied by the trial court.

Last, LAP moved for partial summary judgment on June 26, 2001 asserting that there was no warranty by LAP to provide irrigation sufficient to sustain its rice crop. In written reasons, the trial court found the leases devoid of any language wherein LAP agreed to supply irrigation to J & E’s crops; and further, paragraph 32 specifically provided that LAP would not be held responsible for crop damage due to water quantity. The Motion for Summary Judgment was granted and J & E’s Reconven-tional Demand was denied on February 12, 2002.

LAP filed a motion to turn over funds from the court registry and to set attorney fees. J & E objected, asserting that granting summary judgment dismissed |4only the Reconventional Demand and that Plaintiffs petition for past due rent still faced an answer with affirmative defenses not disposed of by the summary judgment. J & E further asserted that additional party Defendants were still party to the action and had not been affected by or referenced in the summary judgment. The objection was overruled, attorney’s fees were fixed at $20,000.00, and the clerk of court was ordered to turn over all funds in the registry to LAP.

Thereafter, J & E filed its petition for suspensive appeal which was granted by this court on April 2, 2002.

LAW AND ANALYSIS

ASSIGNMENTS OF ERROR

On appeal, J & E assert the following assignments of error:

(1) the trial court erred when it granted LAP’s motion for summary judgment and denied J & E’s reconven-tional demand; and
(2) the trial court erred when it granted LAP’s motion to turnover funds and set attorney’s fees.

ANALYSIS

ASSIGNMENT OF ERROR NO. 1

In its first assignment of error, J & E asserts that the trial court erred when it granted LAP’s Motion for Summary Judgment and denied J & E’s Reconventional Demand. LAP asserts that summary judgment was proper because paragraph 32 of the lease, disclaiming any liability for crop loss due to “underground water quantity”, is clear and unambiguous; and additionally, the’ “AS IS” clause of the lease disclaims any liability on the part of LAP for damages attributed to the irrigation wells on the leasehold.

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Bluebook (online)
834 So. 2d 604, 2002 La.App. 3 Cir. 0880, 2002 La. App. LEXIS 3927, 2002 WL 31829263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisiana-purchase-ii-partners-llc-v-j-e-partnership-lactapp-2002.