Morgan v. Agricultural Enterprises, Inc.

127 So. 2d 335, 1961 La. App. LEXIS 1806
CourtLouisiana Court of Appeal
DecidedFebruary 2, 1961
DocketNo. 9388
StatusPublished
Cited by5 cases

This text of 127 So. 2d 335 (Morgan v. Agricultural Enterprises, 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
Morgan v. Agricultural Enterprises, Inc., 127 So. 2d 335, 1961 La. App. LEXIS 1806 (La. Ct. App. 1961).

Opinion

BOLIN, Judge.

This is a suit brought for rent under an alleged verbal contract of lease between Samuel R. Morgan, Jr., and Agricultural Enterprises, Inc., covering a warehouse known as Municipal No. 2465 Texas Avenue, Shreveport, Louisiana. Defendant had been occupying the premises under a written contract of lease since October 18, 1955, but prior to its expiration, negotiations were begun between the parties for certain alterations, additions, etc. Plaintiff alleges that a definite oral lease agreement was entered into on or about August 15, 1956. This contract, which was rather loosely referred to as the “Dargan Agreement” throughout the trial, is alleged by plaintiff to provide as follows:

“(a) Defendant leased the premises for warehouse space for the storage of defendant’s cotton and other agricultural commodities.
“(b) That the term of the lease and the rental stipulated was:
“(1) Erom September 1, 1956, to March 1, 1958, a period of 18 months, at $500.00 per month; and
“(2) From March 1, 1958, to March 1, 1960, a period of 24 months at $500.-00 per month; and
“(3) From March 1, 1960, to March 1, 1963, a period of 36 months at $750.-00 per month;
thus the entire term of the lease was for the period September 1, 1956, to March 1, 1963; all monthly rentals were stipulated to be paid on the first day of each month during the entire term of the lease.
“(c) Defendant agreed to pay all taxes assessed against any movable property placed in or attached to the leased premises and all ad valorem taxes assessed against the leased premises itself by the taxing authorities for the State of Louisiana, Parish of Caddo, City of Shreveport, and any school district and subdivision thereof.
“(d) Defendant agreed to maintain and repair the premises subject only to the ordinary wear and tear of a reasonable use.
“(e) Defendant agreed to insure the premises against loss due to fire, windstorm and extended coverage in the amount of $60,000.00 and to pay the premiums on such insurance policy during the entire lease.”

Defendant occupied the premises from October 15, 1955, to about March 15, 1959, but denies that any such contract as alleged existed. Defendant contends that its occupancy of the premises was based on the following series of contracts and month to month tenancy:

(1) Original rent contract dated October 18, 1955, for a primary term of 18 months at a rate of $625 per month with an option to renew for a second 18 months period. At the end of the 36 months, lessee had the [337]*337option to buy for a consideration of $60,000 payable under certain terms. Lessee was to pay all ad valorem taxes and provide insurance up to $60,000, but the obligation was limited to a cost of $1,000 per year to defendant. This contract covered only a portion of the warehouse facilities.

(2) On January 22, 1956, an additional part of the premises was added to the original contract by written agreement. This provided for a term of 18 months from December 1, 1955, to May 31, 1957, at a rental of $125 per month with the option to renew for an additional 18 months for the same rental. The lessee was to pay all ad valorem taxes. The lessee had the option to purchase at any time during the lease for a consideration of $4,500.

(3) Contracts (1) and (2) above were superceded by an oral contract in August, 1956, covering all the property for a period of 18 months commencing September 1, 1956, for a rental of $350 per month.

(4) Commencing March 1, 1958, there, was a lease contract for $400 per month for six months for which the rental was prepaid.

(5) From September 1, 1958, the defendant occupied the premises under no contract for which it paid a monthly rental of $500 per month.

In the alternative, defendant contends that if the court should find a contract existed between the parties other than as contended by defendant, such contract contains a provision permitting defendant to cancel the lease upon six months notice, said notice having been given.

The trial judge found that there was in fact a contract as alleged by the plaintiff and awarded judgment in his favor for the rent due and to become due under the terms thereof, subject to certain credits in favor of defendant. The judgment also recognized plaintiff’s provisional seizure on a certain sprinkler system located on the premises and owned by a third party.

Appellant complains of certain specified errors in the judgment as follows:

(1) In holding that the one page of the “Dargan Draft” constituted the contract between plaintiff and defendant;

(2) In failing to hold that any contract which existed between plaintiff and defendant was terminated by April 15, 1959, in accordance with its own terms;

(3) In failing to hold that plaintiff’s seizure of the leased premises and excluding the defendant therefrom terminated the lease and cut off any claim of plaintiff for further rent; and,

(4) The judgment of the lower court is contrary to the law and evidence of the case.

The principal .issues presented to this court are:

(1) Did the parties consummate a contract of lease?

(2) If so, what were the terms of such contract ? »

(3) In relation to such a contract, if found, did the introduction of the whole of the “Dargan Agreement” bind plaintiff to all of its terms?

(4) Did plaintiff terminate the lease when he, through his agent, locked the premises to prevent removal of the sprinkler system ?

The testimony in this case was in conflict and at wide variance but this is to be expected since the testimony covered conversation and events over a considerable period of time. The record contains numerous items of correspondence, many of which are pertinent to the inquiry we must make. While it tends to make this opinion rather tedious to digest, we feel it necessary to comment on many of these items because the decision herein is predicated to a large extent upon the intent of the contracting parties as gathered from such evidence. The plaintiff and defendant introduced a total of approximately seventy-five exhibits during the trial, and the transcript [338]*338of the oral testimony was voluminous. The various exhibits were not introduced in chronological order. In his written reasons for judgment the trial judge gave a detailed analysis of the negotiations surrounding this controversy, which we feel are as brief and accurate as possible. The sequence of events as shown by our learned brother below are:

“Exhibits D-22 and P-1, dated October 18, 1955, constitute an offer by the plaintiff to the defendant to lease certain property; this offer was accepted by the defendant. The lease was for the term of 18 months at $625 a month, with an option to renew for 18 months, and an offer to sell at the end of 36 months for $60,000.00.
“On January 20, 1955 (D-23) the ‘vault’ was added to this property for 18 months. The period of the lease was from December 1, 1955 to May 31, 1957. The monthly rental was $125, with an option to renew for an additional 18 months, and an option to the lessee to purchase the property for $4500.

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Bluebook (online)
127 So. 2d 335, 1961 La. App. LEXIS 1806, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morgan-v-agricultural-enterprises-inc-lactapp-1961.