New Orleans Riverwalk Assoc. v. RP GUASTELLA, INC.

664 So. 2d 151, 1995 WL 684816
CourtLouisiana Court of Appeal
DecidedDecember 19, 1995
Docket94-CA-2092, 94-CA-2093
StatusPublished
Cited by5 cases

This text of 664 So. 2d 151 (New Orleans Riverwalk Assoc. v. RP GUASTELLA, 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
New Orleans Riverwalk Assoc. v. RP GUASTELLA, INC., 664 So. 2d 151, 1995 WL 684816 (La. Ct. App. 1995).

Opinion

664 So.2d 151 (1995)

NEW ORLEANS RIVERWALK ASSOCIATES
v.
ROBERT P. GUASTELLA EQUITIES, INC., et al.
ROBERT P. GUASTELLA EQUITIES, INC.
v.
NEW ORLEANS RIVERWALK ASSOCIATES, et al.

Nos. 94-CA-2092, 94-CA-2093.

Court of Appeal of Louisiana, Fourth Circuit.

November 16, 1995.
Reasons for Denying Rehearing December 19, 1995.

*153 William R. Forrester, Jr., William S. Penick, Thomas M. Benjamin, Lemle & Kelleher, New Orleans, and Marie R. Yeates, Sheryl L. Hopkins, Gwen J. Samora, Vinson & Elkins, Houston, Texas, for New Orleans Riverwalk Associates, New Orleans Riverwalk Limited Partnership, Connecticut General Life Insurance Company, Rouse-New Orleans, Inc. & Rouse Company.

William E. Brown, Covington, Jacques F. Bezou, Robert H. Matthews, Bezou & Matthews, Mandeville, for Robert P. Guastella Equities, Inc., Robert P. Guastella, Charles Kovacs, Donald Guastella, David Guastella, Darren Guastella, and Debra Guastella.

Before SCHOTT, C.J., and BYRNES and LOBRANO, JJ.

Reasons for Denying Rehearing by Judge Lobrano December 19, 1995.

BYRNES, Judge.

In this consolidated case, New Orleans Riverwalk Associates, New Orleans Riverwalk *154 Limited Partnership, Connecticut General Life Insurance Company, Rouse-New Orleans, Inc. and the Rouse Company (collectively "Riverwalk"), appeals a judgment in favor of Robert P. Guastella Equities, Inc. (collectively "Guastella") for damages arising from a lease agreement. Guastella answered the appeal. We amend and affirm.

On October 10, 1988 Guastella signed a ten-year lease agreement with a five-year renewal term with Riverwalk. Guastella built a Howard Johnson restaurant known as HJ's Great American Cafe ("HJ's Cafe") on Spanish Plaza next to the entrance to Riverwalk mall. Guastella was responsible for constructing the restaurant with Riverwalk's approval of the plans. Riverwalk did not approve Guastella's plans to build a higher level floor or drainage wall to aid in preventing flooding. HJ's Cafe opened in January 1989. After encountering various problems, including many days of flooding, Guastella filed for bankruptcy.

In December 1989 Riverwalk began eviction proceedings in civil district court and filed a petition against Guastella for past due rent, attorney's fees and interest, for termination of the lease and for writ of sequestration. Guastella filed Chapter 11 proceedings in federal bankruptcy court, and the eviction proceedings were stayed in civil district court. The bankruptcy court granted Guastella's motion to assume the lease, provided it brought the past rent current and began paying future rent on time. Guastella paid rent for February through May 1990 and a $6,000 partial payment on October 30, 1990, but Guastella did not pay for rent accrued from May 1989 through January 1990.

On November 8, 1990 Guastella, the former tenant, brought an action in civil district court against Riverwalk, lessor, for intentional wrongdoing, bad faith breach of lease, conspiring to commit unfair trade practices and intentional tort. Guastella claimed that Riverwalk attempted to drive Guastella out of business when Riverwalk tried to stop liquor sales, refused to fix drainage problems, interfered with the air conditioning system for two and one-half months, tried to cut off live entertainment as well as the outside bar and brought in competitors. Guastella also claimed that Riverwalk failed to provide for security.

In December 1990 the bankruptcy court terminated the lease and Guastella vacated the premises. Thereafter, the cases in civil district court were consolidated. The trial court granted two peremptory exceptions asserted by Riverwalk. The trial court dismissed Guastella's future lost profits claim on the grounds of res judicata based on the claim that the bankruptcy court had evicted Guastella. The trial court also dismissed all damage claims arising from the temporary restraining order issued by the bankruptcy court, which enjoined Guastella from use of outside entertainment and an outside bar. This court granted Guastella application for writs on the exception concerning future lost profits and ordered that the future loss claim be tried.

After a jury trial commenced on October 11, 1993, the jury reached its verdict on October 28, 1993. In answering the jury interrogatories, the jury found that Riverwalk committed four breaches of the lease in bad faith; negligently and intentionally interfered with Guastella's business to prevent Guastella from meeting its obligations for the payment of the rent due under the lease; and conspired to commit an unfair trade practice. The jury allocated the following damages for the four problems:

Drainage                           $250,000
Air Conditioning                   $148,000
Restrictions on entertainment      $150,000
Restrictions on outdoor bar        $300,000

The jury found that Guastella failed to mitigate the drainage problem in the amount of $35,000. The jury also awarded Guastella $300,000 for the loss of the net leasehold investment. The jury awarded Guastella $14,800,000 for future lost profits, and the jury found that Guastella failed to mitigate future lost profits in the amount of $4,000,000. Guastella's total future lost profits, reduced for failure to mitigate were $11,913,000. The trial court reduced the total jury award to $9,530,400 based on the jury's finding that Riverwalk was 80 percent at fault, and Guastella was 20 percent at fault.

*155 The trial court awarded prejudgment interest and attorney's fees in the amount of $450,000 to Guastella based on the jury's finding of unfair trade practice. The trial court found that The Rouse Company was liable in solido with Riverwalk based on the jury's finding that The Rouse Company conspired with Riverwalk to commit an unfair trade practice and to interfere with Guastella's business.

With respect to Riverwalk's claims, the jury awarded Riverwalk $187,406 for unpaid rent, $143,380 in interest, and $72,000 in liquidated damages for Guastella's breach of the lease for a total of $402,786. The trial court awarded Riverwalk $25,000 in attorney's fees.

After the trial court rendered its judgment of January 7, 1994 and its amended judgment on May 6, 1994, including its award of legal fees, Riverwalk appealed, and Guastella answered the appeal.

On appeal Riverwalk contends that Guastella: failed to provide evidence of causation or proof of the four elements of past damages; has no claim for future loss profits; failed to prove leasehold improvements by the best evidence; and has no claim for attorney's fees under the statute. Riverwalk also claims that the jury erred in its conspiracy findings, and the trial court erred in awarding prejudgment interest on future loss profits.

Guastella argues that the trial court erred in: applying 20 percent comparative negligence to damages awarded for bad faith breach of lease and unfair trade practice; finding that Guastella failed to mitigate damages after eviction; and awarding liquidated damages and attorney's fees to Riverwalk. Guastella avers that members of the Guastella family stated causes of action for intentional infliction of emotional distress and other intentional torts.

CAUSATION

Findings as to fault are factual and should be upheld on appeal unless clearly wrong. Garrett v. Celino, 489 So.2d 335 (La.App. 4 Cir.1986). Where there is a conflict in the testimony, reasonable evaluations of credibility and reasonable inferences of fact should not be disturbed upon review. Virgil v. American Guarantee and Liability Ins. Co.,

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Cite This Page — Counsel Stack

Bluebook (online)
664 So. 2d 151, 1995 WL 684816, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-orleans-riverwalk-assoc-v-rp-guastella-inc-lactapp-1995.