Pelleteri v. Caspian Group Inc.

851 So. 2d 1230, 2003 WL 21763633
CourtLouisiana Court of Appeal
DecidedJuly 2, 2003
Docket2002-CA-2141, 2002-CA-2142
StatusPublished
Cited by27 cases

This text of 851 So. 2d 1230 (Pelleteri v. Caspian Group 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
Pelleteri v. Caspian Group Inc., 851 So. 2d 1230, 2003 WL 21763633 (La. Ct. App. 2003).

Opinion

851 So.2d 1230 (2003)

Cleo P. PELLETERI
v.
The CASPIAN GROUP INCORPORATED.
The Caspian Group, Inc.
v.
Cleo P. Pelleteri.

Nos. 2002-CA-2141, 2002-CA-2142.

Court of Appeal of Louisiana, Fourth Circuit.

July 2, 2003.

*1232 Burt K. Carnahan, Candace M. Murphy, Lobman, Carnahan, Batt, Angelle & Nader, New Orleans, LA, for Cleo P. Pelleteri.

Jack A. Ricci, Gary J. Giepert, Ricci & Giepert, New Orleans, LA, for The Caspian Group, Incorporated.

(Court composed of Judge PATRICIA RIVET MURRAY, Judge JAMES F. McKAY, III, Judge LEON A. CANNIZZARO, JR.).

LEON A. CANNIZZARO, JR., Judge.

This is an appeal by both parties from a judgment awarding damages to The Caspian Group, Incorporated ("Caspian")[1] in connection with its eviction from the premises where it operated a restaurant and bar. For the reasons set forth below, this Court affirms the judgment of the trial court on the issue of liability but reverses the judgment of the trial court on the issue of damages.

FACTS AND PROCEDURAL HISTORY

Cleo Pelleteri leased the premises at 437 Esplanade Avenue in New Orleans, Louisiana (the "Leased Premises") to Caspian pursuant to a Lease of Commercial Property dated September 30, 1996 (the "Lease"). The initial term of the Lease was three years. The Lease also provided for two renewal terms of three years each. The rent due under the Lease beginning December 1, 1996, was $3,500 per month plus a percentage rental in the amount of six percent of gross sales in excess of $650,000.00 per year.

In October and November of 1996, Caspian prepared the Leased Premises for the operation of a restaurant and bar, obtained permits and licenses needed for its business, hired employees, and began making arrangements for the installation of three video poker machines in the bar. At the end of November, 1996, Caspian opened the Half Moon Bar and Grill (the "Half Moon") in the Leased Premises.

On March 13, 1997, Ms. Pelleteri inspected the Leased Premises and subsequently wrote a letter to Haluk Dogru, Caspian's president, listing several items that she considered to be violations of the Lease. She stated in that letter that she would make another inspection of the premises within fifteen days. After the follow-up inspection, Ms. Pelleteri wrote another letter to Mr. Dogru asking that Caspian "vacate my property immediately". Ms. Pelleteri wrote a third letter to Mr. Dogru confirming "your default of the lease". There was no allegation by Ms. Pelleteri of nonpayment of rent.

On Friday, April 18, 1997, Ms. Pelleteri spoke with Mr. Dogru by telephone and advised him that she was going to put a lock on the door of the Half Moon on Monday, April 21, 1997. After the Half Moon closed at 4:00 a.m. that Monday morning, out of concern that Ms. Pelleteri might actually lock them out of the Half Moon, Caspian removed most of the food and liquor from the Leased Premises when the Half Moon closed in the early morning hours on Monday, April 21. Caspian did not remove the computer used in operating the Half Moon, because it was difficult to move and would be needed if the Half Moon opened later that day. Caspian also left its business records in the Leased Premises. Additionally, Caspian asked its employees to come to work on Monday, April 21, to prepare to open the Half Moon as usual that afternoon. When the employees arrived at the Leased Premises to prepare to open the Half Moon later in *1233 the day, they found that the Leased Premises had been padlocked. Ms. Pelleteri subsequently had all the locks in the Leased Premises changed.

Because the next weekend was the first weekend of the annual New Orleans Jazz and Heritage Festival (the "Jazz Fest"), Caspian had published advertisements targeted at the Jazz Fest crowds and had hired a band to perform on the weekends of the Jazz Fest. Ms. Pelleteri testified that when Mr. Dogru, Caspian's president, requested that the Half Moon be allowed to remain open at least through the end of the Jazz Fest, she replied, "Absolutely not."

In a letter dated June 19, 1997, Ms. Pelleteri gave Caspian a five day notice to vacate the Leased Premises, and on July 17, 1997, Ms. Pelleteri filed a Petition for Eviction in the Civil District Court for the Parish of Orleans. Caspian's attorney advised Ms. Pelleteri's attorney that Caspian would not contest the eviction, because Caspian could no longer afford to rent the Leased Premises due to the action taken by Ms. Pelleteri. A Judgment of Eviction was rendered on July 25, 1997.

On July 31, 1997, Caspian filed suit against Ms. Pelleteri for, among other things, the damages resulting from the wrongful eviction. On August 12, the eviction suit filed by Ms. Pelleteri and the suit filed by Caspian against Ms. Pelleteri were consolidated.[2] On October 3, 1997, Ms. Pelleteri filed an answer to the lawsuit filed by Caspian. Ms. Pelleteri also filed a reconventional demand with her answer, in which she sought damages in connection with what she alleged were defaults under the Lease. She also alleged that Caspian had abandoned the Leased Premises. Therefore, she asserted that she was entitled to reenter the Leased Premises when she did without obtaining a judgment of eviction.

A trial was held on January 24, 25, and 26, 2001. At trial two of Caspian's shareholders, Mr. Dogru and Mr. Hassan Khaleghi, testified that they had extensive experience in the restaurant business. A third shareholder, Mr. Yalcin Hatipoglu, who, along with Mr. Khaleghi, ran the day to day operations of the Half Moon, testified that he had experience managing and owning restaurants. There was also testimony that although the Half Moon lost money the first three months it was open, it broke even in March of 1997, and it was profitable in April of 1997, even though it was only open for business for part of that month. Mr. Hatipoglu testified that although he was disappointed in the Half Moon's business initially, once the opening and closing hours and the menu were changed to attract more of the late night crowd, business dramatically improved.

Ms. Pelleteri testified at trial that when she went to the Leased Premises on Monday, April 21, 1997, the premises had been abandoned. Ms. Pelleteri further testified that she looked through a window of the Leased Premises and "the bar had been totally emptied of liquor bottles and certainly appeared that people had indeed left."

Also at trial Ms. Pelleteri testified regarding Caspian's alleged defaults under the Lease, which were discovered by Ms. Pelleteri in her March 13, 1997 inspection of the Leased Premises. Her letter itemized the following deficiencies:

1. the bathrooms and the floor around the bar were filthy;
2. faucets leaked and fans were "beyond filthy";
*1234 3. the patio, which had been "lush and inviting with herbs and foliage" prior to Caspian's occupancy of the Leased Premises, resembled a "site sprayed with `agent orange'";
4. the walls were defaced;
5. there was scorching in the kitchen;
6. sections of the ceiling tiles were missing; and
7. an electric convection oven was "out in the weather".

Mr. Dogru testified at trial regarding each of these alleged defaults under the Lease. He testified that he did "not really" find the bathrooms or the floor around the bar to be "filthy", that the faucets did not leak, and that the fans were not "beyond filthy". With respect to the patio resembling a site sprayed with agent orange, Mr.

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851 So. 2d 1230, 2003 WL 21763633, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pelleteri-v-caspian-group-inc-lactapp-2003.