Redevelopment Agency of Alexandria v. Drummond

491 So. 2d 124
CourtLouisiana Court of Appeal
DecidedJune 25, 1986
DocketNo. 85-706
StatusPublished
Cited by4 cases

This text of 491 So. 2d 124 (Redevelopment Agency of Alexandria v. Drummond) 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
Redevelopment Agency of Alexandria v. Drummond, 491 So. 2d 124 (La. Ct. App. 1986).

Opinion

FORET, Judge.

This is an expropriation proceeding in which both the defendant, Standard Printing Company, Inc. (Standard Printing), and the plaintiff, The Redevelopment Agency for the City of Alexandria, Louisiana (Agency), appealed the judgment of the trial court awarding defendant: $7,000 for the leasehold advantage; $55,000 for moving expenses, damages, and loss of profits; attorney’s fees in the amount of $15,500; attorney’s expenses in the amount of $2,000; expert witness fees to Robert A. Wolf, $3,500; T.M. Clauretie, $4,500; and Marvin Juneau, $3,500.

FACTS

The trial court judge has set out a summary of the facts in his well-written opinion, from which we quote:

“This expropriation proceeding involves the taking of a building (frequently referred to in these proceedings as the “Thigpen building”), and land owned by the heirs of J.B. Thigpen (who are defendants Dorris Thigpen Snell Drum-mond and Minnie Lou Harding Gremil-lion) generally referred to as “the owners”, and leasehold interests owned by defendants Standard Printing Company, Inc. and H & H Moving and Storage Company, herein referred to as “lessee”, for the purpose of developing a hotel-civic center complex. This particular property is among many other properties expropriated in a four block area in the old downtown section of Alexandria, bounded on the north by Main Street (next to and parallel with Red River), on the east by Jackson Street, on the south by Fourth Street, and on the west by Fisk Street. Most of the buildings in this area were built in the 1920s or 30s, and were of basically sound brick and wood construction typical of that era. The immediate area had suffered the customary blight of many older downtown properties, and at the time of taking (stipulated to be the date of December 6,1982) many of the buildings were in a state of substantial disrepair, some of them were [126]*126vacant, and others were not utilized to their best potential. However, in areas adjoining this neighborhood (except the river side) considerable renovation of old buildings and construction of some new buildings are evident, primarily in the nature of governmental, business and financial buildings, along with religious and medical facilities.
“The property in question consisted of approximately one-third of an acre on which were three two story buildings, one of which was leased to and occupied by defendants Standard Printing Company, Inc. (“Standard Printing”), another was rented to and occupied by defendant H & H Moving and Storage Company, Inc. (“H & H”), and the third building was unoccupied at the time of the taking. The Standard Printing Company lease would have by its terms expired on December 31, 1986, at a rental of $300.00 per month.”

SPECIFICATIONS OF ERROR

Appellant, Standard Printing, contends that the trial court erred as follows:

(1) In disregarding the expert testimony establishing the amount of lost past and future profits allegedly caused by the expropriation through the balance of the lease term;
(2) In determining that the leasehold advantage had a value of only $7,000;
(3) In failing to award attorney’s fees in the amount of $89,964.07.

Appellant, Agency, contends that the trial court erred as follows:

(1) In concluding that Standard Printing was entitled to recover lost profits;
(2) In holding that the expropriation caused Standard Printing to sustain a business loss;
(3) In failing to allow the Agency credit of $24,042; and
(4) In fixing the expert witness fees of Robert A. Wolf, T.M. Clauretie and Marvin Juneau.

WAS THE AWARD FOR LOST BUSINESS PROFITS APPROPRIATE, AND IF SO, SUFFICIENT?

Standard Printing conducted its printing operations in both the Thigpen building and the Wettermark building. Mr. Landry, the owner and president of Standard Printing, housed his office and the general offices, bookkeeping, composition letter-press operation, all machinery and equipment, paper cutter, and walk-in customer sales area in the Wettermark building. The Wetter-mark location was essential to the operation of the business. The lease agreement on the Wettermark property terminated on December 31, 1981. A new lease was never signed, although Alfred Wettermark testified he would have negotiated a new lease for $400 per month, an increase of $160 per month.

Standard Printing had no leasehold right to the Wettermark building after December 31, 1981. That is the termination date of the lease. A lessee without a lease term has no claim for business losses. State, Dept. of Transportation & Development v. Manuel, 451 So.2d 659 (La.App.3 Cir.1984). An award for lost profits after a lease expiration is too speculative to allow recovery. State, Dept. of Transportation & Development v. Exxon Corp., 430 So.2d 1191 (La.App. 1 Cir.1983).

Standard Printing alleges that they could have obtained another lease of the Wetter-mark building but for the redevelopment project. However, the uncertainty of the project persuaded Mr. Wettermark to consider a new lease to Standard Printing. Furthermore, after the termination of the lease, Standard Printing paid $250 per month instead of $400 per month.

Standard Printing additionally argues that it could have moved its general offices, etc. to the Thigpen building and the retail sales building. However, the record reflects that the Thigpen building was a dilapidated and deteriorating building, not suitable for that purpose. Safety hazards prevailed in the Thigpen building.

Mr. Landry knew that Mr. Wettermark sold the building to the Agency and admit[127]*127ted in his deposition that it was not possible to relocate from Wettermark to Thigpen. The Wettermark building was an integral and essential part of the printing operation’s business. The Agency allowed Standard Printing to remain in the Wettermark building, via several extensions, until October, 1982.

Standard Printing contends that, nonetheless, the Agency failed to give it sufficient time for relocation and therefore, it sustained business losses in the amount of $261,158. The record reflects that this contention is inaccurate.

Between July 21 and July 29, 1983, Standard Printing moved its printing equipment, machinery, and inventory. However, this move took place long after Standard Printing was aware that it would have to relocate.

Standard Printing retained counsel to advise it concerning the expropriation before December of 1980. In 1981, Standard Printing obtained an estimate from Sullivan Transfer Company of the moving expenses for the printing operation and the retail sales. Standard Printing enlisted the assistance of several realtors to find a new location for the business.

Statutory Notice of Displacement was mailed to Standard Printing on August 12, 1982, after negotiations with the owner had been initiated. After providing Standard Printing with such notice, the Agency was obligated under federal regulations to pay reasonable relocation expenses.

The expropriation suit was filed on October 27, 1982, and set for a December 13, 1982 trial. Standard Printing filed a dilatory exception of prematurity, alleging that the Agency failed to enter into “good faith” negotiations.

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Related

State, Department of Transportation & Development v. Nelken
628 So. 2d 1279 (Louisiana Court of Appeal, 1993)
Redevelopment Agency for Alexandria v. Drummond
496 So. 2d 330 (Supreme Court of Louisiana, 1986)

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Bluebook (online)
491 So. 2d 124, Counsel Stack Legal Research, https://law.counselstack.com/opinion/redevelopment-agency-of-alexandria-v-drummond-lactapp-1986.