Rials v. Davis

31 So. 2d 726, 212 La. 161, 1947 La. LEXIS 838
CourtSupreme Court of Louisiana
DecidedJune 16, 1947
DocketNo. 38337.
StatusPublished
Cited by17 cases

This text of 31 So. 2d 726 (Rials v. Davis) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rials v. Davis, 31 So. 2d 726, 212 La. 161, 1947 La. LEXIS 838 (La. 1947).

Opinion

PONDER, Justice.

The plaintiff, Daniel A. Rials, brought suit against the defendant, L. I. Davis, seeking to cancel a certain lease and to recover damages for the breach of its terms. While the cause was pending in the lower court, the lease terminated under its terms. Upon trial the lower court gave judgment awarding the plaintiff damages in the amount of $3,000 with legal interest from judicial demand until paid. The defendant has appealed. The plaintiff has answered the appeal and asks for the award of damages to be increased to $10,000.

The plaintiff entered into a written contract leasing his cleaning business, known as the Barrel Dry Cleaners, together with the machinery, equipment and furnishings used to carry on the business, to the defendant for a period of 52 weeks for a consideration of $5,200 to be paid at the rate of $100 per week. All the public utility bills incurred in the operation of the business were to be paid by the lessee. The lessor was not to engage in any business competitive with that carried on under the lease during its term. The lessee was granted an option to purchase the business, exclusive of the realty and improvements thereon, for a consideration of $20,000 plus the amount of any licenses, taxes, and insurance previously paid by the lessor. The lessee was granted an alternative option to renew the lease at its expiration for a like period on the same terms and conditions set forth in the lease. In event the lessee did not exercise the option to purchase the business, the cost of licenses, taxes and insurance previously paid was to be borne by the lessor. Certain supplies owned by the lessor were to be used by the lessee, who was to pay the cost of same to the lessor with the understanding that if the option to purchase were exercised by the lessee the amount paid for the supplies was to be credited on the purchase price. All necessary repairs to maintain the property in usable condition were to be borne by the lessee and the lessee agreed and bound himself to return the leased property to the lessor at the termination of the lease in like good condition in which he received it, subject to reasonable wear and tear incident to a prudent use of it. It was agreed that any increase in licenses, *84 taxes or insurance premiums was to be borne by the lessee and that all taxes due on the business to agencies of the government were also to be borne by the lessee.

The defendant was the proprietor of a competitive cleaning business, known as Milady Cleaners, at the time the lease was executed. The evidence shows that when the business was turned over to the lessee it was a going concern engaged in the cleaning business with around 20 employees and receiving an average of $195 weekly. The receipts for the first four weeks following the transfer averaged $195 weekly. The lessee continued the business as a going concern until October 1, 1945, after which time the cleaning work was transferred to the defendant’s establishment, Milady Cleaners. The personnel was reduced until only one woman was left on duty at the leased premises to take care of the customers and receive clothes, which then were cleaned at Milady Cleaners and returned to the Barrel Cleaners, the leased business, for delivery to the customers. At the time the suit was brought and when the business was returned to the lessor, the receipts had decreased to an amount less than $40 per week.

The purpose ' of this suit is to recover damages occasioned the leased business by the failure of the lessee to maintain the business as a prudent administrator. The defendant in his answer alleged that the transfer of the business was made on account of defective wiring, but this is not borne out by the testimony.

The defendant contends that the lower court erred in holding that there was an implied obligation to continue the leased business as a going concern at the location of the business.

From our investigation we do not find that this Court has ever passed on the question raised herein. Common-law authorities cannot aid us in a solution of the problem for the reason that the common law regards a lease for years as the grant of an estate, and not a mere transfer of the use and enjoyment of thing leased. Under the civil law, a lease for years is regarded as a mere transfer of the use and enjoyment of the property. Art. 2674, Rev. Civil Code; Viterbo v. Friedlander, 120 U.S. 707, 7 S.Ct. 962, 30 L.Ed. 776; 35 C.J., Verbo Landlord and Tenant, Sec. 382, p. 1141.

Article 2710 of the Revised Civil Code provides:

“The lessee is bound:
“1. To enjoy the thing leased as a good administrator, according to the use for which it was intended by the lease.
“2. To pay the rent at the terms agreed on.”

This article of our code contains the same provisions contained in Article 1728-of the Code Napoleon. In discussing Article 1728 of the Code Napoleon and the duties of the lessee, the French commentators make the following comments:

“The lessee may not transfer elsewhere the industry or the commerce which he *85 carried on in the immovable rented, if that industry or commerce was being carried on previously to the lease; for the lessee would profit thus from the clientele which was attached to the leased premises and would appropriate to himself that clientele, of which only the enjoyment was given him. For the greater reason may he not if the lease, explicitly or by implication, imposed upon him the obligation of maintaining business. Baudry-Lacantinerie et Wahl, Traite theorique et pratique de droit civil, Du contrat de louage (2e Ed. 1900), t. I, n° 757, p. 396.

“The obligation to use the thing for the destination for which it is intended is independent of the damage which may result. The damage concerns the abuse of the enjoyment; one may abuse the enjoyment even while, at the time, conserving to the thing the destination indicated by the lease.” Laurent, Principes de droit civil francais (4e Ed. 1887), t. 25, n° 259, p. 280.

“In saying that the lessee should enjoy the thing as a good father of family, the law impliedly obliges him to occupy the leased premises. He may not leave them, even though he continue to pay his rent; the non-use of the thing may be prejudicial to the owner; and from the moment the lessee causes damage in not filling his obligations, he is responsible. He is so, notably, when the thing concerned is a commercial establishment, such as a hotel. * * *” Laurent, op. cit. supra, n° 252, p. 270.

“When the immovable is rented for an industrial or commercial use, is the lessee obligated to maintain 'that object and to effectively pursue the commerce or industry in a manner so that the clientele will remain intact?

“One admits the affirmative. Pothier has said: ‘If a tavern-keeper has rented a tavern, he is obligated to maintain it as an inn during the whole period of the lease; if not, he is liable for the damages-interests which the lessor suffers because the house has not been kept up as an .inn. These damages and these interests are composed of the amount by which the inn is depreciated.

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Bluebook (online)
31 So. 2d 726, 212 La. 161, 1947 La. LEXIS 838, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rials-v-davis-la-1947.