Schneider v. Gremillion

476 So. 2d 1100, 1985 La. App. LEXIS 10036
CourtLouisiana Court of Appeal
DecidedOctober 10, 1985
DocketNo. 84-681
StatusPublished

This text of 476 So. 2d 1100 (Schneider v. Gremillion) 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
Schneider v. Gremillion, 476 So. 2d 1100, 1985 La. App. LEXIS 10036 (La. Ct. App. 1985).

Opinion

STOKER, Judge.

Plaintiffs here sought to enjoin defendant from promoting and participating in any way in a shopping center venture in the Town of Marksville, Louisiana. The trial court denied injunctive relief. The plaintiffs appealed.

In their petition plaintiffs reserved their right to seek damages resulting from plaintiffs’ alleged actions, but all the trial court had before it, and all we have before us, is the question of whether plaintiffs are entitled to injunctive relief.

FACTS

A detailed narrative of facts and recounting of procedural steps is necessary to establish the issue and considerations we have before us. First it is necessary to note that the only parties before us are natural persons. The suit was brought by Ira J. Schneider and his wife, Bertha Louise C. Schneider, who are the owners of a shopping center in Marksville, Louisiana, known as Place du Marche. Plaintiffs purchased Place du Marche from defendants, Charles M. Gremillion and Mercedes Grem-illion, who developed this shopping center. The active parties appear to be Ira J. Schneider and Charles M. Gremillion, and any reference in this opinion to Schneider or Gremillion should be taken to refer to them.

There is pending in this case an exception filed by the defendants urging that two entities are indispensable parties to this injunction matter, namely, Charles M. Gremillion Construction Co., Inc. and Tuni-ca Village Partnership (Tunica). The trial court heard the injunction matter and denied the injunction without deciding the exception of indispensable parties.

Charles M. Gremillion is in the business of promoting, developing, constructing, selling, owning and operating shopping centers. Gremillion owns a corporation whose primary, if not sole, purpose is to construct the buildings which make up [1101]*1101shopping centers in which he has an interest or with which he is connected. Gremil-lion also has a shopping center management company. At the time of trial of the injunction matter, Gremillion had built ten or eleven shopping centers; he owned two centers and managed one center in addition to the ones he owned. Besides • constructing, owning and managing shopping centers, Gremillion apparently has an expertise for promoting shopping centers, obtaining desirable commercial tenants, putting up the buildings and selling such centers to buyers who acquire a nearly going concern upon purchase.

This last mentioned procedure is more or less what happened in the case of Place du Marche. Gremillion developed it and plaintiffs bought it. In the instrument of conveyance Schneider inserted the following agreement not to compete with Place du Marche:

“Vendor agrees that he shall not directly (or indirectly through a corporate entity, interposed party, employer or otherwise), construct, operate or own any commercial rental buildings which would be in direct competition with the Place du Marche Shopping Center within the corporate limits of the Town of Marksville, Louisiana, or within three miles thereof for a period of twenty years from the date hereof.”

Gremillion, who is an attorney, read and accepted the provision, and it became a part of the signed contract. Invoking this provision, the Schneiders seek to enjoin the Gremillions (Gremillion and his companies primarily) from involving themselves in the creation of another shopping center in Marksville which Tunica Village Partnership purchased from the Gremillions and which, at the time of the injunction hearing was under construction by Charles M. Gremillion Construction Company, Inc. under a contract with Tunica.

It is undisputed that Gremillion purchased three tracts of land in Marksville, presumably contiguous, consisting of 12.58 acres, 7.681 acres and 5.861 acres. The tract sold to Tunica Village Partnership is described as 5.861 acres, although Gremil-lion testified that parts of two tracts were sold to the' partnership. In any event, there appears to be no dispute as to the fact that the Gremillions own some part of the original three tracts on which there could be further shopping center development.

Prior to sale of a package deal by the Gremillions to Tunica Village Partnership, Gremillion sought strategic leases with retail firms and actually obtained leases from a well-known grocery chain and a well-known pharmacy chain. Such leases would encourage other tenants to consider taking space in the projected shopping center. Schneider was aware of what Gremillion was doing. Conceiving the new center to be a threat to the businesses operating in Place du Marche, Schneider negotiated with Gremillion proposing that he, Schneider, purchase the new shopping center package. Although Schneider thought he had negotiated an agreement to purchase the new shopping center, the Gremillions sold the package to Tunica Village Partnership on March 23, 1984. Plaintiffs learned of the sale to Tunica almost immediately.

Gremillion testified that he had no interest in Tunica Village Partnership and had no agreement with that company to manage the shopping center once it began operations. Charles M. Gremillion Construction Company, Inc. began construction of the shopping center under a contract with Tunica in April of 1984. Plaintiffs filed their suit shortly thereafter, but no date of filing is shown on the petition contained in the record. On May 5, 1984, the Gremillions filed their exception urging that plaintiffs should be ordered to join as defendants Charles M. Gremillion Construction Company, Inc. and Tunica Village Partnership, and in .default of doing so, that plaintiffs’ petition should be dismissed.

Plaintiffs’ petition did not specify the type of injunctive relief they desired, but on June 4, 1984 plaintiffs filed in this suit a motion and rule for a preliminary injunction. On June 25, 1984, the trial court heard the rule for preliminary injunction, [1102]*1102admitted evidence and orally ruled on the matter. As previously noted, the trial court denied the preliminary injunction. From this denial plaintiffs appealed. The record was lodged in this Court of Appeal on July 13, 1984.

Because of the extraordinary case load and backlog of appeals and writ applications received by this Court, the appeal in this cause could not be scheduled until September 4, 1985. The only evidence in the record before us is the evidence taken on trial of the rule for preliminary injunction. At that hearing Gremillion testified that the construction work on Tunica’s shopping center should be completed within three to four months of the hearing date, which would mean that construction would have been accomplished by the end of October, 1985, if Gremillion’s estimate held true.

RULING OF THE TRIAL COURT

On trial of the rule for preliminary injunction various issues were raised, including some consideration as to whether it was appropriate for the court to proceed without the alleged indispensable parties being before the court. Among its defenses defendants urged that no consideration had been given in the Place du Marche sale for the noncompetition clause upon which plaintiffs base their case.

In the trial court’s oral denial of the preliminary injunction, it is not clear how it ruled on the absence of consideration issue. It reached the point of finding that plaintiffs had made a showing that they would probably prevail on the merits of the case, but it held that plaintiffs had not shown the necessary irreparable injury as a prerequisite to the issuance of a preliminary injunction.

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Bluebook (online)
476 So. 2d 1100, 1985 La. App. LEXIS 10036, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schneider-v-gremillion-lactapp-1985.