Schultz v. Hill

840 So. 2d 641, 2003 WL 346080
CourtLouisiana Court of Appeal
DecidedFebruary 14, 2003
Docket2002 CA 0835
StatusPublished
Cited by7 cases

This text of 840 So. 2d 641 (Schultz v. Hill) 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
Schultz v. Hill, 840 So. 2d 641, 2003 WL 346080 (La. Ct. App. 2003).

Opinion

840 So.2d 641 (2003)

James H. SCHULTZ
v.
Dr. Richard M. HILL, Barbara Stice Hill, Stice-Hill Town & Country Shopping Center Partnership, Dewanna Atkins, J.L. Mallett, Belleview Shopping Center Partnership, Stice-Hill Edgewood Plaza Partnership, and Tioga Oaks Shopping Center General Partnership.

No. 2002 CA 0835.

Court of Appeal of Louisiana, First Circuit.

February 14, 2003.
Rehearing Denied April 3, 2003.

*642 John Dale Powers, Neil H. Mixon, Baton Rouge, Counsel for Appellant James H. Schultz.

Robert L. Kleinpeter, Baton Rouge, Counsel for Appellee Dr. Richard M. Hill, et al.

Before: FOIL, McCLENDON, and KLINE,[1] JJ.

McCLENDON, J.

This appeal arises from the trial court's dismissal of the majority of an action for real estate commissions against the landlord(s) on numerous leases of immovable property. For the reasons that follow, we reverse and remand.

FACTS AND PROCEDURAL HISTORY

Beginning in the early 1970's and continuing through April 1994, the plaintiff, James H. Schultz, a licensed real estate agent and broker, established and maintained a business relationship with Dr. Richard M. Hill in which Mr. Schultz assisted Dr. Hill in the acquiring, developing, and leasing of various shopping center interests throughout Louisiana. Dr. Hill, individually and as managing partner for the partnerships owning the various shopping centers, and Mr. Schultz formalized their agreement for compensation to Mr. Schultz by virtue of numerous commission agreements, combined with attached and/or referenced lease agreements, in which Dr. Hill agreed to pay Mr. Schultz a percentage[2] of the lease revenues from various shopping center tenants who had been procured by Mr. Schultz.

Following the 1994 formal termination of Mr. Schultz's employment with Dr. Hill, a dispute arose as to Mr. Schultz's continued right to collect commission on the leases at issue. On October 10, 1997, Dr. Hill's attorney forwarded a letter to Mr. Schultz, stating that notice was being given therein under LSA-C.C. art.2024, terminating any and all commission agreements by and between Dr. Richard M. Hill and James H. Schultz under the following conditions:

1) Dr. Richard M. Hill will continue to pay a commission to James H. *643 Schultz on all rental agreements where a written commission agreement was executed and presently occupied by the tenant on a month-to-month basis for a period of three (3) months commencing November 1, 1997.
2) Dr. Richard M. Hill will continue to pay the commission to James H. Schultz on any commission due on any written lease still in existence for the primary term provided in the written lease and if the written lease is still in existence by virtue of a renewal for a specific lease period not to exceed three (3) years.
Mr. Schultz filed suit on April 8, 1998, seeking to recover alleged accumulated, unpaid commissions and future commissions. A trial on the matter was held on October 24, 2001. Judgment was signed on January 16, 2002, ordering the continued payment of lease commissions and accounting with regard to six tenants, but rejecting all of plaintiff's other demands. From this judgment, Mr. Schultz appealed and on appeal makes the following assignments of error:
(1) The trial court committed legal error in finding and holding that the Lease Commission Agreements sued upon are contracts of unspecified duration that are subject to being terminated at the will of either party pursuant to the provisions of La. Civ.Code Art.2024.
(2) The [trial court] erred in not holding and finding that defendants-appellees breached the Lease Commission Agreements sued upon and in not holding defendants-appell[ees] liable to plaintiff-appellant Schultz for breach of contract damages, and in not holding that defendants-appellees' obligations are continuing and on-going on the "active" and "continuing" Lease Commission Agreements, pursuant to the terms thereof.
(3) The [trial court] erred in not casting defendants-appellees for all costs of court, including expert witness fees of plaintiff-appellant's expert Ben Johnson.

DISCUSSION AND ANALYSIS

The trial court denied the majority of plaintiff's claims based on a finding that the contracts between the parties were of unspecified duration and therefore under LSA-C.C. art.2024 could be terminated upon reasonable notice by either party. Having made a determination that reasonable notice was given by Dr. Hill to Mr. Schultz,[3] the court found that no further commissions were owed, with the exception of six leases wherein Dr. Hill had agreed to continue payment of commissions.[4]

A court of appeal may not set aside a trial court's or a jury's finding of fact in the absence of "manifest error" or unless it is "clearly wrong." Evans v. Lungrin, 97-0541, p. 6 (La.2/6/98), 708 So.2d 731, 735; Stobart v. State, Department of Transportation and Development, 617 So.2d 880, 882 (La.1993), citing Rosell v. ESCO, 549 So.2d 840, 844 (La.1989). However, where one or more trial court legal errors interdict the fact-finding process, the manifest error standard is no longer applicable, and, *644 if the record is otherwise complete, the appellate court should make its own independent de novo review of the record and determine a preponderance of the evidence. Evans v. Lungrin, 97-0541 at pp. 6-7, 708 So.2d at 735, citing Ferrell v. Fireman's Fund Insurance Company, 94-1252, p. 7 (La.2/20/95), 650 So.2d 742, 747.

A legal error occurs when a trial court applies incorrect principles of law and such errors are prejudicial. Legal errors are prejudicial when they materially affect the outcome and deprive a party of substantial rights. When such a prejudicial error of law skews the trial court's finding of a material issue of fact and causes it to pretermit other issues, the appellate court is required, if it can, to render judgment on the record by applying the correct law and determining the essential material facts de novo. Evans v. Lungrin, 97-0541 at p. 7, 708 So.2d at 735; Lasha v. Olin Corporation, 625 So.2d 1002, 1006 (La. 1993); Rosell v. ESCO, 549 So.2d at 844 n. 2. See also Gonzales v. Xerox Corporation, 320 So.2d 163, 165 (La.1975); Ragas v. Argonaut Southwest Insurance Company, 388 So.2d 707, 708 (La.1980).

DURATION OF COMMISSION CONTRACTS

The decision of the trial court is based on its application of LSA-C.C. art. 2024 to the contracts between the parties; article 2024 provides as follows:

A contract of unspecified duration may be terminated at the will of either party by giving notice, reasonable in time and form, to the other party.

The parties agree that the pertinent language in these commission agreements is the same, and states:

Landlord hereby agrees to pay to JAMES H. SCHULTZ, his heirs, successors or assigns, a real estate commission equal to five (5%) percent of all monies collected during the initial term, options, renewals, extensions, assignments or additional leases with the Tenant. Landlord hereby binds and inures to the benefits of the parties hereto his legal representatives, heirs, successors and assigns to pay said commission.

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Bluebook (online)
840 So. 2d 641, 2003 WL 346080, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schultz-v-hill-lactapp-2003.