Schwegmann Family Trust No. 2 v. White III, LLC

76 So. 3d 1228, 2011 La.App. 4 Cir. 0611, 2011 La. App. LEXIS 1126, 2011 WL 4527317
CourtLouisiana Court of Appeal
DecidedSeptember 30, 2011
DocketNo. 2011-C-0611
StatusPublished
Cited by6 cases

This text of 76 So. 3d 1228 (Schwegmann Family Trust No. 2 v. White III, LLC) 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
Schwegmann Family Trust No. 2 v. White III, LLC, 76 So. 3d 1228, 2011 La.App. 4 Cir. 0611, 2011 La. App. LEXIS 1126, 2011 WL 4527317 (La. Ct. App. 2011).

Opinion

PAUL A. BONIN, Judge.

_JjSchwegmann Family Trust No. 2 filed suit against White III, LLC in order to obtain a judicial declaration that a building restriction which prohibited the operation of a grocery store on the Trust’s property had terminated. White is the owner of the property benefitted by the restriction and has the exclusive right to enforce the restriction.1 Arguing that there are no genuine issues of material fact, the Trust filed [1230]*1230a motion for summary judgment. The trial judge denied the motion, and the Trust sought supervisory relief. We directed that the entire record be filed in this court and that the parties brief and orally argue the matter.

The Trust argues that the building restriction in question is effective only “[s]o long as a supermarket is operated” on White’s property and that because White has not operated a supermarket for the last six years, the building restriction should be declared terminated. White argues that it has been operating a supermarket and, additionally, its right to prevent other lots from operating grocery stores can be taken away only by a unanimous vote of all lot owners.

12After de novo review, we find that the provision regarding the termination of the questioned building restriction, which is conditioned upon the happening of an uncertain event, is unambiguous and that there is no genuine issue of material fact that the uncertain event has happened. Accordingly, we grant the writ,2 reverse the denial of summary judgment, and render judgment declaring the particular building restriction in question terminated and unenforceable.

We explain our decision in greater detail in the following Parts.

I

In this Part, we explain the pertinent factual history of the case.

In 1994 Schwegmann Giant Super Markets, a partnership, created the Schweg-mann Plaza Shopping Center through a juridical act entitled “Act of Establishment of Predial Servitudes and Building Restrictions” on property it owned in New Orleans East. The partnership established building restrictions and servitudes on the different parcels in the shopping center according to a general plan for the benefit of all lots in the shopping center. For example, only a lot on an outer parcel may operate a gas station, no air conditioning units may be visible from the public roadways, no buildings may exceed twenty-five feet in height, and lot owners are required to ensure that the common areas remain clean and in good repair.

One of the building restrictions established a “Supermarket Parcel” and gave that lot an exclusive right to operate a grocery store in the shopping center. The general plan, however, conditioned the exclusivity of the right on the following | «¡provision: “So long as a supermarket is operated on the Supermarket Parcel, none of the other Parcels shall be improved or used, in whole or in part, for the conduct of a grocery store or supermarket ...” Initially, the partnership or its affiliate operated a supermarket on that parcel. Now the Supermarket Parcel is owned by White who is, in the phraseology of the Act, the Supermarket Owner.

Hurricane Katrina struck New Orleans in 2005 and devastated the shopping center. At the time, White was leasing the Supermarket Parcel to a supermarket chain, which was operating a grocery store on the lot. The chain, however, ceased operating a grocery store on the Supermarket Parcel after the storm’s devastation. Although the store remained vacant, the chain continued to pay rent to White until the bankruptcy court terminated its [1231]*1231lease with White in January 2011. It is undisputed that no food or food products have been sold at the Supermarket Parcel since the storm in 2005.

The Trust’s lot, which is the former site of an electronics store, is also vacant because its tenant, too, went bankrupt. The Trust hopes to operate a grocery store on this parcel. The Trust received an offer from another grocery store chain to lease the Trust’s lot and operate a grocery store. But a title inspection on the Trust’s lot revealed the existence of the building restriction presently in dispute, and the potential lessee refused to lease the lot without assurance that the building restriction had been lifted.

In April of 2010, while White was still receiving rent from the supermarket chain, the Trust sent White a letter asking White to acknowledge that the building restriction had terminated. White rejected the request and replied that it believed [4the building restriction in question was still operative because White had been continually leasing the premises to a supermarket company, and, further, White believed that a grocery store would soon reopen there.

In October of 2010, the month before White’s lessee filed for bankruptcy, the Trust filed a petition for declaratory action to have the building restriction declared terminated and unenforceable. If a declaration that the specific building restriction is terminated and unenforceable, any of the parcels or lots in the shopping center, including the Trust’s and White’s, may operate a grocery store.

In February of 2011, the Trust filed a motion for summary judgment, which the trial court denied. The denial of a summary judgment is an interlocutory judgment. La. C.C.P. Art. 968. The Trust timely sought supervisory relief in this court. See La. C.C.P. Art. 2201; Rule 4-8, Uniform Rules-Courts of Appeal.

II

In this Part we address first the general legal precepts which govern our consideration of this dispute and then apply those precepts to the specifies of the general plan’s particular building restriction in question and the plan’s provision for its termination.

A

“Building restrictions are charges imposed by the owner of an immovable in pursuance of a general plan governing building standards, specified uses, and improvements.” La. Civil Code Art. 775. “Building restrictions may be established only by juridical act executed by the owner of an immovable or by all the owners of the affected immovable.” La. Civil Code Art. 776. Here, the Schwegmann partnership established the general plan through an Act, which it recorded in the records of Orleans Parish. There is also no dispute that the general |fiplan satisfies the legal requirement that it “must be feasible and capable of being preserved.” La. Civil Code Art. 775. Thus, the building restrictions are valid and enforceable.

Building restrictions, once established are terminated as provided by Title V of Book II of the Civil Code.3 See La. Civil Code Art. 776. Title V provides inter alia that building restrictions “may terminate or be terminated, as provided in the act that establishes them.” La. Civil Code Art. 780.

“Apart from the rule of strict interpretation, documents establishing building restrictions are subject to the general rules of the Louisiana Civil Code of 1870 [1232]*1232governing the interpretation of juridical acts. Words used are to be understood in the common and usual signification.” La. Civil Code Art. 783 Cmt. (c). See also, generally, La. Civil Code Arts. 2045-2057. As the general plan is the private law of the parties, when the words of the general plan “are clear and explicit and lead to no absurd consequences, no further search may be made in search of the parties’ intent.” See La. Civil Code Art. 2046.

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76 So. 3d 1228, 2011 La.App. 4 Cir. 0611, 2011 La. App. LEXIS 1126, 2011 WL 4527317, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schwegmann-family-trust-no-2-v-white-iii-llc-lactapp-2011.