Selber Bros. v. Newstadt's Shoe Stores

14 So. 2d 10, 203 La. 316, 1943 La. LEXIS 978
CourtSupreme Court of Louisiana
DecidedApril 12, 1943
DocketNo. 36788.
StatusPublished
Cited by35 cases

This text of 14 So. 2d 10 (Selber Bros. v. Newstadt's Shoe Stores) 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
Selber Bros. v. Newstadt's Shoe Stores, 14 So. 2d 10, 203 La. 316, 1943 La. LEXIS 978 (La. 1943).

Opinion

HAMITER, Justice.

Under a written contract of date May 19, 1937, plaintiff leased to the defendant •partnership the premises known as 425 Milam Street in the City of Shreveport to "be used as a shoe store. This contract of lease, being a renewal or extension of one originally entered into between the parties in 1933, covered a period of one year ■commencing January 1, 1938, and ending December 31, 1938; and it obligated the defendant to pay a stipulated minimum monthly rental of $200 and in addition thereto the amount by which six per cent <of the gross sales in each month would ■exceed the said sum of $200.

The mentioned renewal forms the basis of this suit, plaintiff insisting that there has been a violation of the implied obligations thereof. It asserts that during the months of September, October, November, and December, 1938, defendant failed to conduct the shoe business on the premises in the manner contemplated by the lease, and that by reason of such failure it was deprived of the additional or excess rentals due for those months on the percentage of sales basis. The minimum monthly rentals of $200, however, were admittedly paid.

For the alleged due and unpaid additional rent plaintiff asks judgment in the sum of $1,159.36; and further it claims damages of $1,000 for deterioration in value of the leased premises.

In resisting plaintiff’s demands defendant first filed an exception of no cause of action. It was sustained and the suit dismissed. An appeal to this court followed. On that appeal we reversed the judgment, overruled the exception, and remanded the case to the district court for further proceedings consistent with the views ex- ■ pressed in our opinion. 194 La. 654, 194 So. 579, 581.

Defendant next tendered a plea of estoppel which was referred to the merits. Then it answered, and a regular trial was had. There was judgment sustaining the plea of estoppel, rejecting the demands of plaintiff, and dismissing the suit. It is on an appeal from that judgment, prosecuted by plaintiff, that the case is now before us.

In our former opinion we referred to certain stipulations in the lease relating to plaintiff’s right to receive monthly reports showing daily sales made, and said that they “support the contention that the plaintiff, 'in renewing the lease, was depending upon the implied obligation of the lessee to conduct the business for the mutual benefit of the parties to the contract, and thus in good faith to make the six per cent of the gross sales amount to as much more *321 than the stipulated minimum rent per month as it could reasonably amount to.”

But we also held, in effect, that the change allegedly made by defendant in the use of the premises, resulting in a material reduction in the rentals for the four months in question, might have been a necessary incident to defendant’s moving into a newly rented location and hence justified; and that it was a matter of defense to be heard on the trial of the merits.

The record discloses that for a long period prior to May 19, 1937, the rental paid to plaintiff at six per cent of gross sales had averaged more than $400 per month. On that date, when the extension for the full year of 1938 was agreed on and signed, and previously, defendant was conducting an established and successful business, handling seasonable and fresh shoes in a complete assortment of sizes, styles and colors. Such a business was continued for the remainder of 1937, and the first half of 1938.

Occasionally, during those successful operations, a clearance sale was held for the purpose of disposing of merchandise that had become unseasonable. Summer shoes were so offered ordinarily in June and July. About November 1, fall shoes are considered no longer seasonable, and after that date sales of them were usually started. It was not customary to hold clearance sales in September and October.

In the early part of 1938, defendant made numerous attempts to obtain from plaintiff an extension of the lease that was to expire on the last' day of that year; but each was unavailing. Whereupon <pn July 27, 1938, it entered into an agreement with Mr. T. K. Giddens for a lease on a new location at 509 Milam Street, approximately one block distant from the old one, and immediately began preparing , for its occupancy.

On August 4, 1938, defendant commenced a removal sale under the name of Newstadt’s in the old premises, selling only merchandise that had been previously displayed and was on hand. No new stock of goods was offered; however, there was at the time stored in crates on the premises new fall shoes that had been purchased and received recently.

By September 10, 1938, such removal sale was no longer effective; so defendant then changed the title of the business to Mitchell’s, which is the first name of one of the partners of the defendant partnership, and continued operations in the same location. It conducted, as Mitchell’s, a sale of the shoes still on hand and of similar merchandise brought in from other stores which it operated in different parts of Louisiana. The stock thus offered was described by a defense witness as “all odds and ends we had.”

Although no new fall shoes were displayed at Mitchell’s sale, the following was stated in an advertisement in a Shreveport paper:

“Important Announcement! Mitchell’s Shoe Store. Now open in Newstadt’s old location. 425 Milam St. Next to Selber’s. We have acquired Newstadt’s entire remaining stock of spring and summer shoes *323 * * * and are grouping them with new fall shoes that have just arrived! ”

Defendant’s sale conducted as Mitchell’s ceased on October 25, 1938; and at the same time the store was closed, all of the “odds and ends” having then been disposed of. But the keys to the premises were not surrendered to plaintiff until the expiration of the lease on December 31, 1938.

In the meanwhile, on September 10, 1938, defendant opened its store at the new location under the name of Newstadt’s, and commenced its regular business with all new fall merchandise, including that previously stored in plaintiff’s premises. This coincided with the termination of Newstadt’s removal sale in the old location and the change in name to Mitchell’s. Such regular business was conducted successfully throughout the remainder of the year.

For the months of September, October, November, and December, 1938, plaintiff received from defendant a total of $800, being the minimum rental of $200 per month stipulated to be paid for the old premises during that period. According to defense counsel, such was all that was due by defendant “because the sales were not sufficient to require the payment of a sum on a percentage basis.”

Countering, attorneys for’ plaintiff call attention to the fact that for the same four months of 1937 there was a total rental .paid of $2,059.36; and they argue: “Had defendants continued to conduct their business in the leased premises in the manner contemplated, it is apparent that plaintiff would have received rentals for the last four months of 1938 at least equal to the amount of rentals paid during the corresponding months of 1937, or $2,059.36. Having received only $800 for these four months, it is entitled to recover either as additional rental or as damages for breach of contract, a difference of $1,259.36.”

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14 So. 2d 10, 203 La. 316, 1943 La. LEXIS 978, Counsel Stack Legal Research, https://law.counselstack.com/opinion/selber-bros-v-newstadts-shoe-stores-la-1943.