Shank-Jewella v. Diamond Gallery

535 So. 2d 1207, 1988 WL 127015
CourtLouisiana Court of Appeal
DecidedNovember 30, 1988
Docket20,177-CA
StatusPublished
Cited by3 cases

This text of 535 So. 2d 1207 (Shank-Jewella v. Diamond Gallery) 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
Shank-Jewella v. Diamond Gallery, 535 So. 2d 1207, 1988 WL 127015 (La. Ct. App. 1988).

Opinion

535 So.2d 1207 (1988)

SHANK-JEWELLA, a Louisiana Partnership, Plaintiff-Appellee,
v.
The DIAMOND GALLERY, Defendant-Appellant.

No. 20,177-CA.

Court of Appeal of Louisiana, Second Circuit.

November 30, 1988.

*1209 Humphries & Humphries by G. Earl Humphries, III, Alexandria, for Diamond Gallery & Richard Humphries.

Comegys, Lawrence, Jones, Odom & Spruiell, Shreveport by Frank H. Spruiell, Jr., for Shank-Jewella and William E. Shank, III.

Skeels, Baker, & Coleman by Donald L. Baker, Shreveport, for Carl J. King.

Before HALL, MARVIN and LINDSAY, JJ.

MARVIN, Judge.

In this action under a written lease to a partnership retail jewelry store, the lessee, through one of the two defendant partners, appeals a judgment enforcing the lease and awarding $14,736 in past due and future rent, recognizing the lessor's lien under a writ of sequestration, and awarding $2,500 attorney fees to the lessor. The lessor answered the appeal seeking an increase in the award of attorney fees.

Lessee contends the lease is unenforceable

—because the lessor induced the lessee to sign the lease by making representations, which it did not fulfill, that other tenants would fully occupy the shopping center within a few months after the lease was signed;
—because the lessee partnership ended when one of the partners sold to the other and the lessor agreed to enter into a "new lease" with the remaining partner;
—because the lessor had routinely accepted partial and late rental payments from the lessee and did not formally default or notify lessee before instituting the action to enforce the lease.

Lessee also contends, in any event, that the lessor should have mitigated its damages by leasing the premises to another tenant; that sequestration was "wrongful" because the sequestered property no longer belonged to the partnership, but was solely owned by the one partner; and that the $2,500 award for attorney fees is excessive and should be denied or reduced.

No complaint is made that the judgment upholds and recognizes the indemnity demand of the selling partner against the partner who bought his partnership interest.

We amend to increase the attorney fee and affirm.

FACTS

The Diamond Gallery, through its two partners, Humphries and King, leased a suite in the South Jewella Plaza shopping center on June 19, 1985, for a two-year term beginning August 1, 1985. Humphries timely paid the monthly rent and other charges through January 1986. On *1210 August 27, 1985, Humphries purchased King's interest in the partnership and continued the business as a sole proprietor. In that sale, Humphries effectively assumed all of the partnership obligations and agreed to indemnify King or hold him harmless for any loss or damage arising out of those obligations.

From February 1 through August 1986 Humphries was continually late in his payments of the lease obligations. He paid only $2,600 in partial payments and was in arrears about $6,600. During the summer of 1986, Humphries wrote two undated letters to the lessor seeking the further indulgence of the lessor:

Bill,
Business is still hanging in there and I appreciate your help.
If possible place those missed 2 months on the end of our contract but I'll be able to pay them off before that time comes.
Thanks Bill, you'll never know how much I appreciate it.

Sincerely, Richard Humphries Bill,

This is the limit of money that I have. It seems that the customers with layaways are in financial binds and can't pay their layaways off on time. I still hope to catch up with you as soon as possible. This is a priority of mine. I'm trying as hard as I can. I hope you take a few of those late months and add them to the end of my lease. Thanks Bill for the help. I will stay in touch.

Sincerely, Richard

During the last few days of August 1986 Humphries began moving the contents of his jewelry store to premises in another shopping center, Kilpatrick Plaza, a few blocks away on Jewella Road. There he placed a sign "Coming Soon—The Diamond Gallery." One of the lessor's employees saw the sign. The lessor instituted its action on August 29. Humphries completed his move on August 30. Humphries learned of the pending action and writ of sequestration before it was served and posted a $15,000 bond to avoid seizure of his merchandise and furnishings. The action was tried on December 3, 1987. Judgment was signed in February 1988.

The trial court, weighing and assessing conflicting testimony, concluded that the lessor did not promise or represent to lessee at any time that its shopping center would be fully occupied by other tenants and that lessor did not promise Humphries that a new lease would be written for him as a sole proprietorship after he purchased King's partnership interest.

THE LESSOR'S ALLEGED REPRESENTATIONS

Humphries and King testified they had already leased space elsewhere but chose the South Jewella Plaza location instead of the other one because lessor's representative, Lee Hall, told them South Jewella Plaza "should be full by Christmas of 1985." Humphries testified that Diana Poole, another of lessor's employees, told him in November 1985 that the shopping center would not be filled by Christmas but said "she'd try to have it full by May of 1986." When Humphries moved out on August 30, 1986, there were six other tenants in the 38,000 square foot shopping center.

Humphries and King explained the benefits they hoped to obtain from heavy pedestrian traffic at the shopping center. They admitted that the anticipated occupancy rates were not mentioned in the written lease and that no one represented to them that the lease would be void if the desired occupancy was not achieved.

Paragraph XIX of the lease states:

This lease contains the entire agreement between the parties hereto and no agreement shall be effective to change, modify or terminate this lease either in whole or in part, unless such change is in writing and duly signed by all parties hereto. Landlord and Tenant hereby acknowledge that they are not relying upon any representation or promise of the other, or of any other agent or cooperating *1211 agent, except as may be expressly set forth in this lease.

Humphries testified he read the entire lease before he signed it and admitted that it "contained the full extent of the agreement..."

William Shank testified that he has never represented to this lessee or any other tenant that the shopping center would be filled by a certain date and that none of his employees ever did so in his presence.

Humphries argues that the lessor's failure to call its employees Lee Hall and Diana Poole as witnesses gives rise to a presumption that their testimony would have been unfavorable for lessor. The presumption is invoked only against the litigant who bears the burden of proof with respect to the matter about which the witness would testify. The presumption is inapplicable if the witness is equally available to summons by all parties. Price v. Lanoue, 190 So.2d 478 (La.App. 1st Cir. 1966); Keystone Paint & Decorating Co. v. West, 37 So.2d 556 (La.App. 2d Cir.1948).

The lessee raised as a defense and had the burden of proving the alleged representations were made. The lessee did not subpoena Hall or Poole or assert that they were unavailable to subpoena.

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Cite This Page — Counsel Stack

Bluebook (online)
535 So. 2d 1207, 1988 WL 127015, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shank-jewella-v-diamond-gallery-lactapp-1988.