Southern Marine Sales, Inc. v. Matherne

915 So. 2d 1042, 2005 WL 3179625
CourtLouisiana Court of Appeal
DecidedNovember 29, 2005
Docket05-CA-181
StatusPublished
Cited by10 cases

This text of 915 So. 2d 1042 (Southern Marine Sales, Inc. v. Matherne) 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
Southern Marine Sales, Inc. v. Matherne, 915 So. 2d 1042, 2005 WL 3179625 (La. Ct. App. 2005).

Opinion

915 So.2d 1042 (2005)

SOUTHERN MARINE SALES, INC.
v.
Roger V. and Barbara B. MATHERNE.

No. 05-CA-181.

Court of Appeal of Louisiana, Fifth Circuit.

November 29, 2005.
Rehearing Denied December 21, 2005.

*1043 Timothy S. Marcel, Attorney at Law, Luling, LA, for Appellant, Southern Marine Sales, Inc.

Michael H. Pinkerton, Attorney at Law, New Orleans, LA, for Appellees, Roger V. Matherne and Barbara B. Matherne.

Panel composed of Judges MARION F. EDWARDS, SUSAN M. CHEHARDY, and WALTER J. ROTHSCHILD.

SUSAN M. CHEHARDY, Judge.

In this lawsuit arising out of a commercial lease dispute, the trial judge granted the Mathernes' Motion for Summary Judgment on their Reconventional Demand and awarded judgment in favor of the Mathernes and against Southern Marine Sales("SMS"). For the reasons that follow, we amend in part and affirm as amended.

Facts and Procedural History

On July 1, 2003, the Mathernes, as lessors, entered into a commercial property lease with SMS, as lessees. According to the lease, the original term began on March 1, 2002 and ended on February 28, 2005.[1] In addition to paying rent and performing other obligations as lessee, SMS agreed to pay "all taxes assessed against *1044 the Property including, but not limited to, advalorem[sic] taxes."[2]

On December 30, 2002, the Mathernes paid ad valorem taxes, totaling $4,190.00, assessed against the Premises for 2002. On December 30, 2003, the Mathernes again paid ad valorem taxes, totaling $4,832.43, assessed against the Premises for 2003.

On March 16, 2004, the Mathernes forwarded copies of the pertinent tax bills to SMS's representative and requested, in writing, reimbursement of amounts paid. On April 2, 2004, Harold Perilloux, SMS's representative, refused, in writing, to tender the monies on the basis that the Mathernes and SMS were in a dispute over "various other items of money due to and from the parties" totaling "significantly more than the 2002 and 2003 property taxes," which makes it "clearly inequitable for Southern Marine to make payment for the taxes at this time." On April 21, 2004, the Mathernes again demanded reimbursement and notified SMS, in writing, of its default for failure to perform a condition of the lease.

On May 3, 2004, SMS instituted a concursus proceeding, seeking to deposit $9,743.33 (the amount of the two tax bills in question), into the registry of the Court. The trial judge refused to allow SMS to deposit the funds and ordered the matter to proceed as an ordinary proceeding. On May 14, 2004, SMS tendered a check in the amount of $9,743.33 to the Mathernes. The Mathernes returned the check to SMS on May 25, 2004.

On May 26, 2004, the Mathernes filed an answer to SMS's petition, including numerous affirmative defenses, and a reconventional demand alleging breach of the lease contract. In their reconventional demand, the Mathernes sought to accelerate the full amount of rental payments due under the term of the lease, sought judgment declaring that SMS, as a defaulter, could not exercise any options to renew the lease, and sought costs and attorneys' fees.[3] On June 1, 2004, SMS answered the Mathernes' reconventional demand and filed their own reconventional and third party demands.

On September 2, 2004, the Mathernes moved for summary judgment on their reconventional demand. The Mathernes attached supporting affidavits and documents, including a copy of the lease in question, to their Motion for Summary Judgment. SMS opposed summary judgment of the Mathernes' reconventional demand on the grounds that the Mathernes breached the lease contract by failing to submit the tax bills in question to SMS for review before paying the bills. SMS also argued that dissolution of the lease was a harsh remedy that is not favored under Louisiana law.

On October 12, 2004, the trial court heard and granted the Mathernes' Motion *1045 for Summary Judgment. On November 8, 2004, the Mathernes filed a Motion to Tax Court Costs and for Attorney's Fees. On December 20, 2004, the trial judge awarded attorneys' fees of $1,500.00, finding that the Mathernes were not entitled to recover any fees after May 17, 2004, the date that SMS tendered payment for the taxes.

SMS now appeals the grant of the Mathernes' Motion for Summary Judgment. The Mathernes have answered the appeal, seeking an increase in attorney's fees for both trial and appellate work, and judicial interest on the amounts owed.

Analysis

Defendant-in-reconvention/appellant's assignment of error

Appellate courts review summary judgments de novo under the same criteria that govern the district court's consideration of whether summary judgment is appropriate. Bua v. Dressel, 96-79 (La.App. 5 Cir. 5/28/96), 675 So.2d 1191, writ denied, 96-1598 (La.9/27/96), 679 So.2d 1348 (citing Reynolds v. Select Properties, Ltd., 93-1480 (La.4/11/94), 634 So.2d 1180).

Summary judgments are now favored, and the documents submitted by both parties are to be equally scrutinized.... The initial burden remains with the mover to show that no genuine issue of material fact exists. If the moving party points out that there is an absence of factual support for one or more elements essential to the adverse party's claim, action or defense, then the nonmoving party must produce factual support sufficient to satisfy his evidentiary burden at trial. La. C.C.P. art. 966(C)(2). If the non-moving party fails to do so, there is no genuine issue of material fact, and summary judgment should be granted. La. C.C.P. arts. 966 and 967.

Premier Restaurants, Inc. v. Kenner Plaza Shopping Center, L.L.C., 99-1310 (La.App. 5 Cir. 8/29/00), 767 So.2d 927, 932, quoting Davis v. Specialty Diving, Inc., 98-0458 (La.App. 1 Cir. 4/1/99), 740 So.2d 666, 669, writ denied 99-1852 (La.10/8/99), 750 So.2d 972. See also Cochran v. Safeguard Self-Storage, Inc., 02-1272 La.App. 5 Cir. 4/29/03, 845 So.2d 1128.

On appeal, SMS, in its only assignment of error, argues that the "trial court erred in granting summary judgment terminating the lease contract based upon the actions alleged by the lessors." Specifically, SMS contends that their failure to timely tender property tax reimbursement was not a `material breach' of the lease contract and, thus, did not warrant `dissolution' of the contract. SMS further contends that `dissolution' of the lease "significantly impairs" their interest since the right to occupy and conduct business at the leased premises for up to 12 years was a primary incentive for SMS to enter into the lease agreement. Finally, SMS argues that there are genuine issues of material fact present that render this matter inappropriate for summary judgment.

First, we must point out SMS mischaracterizes the trial court's ruling as a `dissolution' of the lease. The Louisiana Supreme Court in Richard v. Broussard, 495 So.2d 1291, 1293 (La.1986), explained:

Generally, when a lessee defaults on a lease agreement, the lessor has two options available: he may sue to cancel the lease and to recover accrued rentals due, or he may sue to enforce the lease and to recover both accrued rentals and future accelerated rentals (if the lease contains an acceleration clause). These remedies are mutually exclusive. If the lessor elects to cancel the lease, the lease is terminated and the lessor is entitled to return into possession, but he forfeits the right to all future rentals.

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Bluebook (online)
915 So. 2d 1042, 2005 WL 3179625, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-marine-sales-inc-v-matherne-lactapp-2005.