SRG Baton Rouge II, L.L.C v. Patten/Jenkins BR Popeye's, L.L.C.

CourtLouisiana Court of Appeal
DecidedMay 31, 2024
Docket2023CA1204
StatusUnknown

This text of SRG Baton Rouge II, L.L.C v. Patten/Jenkins BR Popeye's, L.L.C. (SRG Baton Rouge II, L.L.C v. Patten/Jenkins BR Popeye's, L.L.C.) 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
SRG Baton Rouge II, L.L.C v. Patten/Jenkins BR Popeye's, L.L.C., (La. Ct. App. 2024).

Opinion

STATE OF LOUISIANA

COURT OF APPEAL

FIRST CIRCUIT

2023 CA 1204

SRG BATON ROUGE II, L.L.C.

VERSUS

PATTEN/ JENKINS BR POPEYE' S, L.L.C.

Judgment Rendered: MAY 3 1 2024

Appealed from the 19th Judicial District Court In and for the Parish of East Baton Rouge State of Louisiana Case No. C679391

The Honorable Trudy M. White, Judge Presiding

Jimmy R. Faircloth, Jr. Counsel for Plaintiff/Appellee Mary Katherine Price SRG Baton Rouge II, L.L.C. Alexandria, Louisiana

Antonio M. "Tony" Clayton Port Allen, Louisiana

Geoffrey D. Westmoreland Counsel for Defendant/Appellant Anna W. O'Neal Patten/ Jenkins BR Popeye's, L.L.C. Caroline D. Alford Shreveport, Louisiana

Timothy W. Hardy Baton Rouge, Louisiana

Druitt G. Gremillion, Jr. Baton Rouge, Louisiana

BEFORE: GUIDRY, C.J., CHUTZ, AND LANIER, JJ. LANIER,J.

In this declaratory action seeking performance, reformation, and damages

relative to the enforceability of a commercial lease and the option to purchase

provision contained therein, defendant, Patten/Jenkins BR Popeye's, L.L.C.

Patten/Jenkins"), appeals the trial court's judgment awarding damages to

plaintiff, SRG Baton Rouge II, L.L.C. (" SRG"), in addition to several interlocutory

judgments, including a judgment granting a motion for protective order and to

quash a subpoena duces tecum filed by SRG; a judgment denying Patten/Jenkins'

exception raising the objection of no right of action; and a judgment granting

SRG's motion in limine to exclude testimony by Jenkins' expert witness. SRG

answered the appeal, seeking a modification of damages.

In a companion appeal also decided this date, Patten/Jenkins challenged the

trial court's judgment granting partial summary judgment in favor of SRG. See

SRG Baton Rouge II, L.L.C. v. Patten/Jenkins BR Popeye' s, L.L.C., 2023 CA

1 1203 ( La. App. 1 Cir.--/--/--) ( unpublished opinion) (" SRG I"). We dismissed

the appeal in SRG I, finding that the partial summary judgment was not a final,

appealable judgment, opting instead to fully address, in this appeal, the issue of

whether summary judgment was appropriately granted. For the reasons set forth

below, we reverse the partial summary judgment; vacate the merits judgment, as

well the interlocutory judgments entered by the trial court prior to the trial on the

merits; dismiss the answer to the appeal as moot; and remand for further

proceedings in accordance herewith.

1 As discussed in SRG I, SRG moved to consolidate the two appeals, arguing the two appeals should proceed in one streamlined proceeding." SRG added it had " no objection to Patten/Jenkins raising its grievances with the summary judgment ruling on appeal along with the final judgment awarding SRG damages." Patten/Jenkins agreed with consolidation of the appeals for purposes of consideration by the same panel, but opposed consolidation for the purposes of briefing. This court granted the motion, ordering that SRG I be consolidated with this appeal for argument and submission.

2 FACTS AND PROCEDURAL HISTORY

Patten/Jenkins owns a parcel of land in East Baton Rouge Parish.

Patten/Jenkins' predecessor in interest leased the property to SRG's predecessor in

interest, and by assignment and assumption, SRG purportedly assumed all

obligations under the terms ofthe lease.

The lease set forth a 20-year term that began on March 8, 1999, and expired

on March 8, 2019. As set forth in Section 28 of the lease, " Option to Extend," the

lessee had the option to continue the lease " for up to two additional successive

periods of five years each in accordance with the terms and provisions ofthe Lease

then in effect." However, it is undisputed that SRG never exercised its option to

extend the lease within the stipulated extension window. On December 13, 2018,

SRG notified Patten/Jenkins of its intent to purchase the property in accordance

with Section 23 of the lease, " Option To Purchase Premises." Section 23 provided

for a " Window" within which the lessee could exercise the option to purchase.

Said " Window" was set forth as " the 90 days immediately preceding the tenth and

2 twentieth anniversaries" ofthe lease.

In letters dated January 16, 2019, and March 7, 2019, Patten/Jenkins

informed SRG it needed to vacate the property by March 8, 2019. Patten/Jenkins

indicated that " holding over" past the termination date of the lease would not be

3 permitted, referring SRG to Section 30 ofthe lease.

2 The " Window" also included " the 90-day period immediately preceding the end ofthe first and second optional extension terms set forth in Section 28." However, as previously noted, SRG never exercised its right to extend the lease.

3 As set forth in Section 30, " holding over" after the expiration of the lease term was at lessor's option and within lessor's sole discretion and would result in lessee being deemed " a tenant on a month-to-month basis." Section 30 further provided that " the Base Monthly Rental shall be automatically doubled" and that " Lessee shall defend, indemnify, protect and hold Lessor harmless from and against any and all claims, losses and liabilities for damages resulting from Lessee's failure to surrender possession upon expiration ofthe Lease Term."

3 SRG never vacated the property. Rather, on February 7, 2019, SRG filed

suit against Patten/Jenkins seeking declaratory judgment and specific performance,

including but not limited to: the recognition of SRG's option to purchase the leased

premises; enforcement of SRG's option to purchase and the enforcement of

Patten/Jenkins' obligation associated with the option to purchase; and the

recognition and enforcement of SRG's continued occupancy of the leased premises

during the option to purchase process. SRG further sought reformation of the lease

should the trial court be unable to interpret the lease to allow for its continuation of

occupancy during the option to purchase process and damages against

Patten/Jenkins for its bad faith.

On March 13, 2019, Patten/Jenkins notified SRG that it was " knowingly

trespassing" on the property as it did not have permission to hold over past the end

of the lease, March 8, 2019. Patten/Jenkins further indicated its intention to

appoint Tom W. Cook, MAI of Cook Moore Davenport & Associates, to appraise

the property. Patten/Jenkins filed an answer and reconventional demand, alleging

that SRG " continue[ d] to occupy the property ... despite notice that

Patten/Jenkins] would not allow holding over under the expired lease." On April

4, 2019, Mr. Cook issued an appraisal, valuing the property at $850,000.00.

In August 2019, SRG filed a motion for partial summary judgment, seeking

a judgment on the merits of its breach of contract claims regarding the option and

4 its specific performance demand of that provision. In support of its motion, SRG

attached the affidavit of Michael A. Shelton, the manager of SRG, along with

numerous other exhibits, including a copy of the lease; a copy of the assignment; a

copy of Mr. Cook's appraisal report; and various letters and emails between the

parties. The trial court set the matter for hearing on October 16, 2019.

4 SRG argued that it timely and validly exercised the option to purchase and that Patten/Jenkins' intentional delays could not prevent the execution ofthe option.

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SRG Baton Rouge II, L.L.C v. Patten/Jenkins BR Popeye's, L.L.C., Counsel Stack Legal Research, https://law.counselstack.com/opinion/srg-baton-rouge-ii-llc-v-pattenjenkins-br-popeyes-llc-lactapp-2024.