Teche Realty & Investment Co. v. A. M. F., Inc.

306 So. 2d 432, 1975 La. App. LEXIS 4119
CourtLouisiana Court of Appeal
DecidedJanuary 15, 1975
DocketNo. 4842
StatusPublished
Cited by4 cases

This text of 306 So. 2d 432 (Teche Realty & Investment Co. v. A. M. F., Inc.) 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
Teche Realty & Investment Co. v. A. M. F., Inc., 306 So. 2d 432, 1975 La. App. LEXIS 4119 (La. Ct. App. 1975).

Opinion

WATSON, Judge.

Plaintiff, Teche Realty & Investment Company, Inc., filed suit against defendant, A.M.F., Inc., to recover $8,800 allegedly due because of defendant’s failure to remove certain property from plaintiff’s premises for a period of some eleven months. Plaintiff leased its premises known as “Torrido Bowling Lanes”, to New Iberia Bowling Lanes, Inc. Defendant, A.M.F., leased some bowling equipment, and sold other bowling equipment to New Iberia Bowling Lanes, Inc., retaining vendor’s liens and chattel mortgages on the property sold. At the termination of the lease, A.M.F. failed to remove its property from the premises, and plaintiff sued to recover for this occupancy on the basis of quasi contract, quantum meruit, unjust enrichment, preserving the property, use and occupancy of the premises and storage.

The trial court rendered judgment in favor of plaintiff and against defendant in the amount of $1800, and defendant has appealed. Plaintiff has answered the appeal asking that the award be increased to the sum of $5,325.

Defendant-appellant, A.M.F., contends that the trial court erred as follows:

1. Holding that defendant had an obligation to remove the property leased and sold from plaintiff’s premises and is liable for its failure to do so.
2. Finding A.M.F. liable for failure to remove its property from the premises when Teche demanded payment of $925 per month rental and the demand for removal was conditioned on payment of this amount.
3. Awarding judgment in favor of plaintiff in the amount of $1800.

Most of the facts found by the trial court are undisputed and we will summarize the pertinent findings, which we accept, as follows:

(1) In 1964, plaintiff leased a building to New Iberia Bowling Lanes, Inc. for ten years at $800 per month.

(2) Thereafter, New Iberia Lanes purchased through credit sales certain bowling lanes from A.M.F.; these were installed on the premises, but A.M.F. retained chattel mortgages and vendor’s liens.

[434]*434(3) Also, New Iberia Lanes leased from defendant sixteen automatic pin-spotting machines which were also installed.

(4) At the time of the placement of the mortgaged and leased property in the premises, plaintiff and New Iberia Lanes executed an agreement in which plaintiff agreed to the installation and use of the mortgaged property, notably the bowling lanes, agreeing that A.M.F. could enter the premises and remove the equipment, plaintiff specifically waiving in favor of A.M. F. any lien against the equipment.

(5) On July 17, 1972 plaintiff sued to evict New Iberia Lanes for failure to pay the rent and on July 25, 1972 judgment was rendered in favor of plaintiff ordering New Iberia Lanes to vacate the premises and delivered possession to plaintiff by July 26, 1972. A writ of possession was ordered to be issued, if New Iberia Lanes failed to vacate the premises, and the sheriff was ordered to execute it.

(6) On July 27, 1972, plaintiff wrote to A.M.F. and informed the defendant of the court’s order, requesting that A.M.F. remove its equipment by August 26, 1972 and plaintiff demanded payment from A.M.F. in the amount of $925, if A.M.F. should take thirty days to remove the equipment. (A.M.F. contends that it was forbidden to remove the equipment without paying ,the $925.)

(7) Neither the leased nor the mortgaged equipment was removed by September 21, 1972 at which time plaintiff obtained a writ of possession commanding the sheriff to place plaintiff in full and complete possession of the premises.

(8) On the same date A.M.F.’s attorney wrote a letter to the sheriff of Iberia Parish stating that the removal of the property from the premises in an improper manner would cause it to be damaged or destroyed and that the sheriff would be responsible. The letter further stated that dismantling this type of equipment requires specialized equipment and personnel. The letter offered on behalf of A.M.F. to use its equipment and personnel but stated that A.M.F. would expect to be paid as court costs for this work.

(9) On October 11, 1972, A.M.F.’s attorney again wrote the sheriff stating that A.M.F. would remove the leased equipment, that is, the pin-spotters, at its own expense but as to the bowling lanes, the letter stated that A.M.F.’s only interest was as the holder of chattel mortgages and if it removed this equipment, A.M.F. would expect to be paid the sum of $3600 in advance.

(10) On October 19, 1972, the leased property was removed.

(11) On October 10, 1972, A.M.F. filed suit against New Iberia Lanes to obtain judgment and foreclose on the chattel mortgages. The trial court especially noted that although this suit was not filed until November, New Iberia Lanes had not paid any amounts due under the promissory note secured by the chattel mortgages since February 10, 1972, several months prior to the eviction of July, 1972.

(12) Certain additional legal steps were taken by plaintiff in an attempt to have the 16 bowling lanes removed from the premises and various orders and writs were issued in connection with these attempts.

(13) Finally, on June 26, 1973, the mortgaged property was seized and removed from the premises by the sheriff of Iberia Parish under the writ of seizure and sale issued in A.M.F.’s suit for foreclosure on the chattel mortgages held on the bowling lanes, not in plaintiff’s suit.

(14) On July 18, 1973, the mortgaged property was sold at sheriff’s sale and purchased by A.M.F. for $10,709 with benefit of appraisal.

We will comment on the disputed finding of fact concerning the demand by plaintiff for rent for thirty days, possibly as a condition for removing the equipment. [435]*435We hold that this point is moot. No attempt was ever made to remove the leased equipment within the thirty day period. No suit was instituted to assert the vendor’s lien and chattel mortgage on the bowling lanes until eleven months had passed. We find that the demand for $925 did not hinder A.M.F. because A.M.F. did not attempt to assert its legal rights.

The trial court found that the facts present a close legal question but awarded plaintiff judgment for the reasonable value of the use of premises occupied by the leased and mortgaged property after September 26, 1972. This allowed A.M.F. a period of 60 days following the lease termination to elect to remove the leased and mortgaged property from the premises or abandon it.

We agree with and quote with approval the following reasons for judgment by the trial court:

“At the outset it must be recognized that the right of New Iberia Lanes to maintain the leased and mortgaged property on the premises arose as a result of the lease agreement, as amended, which was entered into by Plaintiff and New Iberia Lanes. This lease agreement was judicially terminated on July 25, 1972, for failure of the lessee to pay the rent due. Upon termination of the lease agreement between plaintiff and New Iberia Lanes, the right to maintain the leased and mortgaged property on the premises likewise terminated, subject however, to the right of the defendant, AMF, to enter upon the premises and remove said machines, equipment, etc. free of any claim, interest, right or lien by the plaintiff. The record reflects that New Iberia Lanes had no interest in removing the leased and mortgaged property as it was insolvent.

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Teche Realty & Investment Co. v. A. M. F., Inc.
309 So. 2d 681 (Supreme Court of Louisiana, 1975)

Cite This Page — Counsel Stack

Bluebook (online)
306 So. 2d 432, 1975 La. App. LEXIS 4119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/teche-realty-investment-co-v-a-m-f-inc-lactapp-1975.