Tullier v. Tanson Enterprises, Inc.

359 So. 2d 654, 1978 La. App. LEXIS 3462
CourtLouisiana Court of Appeal
DecidedMay 1, 1978
Docket11921
StatusPublished
Cited by16 cases

This text of 359 So. 2d 654 (Tullier v. Tanson Enterprises, 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
Tullier v. Tanson Enterprises, Inc., 359 So. 2d 654, 1978 La. App. LEXIS 3462 (La. Ct. App. 1978).

Opinion

359 So.2d 654 (1978)

Warren J. TULLIER, Sr., et al.
v.
TANSON ENTERPRISES, INC., et al.

No. 11921.

Court of Appeal of Louisiana, First Circuit.

May 1, 1978.
Rehearings Denied June 12, 1978.

*656 A. J. Spedale, Baton Rouge, of counsel, for plaintiff-appellee Warren J. Tullier, Sr., et al.

Leon Gary, Jr., Baton Rouge, of counsel, for defendant-appellant Tanson Enterprises, Inc.

Harvey H. Posner and Felix Weill, Baton Rouge, of counsel, for defendant-appellant Commercial Properties Development Corp. & Shopper's Fair Co./S. F. Realty.

Before LANDRY, SARTAIN and ELLIS, JJ.

LANDRY, Judge.

Plaintiffs-appellees (Lessor) instituted these proceedings to cancel a long term ground lease originally granted to defendant, Commercial Properties Development Corporation (CPDC) and presently held by Tanson Enterprises, Inc. (Tanson) by virtue of intervening assignments. Cancellation of the lease is sought for default consisting of failure to timely pay rentals and other alleged defaults in contractual obligations.

The primary issue is whether notice of default was given in accordance with lease provisions. Secondarily, we are concerned with the use to which the property could be put by the lessee and the nature of repairs required to be made by lessee to improvements on the premises.

On January 21, 1958, Benjamin J. Tullier and his wife, Pearl P. Tullier leased subject premises to CPDC for an original 25 year term at a rental of $750.00 monthly. At lessee's option, the lease was made renewable for two consecutive 25 year terms and a final 24 year term at the same rental. Benjamin J. Tullier died; his widow and heirs are plaintiffs herein.

On October 9, 1959, CPDC assigned its interest in the lease to Shoppers Fair Company, a partnership composed of Wilbur Marvin and Kenneth M. Kurson. Shoppers Fair Company subsequently became S. F. Realty, a partnership also composed of Marvin and Kurson. On June 24, 1963, S. F. Realty assigned its interest to Tanson. This action was instituted by Lessor on April 27, 1976, seeking cancellation for failure of Tanson to timely pay rentals due December 1, 1975, January 1, February 1, and March 1, 1976, and other alleged defaults. Lessor sought payment of past due rent, 1975 property taxes, attorney's fees and the cost of repairs required to maintain the improvements suitable for use as a shopping center.

Named defendants are: CPDC; Tanson; Shoppers Fair Company; S. F. Realty; Mangel Stores Corporation, a holding company owning Shoppers Fair of Baton Rouge, Inc., which was a former sub-lessee; and Prudential Life Insurance Company, a leasehold mortgagee. Mangel Stores Corporation, Shoppers Fair of Baton Rouge, Inc., and Prudential have been dismissed from the action.

Tanson reconvened against Lessor claiming damages for alleged constructive eviction resulting from Lessor's action to cancel the lease, and of course, resisted Lessor's effort to cancel. Shoppers Fair Company, S. F. Realty and CPDC joined Tanson in *657 resisting Lessor's demands and third partied Tanson seeking judgment against Tanson, for whatever amounts said third party plaintiff might be cast to Lessor.

The trial judge found Tanson in default for failing to timely pay rentals and taxes due on the leased premises. Judgment was rendered in favor of Lessor against Tanson, CPDC, Shoppers Fair Company and S. F. Realty ordering cancellation of the lease and against said defendants in solido for rentals due December, 1975— April, 1976, in the sum of $3,750.00 and also the sum of $54,187.00 required to repair improvements to make them usable for shopping center purposes. Lessor's demand for attorney's fees was rejected. Judgment was also rendered in favor of CPDC, Shoppers Fair Company and S. F. Realty against Tanson on the third party demand against Tanson. Tanson's reconventional demand against Lessor was dismissed.

Tanson, CPDC, Shoppers Fair Company and S. F. Realty have appealed the judgment against them in favor of Lessor. They maintain that there was no default and no basis for the trial judge's award of damages for repair predicated on use of the premises for shopping center purposes. Tanson also appeals dismissal of its reconventional demand against Lessor and the judgment rendered against it on the third party demand. Third party plaintiffs pray for judgment in their favor against Tanson for any amount they may be cast to Lessor on appeal.

FACTUAL BACKGROUND

Tanson is a New York corporation with no office or place of business in Louisiana. From its acquisition of the lease in 1963 until December, 1975, Tanson paid all rentals promptly and apparently complied with all provisions of the lease, without complaint. After acquiring the lease, CPDC, or its assigns, constructed improvements which made the premises a shopping center. One structure, containing 45,000 square feet of space, was sub-leased to a retail outlet known as Shoppers Fair of Baton Rouge, Inc., a discount division of Mangel Stores Corporation. A second building, containing 30,100 square feet, was sub-leased to and occupied by a food chain known as Krogers. Prior to 1973, the site declined as a shopping center location. One of the buildings burned, but was reconstructed. Eventually, the premises became vacant and were subject to extensive vandalism, particularly the structure previously occupied by Krogers. The black topped parking area fell into disrepair and developed numerous holes. It appears that prior to December, 1975, Tanson was considering the possibility of abandoning the lease. Tanson did not pay rent due on December 1, 1975, nor did it pay rent due January 1, 1976.

Article 3 of the lease provides for payment of rental monthly on the first day of each month by check payable to Benjamin J. Tullier and Pearl P. Tullier, addressed to Baton Rouge, Louisiana.

Rider B attached to the lease requires the tenant to pay all taxes and other assessments levied or charged against the property. It recites that tenant: "will if requested by Landlord, on or before the first day of March of each year, exhibit to the landlord receipts showing that all taxes and any such assessments for the preceding year have been paid, and will, upon written application of Landlord, furnish Landlord for inspection and such use as may be proper in protecting the interest of Landlord in said premises, the written evidence of any and all such payments whenever demanded."

Article 11 of the lease grants lessee the privilege of erecting such improvements as lessee sees fit. In the event of destruction of a building, lessee is obligated to reconstruct a similar building. This article also provides:

"The tenant shall be responsible for and keep the exterior, roof, appurtenances thereto (which shall include sidewalks, abutting on the demised premises) in good order and repair. The Tenant agrees to maintain and keep in repair the interior and store front of any building or improvement now or hereafter upon the demised premises. Tenant agrees to restore promptly any and all plate glass in *658 or about the demised premises which may become damaged or broken."

Use of the premises is governed by Article 7 of the lease which states: "The premises hereby demised shall not be used for any unlawful purpose during the term of this lease." Also regarding use, Rider C clearly indicates that the parties intended the improvements to be erected by lessee were for operation of a "chain store". Rider D expressly obligates the lessee to construct "a . . . one story (or multi-story) building . . . designed for chain store occupancy".

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Cite This Page — Counsel Stack

Bluebook (online)
359 So. 2d 654, 1978 La. App. LEXIS 3462, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tullier-v-tanson-enterprises-inc-lactapp-1978.