S. Mark James and Paul Winders James VS Denham Springs Rent All, Inc.

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NOT DESIGNATED FOR PUBLICATION STATE OF LOUISIANA COURT OF APPEAL FIRST CIRCUIT NUMBER 2007 CA 0858 S MARK JAMES AND PAULA WINDERS JAMES VERSUS DENHAM SPRINGS RENT ALL INC Judgment Rendered Appealed from Twenty December 21 2007 the First Judicial District Court In and for the Parish of Livingston Louisiana Trial Court Number 81 291 Honorable Robert H Morrison III Judge Hansel M Harlan Attorney Baton Plaintiffs Rouge LA S for J ames and D Appellees Mark James Paula Winders Anthony Dentro Attorney for Blayne Honeycutt Denham Springs LA Defendants Denham Appellants Springs Rent All Inc and Robert Jeansonne BEFORE CARTER J C PETTIGREW AND WELCH JJ WELCH J In this refened to collectively determination that Mr as Jeansonne and Robert Jeansonne challenge James and Paula James Mr Jeansonne also Dentro in breach of contract Anthony Inc Rent All Springs plaintiffs S Mark of property parcel Denham appeal challenges the trial court s of a are co owners court his third party demand on trial a s refusal to find We affirm BACKGROUND This lawsuit located The at 4 H property Subdivision Deryl 0 08 a rental business Mr September 14 purchased the property note in note in the required pursuant to 1989 a Mr on the Mr subject property unable to obtain was a lease 65 037 00 the amount The note of monthly payments with September 14 1989 Mr Mr a secured by pledge the of chattel mortgage James 2 Mr WIves promissory of note a collateral collateral mortgage The 119 in the amount of of a pledge a their They financed the Springs executing amount and Broussard of 61 600 00 100 000 00 the 65 000 00 and partner Mr purchase agreement sum was his business property and existing rental business James payment due September 15 1999 in the On the purchase and business for the amount of 120 West is located approached First National Bank of Denham in the amount of mortgage of Denham 1500 square foot wooden frame a operated was Broussard in turn and lease it Mr Jeansonne through areas improvements Springs Louisiana B purchase the existing business but J ames and the two decided to sale Tract as which storage of land and tract sought financial assistance in acquiring the business from his friend Broussard On on a 190 in Denham Highway acres with two covered Jeansonne wished to He ownership of particularly described more 1989 bank loan the Club Road and U S comprises building along In contests promissory 1 101 33 and a note final I 011 51 Broussard and Mr Jeansonne executed a extended to including a Lease With document entitled that of Tract B portion gravel parking area which the on months the of sum commencing on provided as was 1 200 00 per month October 1 Section 24 of the lease The lease improvements acknowledged receiving of 20 000 00 from Mr Jeansonne which to pay Purchase to were located and property north of the existing fence line document Mr Broussard and Mr James agreed Option 1989 and classified as monthly rental ending October Mr Jeansonne purchase agreement entitled for 31 prior payment a rent as In the a period of 120 1999 Option to Purchase follows As additional consideration of the inception of this lease lessor lessee forth below the right time termination of this lease to prior and grants to lump option to purchase sum rental subject to at the conditions set paid the leased premises at any subject to the following conditions The purchase price of the property shall be 85 000 00 Lessee will be given a credit against said purchase price for the 20 000 00 lump sum rental payment and a credit against the purchase price for a portion of the rental payments made pursuant to this lease prior to the time the option is exercised which said credit will be equal to the amount of each rental payment which would be attributable to a reduction in principle of the 65 000 00 loan at First National Bank of Denham Springs which loan is secured by a a collateral mortgage b fails This to pay any the due date due on the leased propeliy option to purchase shall cease in the rentals due under this lease within by the ten event lessee 10 days of tenth day of each month and the current rental at the time lessee exercises this option must not be delinquent Lessee may exercise this option by giving written notice of lessee s intent to exercise the option to lessor which notice may be given at any time during the term of this lease prior to 45 days before The notice shall be addressed to the expiration of the lease term lessor according the provisions of Section 12 hereinabove with a c copy to lessor To facilitate withdrawn from Mr James a s attorney at law payment of the mortgage savings account maintained The record reflects that initially 1 200 00 check to Mr Broussard who would 3 note at automatic payments the bank Mr by were Mr Broussard and Jeansonne would deliver deposit the money into the a savings However account monthly 1997 occasions Mr into the Mr Jeansonne Jeansonne a 25 plaintiffs letter On company demanding payment filed 8 July eviction an 1997 to 1 200 23 Mr Jeansonne the mortgage Jeansonne note paid Mr Unable property on On of the May two 1 1997 prevent Mr Jeansonne of this Broussard 7 April 1998 14 litigation it on was Mr one balance of two account to James sent Mr On June Jeansonne and his half interest in Tract B sale a 25 000 00 roughly price in reality on Mr 1 00 for the transfer plaintiffs filed a be seized and sold at revealed that the property and a liens tax ownership to petition 1998 the trial court entered subject property Mr on eviction from the property s evict Mr Jeansonne because of his to had been levied a savings past due installments proceeding against there still existed drafted from the lease payments monthly and the sale document sets forth January On propeliy that the Although was October 10 1999 on Mr Broussard and his wife transferred their undivided to Bank records reveal account money had accumulated in the monthly mortgage payments 1997 savings missed his began depositing the Jeansonne month until the last payment Apparently enough the cover directly point inception of the mortgage payments account every In later some rental payments that from the savings at a judicially partition the default judgment ordering Sheriffs sale against interest in the During Mr Jeansonne plaintiffs abandoned their effort the course s business to have the property sold On amount July of 19 414 78 James and Mr 1999 Mr Jeansonne issued check to Mr noting thereon that full payment of the Broussard had been made reflect that payments of 1 23 200 were September and October of 1999 resulting On a November 1 2000 Mr in amount owed to Mr Bank records of the mortgage made a zero Jeansonne 4 Broussard in the for the months of balance on executed note August the loan a document styled Dentro of Purchase to Agreement also refened Therein Mr Dentro 55 000 00 and to pay agreed to as Lease Purchase a in favor of Mr purchase the subject property for the to 500 00 per month for 12 years or until sum payoff of the loan balance On March 11 judgment 2003 the grounds that service of process on James and his wife filed On 1 July default 2003 judgment the trial in the and writs appeal on and by Mr rendered court were denied by the 2003 2723 that he option to pending reconventional demand acquired full ownership required order a La purchase agreement of the At confected trial so to transfer the Mr James only a a 50 share of the rental the April 14 property 1st Cir rendered James 10 29 04 on in the trial court against Mr v Denham unpublished the On nullity claim the May 24 2005 Mr James and his wife asserting to with performed all of the obligations acquire ownership and asked that the court him acknowledged portion Court 896 So 2d 1039 He avened that he that Mr Broussard could James insisted that claiming subject property by virtue of the lease of him under that document to plaintiffs App judgment had been reconventional demand remained Jeansonne filed a the default In that lawsuit Mr judgment nullifying Supreme writ denied 2005 0146 La 3 24 05 final deficient nullify partition litigation That ruling was affirmed by this opinion a was to Jeansonne Rent All Although petition reconventional demand a Springs Inc a subject property and seeking derived from the property revenues comi an answer in the ownership interest 1998 Jeansonne filed Mr that help Mr the purchase agreement Jeansonne obtain the business was Mr of Tract B had been leased to Mr Jeansonne noting that the lease purchase agreement encompassed only property north of fence line Mr James testified that Tract B contained additional the fence line on which he intended to build 5 an office a property south of James testified that Mr Mr Jeansonne did not make all 120 required by the lease purchase agreement stressing that Mr payments and that no payments 1999 were the date the last payment made between was due On July cross James claimed he did not know Mr Jeansonne had the property in July of 1999 Jeansonne had been late payments and paid was forced Jeansonne failed evidence an to do insurance so ownership to He but had two on the property on was everyone property James acknowledged that Mr the last but against insurance on of the late payments admitted that at short period Mr that once not own Mr the Jeansonne had been late for Mr Jeansonne a acquired purchase agreement payments on the property and was provide the note he of the owner written notice to Mr Mr Dentro Mr Jeansonne stated that Mr the property acknowledged that he point understanding purchase agreement and complaining one Mr purchase the property to his claim provide few payments after payment and paying off the mortgage admitted that he did his intent to respect Dentro failed to a making Mr Jeansonne With s paid late fees believing that terms of the lease evidencing occasion one the property Mr Jeansonne would Mr Jeansonne attested that he did make 120 fulfilled the appeared that while on Mr James stated that he on the property under the terms of the lease believed that upon note in violation of the lease agreement and introduced into paid off the mortgage or Mr policy he purchased land and the business payment 1999 and October 31 paid off the mortgage 240 00 in late fees to Mr Broussard Mr Broussard testified that it Jeansonne 19 few payments Mr Jeansonne had later made the obtain insurance to as Jeansonne missed two examination however He also admitted that it on a payments or in the lease at one never time and had been late for sent Mr Dentro the absence of insurance one of time 6 of his insurance Mr a letter Dentro policies lapsed for a Following the lease purchase conclusion of the evidence transaction executed Jeansonne had been Mr by the trial James as of that date Mr Jeansonne had Section 24 of the lease regarding judgment declaring that the lease terms and that Mr Jeansonne had Additionally the against Mr Dentro Mr the and no not option to so benefit The purchase purchase expired court s The court provisions of court entered under their further rights under the option doing the and Mr October 31 on with the trial court dismissed Mr Jeansonne In s by the latest complied to option observed that the Broussard put together largely for Mr Jeansonne believed however that the lease agreement ended 1999 and court to own purchase third party demand observed that there simply was no evidence from which he could determine whether if there had been late payments such had not been cured Dentro in default of the The court also found insufficient evidence to fmd Mr agreement on the claim that he breached the insurance portion thereof This appeal taken by Mr Jeansonne followed DISCUSSION In his first loan balance on assignment of enor the of the under the expired subject property own to purchase could not indicating that the purpose acquiring the property because he could Mr Jeansonne also relies parties understood owner should have found that he is the sole as a support of his argument Mr Jeansonne relies J ames and Mr Broussard him in court He submits that because he satisfied his agreement the option In by paying off the property he satisfied all of the requirements of the purchase agreement and therefore the trial owner Mr Jeansonne insists that once on Mr Broussard the mortgage was of the land and business 7 s on obtain the testimony paid off matter of to law have testimony of the agreement not obligations was of Mr to financing assist on his the effect that the Mr Jeansonne would be the Although the lease purchase agreement contains Had the agreement act of sale v title to Mr Jeansonne would be as a bond for deed Parker 2006 1855 James 503 2d So deed contract become the 598 upon owner to App 600 La contract within of the as well as Cir 6 8 07 forth sets 45 party gives one acceptance of an La a lease days prior as C C to requirements a an to Gray bond for option 2621 to 906 So 2d 710 An accept option in option a offer to sell an must the satisfy art 2439 The is effective when received by the bound by C C is 1839 are La The term set forth in La C C National Information Services v Mr Jeansonne the purchase An as gives expiration of that right a provided as C C Cir 6 10 05 1076 Jeansonne would have Mr the 2620 art Upon such acceptance the parties App 1st Bergeron Pursuant to and term the other to offer contained in Casey 1987 option an grantor art 964 So 2d 1075 sum for perfection of the contract of sale the formal an property stipulated time requirements st App 4th Cir properly characterized whereby a 1 payment of the stipulated purchase the property agreement is sum passed the agreement could See La R S 9 2941 H J contract La Instead the agreement option stipulated no provided that after all of the installments had been received conveying be characterized v purchase price there is therein for the transfer of title upon the payment of the provision Inc a a art contract to sell Inc 2004 0207 La La 719 writ denied 2005 2210 La 3 24 06 925 So 2d 1235 is well settled that It evidenced by evidenced in a written writing termination of the Lindsay Group 227 La Inc an option 94 1098 buy immovable must property agreement the unqualified acceptance thereof and it must be tendered 79 La 2d So to the proposer 879 885 1954 App 4th Cir 11 17 8 94 Torco Oil Co prior 647 So 2d 1159 v be must be to Louisiana State Board of Education option period 553 to the v Grif Dun 1162 1163 It is undisputed that exercise the option Therefore to exercise lease own option his to Jeansonne purchase we did option to purchase Accordingly the court written notice of his intent the property within the time limit option the to and Mr Jeansonne had tenns not gIve conclude that the trial the lease and term in the Mr court specified to in the correctly found that by failing property 45 days before the expiration of the purchase contained therein expired no further rights under the option correctly determined that plaintiffs have a to 50 under its purchase ownership property In the second erred in Dentro not assignment of error tenninating the lease purchase agreement he entered into with We agree with the trial court insufficient Mr Jeansonne contends that the court s conclusion that the evidence to find Mr Dentro in default of the merit in this agreement Therefore Mr simply is we find no of error assignment CONCLUSION F or the costs of this foregoing appeal are reasons assessed the to judgment of the trial comi is affirmed appellants Denham Springs Robert Jeansonne AFFIRMED 9 Rent All Inc All and

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