SRG Baton Rouge II, L.L.C v. Patten/Jenkins BR Popeye's, L.L.C. ( 2024 )


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  •                              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 App. 1 Cir.--/--/--) ( unpublished opinion) (" SRG I").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.
    4
    Patten/Jenkins moved for a continuance, arguing that discovery needed to be
    completed before it could adequately respond to SRG's motion.                   The matter was
    argued before the trial court on September 30, 2019, at which time the trial granted
    the motion, continuing the hearing on SRG's motion for partial summary judgment
    until further orders of the court. In granting the continuance, the trial court noted
    as follows:
    Patten/Jenkins'] motion for continuance is granted.              Court is of the
    opinion that [ SRG's]        motion for summary judgment is, in fact,
    premature as there ...         has not been sufficient time to              conduct
    discovery.
    There are questions of genuine issue of material fact to the
    appraisal,   the     bad   faith,   and   the    lease   assignment . . .     which
    Patten/Jenkins] needs time to discover what it means to be able to
    oppose any motion for summary judgment.
    The trial court signed a judgment on October 12, 2019, granting the continuance.
    On September 26, 2019, even before the hearing on Patten/Jenkins motion to
    continue the hearing on SRG's motion for partial summary judgment, SRG filed a
    Motion For Protective Order And To Quash Subpoena Duces Tecum," requesting
    a protective order prohibiting Patten/Jenkins' request for production of documents
    numbers 1-6 and 8 and prohibiting the depositions of Mr. Shelton; Mr. Cook; Pam
    Racheal; Patty Broom; and the La. Code Civ. P. art. 1442 deposition of Compass
    Bank.     SRG argued the discovery was not reasonably calculated to lead to
    admissible evidence and would only serve to harass SRG and further delay the
    purchase process.
    Patten/Jenkins opposed this motion, arguing that the information sought in
    the discovery was wholly relevant to the dispute as SRG seeks to purchase the
    property for the " fair market value"             as    set forth   in Mr. Cook's appraisal.
    Patten/Jenkins alleged that the " discovery sought seeks to determine if any
    improper      actions   or    information    were       provided"   regarding       the   appraisal.
    5
    Following a hearing on the motion, the trial court signed a judgment on November
    30, 2019, granting the relief sought by SRG regarding the discovery.
    Patten/ Jenkins    opposed      SRG's   motion    for   partial   summary judgment,
    arguing that genuine issues of fact remained that precluded summary judgment in
    favor of SRG.       Initially, Patten/Jenkins alleged that a finding of bad faith was
    required in order to find that Patten/Jenkins purposefully delayed appointing an
    appraiser and delayed closing in this case, noting that the subjective finding of bad
    faith can only be made by the trier of fact after hearing testimony and weighing
    evidence.     Patten/Jenkins further asserted there are unresolved issues of fact
    bearing on the propriety of the appraisal issued on the property.                       Finally,
    Patten/ Jenkins maintained that SRG's rights under the lease itself, including the
    right to exercise the option to purchase the property, remain contested and " must
    be addressed as a condition precedent to the [ trial court's] consideration of SRG's
    substantive claims against Patten/Jenkins on summary judgment or otherwise."
    After hearing arguments on the partial motion for summary judgment, the
    trial court granted partial summary judgment in favor of SRG.                  The trial court
    ordered Patten/Jenkins to take the necessary steps to perfect the sale of the property
    5
    in accordance with the clear and explicit terms of the option to purchase.
    Patten/Jenkins subsequently filed an exception raising the objection of no
    right of action and motion to vacate the partial summary judgment, arguing that
    SRG had not shown with adequate documentary evidence that it was a party to the
    contract it sought to enforce.        Patten/Jenkins maintained that without contractual
    privity to the lease in question, SRG had no standing or right to assert claims for
    5
    The original judgment granting SRG's motion for partial summary judgment was signed by the
    trial court on September 1, 2020. Patten/Jenkins' subsequent appeal of this judgment was
    dismissed based upon noted deficiencies in the judgment.    However, in dismissing the appeal,
    this court recognized Patten/Jenkins' right to " seek appellate review once a judgment correcting
    the foregoing deficiencies has been obtained or once a final judgment has been entered."     See
    SRG Baton Rouge II, L.L.C. v. Patten/ Jenkins BR Popeye' s, L.L.C., 2021-0081 ( La. App. 1
    Cir. 4/26/21) (unpublished action).
    6
    breach of contract.      The trial court denied the exception.       Thereafter, SRG filed a
    motion in limine, seeking to exclude the testimony of Patten/Jenkins' untimely
    named expert witness, which was granted by the trial court.
    The matter proceeded to a one-day bench trial, at the conclusion of which
    the trial court asked the parties to submit written reasons of fact and law and
    proposed judgments for the court's review.           On November 3, 2022, the trial court
    signed SRG's proposed written reasons for judgment, which contained a finding of
    bad faith by Patten/Jenkins and a judgment awarding $ 111,472.74 in damages to
    SRG.      SRG filed a motion for new trial, seeking to align the damages awarded in
    6
    the judgment with the damages contemplated in the written reasons for judgment.
    After hearing argument on the motion for new trial, the trial court awarded an
    additional $ 136,244.45 to SRG in loss of rental income.             The trial court signed a
    judgment on December 12, 2022, awarding SRG $ 247,717.19 in damages, plus
    7
    attorney fees and costs.        This appeal by Patten/ Jenkins followed.
    SUMMARY JUDGMENT
    Summary judgment procedure is favored and " is designed to secure the just,
    speedy, and inexpensive determination of every action ... and shall be construed to
    accomplish these ends."          La. Code Civ. P. art. 966(A)(2).       In reviewing the trial
    court's decision on a motion for summary judgment, this court applies a de nova
    standard of review using the same criteria applied by the trial courts to determine
    whether summary judgment is appropriate.             Short v. RaceTrac Petroleum, Inc.,
    2022- 0859 ( La. App. 1 Cir. 2/24/23), 
    361 So.3d 1051
    , 1058, writ denied, 2023-
    00535 ( La. 6/7/23), 
    361 So.3d 973
    .
    6
    The written reasons for judgment included $ 417,459.30 in damages, representing $111,472.74
    in rent paid by SRG to Patten/Jenkins and $ 305,986.56 in loss ofrental income.
    7
    The trial court actually signed three different judgments following the hearing on the motion
    for new trial, including the December 12, 2022 judgment. Following a hearing with the parties,
    the court determined that the December 12, 2022 judgment was the judgment ofthe court and set
    aside as void the other two judgments that had been signed on December 13, 2022, and
    December 15, 2022.
    7
    The initial burden of proof is on the mover. If the mover will not bear the
    burden of proof at trial, the mover's burden does not require him to negate all
    essential elements ofthe adverse party's claim, but only to point out to the court the
    absence of factual support for one or more of the elements necessary to the adverse
    party's claim.    Thereafter, the burden is on the adverse party to produce factual
    support sufficient to establish the existence of a genuine issue of material fact or
    that the mover is not entitled to judgment as a matter of law. La. Code Civ. P. art.
    966(D)(l). Ifthe non-moving party fails to produce sufficient factual support in its
    opposition that proves the existence of a genuine issue of material fact, Article
    966(D)(l) mandates the granting of the motion for summary judgment. See Babin
    v. Winn-Dixie Louisiana, Inc., 2000-0078 ( La. 6/30/00), 
    764 So.2d 37
    , 40 ( per
    curiam); Jenkins v. Hernandez, 2019-0874 ( La. App. 1 Cir. 6/3/20), 
    305 So.3d 365
    ,371, writ denied, 2020-00835 ( La. 10/20/20), 
    303 So.3d 315
    .
    Summary judgment is rarely appropriate for a determination based on
    subjective facts such as intent, motive, malice, knowledge, or good faith.       Chevis
    v. Rivera, 2021-0124 ( La. App. 1 Cir. 9/24/21), 
    329 So.3d 831
    , 838, writ denied,
    2021-01546 ( La. 12/21/21), 
    330 So.3d 317
    .           The court may, however, grant
    summary judgment based on an intent issue when there is no genuine issue of
    material   fact   concerning   the   pertinent intent.     Georgia-Pacific    Consumer
    Operations, LLC v. City of Baton Rouge, 2017-1553 ( La. App. 1 Cir. 7/18/18),
    
    255 So.3d 16
    ,   24,   writ denied,   2018-1397 ( La.    12/3/18),   
    257 So.3d 194
    .
    Nevertheless, the law is well settled that the trial court cannot make credibility
    determinations, evaluate testimony, or weigh conflicting evidence in making its
    decision whether to grant or deny a motion for summary judgment. Pumphrey v.
    Harris, 2012-0405 ( La. App. 1 Cir. 11/2/12), 
    111 So.3d 86
    , 91. Because it is the
    applicable substantive law that determines materiality, whether a particular fact in
    8
    dispute is material can be seen only in light ofthe substantive law applicable to the
    case. Short, 361 So.3d at 1059.
    LAW AND ANALYSIS
    The section of the lease that is in dispute m this case is Section 23
    concemmg the " Option To Purchase Premises."             The parties point to two
    conflicting provisions in Section 23 regarding the closing deadlines.     Section 23
    provides, in pertinent part, as follows:
    23. Option To Purchase Premises. Lessee shall have the option
    during the 90 days immediately preceding the tenth and twentieth
    anniversaries of this Lease and during the 90-day period immediately
    preceding the end of the first and second optional extension terms set
    forth in Section 28 of this Lease ( as applicable, the " Window"), to
    give Lessor notice ( the " Option Notice")     of Lessee's election to
    purchase the Premises for the greater of (i) its fair market value
    which fair market value shall be determined in the manner set forth
    below) or ( ii) the Minimum, Purchase Price. The closing of such
    purchase must occur during the first 90 days ( the " Purchase
    Period") following the end of the applicable Window. Within 90
    days of Lessor's receipt of the Option Notice, Lessor shall, at Lessee's
    sole expense, retain an independent MAI appraiser to prepare an
    appraisal of the fair market value of the Premises including any
    additions or renovations thereto ....
    Upon exercise of this option, Lessor and Lessee shall open an
    escrow account with a recognized title insurance or trust company
    selected by Lessor. Such escrow shall be subject to the standard
    escrow instructions of the escrow agent, to the extent they are not
    inconsistent herewith. At or before the close of escrow, Lessor shall
    deliver to the escrow agent its special warranty deed conveying to
    Lessee all of Lessor's right, title and interest in the Premises free and
    clear of all liens and encumbrances except liens for taxes and
    assessments and easements,       covenants and restrictions of record
    which were attached to the Premises as of the date hereof, attached
    during the Lease Term through Lessee's action or inaction, as the case
    may be, have been granted by Lessor in lieu of a taking by the power
    of eminent domain or the like, have been approved by Lessee, or
    which do not materially adversely affect the use of the Premises as a
    restaurant. In the event Lessor is unable to convey title as required,
    Lessee shall have the right to accept such title as Lessor can convey or
    elect not to consummate its exercise of the option, in which case the
    option for such time period shall lapse and this Lease shall remain in
    full force and effect. Both Lessor and Lessee agree to execute a
    purchase agreement, escrow instructions and such other instruments
    as may be necessary or appropriate to consummate the sale of the
    Premises in the manner herein provided. All cost of exercise of the
    option, including, but not limited to, escrow fees, title insurance fees,
    9
    recording costs or fees, attorneys' fees ( including those of Lessor),
    appraisal fees, stamp taxes and transfer fees shall be borne by Lessee.
    Lessee shall continue to pay and perform all of its obligations
    under this Lease until the close of escrow which in no event shall
    occur after the date of the expiration of the Lease Term or the
    expiration of any extension thereof. The purchase price paid by
    Lessee in exercising this option shall be paid to Lessor or to such
    person or entity as Lessor may direct at closing in immediately
    available funds. Lessee shall not have the right to exercise this option
    or consummate the exercise thereof if at the time of exercise or
    consummation it shall be in default of any of the terms and conditions
    of this Lease or if any condition shall exist which upon the giving of
    notice or the passage of time, or both, would constitute a default by
    Lessee under this Lease.
    The failure of Lessee to consummate the purchase of the
    Premises as contemplated herein shall not release Lessee from its
    obligations under this Lease and the Lease shall remain in full force
    and effect until the expiration of the Lease Term or applicable
    extension period. The escrow shall close within the Purchase Period,
    or Lessor, at its option, may terminate Lessee's option to purchase the
    Premises during such time period. The closing date may be extended
    for a reasonable period of time to permit Lessor to cure title defects or
    to permit either party to cure any other defects or defaults provided
    each party is diligently seeking to cure such defect or default and
    Lessee continues to perform its obligation hereunder. . . . [ Emphasis
    added.]
    A lease is a synallagmatic contract by which one party, the lessor, binds
    himself to give to the other party, the lessee, the use and enjoyment of a thing for a
    term in exchange for a rent that the lessee binds himself to pay. La. Civ. Code art.
    2668. A lease contract forms the law between the parties, defining their respective
    legal rights and obligations.    Hornbeck Offshore Operators, LLC v. Cross
    Group, Inc., 2016-0174 ( La. App. 1 Cir. 10/31/16), 
    207 So.3d 1141
    , 1147, writ
    denied, 2016-2095 ( La. 1/9/17), 
    214 So.3d 872
    . In all matters not provided for in
    the Title covering leases, the contract of lease is governed by the rules of the Titles
    of "Obligations in General" and " Conventional Obligations or Contracts." La. Civ.
    Code art. 2669.
    The determination of whether a contract is clear or ambiguous is a question
    of law.   John M. Floyd & Associates, Inc. v. Ascension Credit Union, 2021-
    0560 ( La. App. 1 Cir. 12/22/21), 
    340 So.3d 259
    , 267. Interpretation of a contract
    10
    is the determination of the common intent of the parties. La. Civ. Code art. 2045.
    When the words of a contract are clear and explicit and lead to no absurd
    consequences, no further interpretation may be made in search of the parties'
    intent. La. Civ. Code art. 2046.      When a contract can be construed from the four
    comers of the instrument without looking to extrinsic evidence, the question of
    contractual interpretation is answered as a matter of law, and summary judgment is
    appropriate. McCary v. Oceaneering International, Inc., 2017-1163 ( La. App. 1
    Cir. 2/27/18), 
    243 So.3d 613
    , 616.      However, if a court determines as a matter of
    law that a contract is ambiguous, then extrinsic evidence may be used to determine
    the true intent of the parties, and determining the intent of the parties becomes, in
    part, a question of fact inappropriate for summary judgment unless there is " no
    genuine issue as to material fact."    Carter v. BRMAP, 
    591 So.2d 1184
    , 1188 ( La.
    App. 1 Cir. 1991); La. Code Civ. P. art. 966(A)(3).
    Each provision in a contract must be interpreted m light of the other
    provisions so that each is given the meaning suggested by the contract as a whole.
    La. Civ. Code art. 2050.        Louisiana Civil Code article 2053 provides that "[ a]
    doubtful provision must be interpreted in light of the nature of the contract, equity,
    usages, the conduct of the parties before and after the formation of the contract,
    and of other contracts of a like nature between the same parties." Where a doubtful
    provision cannot be otherwise resolved, that provision must be interpreted against
    the party who furnished its text. See La. Civ. Code art. 2056.
    In granting partial summary judgment in favor of SRG in this matter, the
    trial court noted as follows:
    The court is going to require that the defendant exercise the
    option and take the necessary actions and steps that [ are] needed for
    the specific performance of the particular option. I see this as a clear
    situation.   It is not as mumble-jumbled as lessor [ is] projecting.    I
    think it was quite disingenuous for the lessor to try and evict the
    lessee when he attempted to exercise the option. The particular clause
    Louisiana] Civil Code article 2046 specifically states that, " when the
    11
    words of a contract are clear and explicit and lead to no absurd
    consequences, no further interpretation may be made in search of the
    parties' intent."
    The lessee timely exercised their options within the prescribed
    period of time under the lease and lessor should be required to honor
    that.
    As the mover on the motion for summary judgment, SRG bore the initial
    burden of proof on the motion and would also bear the ultimate burden of proof of
    establishing entitlement to the declaratory relief requested in its petition.   See La.
    Code Civ. P. art. 966(D)(l). At the crux of this dispute is whether the terms of the
    lease between Patten/Jenkins and SRG are clear and explicit such that the option to
    purchase should be enforced as ordered by the trial court in the judgment below.
    Thus, as a threshold question, this court must determine whether the lease is clear
    or ambiguous.
    SRG argues that Section 23 allows the lessee to exercise the option to
    purchase during the 90 days immediately preceding the twentieth anniversary of
    the lease or March 8, 2019, which SRG notes it timely did with notice to
    Patten/Jenkins on December 13, 2018.        SRG further asserts that Section 23 of the
    lease should be interpreted to contemplate that the closing can occur after the
    expiration of the lease term as Section 23 provides that the closing " must occur
    during the first 90 days ...   following the end of the applicable Window."     In this
    case, SRG argues that because it exercised the option to purchase within 90 days
    immediately preceding the twentieth anniversary of the lease, the closing could
    occur within 90 days after the expiration ofthe lease term.
    Patten/Jenkins      alleges   that   this   argument   completely   ignores   the
    unambiguous language of Section 23 that states the closing " in no event shall occur
    after the date ofthe expiration of the Lease Term or the expiration of any extension
    thereof."   Patten/Jenkins argues that had SRG extended the lease term pursuant to
    12
    Section 28, the option to purchase could have been exercised and escrow closed
    within the time frame required by Section 23.
    Although we agree with the trial court that SRG timely exercised the option
    to purchase, this does not end our inquiry as the lease clearly provides for other
    conditions that must be satisfied before the option can be enforced.                       After a
    thorough review of the lease in question, application of the general rules of
    construction regarding the interpretation of contracts, and based on the unique facts
    of this case, we conclude that Section 23 is unclear and susceptible to differing
    interpretations as it concerns the time for close of escrow, upon which, without
    further determination of intent, reasonable persons may disagree.                       For these
    reasons, we find there are material issues of fact in dispute as to whether the parties
    intended that the closing of escrow must occur before the expiration of the lease
    8
    term and therefore, summary judgment was not appropriate.
    DECREE
    For the above and foregoing reasons, we reverse the trial court's October 23,
    2022 judgment, granting partial summary judgment in favor of SRG Baton Rouge
    II, L.L.C. 9 Moreover, we vacate the November 30, 2019 judgment, granting SRG
    Baton Rouge II, L.L.C.'s Motion for Protective Order and to Quash Subpoena
    Duces Tecum; the November 5, 2021 judgment, denying Patten/Jenkins BR
    Popeye's, L.L.C.'s Exception of No Right of Action and Motion to Vacate
    Judgment on Motion for Partial Summary Judgment; the July 13, 2022 judgment
    granting SRG Baton Rouge II, L.L.C.'s Motion in Limine; and the December 12,
    2022 judgment on the merits.          We dismiss SRG's answer to the appeal as moot.
    8
    We further find there exist genuine issues of material fact as to whether any delay by
    Patten/Jenkins prevented closing in accordance with the contract, such that the option could be
    enforced.
    9
    Because we find the trial court erred in granting summary judgment in this case, all issues
    raised by Patten/Jenkins concerning the merits judgment, as well as the other interlocutory
    judgments entered by the trial court prior to the trial on the merits, are rendered moot and require
    no further discussion.
    13
    We remand the matter for further proceedings consistent with this opinion.     We
    assess all costs associated with this appeal against appellees, SRG Baton Rouge II,
    L.L.C.
    OCTOBER 23, 2022 JUDGMENT, GRANTING PARTIAL SUMMARY
    JUDGMENT IN FAVOR OF SRG BATON ROUGE II, L.L.C. REVERSED;
    NOVEMBER 30, 2019 JUDGMENT, GRANTING SRG BATON ROUGE II,
    L.L.C.'S   MOTION      FOR     PROTECTIVE        ORDER      AND     TO    QUASH
    SUBPOENA        DUCES        TECUM     VACATED;        NOVEMBER          5,   2021
    JUDGMENT,       DENYING       PATTEN/JENKINS         BR    POPEYE' S,    L.L.C.'S
    EXCEPTION OF NO RIGHT OF ACTION AND MOTION TO VACATE
    JUDGMENT       ON    MOTION         FOR PARTIAL      SUMMARY        JUDGMENT
    VACATED;      JULY     13,   2022   JUDGMENT,      GRANTING        SRG    BATON
    ROUGE II, L.L.C.'S MOTION IN LIM/NE VACATED; DECEMBER 12,
    2022 JUDGMENT ON THE MERITS VACATED; ANSWER TO APPEAL
    DISMISSED AS MOOT; REMANDED.
    14
    

Document Info

Docket Number: 2023CA1204

Filed Date: 5/31/2024

Precedential Status: Precedential

Modified Date: 10/22/2024