Appealed from the Nineteenth Judicial District Court. In and for the Parish of East Baton Rouge, State of Louisiana. Suit Number C620107. Honorable William A. Morvant, Presiding.
Larry S. Bankston, Jenna H. Linn, Baton Rouge, LA, Counsel for Plaintiff/Appellant, KAS Properties, LLC.
Carlos Romanach, Susan Louise Dunham, Sean T. Porter, Baton Rouge, LA, Counsel for Defendant/Appellee, State of Louisiana, Division of Administration.
Tamara D. Simien, Baton Rouge, LA, Counsel for Defendant/Appellee, Louisiana Board of Supervisors for the Louisiana State University, Health Care Services Division.
BEFORE: GUIDRY, THERIOT, AND DRAKE, JJ.
[2014 0566 La.App. 1 Cir. 2]
Plaintiff, KAS Properties, LLC (KAS), appeals from a judgment of the district court, upholding the termination of a lease by the defendants, Louisiana Board of Supervisors for the Louisiana State University, Health Care Services Division (the Board) and Louisiana Division of Administration (DOA), and dismissing its claims against the Board with prejudice. For the reasons that follow, we convert this appeal to an application for supervisory writ and deny the relief requested.
FACTS AND PROCEDURAL HISTORY
KAS and the Board executed a lease agreement approved by the DOA on July 30, 2008, for cold storage warehouse and office space for the operations of the University Medical Center in Lafayette, Louisiana. The lease agreement was subsequently amended to provide a lease term beginning March 31, 2009 through February 28, 2014, in consideration of payment of $532,000.20, to be made payable in sixty equal installments of $8,866.67.
Thereafter, on October 8, 2012, the Board forwarded a letter to KAS, notifying KAS that the Board was exercising its right to cancel the lease due to the fact that public funding for the Louisiana State University, Health Care Services Division (LSU-HCSD) had been drastically reduced
and the funding was no longer adequate to meet the obligations of the lease. The letter further stated that the lease shall be terminated effective sixty days from KAS's receipt of the notice.
After receiving the Board's letter, KAS requested payment of the balance due on the lease. The Board responded to KAS's request by directing KAS to paragraph twenty-two of the lease, the fiscal funding provision, which stipulates that the lease may be terminated with sixty-days written notice to the lessor when funding by the legislature is not sufficient to meet the requirements of the lease. [2014 0566 La.App. 1 Cir. 3] Because the required written notice was ...