Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

K&B Louisiana Corp. v. Caffery Saloom Retail LLC

United States District Court, W.D. Louisiana, Lafayette Division

May 18, 2018

K&B LOUISIANA CORPORATION
v.
CAFFERY-SALOOM RETAIL, LLC, ET AL.

          MEMORANDUM RULING

          CAROL B. WHITEHURST UNITED STATES MAGISTRATE JUDGE.

         Before the Court are the following motions: (1) Motion For Summary Judgment filed by defendant, Caffery-Saloom Retail, LLC (“Caffery-Saloom”) [Rec. Doc. 57];[1] Motion for Summary Judgment filed by defendant American National Insurance Company (“ANICO”) [Rec. Doc. 54];[2] Motion for Summary Judgment, or alternatively, for Partial Summary Judgment filed by plaintiff, K&B Louisiana Corporation d/b/a Rite Aid [Rec. Doc. 60];[3] and ANICOS's Rule 37(c) Motion for Order Compelling Opposing Party to Pay Attorney's Fees and Expenses [Rec. Doc. 55].[4] For the following reasons, the motions for summary judgment filed by Caffery- Saloom and ANICO [Rec. Docs. 54 & 57] are GRANTED and the claims asserted by K&B against Caffery-Saloom and ANICO are DENIED AND DISMISSED WITH PREJUDICE. Because K&B's claims are dismissed, K&B's motion for summary judgment [Rec. Doc. 60] is DENIED AS MOOT. ANICO's motion for attorneys' fees [Rec. Doc. 55] is DENIED for the reasons stated herein.

         Factual Background and Procedural History

         The instant dispute arises out of an alleged co-tenancy violation contained in a lease agreement between K&B and Caffery Center, entered into on January 23, 1995. The following facts are undisputed:

• On January 23, 1995, K&B entered into a written lease with Caffery Center, LLC for drug store space in the Caffery Center Shopping Center (“Shopping Center”) located at 4510 Ambassador Caffery Parkway, Lafayette, Louisiana.
• The lease contains the following provisions:
Article 2
Conditions Precedent and Continuing
B. Lessor [Caffery Center] represents to Lessee [K&B] that Lessor has entered into a lease with the following named concern: with Winn-Dixie Louisiana, Inc. (Winn-Dixie) for a minimum of 50, 000 square feet for a supermarket grocery store . . . The lease to Winn-Dixie being for a minimum of 20 years . ... The continued operation, lease and payment of rent for its store in the Shopping Center by Winn-Dixie is part of the consideration to induce Lessee to lease and pay rent for its store, as hereinafter described, on the Leased premises as a part of the Shopping Center. Accordingly, should Winn-Dixie fail or cease to operate or lease and pay rent for its store in the Shopping Center during the Lease Term as hereinafter set out, Lessee shall have the right and privilege of (a) cancelling [sic] this Lease and terminating all of its obligations hereunder at any time thereafter upon written notice by Lessee to Lessor, and such cancellation and termination shall be effective ninety (90) days after the mailing of such written notice; or (b) invoking the privileges of Article 20 herein. In the event Lessee exercises Lessee's privilege of cancelling this Lease and terminating all its obligations hereunder, Lessee shall vacate the premises and return same to Lessor within one hundred and eighty (180) days of the mailing of such written notice. The above notwithstanding, in the event Winn-Dixie should fail or cease to operate or lease and pay rent for its store in the Shopping Center, Lessor shall have a period of six (6) months to replace Winn-Dixie with a comparable supermarket grocery store of comparable size, net worth, and reputation prior to Lessee invoking its rights and privileges as above. It is specifically understood that Lessor shall be obligated to immediately notify Lessee in writing should Winn-Dixie fail or cease to operate or to lease and pay rent for such a store in the Shopping Center during the primary term of this Lease, but any failure of Lessor to notify Lessee thereof shall in no way deprive Lessee of its privilege of cancelling this Lease and termination all of its obligations hereunder, or invoking the privileges of Article 20 herein.[5]
[ . . . ]
Article 20
Default
B. In the event of default at any time during the Lease Term, in any of the representations, warranties, covenants or agreements herein undertaken by Lessor, Lessee may enforce the performance of this Lease by any mode provided by law and/or may terminate Lessee's obligations hereunder, at its option, if such default continues for a period of thirty (30) days after Lessor has received notice of such default. . . . Without in any way waiving, limiting, or restricting Lessee's other remedies or options contained in this Lease, in the event of a violation of or the failure to Lessor or anyone else to observe the terms hereof, the monthly basic rental set forth in Article 6(A) 1 hereof and the percent of additional rental set forth in Article 6(A) 2 hereof, shall be payable at half of the stipulated amounts therein stated for the period from the date of such default until Lessor cures any such violation or failure to observe the said provisions, which reduction shall be considered as liquidated damages for the periods during which any such violation may have existed. . . .[6]
• K&B opened its pharmacy in the Shopping Center for business in July of 1996. The terms of the Lease state that the Lease Term began 30 days after K&B opened its store for business - so approximately August 1, 1996 -- and lasted for a period of 20 years, until approximately August 1, 2016.
• The Lease provided for a twenty-year lease term with six consecutive five-year renewal options.
• Dean Babin was the manager of the K&B store from the time of its opening until May 2006.
• At some time during the lease term between K&B and Caffery Center, Winn-Dixie also occupied rental space in the Shopping Center. However, Winn-Dixie closed and ceased operations during the lease term between K&B and Caffery Center.[7]
• Gregory Reggie, manager of Caffery Center, LLC, attests that he sent a memo to tenants, including K&B, on November 22, 2000, confirming that Winn-Dixie had closed.
• On February 21, 2005, Winn-Dixie filed for Chapter 11 bankruptcy protection, and on February 23, 2005, the bankruptcy court authorized Winn-Dixie to reject 148 store leases, including Winn-Dixie's lease with Caffery Center, LLC. Winn Dixie stopped paying rent for its store in the Shopping Center in February 2005.
• On September 13, 2005, K&B approved the leasing of the vacant Winn-Dixie to Women's and Childrens' Hospital, Inc.
• In 2009, ANICO, which was Caffery Center's lender, commenced foreclosure proceedings against Caffery Center, the original owner and lessor of the Shopping Center.
• In April 2012, ANICO acquired full title to the Shopping Center and assumed the Lease with K&B Louisiana.
• At some point in 2013, K&B, now doing business in Louisiana as “Rite Aid, ” conducted a “Co-Tenancy Violations Review Project” and determined that the K&B store in Caffery Center violated the co-tenancy provisions of the lease between K&B and ...

Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.