185 So. 3d 112
La. Ct. App.2016Background
- KM leased commercial Unit A to Weil Cleaners on a 5-year lease (renewable) with rent due 1st of month, late after 10th with $25 + $10/day late fees.
- Weil experienced longstanding water intrusion in the suite; an awning previously installed to mitigate it had been removed years earlier and was discussed but not replaced.
- In 2014 Weil paid rent late multiple months (KM accepted late payments ~6–8 months); Weil withheld rent in July/August to pressure KM to fix the awning and later mailed payment(s).
- KM posted a 5-day notice to vacate on August 22, 2014, then filed for eviction; Weil asserted defenses and ultimately contested jurisdiction but proceeded to trial (Sept. 2014).
- Trial court found KM’s repeated acceptance of late rent constituted waiver of strict enforcement and applied judicial control to deny lease cancellation; the court dismissed KM’s eviction rule.
- KM appealed; the appellate court affirmed, finding waiver from KM’s conduct and that judicial control made eviction inequitable given circumstances and Weil’s subsequent cure.
Issues
| Issue | Plaintiff's Argument (KM) | Defendant's Argument (Weil) | Held |
|---|---|---|---|
| Whether KM’s prior acceptance of late rent waived its right to evict for future late payments | Lease language reserved KM’s right to strictly enforce; prior indulgences do not waive contractual rights | KM’s customary acceptance of late payments altered expectations; Weil relied on that practice | Held: KM waived strict enforcement by accepting late payments without advance unequivocal notice; eviction denied |
| Whether judicial control prevents lease dissolution for nonpayment | Contract permits cancellation for nonpayment; KM entitled to relief under lease | Court should exercise equitable discretion (judicial control) because lessee’s breach was not severe and was linked to landlord’s breach | Held: Judicial control appropriate; termination denied despite default |
| Whether Weil’s withholding of rent was justified by landlord’s failure to repair | KM contends nonpayment is breach regardless of repair disputes; remedies exist under code but do not justify withholding | Weil claims reciprocal obligations under La. C.C. art. 1993 and relied on landlord’s admitted failure to maintain premises | Held: Court accepted that landlord’s conduct and the bilateral obligations support denying eviction; concurrence emphasized art. 1993 applicability |
| Whether KM’s lease clause disclaiming waiver controls despite conduct | KM argues express anti-waiver clause preserves rights without written waiver | Weil argues conduct (accepting late rent) can modify expectations despite clause; equitable doctrines apply | Held: Court gave effect to conduct over clause here—KM’s acceptance of late payments led to waiver for enforcement purposes |
Key Cases Cited
- Rosell v. ESCO, 549 So.2d 840 (La. 1989) (standard for appellate review of factual findings)
- Mart v. Hill, 505 So.2d 1120 (La. 1987) (manifest error / clearly wrong standard)
- Stobart v. State through Dept. of Transp. and Dev., 617 So.2d 880 (La. 1993) (deference to factfinder; reasonableness of conclusions)
- New Hope Gardens, Ltd. v. Lattin, 530 So.2d 1207 (La. App. 2d Cir. 1988) (lessee must use codal remedies; retention of possession without pursuing remedies unjustified)
- Versailles Arms Apartments v. Pete, 545 So.2d 1193 (La. App. 4th Cir. 1989) (landlord’s habitual acceptance of late rent can waive strict enforcement)
- Housing Auth. of the Town of Lake Providence v. Allen, 486 So.2d 1064 (La. App. 2d Cir. 1986) (same: custom of accepting late rent alters contractual punctuality)
- Edwards v. Standard Oil Co. of La., 144 So. 430 (La. 1932) (lease dissolution subject to judicial control)
- Carriere v. Bank of La., 702 So.2d 648 (La. 1996) (judicial control doctrine and discretion to deny dissolution)
- Ergon, Inc. v. Allen, 593 So.2d 438 (La. App. 2d Cir. 1992) (judicial control can bar cancellation despite contractual rights)
- Martin Timber Co., Inc. v. Pegues, 715 So.2d 728 (La. App. 2d Cir. 1998) (applying judicial control in lease cancellation disputes)
- Shreveport Neon Signs, Inc. v. Williams, 5 So.3d 977 (La. App. 2d Cir. 2009) (lessee’s untimely payment does not automatically require termination)