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Latter & Blum v. Grand Properties, Ltd.

Citations: 617 So. 2d 80; 1993 La. App. LEXIS 1353; 1993 WL 90980Docket: No. 92-CA-1686

Court: Louisiana Court of Appeal; March 29, 1993; Louisiana; State Appellate Court

Narrative Opinion Summary

In this case, the appellate court reviewed a judgment awarding Latter. Blum, Inc. commissions from Grand Properties, Ltd. under a Rental Agency Agreement. The agreement mandated commission payments on leases executed during its term. Latter. Blum claimed unpaid commissions for three leases, totaling $18,675.81, which Grand Properties disputed, arguing for a setoff based on alleged overpayments and asserting commissions were only due upon receipt of rental payments. The trial court ruled in favor of Latter. Blum, but did not provide written reasons for its judgment, as required by the Code of Civil Procedure. On appeal, the court found that the lack of written findings did not void the judgment, as the case was based on documentary evidence. Moreover, Grand Properties' setoff claims were procedurally barred since they were not raised in its answer. The appellate court affirmed the trial court's judgment, emphasizing that the commission obligations persisted beyond the expiration of the Listing Agreement due to valid lease extensions and signed agreements. Costs were assigned to Grand Properties. The court's decision illustrates the enforceability of contractual commission terms and procedural requirements in appellate proceedings.

Legal Issues Addressed

Contractual Commission Obligations

Application: The court upheld the contractual obligation for Grand Properties to pay commissions to Latter. Blum for leases executed during the agreement term, regardless of actual rental income received.

Reasoning: Under the agreement, Grand Properties was to pay Latter. Blum a commission based on rentals from leases executed during the agreement's term.

Effect of Documentary Evidence on Appeal

Application: The reliance on documentary evidence allowed for an independent evaluation of the case on appeal without the manifest error standard, supporting the trial court's judgment.

Reasoning: The trial court's failure to adhere to C.C.P. article 1917 does not render its judgment void, as the case relies on documentary evidence rather than witness credibility, allowing for an independent evaluation without the manifest error standard.

Procedural Bar of Setoff Claims

Application: Grand Properties' setoff claims were procedurally barred because they were not raised in its answer, precluding their consideration in the appeal.

Reasoning: Arguments regarding setoff claims by Grand Properties for commissions paid to Latter. Blum on early lease terminations are procedurally barred, as these defenses were not raised in its answer.

Requirement for Written Findings of Fact

Application: The appellate court noted the trial court's failure to provide written findings of fact or reasons for judgment, as required by the Code of Civil Procedure, but found this non-compliance did not void the judgment.

Reasoning: The appellate court noted that such written findings are mandatory as per the Code of Civil Procedure and that the proper remedy for non-compliance is for the aggrieved party to seek supervisory writs or a motion to remand.

Validity of Commission Claims Post-Expiration of Agreement

Application: The court found the commission claims valid despite the expiration of the Listing Agreement, as lease extensions were valid and supported ongoing commission obligations.

Reasoning: Grand Properties' claim that the prepaid commission on the Metropolitan lease is invalid due to the expiration of the Listing Agreement is dismissed, as the agreement's extensions were valid and commissions were regularly paid post-expiration.