Meadowcrest Center v. TENET HEALTH SYSTEM
| Decision Date | 26 April 2005 |
| Docket Number | No. 05-CA-12.,05-CA-12. |
| Citation | 902 So.2d 512 |
| Parties | The MEADOWCREST CENTER v. TENET HEALTH SYSTEM HOSPITALS, INC. (Formerly Known as NME Hospitals, Inc.) |
| Court | Court of Appeal of Louisiana — District of US |
Wanda L. Theriot, Byron Ann Cook, Brian T. Leftwich, New Orleans, Louisiana, for Plaintiff/Appellant.
Daniel A. Ranson, David D. Kervin, Jr., Gretna, LA, for Defendant/Appellee.
Panel composed of Judges EDWARD A. DUFRESNE, JR., SUSAN M. CHEHARDY, and CLARENCE E. McMANUS.
This is an appeal by The Meadowcrest Center, plaintiff-appellant, from a summary judgment dismissing its suit to terminate a negative predial servitude in favor of Tenet Health System Hospitals, Inc., defendant-appellee. For the following reasons we affirm that judgment.
The undisputed facts are as follows. Some years ago Tenet (then operating as NME Hospitals, Inc.) acquired a tract of land on Belle Chasse Highway in Jefferson Parish and built a hospital. In 1984 it sold some of the unused portion of the tract to Meadowcrest Center. The act of sale contained a clause which prohibited Meadowcrest or its successors or assigns from using the property as "an outpatient surgical center or a diagnostic center or any similar facility" without the written permission of Tenet or its successors or assigns. Meadowcrest built a multi-tenant office building on the site.
In 1988, Meadowcrest leased a part of the office building to Advanced Diagnostic/MRI Limited Partnership for operation of a MRI clinic. During negotiations for this lease Advanced Diagnostic realized that it required access via Tenet's remaining property at the rear of the premises for ambulances and other patient needs. By written agreement Tenet consented to this use. Three years later Tenet bought all of the assets of Advanced Diagnostic, including its lease. Then, in 1994, Tenet and Meadowcrest entered into an amended written lease for the same premises replacing Advanced Diagnostic with Tenet as the tenant.
Besides the sale of land to Meadowcrest, Tenet (also then known as NME Hospitals) sold two other parts of the tract. One sale in 1993 was to the Belle Chasse Clinic and contained no restrictions as to use. A second sale in 1986 was to George J. Ackel. Although this sale contained a restricted use clause, its language was not the same as that used in the sale to Meadowcrest.
In 2004, Meadowcrest filed the present suit for declaratory relief to have the servitude set aside and advanced four arguments. First, it asserted that the pertinent clause in the act of sale was actually a building restriction imposed on the entire tract originally purchased by Tenet in pursuance of a general plan of development as per La. Civ.Code. Art. 775. It argued that Tenet had either abandoned the plan or that enforcement of the restriction was prescribed by two years since the occurrence of obvious violations. Second, it contended that even were the restrictions construed as a negative servitude as per La. Civ.Code Art. 706 that servitude was lost by the ten year prescription. Third, it argued that La. R.S. 23:921, dealing with non-competition agreements, should be applied to void the restrictions because of the unequal bargaining power between Tenet and Meadowcrest. Finally, it contended that because of the restrictions the property has been effectively taken out of commerce in violation of public policy.
Tenet urged a motion for summary judgment in its favor, and the trial judge granted this motion. Meadowcrest now appeals urging the same four grounds for relief advanced in the trial court. It also asserts here that there are facts in dispute which should have precluded the granting of a summary judgment.
Summary judgments shall be granted when the papers before the court show that there is no dispute as to material facts, and that the movant is entitled to judgment as a matter of law. La.Code Civ. Pro. Art. 966. Although the burden of proof on the motion is with the movant, if the opposing party will bear the burden of proof at trial it is sufficient for the movant to point out that there is a lack of factual support for one or more essential elements of the opponents claim. If the opponent fails to come forward with such factual support, then summary judgment is appropriate. Id.
The first issue here concerns the nature of the restrictive clause in the act of sale. Meadowcrest claims that it is a building restriction imposed by Tenet on the entire tract as provided in La. Civ. Code Art. 775. That article requires that...
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