Executive Office Ctrs., Inc. v. Federal Dep. Ins. Corp.

• Decision Date: 08 November 1977
• Docket Number: Civ. A. No. 77-2428.
• Citation: 439 F. Supp. 828
• Parties: EXECUTIVE OFFICE CENTERS, INC. v. FEDERAL DEPOSIT INSURANCE CORP. et al.
• Court: U.S. District Court — Eastern District of Louisiana

439 F. Supp. 828

EXECUTIVE OFFICE CENTERS, INC. v. FEDERAL DEPOSIT INSURANCE CORP. et al.

Civ. A. No. 77-2428.

United States District Court, E. D. Louisiana.

November 8, 1977.

Mmahat, Gagliano, Duffy & Giordano, New Orleans, La., Jerry Album, Metairie, for plaintiff.

Lemle, Kelleher, Kohlmeyer & Matthews, New Orleans, La., Earl S. Eichin, Jr., New Orleans, La., for defendants Federal Deposit Ins. Corp., Receiver of Republic National Bank of Louisiana, and First City Bank.

Jefferson, Bryan & Gray, New Orleans, La., Trevor G. Bryan, New Orleans, La., for defendant Republic Nat. Bank of Louisiana.

CHARLES SCHWARTZ, District Judge.

This is a suit by plaintiff lessor for accelerated rent allegedly due by reason of the insolvency of its lessee, the Republic National Bank of Louisiana. Defendants are the Federal Deposit Insurance Corporation, receiver for the insolvent bank; the Republic Bank; and the First City Bank which purchased certain of the assets and liabilities of Republic from the receiver. The matter is presently before the Court on the motions of defendants F.D.I.C. and First City Bank for summary judgment and/or to dismiss. Following oral argument of these matters the same were taken under submission for further consideration by the Court.

Now, after careful consideration of the record in this matter, the memoranda and oral arguments of counsel, and the law, it is the opinion of the Court that the motions of the Federal Deposit Insurance Company and the First City Bank for summary judgment should be and the same are hereby GRANTED.

The lease entered into between the plaintiff and Republic Bank provides in pertinent part at paragraph 12:

"12. Should the Lessee at any time violate any of the conditions, terms, rules, regulations, restrictions or obligations of this lease and/or discontinue the use of premises for the purpose for which they were rented, or fail to pay the rent, utilities bill, or other expenses punctually, at maturity, as stipulated, or upon the adjudication of Lessee in bankruptcy, receivership or respite petition by the Lessee; or upon Lessee's suspension; failure or insolvency; the rent for the whole unexpired term of this lease shall at once become due and exigible without putting said Lessee in default. And the Lessor shall have the right, without notice to the Lessee, and without in any way being deemed guilty of trespassing, and without, in any manner, being held accountable to the Lessee, to forthwith take possession of the leased premises and to prevent the use of the same by the Lessee or any person claiming under him, without resorting to legal proceeding or judicial process and without any interference whatsoever on the part of the Lessee or other persons acting for or claiming under Lessee; the Lessee hereby accepting thereto and expressly waiving the legal notice to vacate the premises, or at Lessor's option, it may prevent such violations from continuing by obtaining injunctive relief in any Court of competent jurisdiction.

Prior to Lessor asserting his rights Lessee shall have five (5) days from the date of notice by Lessor to cure any default with respect to the payments of money and thirty (30) days to cure any other default of Lessee under the terms of this lease, provided however, if said default, other than the payment of rent due hereunder, is, by its nature, not curable within the said 30 days, and Lessee begins to cure said default within the 30 days provided for above and proceed diligently to cure said default, then Lessee shall have an additional 30 days to cure said default."

It is the position of p...