Motwani v. Fun Centers, Inc.
| Decision Date | 09 September 1980 |
| Docket Number | No. 10996,10996 |
| Citation | 388 So.2d 1173 |
| Parties | Kishore V. MOTWANI v. FUN CENTERS, INC. and Playgirl Shops of America, Inc. |
| Court | Court of Appeal of Louisiana — District of US |
Henican, James & Cleveland, C. Ellis Henican, Jr., New Orleans, for plaintiffs-appellants.
Polack, Rosenberg, Rittenberg & Endom, Charles T. Curtis, Jr., and Leon H. Rittenberg, Jr., New Orleans, for defendant-appellee, Fun Centers, Inc.
Lanny R. Zatzkis, New Orleans, for Playgirl Shops of America, Inc., defendant-appellee.
Before SAMUEL, REDMANN and SARTAIN, JJ.
Plaintiffs, Kishore V. Motwani, Giani V. Gethwani, wife of/and Verhomal J. Motwani, owners of certain immovable property located at 227-233 Bourbon Street in New Orleans, filed suit to evict defendants, Fun Centers, Inc. and its sublessee, Playgirl Shops of America, Inc. The basis of plaintiffs' suit is that the written lease to Fun Centers, Inc. was not registered in the public records of Orleans Parish.
Following trial in the district court, there was judgment denying plaintiffs' eviction attempt apparently on the basis that plaintiffs knew about the lease and subjected themselves to it upon purchase of the property in suit. Plaintiffs have appealed from that judgment.
The record shows that on May 6, 1976, the then owners of the property in question leased a portion of it to Fun Centers, Inc. This lease was not registered in the conveyance records of Orleans Parish. On January 21, 1977 Fun Centers, Inc. in turn subleased the premises to Playgirl Shops of America, Inc. with the permission of the owners. This sublease was registered in the conveyance records.
On December 12, 1977, the property was sold to Mr. and Mrs. Nick Karno and Mr. and Mrs. Frank Caracci. On the same date the purchasers executed a document titled "Assignment of Lease, Rents and Profits" in favor of the National American Bank in New Orleans as additional security for the bank in the event of a default on purchasers' mortgage. The assignment of the lease specifically referred to the original lease to Fun Centers, Inc. and the sublease to Playgirl Shops of America, Inc., and the assignment was registered in the conveyance records of Orleans Parish.
Playgirl Shops of America, Inc., the sublessee, used the trade name "Disco Stop". On December 14, 1977 Verhomal J. Motwani, plaintiff herein, executed an agreement to purchase from Karno and Caracci the property subject to the lease, and in the agreement to purchase plaintiffs acknowledged the existence of a lease in favor of Disco Stop and two other lessees. The testimony indicates copies of the leases were furnished to Motwani before he purchased the property.
On February 24, 1978, plaintiffs took title to the property from the Karnos and the Caraccis, and in the act of sale the vendors warranted they had not alienated the property except for the assignment of lease, rents, and profits which they had previously made in favor of the National American Bank. On the same date and before the same notary public, plaintiffs executed their own assignment of lease, rents, and profits to the National American Bank, which assignment specifically acknowledged and assigned the lease of Playgirl Shops of America, Inc. and referred to it as follows:
"That certain lease and sublease by Charles J. Napoli and John J. Elms, Jr., Joyce Elms Roche and Regina Elms Mauberret to Playgirl Shops of America, Inc. covering that part of the first floor of 227-233 Bourbon as shown in lease approximately 1033 square feet."
In their original brief, plaintiffs based their position almost entirely on the public records doctrine which states that the public records are dispositive of the rights of purchasers of immovable property regardless of their actual knowledge of adverse rights of third persons in or to the property.1 This doctrine was intended to protect innocent third parties who have no knowledge of the existence of any rights and/or claims against property, and allows them to take free and clear of any such unrecorded claims. The doctrine has been...
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...case, is to alert third parties of any adverse interests, and to protect them against any unrecorded claims. Motwani v. Fun Centers, Inc., 388 So.2d 1173 (La.App. 4th Cir.1980), Moore v. Shell Oil Co., 228 So.2d 205 (La.App. 3d Cir.1969), writ refused, 255 La. 278, 230 So.2d 587 McDuffie v.......
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