USA – LOUISIANA Law and Practice Contributed by: Jeffrey P. Good, Susan M. Tyler, B. Trevor Wilson and Parker Hufft, Jones Walker LLP
6.21 Forced Eviction The tenant may be forced to vacate prior to the expiry of the term in the event of a default. For example, if the tenant fails to pay rent when due, the landlord may file eviction proceedings. Eviction proceedings are sum - mary proceedings and can be completed in 30–90 days, depending on the particular judicial district and the facts of the case. The action for unpaid rent and/or damages against the tenant is brought through ordi - nary proceedings, which require longer to complete. 6.22 Termination by a Third Party A lease may only be terminated by a third party or by a government entity through expropriation proceedings, as described in 2.9 Condemnation, Expropriation or Compulsory Purchase . Both the landlord and the ten - ant are entitled to assert claims for just compensation in such an event. The time required for these proceed - ings varies greatly depending on the judicial district. In expropriation cases, compensation typically includes the value of the leasehold interest and any tenant improvements that cannot be relocated. Com - plete takings typically terminate the lease automati - cally, while partial takings may or may not trigger ter - mination rights depending on the lease language. 6.23 Remedies/Damages for Breach In Louisiana, landlords facing tenant breach must choose between two mutually exclusive remedies: either cancel the lease and recover accrued rentals (forfeiting future rent), or enforce the lease and recov - er both accrued and future accelerated rentals if the lease contains an acceleration clause. Other remedies may be available to the landlord but they may not cancel the lease and demand accelerated rent. For commercial leases, security deposits are typi - cally held in either cash or as letters of credit, with the specific form and handling terms specified in the lease agreement. Letters of credit provide landlords with additional security as they can be drawn upon directly from the issuing bank upon tenant default without having to pursue the tenant directly. These deposits serve as security for both property damage and lease defaults.
Louisiana statutory law requires residential landlords to return deposits following lease termination, subject to deductions for defaults or unreasonable wear. While this law primarily governs residential leases, commer - cial lease practices often follow similar principles. 7. Construction 7.1 Common Structures Used to Price Construction Projects The most common compensation mechanisms for construction projects are fixed price (sometimes referred to as “lump sum” or “stipulated sum”) and “cost plus”, although other variations exist. Fixed Price Under fixed-price contracts, the contractor agrees to perform the work for the stipulated sum within the contract time, and bears essentially all the cost and schedule risks, such as the actual costs of labour and materials being higher than estimated. Fixed-price contracts are appropriate where the scope of the work and the schedule for performance are sufficiently defi - nite to allow the contractor to reasonably estimate the cost of the work and contingency amounts for cost and schedule risks. Cost Plus Cost-plus contracts are used where the scope of work is too indefinite to allow for pricing on a lump-sum basis – ie, where an owner must begin the work before the design is complete, creating uncertainty as to the labour, material and equipment that will ultimately be required to perform the work. Under a cost-plus contract, the owner and contractor agree to the con - tractor costs that will be reimbursed. Additionally, the contractor is entitled to a fee (the “plus”), which is negotiated between the parties. 7.2 Assigning Responsibility for the Design and Construction of a Project The allocation of responsibility for design and con - struction on a project is a function of the project deliv - ery method selected by the owner.
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