Judge rules against Touro Infirmary in breach of contract dispute

By Alejandro de los Rios | May 28, 2010

Caraway and LeBlanc

Orelans Parish Judge Lloyd Medley Jr. has denied a motion by Touro Infirmary to dismiss a number of claims filed against the hospital in a breach of contract suit in Orleans Parish Civil District Court.

Mendy Properties LLC is suing Touro for allegedly breaching a lease agreement the hospital signed in April 2001 by failing to pay taxes on the property, making repairs after damage was incurred during Hurricane Katrina and failing to pay taxes on the leased property.

Edward Mendy, the manager of Mendy Properties, filed the suit in proper person on Nov. 7, 2008.

New Orleans attorneys Ann LeBlanc and Kathryn Caraway are representing Touro Infirmary in this case.

The defendant attorneys filed a motion for summary judgment to dismiss the Katrina claims and tax claims. After a hearing on April 30, Medley denied the motion in a judgment signed on May 4.

Touro Infirmary and Mendy Properties entered a lease five-year agreement for a property on Coliseum Street in New Orleans at a rate of $3,100 per month. According to the suit, after five years the lease states that there is a five-year option for which rent increases to $3,600, but Touro allegedly only continued to pay $3,100 saying that the original lease had expired.

Touro Infirmary allegedly also neglected to pay tax liabilities in a timely manner and also opted to self-insure, both of which are violations of the lease, according to the petition for damages. It also alleges that Touro failed to make repairs on the property as required by the lease agreement after Hurricane Katrina damaged the roof.

Touro allegedly vacated the premises in December of 2007 and has yet to pay taxes or rent owed on the property. Mendy said that the property had had no new tenants since Touro left and it is now under threat of foreclosure.

Orleans Parish Case 2009-11599

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