Parking company sued over disrepair and faulty records

NEW ORLEANS – The Health Education Authority of Louisiana is suing the company responsible for operating its parking garage, alleging they breached the terms of their lease by providing free and discounted parking, and keeping improper records.

Health Education Authority of Louisiana (HEAL) filed suit against APCOA LaSalle Parking Company LLC in the Orleans Parish Civil District Court on Dec. 10, 2013.

The suit alleges that HEAL owns a parking facility located at 300 LaSalle St. in New Orleans which APCOA LaSalle Parking Company (APLC) leases and pays rent to HEAL.

The suit asserts that the lease requires ALPC to pay three types of rent including HEAL's annual rent, a fixed minimum rent and percentage rent of 20 percent of annual gross receipts. In order to do so the lease agreement obligates ALPS to “keep and maintain at all times complete and accurate books, records and accounts relating to the management, administration, operation and maintenance of the parking facility.

HEAL alleges that ALPC has broken the terms of the lease by providing free or discounted parking spaces and by allowing the facility to fall into disrepair. Additionally, they allege that ALPC’s documentation procedures are inadequate and do not comply with governing law.

They claim that the bookkeeping of the years 2009 through 2011 has been inadequate and the internal audits conducted by Standard Parking Corporation on behalf of ALPC were incomplete and lacked support of facts. The suit alleges there is potential unreported revenue of $73,068.

The plaintiffs are requesting that ALPC be found in default of the lease.

Plaintiff is represented by Christopher S. Mann of Jones Walker LLP of New Orleans.

ALPC denies any wrongdoing in an answer provided Jan. 27. They claim that in 2011 When Jacob Johnson assumed the role of HEAL’s executive branch, HEAL breached their terms of the lease by its repeated and unfounded interference with ALPC’s use and operation of the facility. They claim that Johnson harassed ALPC and its employees and is responsible for the unilateral removal of cars it does not own.

ALPC is represented by Harry Rosenberg of Phelps Dunbar LLP of New Orleans.

Case is assigned to Division F Judge Christopher J. Bruno.

Case no. 2013-11626.