Business files suit against property owner alleging fraud relating to lease

By Andrew Stevens | Jul 16, 2014

NEW ORLEANS – A business has filed suit against the owner of the Lakefront Airport facilities for alleged fraudulent and negligent misrepresentation of statements in a lease.

Flightline Ground Inc. filed suit against the Orleans Levee District in the Orleans Parish Civil District Court on June 2.

Flightline Ground Inc. claims the Orleans Levee District has breached the lease agreed to by the two parties by allowing other clients to lease buildings with much better amenities for similar prices even though the lease states all of the lessees would be made to promote fair competition.

The plaintiff claims that the disparity in the quality of the property leased and amenities included between the lessees has led to unfair competition among the lessees. Flightline Ground Inc. also claims that the defendant forced it to pay for insurance that overvalued the property by no less than $5 million.

The plaintiff further asserts that the lease with the Orleans Levee District has placed it at a competitive disadvantage to the other similar businesses currently leasing property at the airport. Further, Flightline Ground Inc. claims that the defendant has fraudulently or negligently misrepresented statements in the lease regarding the promotion of fair competition in a way that has breached the lease.

The plaintiff is asking the court to order and direct the defendant to reduce the rent charged under the lease to no more than $20,000 per year, allow the plaintiff to purchase its own building and flood insurance, permit the insurable value of the leased premises to the amount determined by a certified appraiser and cure of the other breaches of the lease.

Flightline Ground is represented by Peter J. Butler Jr. from the firm of Breazeale, Sachse & Wilson LLP in New Orleans.

The case has been assigned to Division H Pro Tempore Judge Lynn Luker.

Case no. 2014-05419.

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