Justia Landlord - Tenant Opinion Summaries
Articles Posted in Contracts
Belanger v. Mulholland
The Belangers rented a trailer from John Mulholland. The Belangers informed Mulholland about problems with their running water and toilet, but no repairs were made. When the Belangers were eventually evicted from their trailer, they had lived there without running water for nine months and without a functioning toilet for five months. The Belangers sued Mulholland for breach of the implied warranty of habitability. The trial court ruled in favor of the Belangers and awarded the Belangers five months' rent. The Belangers appealed, contending that they were entitled to damages for an additional four-month period when they lacked running water but still had a functioning toilet. The Supreme Court affirmed the judgment as modified, holding that the Belangers were entitled to damages for an additional four months because, by itself, the lack of running water in the Belangers' trailer for four months rendered the trailer unfit for human habitation.View "Belanger v. Mulholland" on Justia Law
David Caron Chrysler Motors, LLC v. Goodhall’s, Inc.
David Caron purchased a majority membership in Goodhall's Chrysler-Plymouth-Dodge-Jeep-Eagle, LLC without having obtained the written consent of Goodhall's, Inc. (Goodhall's), in violation of Goodhall's lease with Goodhall's Chrysler-Plymouth-Dodge-Jeep-Eagle. The lease idenitified Goodhall's as the landlord and Goodhall's Chrysler-Plymouth-Dodge-Jeep-Eagle as the tenant. After a dispute arose concerning the party responsible for remediating certain environmental conditions on the property, Plaintiffs, David Caron and David Caron Chrysler Motors, filed suit against Defendants, Goodhall's and others, claiming that Defendants had violated provisions of its lease regarding Goodhall's responsibility for preexisting environmental conditions and Goodhall's warranty of fitness and habitability. The trial court rendered judgment in favor of Defendants, concluding that no contract existed between the parties to this action because the assignment of the majority interest in the tenant to Caron was invalid. The appellate court affirmed. The Supreme Court reversed, holding (1) the appellate court improperly failed to consider Plaintiffs' claim that the trial court had improperly concluded that no contract existed between David Caron Chrysler Motors and Goodhall's; and (2) the trial court was incorrect in finding that, because Goodhall's did not consent to the assignment, there was no contract between David Caron Chrysler Motors and Goodhall's. View "David Caron Chrysler Motors, LLC v. Goodhall's, Inc." on Justia Law
Broderick v. Apartment Mgmt. Consultants, LLC
A group of residential tenants (collectively, Tenants) alleged claims of negligence against Canyon Cover Properties, LLC and Apartment Management Consultants, LLC (collectively, AMC). AMC argued that it was relieved from liability because Tenants signed a residential lease agreement (Agreement) that included a limited liability provision (Exculpatory Clause) waiving the right to bring an action for negligence against AMC. The district court concluded that the Agreement and Exculpatory Clause did not violate public policy and were therefore valid and enforceable, and accordingly, granted summary judgment for AMC. The Supreme Court reversed, holding that because AMC failed to respond meaningfully to Tenants' claim that the Exculpatory Clause was unenforceable because it violated public policy, AMC's brief was rejected and Tenants' claim was accepted that the Exculpatory Clause in the Agreement was unenforceable. Remanded. View "Broderick v. Apartment Mgmt. Consultants, LLC" on Justia Law
G.C. Wallace, Inc. v. Eighth Judicial Dist. Court
Tenant fell behind in its monthly rental payments to Landlord, after which Landlord obtained a summary eviction order in justice court. Landlord subsequently filed a complaint in district court against Tenant for damages for breach of the parties' lease agreement. Tenant filed a motion for summary judgment on the ground that Landlord's claim for damages was precluded by the doctrine of claim preclusion and arguing that Landlord was required to seek summary eviction in unison with its claim for damages. The district court denied Tenant's motion. Tenant then petitioned the Supreme Court for a writ of mandamus directing the district court to vacate its order denying Tenant's motion for summary judgment. The Court denied the petition, holding that the summary eviction scheme provided in Nev. Rev. Stat. 40.253 allows for an exception to claim preclusion in cases such as this one in that it permits a landlord to bring a summary eviction proceeding in justice court and subsequently bring a damages claim in district court.View "G.C. Wallace, Inc. v. Eighth Judicial Dist. Court" on Justia Law
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Contracts, Landlord - Tenant
Harrington v. Metropolis Property Management Group, Inc.
Petitioner Joel Harrington appealed a superior court order in favor of Respondent Metropolis Property Management Group, Inc. (Metropolis). On May 27, 2005, Petitioner entered into a residential lease for an apartment at Hollis Commons Apartments in Concord. The lease agreement required the petitioner to pay a security deposit of $875 to be held "until the termination of Lessee's occupancy." Petitioner entered into two lease renewals, the first in May 2006 renewing the lease for one year, and another in June 2007. The second renewal called for a term commencing on July 1, 2007, and ending "60 days after written notice has been given." The original lease agreement and both lease renewals identified "Hollis Commons Apartments, LLC" as the lessor. The parties had a dispute over the lease agreement and return of the security deposit. Petitioner argued that the trial court erred in finding that Metropolis was not a party to the lease agreement, and in dismissing his contract claims. Although the lease agreement and renewals all show "Hollis Commons Apartments, LLC" as the lessor and either Petitioner or the Petitioner and his wife as the lessees, Petitioner contended that Metropolis must be considered a party to the agreement. Upon review of the trial court record and the applicable legal authority, the Supreme Court affirmed the trial court's decision to dismiss Petitioner's case.View "Harrington v. Metropolis Property Management Group, Inc." on Justia Law
MPQ, Inc. v. Birmingham Realty Co.
Two appeals between MPQ, Inc. (d/b/a Freedom Enterprises) and Birmingham Realty Company were consolidated by the Supreme Court for the purposes of this opinion. The parties entered into a commercial lease agreement. Birmingham Realty filed suit against MPQ for unpaid rent in circuit court. MPQ filed a counterclaim. Birmingham Realty filed a separate unlawful-detainer action against MPQ in district court. The district court dismissed the detainer action, reasoning that the simultaneous actions in the district and circuit courts violated Alabama's abatement statute. Birmingham Realty appealed the district court's dismissal to the circuit court and filed a motion to dismiss MPQ's counterclaim. The circuit court conducted a hearing on all pending motions. It then entered an order affirming the district court's dismissal of the unlawful-detainer action and dismissed MPQ's counterclaims in the rent action. The court suggested that Birmingham Realty move to dismiss the rent action without prejudice so it could refile its unlawful-detainer action in the district court and then later refile an action in circuit court to seek the unpaid rent. Birmingham Realty took the court's advice and filed the suggested motions. MPQ filed a motion to alter, amend or vacate the court's decision in its counterclaim. The circuit court did not rule on either motion. The parties appealed to the Supreme Court. Upon review, the Supreme Court found Birmingham Realty's appeal from the district court to the circuit court was not timely, and as such, the court did not have jurisdiction over the appeal. The Supreme Court dismissed the appeal and cross-appeal with regard to the unlawful-detainer action and remanded the remaining issues for further proceedings.View "MPQ, Inc. v. Birmingham Realty Co." on Justia Law
Arrowhead Ridge I, L.L.C. v. Cold Stone Creamery, Inc.
Arrowhead Ridge initiated a forcible entry and detainer action when its tenant, Cold Stone Creamery, defaulted on its lease. The trial court granted Arrowhead partial summary judgment, and the issues of mitigation of damages, interest, and attorneys' fees proceeded to trial. The trial court concluded that (1) Arrowhead failed to mitigate its damages due solely to an exclusivity provision in a lease with another tenant, and (2) Arrowhead could not recover its attorneys' fees under either the terms of the lease or state law. The court then denied the parties' motions for a new trial. On appeal, the Supreme Court reversed, holding (1) because the undisputed evidence established that Arrowhead made substantial efforts to lease the premises to another tenant, the trial court abused its discretion by denying Arrowhead's motion for a new trial; (2) the record established that Arrowhead mitigated its damages by the exercise of reasonable diligence as a matter of law; and (3) the trial court did not abuse its discretion by denying Arrowhead's motion for a new trial on the basis that it could recover the attorneys' fees it incurred due to Cold Stone's default. Remanded.View "Arrowhead Ridge I, L.L.C. v. Cold Stone Creamery, Inc." on Justia Law
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Contracts, Landlord - Tenant
Marathon Oil Co. v. Dep’t. of Natural Resources
Gas producers that lease land from Alaska must pay royalties calculated on the value of the gas produced from the leased area. The royalty may be calculated in one of two methods: the “higher of” pricing or contract pricing. “Higher of” pricing is the default method of calculating royalties and is calculated using market data and the prices of other producers. The Department of Natural Resources (DNR) usually does not calculate the royalty payments under “higher of” pricing until years after production. Under contract pricing, the lessee’s price at which it sells gas is used to determine the royalty payment. Appellant Marathon Oil requested contract pricing from 2008 onward and sought retroactive application of contract pricing for 2003-2008. The DNR approved contract pricing from 2008 onward but denied the retroactive application. The superior court affirmed the DNR’s decision. On appeal to the Supreme Court, Marathon argued that the statute that governs contract pricing permitted retroactive application of contract pricing. Upon review of the arguments and the applicable legal authority, the Supreme Court concluded that though the statute was ambiguous, it would defer to the DNR’s interpretation. Accordingly, the Court affirmed the superior court’s decision to uphold the DNR’s order.View "Marathon Oil Co. v. Dep't. of Natural Resources" on Justia Law
Chilkoot Lumber Co. v. Rainbow Glacier Seafoods, Inc.
Chilkoot Lumber Company, a commercial landlord (Chilkoot) and its tenant, Rainbow Glacier Seafood (Rainbow) resolved their lease dispute by settlement and entered the terms of the settlement on the record at trial. Rainbow did not follow through with its duties under the settlement agreement. After the time for performance by Rainbow had expired, Chilkoot moved the court to enforce the agreement. The superior court denied the motion to enforce. On reconsideration, the parties tentatively agreed to reinstate the settlement agreement with new deadlines for performance. When they could not agree on new deadlines, the superior court entered an order that enforced the settlement agreement as modified by Rainbow’s proposed deadlines. Chilkoot subsequently violated the order, and the superior court ordered it to pay $1,000 per day it violated the agreement. Chilkoot appealed to the Supreme Court, arguing that the superior court erred by imposing its own deadlines and sanctioning Chilkoot $1,000 per day. Upon review of the record, the Supreme Court reversed the superior court’s order. The Court held it was an error for the lower court to conclude that the parties had not reached a settlement agreement and to deny Chilkoot’s motion to enforce the agreement. Furthermore, the Court found that the court’s sanctions against Chilkoot were "coercive and remedial, rather than punitive." The Court reversed the superior court’s order and remanded the case for further proceedings.View "Chilkoot Lumber Co. v. Rainbow Glacier Seafoods, Inc." on Justia Law
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Contracts, Landlord - Tenant