Justia Landlord - Tenant Opinion SummariesArticles Posted in US Court of Appeals for the Fourth Circuit
Expo Properties, LLC v. Experient, Inc.
Expo Properties owns an office complex in which they leased to Experient. When the lease term ended, the parties dispute the condition the premises should be in when defendant vacated, and who should pay for any work to put the premises into that condition.The Fourth Circuit affirmed the district court's grant of summary judgment to Experient, holding that the Estoppel Certificate did not satisfy the requirements of Maryland contract law for modification of a contract. Therefore, contrary to Expo Properties' contention, the Estoppel Certificate did not modify the Lease under Maryland law. Furthermore, the Lease unambiguously does not allocate all costs for all maintenance and repairs, no matter what, to the tenant. Consequently, the district court properly held that Expo Properties' parol evidence was inadmissible. View "Expo Properties, LLC v. Experient, Inc." on Justia Law
NCO Financial Systems, Inc. v. Montgomery Park, LLC
This case arose out of disputes between the parties involving a twelve year commercial lease of office space in Baltimore, Maryland. The Fourth Circuit held that the district court misconstrued the lease agreement and misapplied Maryland law in concluding that Montgomery Park had a duty to endeavor to relet the premises and minimize its damages as a condition precedent to recovering against NCO. The panel held that the lease agreement's language incorporated the common law mitigation-of-damages doctrine, which holds that a plaintiff cannot recover damages which it could have reasonably avoided. Therefore, Montgomery Park's recovery should only have been reduced by the amount of rent that NCO could demonstrate would have been recovered by reasonable efforts to re-let the space.The court also held that the district court, in evaluating the commercial reasonableness of Montgomery Park's mitigation efforts, applied the wrong standard. The court held that reasonable commercial efforts to mitigate damages did not require Montgomery Park to favor NCO’s space over other vacant space in the building, but rather, commercial reasonableness only required Montgomery Park to reasonably market NCO's space on an equal footing with the other spaces that it was seeking to rent. Accordingly, the court vacated the district court's judgment and remanded for further proceedings. View "NCO Financial Systems, Inc. v. Montgomery Park, LLC" on Justia Law
Giron de Reyes v. Waples Mobile Home Park LP
Plaintiffs filed suit challenging a mobile home park's policy requiring all occupants to provide documentation evidencing legal status in the United States to renew their leases as violating the Fair Housing Act (FHA). The Fourth Circuit vacated the district court's grant of summary judgment for the mobile home park, holding that plaintiffs have made a prima facie case that the policy disparately impacted Latinos in violation of the FHA, satisfying step one of the disparate impact analysis, and that the district court therefore erred in concluding otherwise. The court also held that the district court seriously misconstrued the robust causality requirement described in Tex. Dep't of Housing & Cmty. Affairs v. Inclusive Communities Project, Inc., 135 S. Ct. 2507, 2513 (2015), and erroneously rejected plaintiffs' prima facie claim that the policy disparately impacted Latinos. Accordingly, the court remanded for further proceedings. View "Giron de Reyes v. Waples Mobile Home Park LP" on Justia Law