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The Eighth Circuit affirmed summary judgment for tenant in a suit filed by landlord for breach of a terminated lease agreement and waste under Iowa law. The court held that, under section 26.01 of the lease agreement, the sole remedy was lease termination. Therefore, landlord could not recover the alleged contract damages. Furthermore, landlord's claim for waste failed because the parties expressly contracted for that liability in sections 6.06 and 26.01 of the lease. View "Davenport Chester, LLC v. Abrams Properties, Inc." on Justia Law

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After a shopping center tenant defaulted on a secured loan, the lender took possession of the premises through foreclosure and transferred its interest to a third party. The third party then surrendered the premises and the landord filed suit against the lender to enforce the lease obligations. The Court of Appeal reversed the grant of summary adjudication for the landlord, holding that the purchase of the leasehold estate in this case—identified in the deed of trust by reference to the lease—did not constitute an express agreement to assume the obligations of the lease. In this case, the record showed that the lender did not expressly assume the lease. View "BRE DDR BR Whittwood CA, LLC v. Farmers & Merchants Bank" on Justia Law

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In 1962, PWV leased to Norfolk Southern certain railroad properties, consisting of a 112-mile tract of main line railroad and approximately 20 miles of branch rail lines in Western Pennsylvania, Ohio, and West Virginia. After securing appropriate regulatory approvals, the Lease went into effect on October 16, 1964. The term of the Lease is 99 years, renewable in perpetuity at the option of Norfolk Southern absent a default. On May 17, 1990, Norfolk Southern entered into a sublease with Wheeling & Lake Erie Railway. Wheeling assumed the rights, interests, duties, obligations, liabilities, and commitments of Norfolk Southern as lessee, including the role as principal operator of the Rail Line. In 2011, disputes arose following the proposed sale of an unused branch of the railroad line, a restructuring by PWV and its demand for additional rent and attorney's fees. Norfolk Southern sought a declaration that it was not in default under the terms of the Lease. The Third Circuit affirmed the district court’s use of course-of-performance evidence, found that PWV had engaged in fraud to obtain Norfolk’s consent to a transaction otherwise prohibited by the Lease. View "Norfolk Southern Railway Co v. Pittsburgh & West Virginia Railroad" on Justia Law

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Hosford, severely disabled and wheelchair-bound, has muscle spasms and pain.Since 1989, Hosford has resided at Foghorn's Baltimore CIty Ruscombe Gardens Apartments, subsidized through a federal “Section 8” project-based program. Hosford signed a “Drug-Free Housing Policy” with his lease. In 2014, the complex had a bed bug infestation. An extermination company entered Hosford’s unit and saw a marijuana plant growing in his bathtub. They reported this to the management office. A responding police officer concluded the plant was marijuana, confiscated it, and issued a criminal citation. A police chemist concluded that the plant was marijuana. A nolle prosequi was entered on the possession charge. Foghorn gave Hosford a notice of lease termination. When he did not vacate, Foghorn initiated an eviction. The Court of Appeals held that Maryland Code, Real Property 8-402.1(b)(1), which provides that a court ruling on a landlord-tenant dispute must conclude that a breach of a lease is “substantial and warrants an eviction” before granting judgment for possession of the leased premises, is not preempted by federal regulations mandating that subsidized Section 8 project-based housing developments include lease provisions that engaging in any drug-related criminal activity on or near the leased premises is grounds for termination of the lease. View "Chateau Foghorn, LP v. Hosford" on Justia Law

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In 2003, a corporation was assigned a lease that permitted a restaurant to operate. Xiao-Yan Cao, the corporation’s president, personally guaranteed the corporation’s performance. In 2006, the lease was assigned to Hong Lin. As part of the assignment, the lease term was extended until 2013. Both Cao and Lin signed the lease extension as guarantors. In 2010, Lin stopped making timely rent payments. Lin and the property’s landlord agreed to a repayment schedule to permit Lin to catch up. In 2013, Lin defaulted on rent payments. The landlord sued both Lin and Cao for a sum representing the last month’s rent and a balance from the month prior. The district court concluded that the 2010 repayment materially modified the contract and discharged Cao’s guaranty. The court of appeals reversed, concluding that extending the period within which a tenant could pay its rent did not materially modify the contract. The Supreme Court affirmed, holding that the court of appeals correctly determined that the 2010 repayment agreement did not materially modify the contract and that Cao was not relieved of her responsibilities as guarantor. View "PC Riverview, LLC v. Cao" on Justia Law

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An interlocutory appeal arose from an eviction action in which landlord, Shires Housing, Inc., failed to provide tenant Carolyn Brown, with written notice of tenancy termination before filing for eviction under the Mobile Home Parks Act. The trial court denied defendant’s Vermont Rule of Civil Procedure 12(b)(6) motion to dismiss, ruling that 10 V.S.A. 6237(a)(3) contained an exception to the notice requirement. Because the Vermont Supreme Court concluded the relevant provision of the Mobile Home Parks Act was ambiguous and because the available tools of statutory interpretation all indicated the Act required pre-eviction notice, the Court reversed. View "Shires Housing, Inc. v. Brown" on Justia Law

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Meadows worked for the Rockford Housing Authority (RHA), and leased, for $10 per month, an RHA apartment in a high-rise occupied by elderly and disabled tenants. RHA tenants complained that someone else was living in Meadows’s apartment. RHA’s manager saw an unidentified man leave the apartment and lock the door with a key and reported to RHA’s director, who contacted Metro, a private security company under contract with the RHA. Metro employee Novay, knocked on the door and spoke with a Sockwell, who stated that he was renting the apartment. Novay took Sockwell’s key and escorted him from the building. Meadows returned to the apartment, and, without notifying RHA or Metro, installed a new lock. That evening, RHA's director suggested changing the apartment's locks to protect the other tenants. The next morning, Meadows went to the police station to report that his apartment “had been ransacked.” Novay arrived to supervise the locksmith and found that Sockwell’s key no longer worked. The locksmith picked the locks. Meadows arrived, became enraged, tried to physically remove Novay, and called the police. Meadows was given a new key and allowed to remain in the apartment that day. Meadows sued Metro’s employees under 42 U.S.C. 1983. The Seventh Circuit affirmed summary judgment for the defendants; the employees of a private security company, who carried out the RHA’s order, are entitled to qualified immunity. View "Meadows v. Rockford Housing Authority" on Justia Law

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Duarte's Oakland property was occupied by Bowers. Bowers’s daughter, Pleasants, moved into the property and remained after Bowers died. In February 2012, Duarte gave Pleasants a 45-day notice to quit, but she did not leave. On April 19, Duarte obtained landlord-tenant insurance coverage for the property with Pacific, including “Owners, Landlords & Tenants Liability Coverage,” effective April 19, 2012. In June 2012, Pleasants sued Duarte, alleging that habitability defects had allegedly existed throughout the tenancy. Duarte tendered defense of the suit to Pacific, which denied coverage. Duarte sought a declaration that the policy required Pacific to defend the tenant suit and sought damages for breach of contract. Pacific alleged material misrepresentations by Duarte on the application; he represented that there were no disputes concerning the property although he knew that the tenant had complained to the city and that there was no business conducted on the property although he knew the tenant was running a business. The court of appeal ruled in favor of Duarte. Pacific’s question about the existence of pending claims, property disputes, or lawsuits concerning the property was “utterly ambiguous.” Pacific did not show that Duarte knew a “business” was conducted on the property at the time he submitted his application. View "Duarte v. Pacific Specialty Insurance Co." on Justia Law

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In an eviction action, a district court must have both subject matter and personal jurisdiction to enter a valid order or judgment. Barbara Vondell appealed a judgment entered for Spirit Property Management, evicting her from possession of real property and awarding a money judgment against her. For over twenty-five years Luetta Vondell owned a mobile home on a rented lot. Sometime after Luetta was diagnosed with dementia, her daughter Barbara moved in with her, becoming her full-time care giver and agent under a durable power of attorney. In July 2014 Barbara and Luetta Vondell, through Barbara under the power of attorney, signed a one-year lease for the mobile home lot. The lease commenced on July 1, 2014, continuing on a month-to-month basis after the lease term. Luetta died in September 2015. In March 2016 Spirit Property filed suit for eviction and possession of real property for nonpayment of rent. Barbara answered the suit, denying Spirit Property's claims and asserting various defenses. At a May 2016 eviction hearing the district court found Barbara moved out of the home in November 2015, but the mobile home continued occupying Spirit Property's lot. The court found that while lot rent was partially paid for September 2015, no rent was paid in October and November 2015. The court entered an order and judgment against Barbara granting Spirit Property possession of the property and awarding $2,440 for unpaid rent and costs. Barbara argued the district court erred in deciding it had subject matter jurisdiction of the eviction action under N.D.C.C. ch. 47-32 when the court found Barbara terminated the lease and vacated the property in November 2015. The North Dakota Supreme Court concluded the district court had both subject matter jurisdiction over the eviction and personal jurisdiction over Vondell, and affirmed. View "Spirit Property Management v. Vondell" on Justia Law

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The Supreme Court reversed the circuit court’s dismissal of Standard Fire Insurance Co.’s case against Continental Resources Inc. pursuant to S.D. Codified Laws 15-6-12(b)(5). Standard Fire brought suit seeking statutory reimbursement or, in the alternative, equitable subrogation of workers’ compensation benefits paid to an employee. The circuit court found that the terms of a settlement agreement barred further litigation and that res judicata applied. The Supreme Court disagreed and remanded the matter for further proceedings, holding that the circuit court erred when it determined that the plain language of the settlement agreement barred Standard Fire’s claim. View "Standard Fire Insurance Co. v. Continental Resources, Inc." on Justia Law