Automatic Gas Distributors, Inc. v. State Bank of Green River

817 P.2d 441, 1991 Wyo. LEXIS 146, 1991 WL 183080
CourtWyoming Supreme Court
DecidedSeptember 20, 1991
Docket90-237
StatusPublished
Cited by4 cases

This text of 817 P.2d 441 (Automatic Gas Distributors, Inc. v. State Bank of Green River) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Automatic Gas Distributors, Inc. v. State Bank of Green River, 817 P.2d 441, 1991 Wyo. LEXIS 146, 1991 WL 183080 (Wyo. 1991).

Opinions

CARDINE, Justice.

This case involves a dispute between the State Bank of Green River (Bank) and Automatic Gas Distributors, Inc. (AGD) over which of their competing interests is senior in the property being foreclosed. AGD appeals the district court’s summary judgment ruling that AGD “surrendered” its earlier, unexpired lease when it executed a subsequent lease for a longer term in the same property. As a result of this ruling, the Bank’s mortgage was held senior to AGD’s subsequent lease.

The issues, as presented by AGD, are as follows:

“1. Whether a genuine issue of material fact existed and was unresolved at the time summary judgment was entered herein against Appellant.
“2. Whether the District Court misconstrued one of the documents upon which it relied in entering summary judgment herein against Appellant.
“3. Whether Appellee State Bank of Green River was entitled to judgment against Appellant as a matter of law.”
We affirm.

In 1984, AGD leased property from Wes-tAmerica Foods, Inc. for a self-service gas[442]*442oline station. This lease was for a term of ten years and would expire March 1, 1994. It provided for two renewal options of five years each. A memorandum of this lease was recorded in the Sweetwater County Clerk’s office in 1984. Ownership of the property then passed through various grantees until the Bank became owner of it. On October 6, 1988, Trans-Western Development, Inc. acquired the property from the Bank in exchange for a purchase money mortgage. On October 10, 1988, and before the expiration of the term of the 1984 lease, AGD and Trans-Western executed and entered into a new lease on the same property. The new lease provided:

“Landlord hereby leases to Tenant for the term and on the rentals and conditions set forth herein, that portion of the Premises more particularly described on the map or plat attached hereto as Exhibit B and incorporated herein, along with all of the rights, privileges, easements and appurtenances thereunto attached and belonging, subject only to those leases, deeds of trust, and other encumbrances set forth on Exhibit C attached hereto and incorporated herein.” (emphasis added)

Exhibit C, attached to the lease and as written by the parties, is as follows:

“EXHIBIT C TO SPECIAL PURPOSE LEASE
“ENCUMBRANCES AGAINST THE PREMISES
“State Bank of Green River — $170,000.”

The 1988 lease required a listing of “leases” to which the premises were still “subject.” The 1984 lease was not listed on Exhibit C. Listed on Exhibit C was only the purchase money mortgage which demonstrates clearly that the premises and the 1988 lease were subject to the Bank’s mortgage and nothing else.

On October 21, 1988, the Bank recorded its purchase money mortgage from Trans-Western. Later, on October 31, 1988, a memorandum of the 1988 lease was recorded in the Sweetwater County Clerk’s office. Trans-Western failed to make the payments upon the mortgage, and the Bank filed this foreclosure action.

In its complaint, the Bank included AGD, Trans-Western, and other defendants who had interests in the property. AGD is the only defendant left on appeal, all other defendants having either defaulted or decided not to pursue this appeal. The Bank filed a motion for summary judgment asserting that AGD “surrendered” its 1984 lease when it executed the 1988 lease. In support of its motion, the Bank attached copies of the 1984 and 1988 lease agreements. AGD filed a brief opposing the Bank’s motion for summary judgment and argued that the Bank had failed to present any evidence that would demonstrate that AGD intended to surrender its 1984 lease. The district court noted that there was no genuine issue of material fact and entered judgment for the Bank.

A grant of summary judgment is proper only when there are no genuine issues of material fact, and the prevailing party is entitled to judgment as a matter of law. Brazelton v. Jackson Drug Co., Inc., 796 P.2d 808, 810 (Wyo.1990). Leases are contractual in nature, and their construction and interpretation are for the court as a matter of law. Id. In Jones Land and Livestock Co. v. Federal Land Bank, 733 P.2d 258, 262 (Wyo.1987), we stated that:

“If the language of the contract is plain and unequivocal that language is controlling and the interpretation of the contractual provisions is for the court to make as a matter of law. The meaning of the instrument is to be deduced only from its language if the terms are plain and unambiguous.” (quoting Shepard v. Top Hat Land & Cattle Co., 560 P.2d 730, 732 (Wyo.1977))

The Bank, as the movant, had the initial burden of demonstrating the absence of any genuine issue of material fact and that it was entitled to a judgment as a matter of law that AGD surrendered its 1984 lease. Fiscus v. Atlantic Richfield, 773 P.2d 158, 161 (Wyo.1989).

Neither lease is ambiguous, and therefore, we do not look beyond those [443]*443documents to determine their meaning. Jones Land & Livestock, 733 P.2d at 262. The express language of the 1988 lease states that it is

“subject only to those leases * * * set forth on Exhibit C attached hereto and incorporated herein.” (emphasis added)

Significantly, the 1984 lease was not listed on Exhibit C. The only document listed on Exhibit C as an encumbrance was the Bank’s mortgage. The 1984 lease not being listed, it, by written agreement of the parties, is not embraced and did not survive the 1988 lease. Our examination of the documents attached to the Bank’s motion for summary judgment convince us that the Bank met its burden.

AGD nevertheless alleges that, contrary to its express written agreement and without any supporting facts, that it alone intended that its 1984 lease survive without being listed on Exhibit C attached to the 1988 lease and that it remained an encumbrance prior to the Bank’s purchase money mortgage.

It is probably unnecessary for us to address this unilateral conclusory claim supported by nothing. Nevertheless, we find additional support, as did trial Judge Ryckman, for the result here reached in Barber v. Smythe, 59 Wyo. 468, 143 P.2d 565, 568 (1943), wherein we said:

“It is agreed among the authorities that a lease for a term of years may be surrendered by operation of law and that an agreement in writing is not necessary in such a ease.”

See also Application of Hagood, 356 P.2d 135 (Wyo.1960); Casper Nat’l Bank v. Curry, 51 Wyo. 284, 65 P.2d 1116, 1118-19, 110 A.L.R. 360 (1937). Thus there is a presumption, to which the Bank was entitled, that acceptance by the tenant of a new lease of the demised premises during the term of an old lease operates as a surrender of the old lease by the act of the parties.

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817 P.2d 441, 1991 Wyo. LEXIS 146, 1991 WL 183080, Counsel Stack Legal Research, https://law.counselstack.com/opinion/automatic-gas-distributors-inc-v-state-bank-of-green-river-wyo-1991.