Bronco Elite Arts & Athletics, LLC v. 106 Garden City, LLC

CourtIdaho Supreme Court
DecidedAugust 18, 2023
Docket49094/49523
StatusPublished

This text of Bronco Elite Arts & Athletics, LLC v. 106 Garden City, LLC (Bronco Elite Arts & Athletics, LLC v. 106 Garden City, LLC) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bronco Elite Arts & Athletics, LLC v. 106 Garden City, LLC, (Idaho 2023).

Opinion

IN THE SUPREME COURT OF THE STATE OF IDAHO Docket Nos. 49094 & 49523

BRONCO ELITE ARTS & ATHLETICS, ) LLC, and BRANDON J. PAINE, ) ) Plaintiffs-Counterdefendants- ) Respondents-Cross Appellants, ) Boise, February 2023 Term ) v. ) Opinion Filed: August 18, 2023 ) 106 GARDEN CITY, LLC, and TRICON ) Melanie Gagnepain, Clerk PROPERTIES, LLC, ) ) Defendants-Counterclaimants- ) Appellants-Cross Respondents. )

Appeal from the District Court of the Fourth Judicial District, State of Idaho, Ada County. Lynn G. Norton, District Judge.

The order of the district court is affirmed in part and reversed in part. The case is remanded for further proceedings.

Meuleman Law Group PLLC, Boise, for Appellants, 106 Garden City, LLC, and Tricon Properties, LLC. Joe Meuleman argued.

Holland & Hart, LLP, Boise, for Respondents, Bronco Elite Arts & Athletics, LLC, and Brandon J. Paine. Robert Faucher argued. _____________________

STEGNER, Justice. This consolidated appeal concerns a dispute regarding a purchase option within a lease agreement. Bronco Elite Arts & Athletics, LLC, and its manager and registered agent, Brandon Paine (collectively “Bronco Elite”), operate a gymnastics facility in Garden City, Idaho. The gymnastics facility is located on property, (the “Property”), that Bronco Elite leases from 106 Garden City, LLC (“106 Garden City”), and Tricon Properties, LLC (“Tricon”). The lease agreement provided Bronco Elite the option to purchase the Property five years into the initial ten-year lease term. However, when Bronco Elite attempted to exercise its option, 106 Garden City and Tricon refused to honor the option. Bronco Elite sued 106 Garden City and Tricon, seeking specific performance. 106 Garden City and Tricon argued that Bronco Elite was precluded from exercising its purchase option

1 because Bronco Elite had breached the lease agreement by consistently failing to pay rent on time and the lease terms only permitted Bronco Elite to exercise the purchase option if it was not in breach. The district court granted summary judgment in favor of Bronco Elite and ordered 106 Garden City and Tricon to convey the Property to Bronco Elite. The specific performance ordered by the district court was stayed pending appeal. This appeal followed. For the reasons discussed below, we affirm in part and reverse in part. I. FACTUAL AND PROCEDURAL BACKGROUND On December 18, 2014, Bronco Elite entered into an agreement to lease the Property from Tricon. The lease term commenced on January 1, 2015, and was set to expire on January 31, 2025. Under the terms of the lease, Bronco Elite was to pay no rent for January 2015, $4,675.00 in rent for February 2015, and $9,350.00 in rent per month from March through December 2015. For years two through five, the rent was to increase annually by 5%; for years six through ten, the rent was to increase annually by 2.5%. After the initial ten-year lease expired, there was an option to renew the lease for two additional five-year terms. The lease agreement also provided Bronco Elite an option to purchase the Property as follows: Tenant [Bronco Elite] shall have the exclusive option to purchase the [Property] commencing June 30, 2020 and expiring September 30, 2020, provided that Tenant timely exercises the option to purchase and is not in default or breach of any terms or conditions of this Lease. Tenant must furnish to Landlord [Tricon] written notice of Tenant’s intent to purchase and shall specify a closing date not less than 60 and no more than 180 days from the date of notice. The purchase price shall be $1,020,000.00. As consideration for the option to purchase, Tenant shall pay the nonrefundable sum of $85,000.00 to Landlord as option consideration. Said sum shall apply toward the purchase price provided that Tenant timely exercises the option to purchase and is not in default or breach of any terms or conditions of this Lease. Bronco Elite paid the $85,000 option sum by check in two installments. The first check was for $25,000 and was cashed on December 19, 2014; the second check was for $60,000 and was cashed on December 22, 2014. Tricon conveyed the Property to 106 Garden City in January 2019. On May 5, 2020, Bronco Elite sent Tricon and 106 Garden City (collectively “Owners”) 1 a letter stating that it

1 It is unclear from the record the precise nature of the relationship between Tricon and 106 Garden City. The two entities share a member, Brandon Roberts, with whom Brandon Paine communicated regarding the lease; however,

2 intended to exercise its option to purchase the Property. Bronco Elite further specified that “[t]he closing date shall be July 7, 2020.” Owners refused to honor Bronco Elite’s effort to exercise its option. On June 15, 2020, Bronco Elite sued Owners in district court in Ada County “for anticipatory breach of contract and specific performance.” Bronco Elite asserted that, although it had notified Owners that it planned to purchase the Property pursuant to the purchase option in the lease, they had refused to sell the Property. Bronco Elite sought specific performance, alleging it was “ready, willing, and able to purchase the Property pursuant to the Purchase Option.” (Capitalization in original.) In the alternative, Bronco Elite sought monetary damages for Owners’ purported anticipatory breach of the lease agreement. Bronco Elite also sought attorney fees and costs. Owners answered Bronco Elite’s complaint and counter-claimed, asserting that Bronco Elite had breached the lease agreement and, therefore, could not exercise the purchase option. Owners sought monetary damages as well as attorney fees and costs. Both parties moved for summary judgment. The district court determined that Bronco Elite was not precluded from exercising the purchase option and that Owners had breached the lease agreement by failing to honor Bronco Elite’s option to purchase the Property. Accordingly, the district court granted summary judgment in favor of Bronco Elite. The district court ordered specific performance of the purchase option, requiring Owners to convey title of the Property to Bronco Elite. Both parties appealed, and the appeals were consolidated by the order of this Court. II. STANDARDS OF REVIEW This Court exercises de novo review of a grant of summary judgment and the “standard of review is the same as the standard used by the trial court in ruling on a motion for summary judgment.” Stonebrook Const., LLC v. Chase Home Fin., LLC, 152 Idaho 927, 929, 277 P.3d 374, 376 (2012) (quoting Curlee v. Kootenai Cnty. Fire & Rescue, 148 Idaho 391, 394, 224 P.3d 458, 461 (2008)). Summary judgment is proper if “the pleadings, depositions, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” I.R.C.P.56(c). When applying this standard, this Court construes disputed facts “in favor of the non-moving party, and all reasonable inferences that can be drawn from

little other information is available in the record on appeal regarding the relationship. Therefore, this opinion will follow the district court’s naming convention and refer to them collectively as “Owners.” If there is a distinction to be drawn, we will refer to Tricon or 106 Garden City separately.

3 the record are drawn in favor of the non-moving party.” Curlee, 148 Idaho at 394, 224 P.3d at 461. Where “the evidence reveals no disputed issues of material fact, then only a question of law remains, over which this Court exercises free review.” Lockheed Martin Corp. v. Idaho State Tax Comm’n, 142 Idaho 790, 793, 134 P.3d 641

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Bronco Elite Arts & Athletics, LLC v. 106 Garden City, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bronco-elite-arts-athletics-llc-v-106-garden-city-llc-idaho-2023.