BTR Hampstead, LLC v. Source Interlink Distribution, LLC

5 A.3d 142, 194 Md. App. 538, 2010 Md. App. LEXIS 129
CourtCourt of Special Appeals of Maryland
DecidedSeptember 14, 2010
Docket199, September Term, 2009
StatusPublished
Cited by2 cases

This text of 5 A.3d 142 (BTR Hampstead, LLC v. Source Interlink Distribution, LLC) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BTR Hampstead, LLC v. Source Interlink Distribution, LLC, 5 A.3d 142, 194 Md. App. 538, 2010 Md. App. LEXIS 129 (Md. Ct. App. 2010).

Opinion

*541 WOODWARD, J.

Appellee, Source Interlink Distribution, LLC (“Source Interlink”), leased warehouse and office space from appellant, BTR Hampstead, LLC (“BTR”). After a dispute arose between the parties, occasioned by the flooding of the space adjacent to Source Interlink’s premises, Source Interlink filed a complaint on September 28, 2007, in the Circuit Court for Carroll County, seeking, inter alia, (1) a declaration that its Agreement of Lease (“Lease”) with BTR was terminated, and (2) an award of money damages. On December 3, 2007, BTR filed a counterclaim against Source Interlink for “rent due and owing,” arguing that Source Interlink was in breach of the Lease. After a three-day trial, on March 24, 2009, the circuit court entered judgment that the Lease was terminated effective September 28, 2007, and awarded Source Interlink $149,467.04 in damages. The court denied all relief to BTR on its counterclaim.

On appeal, BTR presents three questions for our review, which we have expanded into four questions:

I. Did the circuit court err by finding that the actions of BTR relating to Source Interlink’s premises after the flood in May of 2007 constituted an actual eviction?
II. Did the circuit court err by finding that Source Interlink did not waive its right to claim an eviction and to declare the Lease terminated?
III. Did the circuit court err by ruling that the terms of the Lease did not permit the actions of BTR relating to Source Interlink’s premises after the flood in May of 2007?
IV. Did Source Interlink prove damages to a reasonable certainty?

For the reasons set forth herein, we shall affirm the judgment of the circuit court.

BACKGROUND

The facts of the instant case are not in dispute. We shall adopt and incorporate substantial portions of the factual histo *542 ry as set forth by the Circuit Court for Carroll County in its Memorandum Opinion, dated March 23, 2009:

1. BTR ... is in the business of the ownership and leasing of real estate and owns the land and improvements at 626 Hanover Pike, Hampstead, Maryland (“Hampstead Facility”). The total square footage in the Hampstead Facility is approximately 800,000 square feet.

2. BTR is the Landlord and Source Interlink ... is the Tenant under an Agreement of Lease (“Lease”) at the Hampstead Facility and leased approximately 126,000 square feet of space.

3. Fidelitone Logistics (“Fidelitone”), another tenant in the Hampstead Facility during the relevant time period, leased approximately 185,000 square feet of space adjacent to Source Interlink’s premises.

6. In March 2006, Source Interlink acquired Anderson News, LLC (“Anderson”), which included acquisition of the Lease at the Hampstead Facility.

15. The Lease at issue in this case was first executed in November 1999 and is for approximately 126,786 square feet which is comprised of 114,891 sq. ft. of warehouse space and 11,895 sq. ft. of office space.

16. The Lease will expire by its terms on January 31, 2010.

33. After acquiring the [Ljease from Anderson News in March 2006, Source Interlink continued to use the space as a distribution center for approximately five months, until late August or early September of 2006.

34. In approximately September 2006, Source Interlink began decommissioning the leased premises as a distribution center and moving that portion of Source Interlink’s operations to a distribution center in Lancaster, P[ennsylva-nia]. The decommissioning process took about two months.

*543 35. During the fall of 2006, Source Interlink caused the leased premises to “go dark,” which is a term used by Source Interlink to mean that the space was no longer being actively used for the purposes of that Facility, but Source Interlink continued to honor and fulfill its lease obligations with respect to the facility. Source Interlink continued to pay the rent and other related charges to BTR after the facility was decommissioned.

38. When Source Interlink decommissions a facility, it hires a third party or someone within the company to be responsible for periodic inspections of the facility to ensure that safety and maintenance concerns are addressed on a regular basis.

39. Robert Schuler (“Schuler”), Source Interiink’s National Maintenance Manager, hired Harold Raines (“Raines”) to periodically inspect the leased premises after it was decommissioned.

40. Raines began visiting Source Interiink’s leased premises to check on it around the middle of October 2006.

41. Between October 2007 and April 2007, Raines visited Source Interiink’s leased premises three days a week because those months were cold weather months. During warm weather months, Raines visited once a week.

44. Source Interlink attempted to sublease the premises in the fall of 2006 after the premises had been decommissioned.

45. The subleasing efforts were coordinated by Mohr Partners, Inc., who in turn hired a local real estate [broker] to conduct the marketing of the leased premises for sublease.

46. Source Interlink requested Mohr Partners to hire a new local real estate broker, Mackenzie Commercial Real Estate Services, LLC, to market the leased premises for sublease. Daniel A[.] Hudak (“Hudak”), Senior Vice President/Principal of Mackenzie, was contacted by Mohr Partners to assist the resident local broker....

*544 47. In early to mid-October 2007, [Mohr Partners] called Hudak and instructed him to stop marketing the warehouse space for sublease as of October 15, 2007, until further notice because of a legal dispute. Hudak complied with this instruction.

86. Early in the morning on Saturday morning of Memorial Day weekend of 2007, the closed-loop water pipe system burst at a point located in the ceiling of Fidelitone’s space at the Hampstead Facility.

87. [Anna Dziewanowski, the Senior Property Manager at BTR] received a call ... early in the morning that required her to come to the Hampstead Facility. [Michael] Clark[, a member of BTR] received a call from Dziewanowski in the early morning of Saturday, May 26, 2007 advising him of the leak and flooding. Fidelitone’s warehouse manager, Richard Rae (“Rae”), also showed up on Saturday morning.

96. Shortly after BTR and Fidelitone representatives arrived at the Hampstead Facility on the day of the flood, there was a meeting among Clark, Rae, and two members of BTR Management’s property management staff.

97. During or shortly after this meeting, Clark, on behalf of BTR, made the decision permitting Fidelitone to move its products into the Source Interlink premises.

98. BTR’s decision was oral and never put in writing. There is no written documentation of the dealings, arrangement and communication between BTR and Fidelitone about Fidelitone’s use of the Source Interlink space.

99.

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5 A.3d 142, 194 Md. App. 538, 2010 Md. App. LEXIS 129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/btr-hampstead-llc-v-source-interlink-distribution-llc-mdctspecapp-2010.