Cedar Mountain, LLC v. D & M Screw MacHine Products, LLC

41 A.3d 1131, 135 Conn. App. 276, 2012 WL 1499917, 2012 Conn. App. LEXIS 210
CourtConnecticut Appellate Court
DecidedMay 8, 2012
DocketAC 32891
StatusPublished
Cited by1 cases

This text of 41 A.3d 1131 (Cedar Mountain, LLC v. D & M Screw MacHine Products, LLC) is published on Counsel Stack Legal Research, covering Connecticut Appellate Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cedar Mountain, LLC v. D & M Screw MacHine Products, LLC, 41 A.3d 1131, 135 Conn. App. 276, 2012 WL 1499917, 2012 Conn. App. LEXIS 210 (Colo. Ct. App. 2012).

Opinion

Opinion

ALVORD, J.

This action involves a commercial lease of a building and 8.9 acres of land in Newington. The plaintiff, Cedar Mountain, LLC, appeals from the judgment of the trial court, rendered after a three day court trial. On appeal, the plaintiff claims that the court improperly (1) failed to award it contractual interest on the damages that the court determined were caused by the breach of the lease agreement by the defendant, D & M Screw Machine Products, LLC, and (2) awarded damages to the defendant on its counterclaim. The defendant cross appeals from the judgment, claiming that the court improperly (1) concluded that the defendant breached the lease agreement, (2) awarded the plaintiff attorney’s fees, (3) awarded the plaintiff costs and (4) failed to award the total amount of damages sought by the defendant on its counterclaim. We affirm the judgment of the trial court.

*279 The following facts were found by the court or are not disputed. In December, 1998, the parties entered into a lease agreement for approximately nine acres of land in Newington with a building to be used by the defendant for the operation of a machine shop and related activities. At that time, the plaintiff actively was trying to sell the property and had posted a “for sale” sign on the premises. With that understanding, the parties agreed to a seven year lease term, with no option to renew, that commenced on January 1, 1999, and terminated on December 31, 2005. The lease expressly provided for an early termination in the event of the sale of the leased premises. The plaintiff, as landlord, was entitled to terminate the lease upon six months written notice to the defendant, as tenant, from the date of conveyance. Partially because of the early termination provision, the defendant was to pay a nominal $10 per year as rent. Additionally, the lease provided that the defendant was obligated to pay all real estate taxes, liability insurance premiums and utility bills, and was responsible for maintenance of and repairs to the leased premises.

Charles Lowe, the plaintiffs managing member, had a real estate broker’s license and, in addition to marketing the plaintiffs property, offered to assist the defendant in locating a suitable building for the relocation of its business when the leased premises were sold. He and Denis Morin, a member of the defendant limited liability company, looked at potential sites in the summer of 2002 in anticipation of the sale of the property and the early termination of the lease. Although the plaintiff did not have a signed contract of sale at that time, there was a potential buyer, and Lowe commenced environmental remediation work at the site.

On August 3, 2002, there was an electrical fire at the leased premises. At the time of the fire, the building had a 400 ampere electrical system. Although the fire *280 had been confined to the area of the main electrical box, it was necessary to shut off the power to the entire building. The electricity could not be restored until repairs were made, and, therefore, the defendant was unable to operate its business for several weeks. Lowe decided that a 200 ampere electrical system would be sufficient for the building and made arrangements for the repairs. Although both the town’s electrical inspector and Morin expressed concerns about replacing the 400 ampere system with a 200 ampere system, Lowe proceeded to have the 200 ampere system installed. By letter dated September 6,2002, Lowe advised the town’s electrical inspector that the new 200 ampere system had been installed, upon the “recommendation” of Connecticut Light and Power Company, and that “[t]here is a buyer for the land and the building will be demolished within a year.”

Shortly thereafter, the defendant experienced problems with the adequacy of the new electrical system. 1 Morin frequently complained to Lowe that fuses were being blown and that he needed additional electrical power to run his machines. On November 4,2002, Lowe offered Morin the opportunity to be released from the balance of the term of the lease agreement. Morin declined the offer and expressed no desire to leave the premises before the lease terminated. Lowe then contacted an electrical contractor and had a 400 ampere system installed to satisfy the electrical demands of the defendant.

The plaintiffs actions in restoring power after the fire and then replacing the initially installed 200 ampere electrical system with a 400 ampere electrical system were voluntarily assumed and were taken for the purpose of keeping the defendant as a tenant in the leased *281 premises. All of the electrical repair and replacement costs were paid by the plaintiff. As aclmowledged by Lowe, it was in the plaintiffs best interest to keep a tenant in the braiding while the property was being marketed for sale and to have that tenant responsible for the payment of real estate taxes, insurance, repairs and maintenance. Until the plaintiff restored the electrical power to the level that preceded the fire, however, the defendant suffered a period of diminished operations and production.

The newly installed 400 ampere electrical system was operational by mid-January, 2003. At that point in time, the plaintiff still was actively pursuing a buyer and continued to post the “for sale” sign on the premises. 2 Further, the defendant’s business improved, and its use of the building and parking spaces was being affected adversely by the environmental cleanup at the site. Accordingly, the defendant continued to explore the possibility of relocating its operation, and, in January, 2003, it signed a purchase agreement for a new building. The defendant did not notify the plaintiff that it had signed the purchase agreement. On November 25, 2003, the defendant sent a letter to Lowe by certified mail notifying him that the electrical and gas service at the leased premises would be disconnected on December 5,2003, and that the liability insurance would be discontinued as of November 26, 2003. The defendant subsequently returned all of the keys to the leased premises in a letter to Lowe dated January 3, 2004.

On January 5, 2009, the plaintiff commenced the present action against the defendant. The one count complaint alleged that the defendant breached the lease agreement by failing to make payments for real estate taxes, electrical work and repairs, liability insurance *282 and trash removal. The plaintiff sought money damages, interest, costs and attorney’s fees as provided for in the lease agreement. The defendant filed an answer, several special defenses and a counterclaim. The defendant’s principal claim was that the plaintiffs adverse actions and the condition of the leased premises resulted in the defendant’s constructive eviction from the premises.

During the trial in May, 2010, the court heard testimony from Lowe, Denis Morin, Linda Morin, who also is a member of the defendant limited liability company, and Edward Ingalls of the Newington Electric Company. The court also admitted more than forty exhibits.

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Bluebook (online)
41 A.3d 1131, 135 Conn. App. 276, 2012 WL 1499917, 2012 Conn. App. LEXIS 210, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cedar-mountain-llc-v-d-m-screw-machine-products-llc-connappct-2012.