Check Cashers Exp., Inc. v. Crowell

950 So. 2d 1035, 2007 WL 509782
CourtCourt of Appeals of Mississippi
DecidedFebruary 20, 2007
Docket2005-CA-01631-COA
StatusPublished
Cited by5 cases

This text of 950 So. 2d 1035 (Check Cashers Exp., Inc. v. Crowell) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Check Cashers Exp., Inc. v. Crowell, 950 So. 2d 1035, 2007 WL 509782 (Mich. Ct. App. 2007).

Opinion

950 So.2d 1035 (2007)

CHECK CASHERS EXPRESS, INC., Title Loans Express, Inc. and Robert J. Pope, Jr., Appellants,
v.
Boyce CROWELL, Appellee.

No. 2005-CA-01631-COA.

Court of Appeals of Mississippi.

February 20, 2007.

*1038 Robert Binnion Andrews, Port Gibson, attorney for appellants.

James Andrew Yelton, Batesville, attorney for appellee.

Before LEE, P.J., IRVING, BARNES and ISHEE, JJ.

BARNES, J., for the Court.

¶ 1. Check Cashers Express, Inc., Title Loans Express, Inc. and Robert J. Pope, Jr. (collectively "Tenants") appeal the judgment of the Chancery Court of Panola County which found them liable for damages to property leased from Boyce Crowell. On appeal, Tenants argue that the partition walls in the building at issue were not fixtures that became part of the realty, but were personal property, which Tenants had a right to dismantle and take upon vacating the premises. Additionally, Tenants argue that the trial court erred in awarding compensatory damages for the removal of the interior walls and an air conditioning unit and in awarding attorney's fees. We find no reversible error and affirm the chancery court's judgment.

FACTS AND PROCEDURAL HISTORY

¶ 2. Boyce Crowell filed a complaint against Tenants in the Panola County Chancery Court on August 2, 2004, claiming breach of contract on a lease and conversion. This lawsuit arose when Tenants dismantled walls and interior doors and windows from within the leased building in Batesville, Mississippi when the lease expired, contrary to specific provisions in the lease and the expressed request of the current landlord. Tenants also dismantled and took an air conditioning unit which they had bought and installed. After trial, *1039 a judgment was entered against Tenants in the amount of $23,572.67.

¶ 3. In June 1999, Tenants had originally negotiated and signed a five-year lease with David Bailey, the owner of the premises. In March 2001, Crowell purchased the building at issue from Bailey. Crowell had thus been Tenants' landlord since that time, under the original lease agreement. No additional lease provisions were added nor was the original lease altered. Key provisions in the lease agreement are contained in paragraph 7 (tenant shall "refrain and forbid any other person from destroying, defacing, damaging or removing any part of the premises. Tenant shall not make any alternations[alterations] to the premises . . . without the prior written consent of the Landlord"), paragraph 10 ("Landlord will maintain roof only"), paragraph 12 ("Upon termination of this lease, Tenant agrees to return the premises to the Landlord in good repair . . . except for ordinary wear and tear"), and paragraph 19 ("This Lease supersedes any oral or written agreements regarding these premises"). The lease expired July 1, 2004.

¶ 4. Crowell did not renew Tenants' lease. Crowell and Tenants were in the same businesses-the pay-day/check cashing loan and title loan business. Tenants claim that they had an oral agreement with the original owner, Bailey, whereby they received permission, around the time the lease was signed in 1999, to construct partition walls within the premises. Also, Bailey was told that these walls would be removed when Tenants moved out. The walls are required by state law to keep check cashing businesses separate from title loan businesses. Tenants, upon signing the lease, proceeded to hire a contractor to install the walls. The contractor was aware that the walls would be removed eventually, so the walls were supposedly installed in as "soft" a manner as was possible while still being safe. He testified that this entailed putting nails in the floor and walls, and screws in the ceiling. The owner of Check Cashers testified that this was standard procedure in its regular course of business when moving into a new building. Specifically, three full-scale interior walls from floor to ceiling were installed with several partition walls that did not reach the ceiling, as well as interior windows, doors and a long counter-top. A monitoring alarm system was installed, as was electrical wiring in the interior walls.

¶ 5. When Crowell purchased the building from Bailey in March 2001, these alterations were already completed. Additionally, Tenants claimed that when the building's air conditioning broke, Crowell did not replace it, so Tenants purchased and installed a new unit themselves. In May of 2004, when Tenants' lease was not renewed, Crowell's lawyer sent a letter to Tenants specifically requesting them not to remove any "improvements or attachments to the premises, including the walls, doors, and windows," without consulting either Crowell or his lawyer. It is undisputed that Crowell intended to open a check cashing and title loan business similar to Tenants' immediately upon the expiration of the lease on July 1, 2004.

¶ 6. This dispute arose when Tenants vacated the premises a few months prior to the expiration of the lease, while continuing to make lease payments, and proceeded to move their business to another location in Batesville. At this time, Tenants removed and/or destroyed all of the interior walls, doors, windows, lights, security system, and the new air conditioning unit, without first either informing or asking permission from Crowell. Tenants justified these actions because they considered these items "trade fixtures" and thus not a part of the realty, but personal property. *1040 Indisputably, Tenants offered to sell these interior "trade fixtures" to Crowell for his new business. When Crowell declined, the owner of Check Cashers instructed a contractor to tear out all of the interior walls, doors, windows and counter tops constructed.

¶ 7. Once the building was fully vacated by Tenants, Crowell proceeded to repair and remodel the building for his own new business. He claimed that in removing the walls and other items, Tenants damaged the walls, ceiling, carpet, tile and electrical system of the premises. Further, Tenants had reinstalled the inoperable air conditioning unit in place of the new one they originally purchased, but took, upon expiration of the lease.

¶ 8. On August 12, 2005, after a bench trial, the chancellor entered an order of judgment against Tenants for $23,572.67, including $5,893.17 in attorney's fees. From this judgment, Tenants perfected this appeal.

STANDARD OF REVIEW

¶ 9. The standard of review for a chancellor's determinations is well established. "A chancellor's findings will not be disturbed unless he was manifestly wrong, clearly erroneous or an erroneous legal standard was applied." Ferrara v. Walters, 919 So.2d 876, 881(¶ 8) (Miss.2005) (citations omitted). Otherwise, this Court has no authority to disturb the chancellor's factual conclusions when supported by substantial evidence. Sanderson v. Sanderson, 824 So.2d 623, 625(¶ 8) (Miss.2002). A chancellor's conclusions of law are reviewed de novo. Ferrara, 919 So.2d at 881(¶ 8) (citing Weissinger v. Simpson, 861 So.2d 984, 987(¶ 11) (Miss.2003); In re Carney, 758 So.2d 1017, 1019(¶ 8) (Miss. 2000)).

DISCUSSION

1. Whether the trial court erred in finding the partition walls were fixtures that became part of the realty.

¶ 10. Tenants argue that the chancery court applied an incorrect standard of law in deeming, in its findings of fact and conclusions of law, that the partition walls were fixtures. Additionally, Tenants state the chancellor's ruling was not supported by substantial evidence.

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Bluebook (online)
950 So. 2d 1035, 2007 WL 509782, Counsel Stack Legal Research, https://law.counselstack.com/opinion/check-cashers-exp-inc-v-crowell-missctapp-2007.