Dyer v. Ryder Student Transportation Services, Inc.

765 A.2d 858, 2001 R.I. LEXIS 35, 2001 WL 92718
CourtSupreme Court of Rhode Island
DecidedJanuary 30, 2001
Docket99-384-Appeal
StatusPublished
Cited by8 cases

This text of 765 A.2d 858 (Dyer v. Ryder Student Transportation Services, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dyer v. Ryder Student Transportation Services, Inc., 765 A.2d 858, 2001 R.I. LEXIS 35, 2001 WL 92718 (R.I. 2001).

Opinion

OPINION

PER CURIAM.

The parties appeared before this Court on December 11, 2000, to show cause why the issues raised by this appeal should not be summarily decided. The defendant, Ryder Student Transportation Services, Inc. (Ryder), has appealed from a judgment entered in favor of the plaintiff, Richard J. Dyer, in his capacity as Trustee of 19 Blue Beverage Realty Trust (the trust). After hearing the arguments of counsel and reviewing the memoranda submitted by the parties, we are of the opinion that cause has not been shown. Therefore, the case will be decided at this time.

This dispute revolves around property located at 643 Narragansett Industrial Park Drive in Pawtucket, owned and managed by the trust. On July 30, 1997, the *859 trust entered into a commercial lease (lease) with Ryder for the above-mentioned property. The lease term was September 1, 1997, through June 30, 1998. The lease contained an “Options to Renew” provision (renewal provision) that set forth the extension schedule and provided that “[u]pon the expiration of the lease term * * * Tenant shall have the option[,] upon not less than ninety (90) days written notice[,] to extend this lease * * Pursuant to the extension schedule, the lease could be renewed for up to three two-year periods. 1

As of March 1998, Ryder was engaged in continuing contract negotiations with the City of Pawtucket (city) for the 1998-1999 school year. On March' 30, 1998, cognizant that the original lease was approaching the termination date and not desiring to be bound by a lease in the event that the city selected a different vendor, Ryder made a written request to the trust to extend the first option-to-renew-period to April 30, 1998. Ryder assured the trust that it would be able to make a decision concerning renewal within the extended period. The trust agreed to the extension request. 2

On April 30, 1998, still without a contract settlement, Ryder submitted another written request to the trust, asking that the renewal provision be extended an additional forty-five days, to June 15,1998. In addition to this request, Ryder informed the trust that it would be willing to exercise the two-year option provided that a termination clause was added that would allow Ryder to terminate if it was not awarded a contract. The trust never responded to this request.

On May 5, 1998, Ryder was notified by telephone that the trust would not renew the lease, and further, that Ryder should vacate the premises upon expiration of the lease term on June 30, 1998. Ryder considered the telephone call to be insufficient notice to vacate the premises, and indicated in writing that Ryder was exercising the renewal provision. Ryder informed the trust that it would not vacate on June 30, 1998, and that any attempt to evict Ryder would be treated as a breach of the lease agreement.

On July 20, 1998, the trust filed a trespass and eviction action in the Sixth Division District Court pursuant to Ryder’s refusal to vacate on June 30,1998. During this time, the trust, as permitted by G.L. 1956 §§ 34-18.1-16 3 and 34-18.1-18, 4 accepted rent checks from Ryder for the *860 month of July. 5 The trust prevailed and was awarded possession of the premises.

*859 "Payment of rent on stay of execution.— Whenever the issuance of an execution for the recovery of real property covered by this chapter, or the service of an execution, is stayed by order of the court or by the operation of law, the stay shall be conditioned upon the payment, by the defendant or defendants to the plaintiff or plaintiffs in such actions, of sums of money equal to the rent for the premises, which sums shall be paid at the times and in the amounts as rent would be due and payable were the action not then pending. The acceptance of moneys shall not constitute a waiver of the right of the plaintiff or plaintiffs to obtain possession of the premises, nor shall the receipt thereof be deemed to reinstate the defendant or defendants as a tenant.”

*860 Subsequently, on August 31, 1998, Ryder filed an appeal with the Superior Court. On February 23, 1999, and February 26, 1999, a nonjury trial was held in Providence County Superior Court. On June 7, 1999, the trial justice issued a decision granting the trust possession of the premises.

In reviewing a decision by a trial justice sitting without a jury, “we extend deferential consideration to the findings made by a trial justice and will not disturb those findings unless he or she overlooked or misconceived material evidence or was otherwise clearly wrong.” Brunelle v. Town of South Kingstown, 700 A.2d 1075, 1080 (R.I.1997) (citing Wickes Asset Management, Inc. v. Dupuis, 679 A.2d 314, 317 (R.I.1996)). To effectively exercise an option to renew, the tenant must strictly comply with the notice provisions of an option contract. See Smith v. Cohen, 685 A.2d 268, 269 (R.I.1996) (option to renew must be exercised in accordance with the lease requirements).

The defendant contended that the May 5, 1998 telephone call informing Ryder that the lease would not be renewed constituted improper and insufficient notice under the lease. Therefore, defendant asserted that its notice of renewal combined with the trust’s subsequent cashing of the July rent check without a restrictive endorsement operated to revive the renewal option and subsequent renewal period. The parties do not dispute that Ryder was granted an extension until April 30, 1998, and received no response from the trust concerning its second request for a renewal extension. In fact, as Ryder stated, it received a phone call that indicated the trust considered the lease terminated as of June 30, 1998, and that Ryder should vacate the premises by that time. Even assuming, as Ryder contended, that the phone call constituted insufficient notice to vacate under the lease, Ryder’s notification to exercise the option to renew was not communicated to the trust until thirteen days after the initial renewal extension had expired. Once the extended renewal period had expired, absent an additional express agreement to extend the renewal notice period by the trust, Ryder became a holdover tenant as of the date the lease terminated and was without the power to invoke the renewal option in the lease. The trust’s silence as a response to Ryder’s second renewal extension request cannot be construed as acceptance, but rather, is to be viewed as an implicit denial of such request. See Kenney Manufacturing Co. v. Starkweather & Shepley, Inc., 643 A.2d 203

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Cite This Page — Counsel Stack

Bluebook (online)
765 A.2d 858, 2001 R.I. LEXIS 35, 2001 WL 92718, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dyer-v-ryder-student-transportation-services-inc-ri-2001.