Facilities, Inc. v. Rogers-Usry Chevrolet, Inc.

908 So. 2d 107, 2005 Miss. LEXIS 420, 2005 WL 1713033
CourtMississippi Supreme Court
DecidedJune 30, 2005
Docket2003-CT-00856-SCT
StatusPublished
Cited by70 cases

This text of 908 So. 2d 107 (Facilities, Inc. v. Rogers-Usry Chevrolet, Inc.) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Facilities, Inc. v. Rogers-Usry Chevrolet, Inc., 908 So. 2d 107, 2005 Miss. LEXIS 420, 2005 WL 1713033 (Mich. 2005).

Opinion

908 So.2d 107 (2005)

FACILITIES, INC.
v.
ROGERS-USRY CHEVROLET, INC.

No. 2003-CT-00856-SCT.

Supreme Court of Mississippi.

June 30, 2005.

*108 Glenn Gates Taylor, Ridgeland, attorney for appellant.

Lem G. Adams, III, Brandon, Christopher Paul Palmer, Jackson, attorneys for appellee.

*109 En Banc.

ON WRIT OF CERTIORARI

RANDOLPH, Justice, for the Court.

FACTS AND PROCEDURAL HISTORY

¶ 1. In this dispute over a commercial lease, the facts and procedural history are taken from the record with excerpts from the opinion of the Court of Appeals:

Rogers-Usry Chevrolet ["Rogers-Usry" or "Lessee"] is a car dealership operating in Brandon, Mississippi.[1] In 1985, Rogers-Usry leased [property] from Facilities, Inc. ["Facilities" or "Lessor".] The [property] was to [be used as a retail] car dealership. The lease was for a term of fifteen years, and in 1998 Rogers-Usry and Facilities renewed the lease until April 30, 2015. The lease provided that in addition to a base amount of rent, which would increase annually [after the first ten (10) years] according to the Consumer Price Index, Rogers-Usry would pay Facilities bonus rent [for] new vehicle sales exceed[ing] one hundred vehicles per month.[2]
* * *
In 2000, Rogers-Usry [obtained] a tract of land a few hundred feet from [the leased property]. . . .[3] Rogers-Usry... moved its new car sales to the new location. Although Rogers-Usry continues to [lease] the Facilities property, Rogers-Usry ... argues that it is under no obligation to continue paying Facilities bonus rent for new vehicle sales which [do not] occur on the [property subject to the Lease Agreement].
Rogers-Usry filed an action in 2002 seeking a declaratory judgment on its rent obligations to Facilities under the renewed lease. Rogers-Usry argue[s] that when it moved its new vehicle sales to the new property, it [was] no longer... obligated to pay Facilities [new vehicle sales] bonus rent. Facilities argue[s] that the lease provided in unambiguous terms that Rogers-Usry owed Facilities bonus rent on new vehicle sales whether the sale occurred on the dealership's new property or the sale occurred on the *110 land leased from Facilities.... The chancellor ruled that, under the contract, Rogers-Usry was not obligated to pay Facilities bonus rent for new vehicle sales that did not occur on the property owned by Facilities.
It is from [that] judgment that Facilities [...] timely filed its appeal, arguing the following three points of error: (1) the lease is clear and unambiguous in its terms; (2) the chancellor erred in his interpretation of the bonus rent provision of the lease; and (3) the chancellor's interpretation of the lease deprives Facilities of a substantial benefit of the bargain it made in 1985 and renewed in 1998.

Facilities, Inc. v. Rogers-Usry Chevrolet, Inc., 907 So.2d 960, 2004 WL 2221733 at ¶¶ 1-4 (Miss.Ct.App. Oct. 5, 2004).

¶ 2. The Court of Appeals agreed with the chancellor that the lease contract was not ambiguous as a matter of law. However, it reversed and remanded the case to the Rankin County Chancery Court.[4]Id. at ¶¶ 5, 10-11. Specifically, the Court of Appeals, viewing the language within the "four corners" of the contract, found that the contract was not ambiguous, and therefore, that the chancellor "erred in concluding that the parties intended for the bonus rent to apply only to new vehicles sold on the property rented by Facilities." Id. at ¶ 10.

¶ 3. Rogers-Usry filed a petition for a writ of certiorari, asserting error in the Court of Appeals' reversal and remand of the trial court's judgment, and we granted certiorari. Rogers-Usry raises as issues the following, which have been restated for clarity:

1. Whether the decision that was rendered by the Court of Appeals conflicts with prior decisions rendered by this Court.
2. Whether the present case involves fundamental issues of public importance requiring determination by this Court.

¶ 4. Following a review of the Lease Agreement/contract as a whole, we conclude that the lease is not ambiguous. The Court of Appeals erred when it considered extrinsic or parol evidence, not found within the "four corners" of the Lease Agreement, after it concluded that the agreement was not ambiguous. Consequently, we are obliged to reverse the judgment of the Court of Appeals and affirm and reinstate the judgment of the Rankin County Chancery Court. As the first issue is dispositive of this appeal, the second issue will not be addressed.

DISCUSSION

¶ 5. "`Questions concerning the construction of contracts are questions of law that are committed to the court rather than questions of fact committed to the fact finder.'" Parkerson v. Smith, 817 So.2d 529, 532 (Miss.2002) (quoting Miss. State Highway Comm'n v. Patterson Enters., Ltd., 627 So.2d 261, 263 (Miss.1993)). We, as an appellate court, employ the de novo standard of review for questions of law. Starcher v. Byrne, 687 So.2d 737, 739 (Miss.1997).

¶ 6. "The primary purpose of all contract construction principles and methods is to determine and record the intent of the contracting parties." Royer Homes of Miss., Inc. v. Chandeleur Homes, Inc., 857 So.2d 748, 752 (Miss.2003) (citing Kight v. Sheppard Bldg. Supply, Inc., 537 So.2d 1355, 1358 (Miss.1989)). "`In contract construction [cases, this Court's] focus is upon the objective fact-the language *111 of the contract. We are concerned with what the contracting parties have said to each other, not some secret thought of one not communicated to the other.'" Turner v. Terry, 799 So.2d 25, 32 (Miss.2001) (quoting Osborne v. Bullins, 549 So.2d 1337, 1339 (Miss.1989)).

¶ 7. This Court has stated:

¶ 10. This Court has set out a three-tiered approach to contract interpretation. Pursue Energy Corp. v. Perkins, 558 So.2d 349, 351-53 (Miss.1990). Legal purpose or intent should first be sought in an objective reading of the words employed in the contract to the exclusion of parol or extrinsic evidence. [Cooper v. Crabb, 587 So.2d 236, 241 (Miss.1991). . . .] First, the "four corners" test is applied, wherein the reviewing court looks to the language that the parties used in expressing their agreement. Pursue Energy Corp., 558 So.2d at 352 (citing Pfisterer v. Noble, 320 So.2d 383, 384 (Miss.1975)). We must look to the "four corners" of the contract whenever possible to determine how to interpret it. McKee v. McKee, 568 So.2d 262, 266 (Miss.1990). When construing a contract, we will read the contract as a whole, so as to give effect to all of its clauses. Brown v. Hartford Ins. Co., 606 So.2d 122, 126 (Miss.1992). Our concern is not nearly so much with what the parties may have intended, but with what they said, since the words employed are by far the best resource for ascertaining the intent and assigning meaning with fairness and accuracy. Simmons v. Bank of Miss., 593 So.2d 40, 42-43 (Miss.1992). Thus, the courts are not at liberty to infer intent contrary to that emanating from the text at issue. Id. (citing Cooper, 587 So.2d at 241). On the other hand, if the contract is unclear or ambiguous, the court should attempt to "harmonize the provisions in accord with the parties' apparent intent." Pursue Energy Corp., 558 So.2d at 352.

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Bluebook (online)
908 So. 2d 107, 2005 Miss. LEXIS 420, 2005 WL 1713033, Counsel Stack Legal Research, https://law.counselstack.com/opinion/facilities-inc-v-rogers-usry-chevrolet-inc-miss-2005.