Fife Portal 140 Llc, V. Subway Real Estate Llc

CourtCourt of Appeals of Washington
DecidedApril 7, 2026
Docket60044-7
StatusUnpublished

This text of Fife Portal 140 Llc, V. Subway Real Estate Llc (Fife Portal 140 Llc, V. Subway Real Estate Llc) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fife Portal 140 Llc, V. Subway Real Estate Llc, (Wash. Ct. App. 2026).

Opinion

Filed Washington State Court of Appeals Division Two

April 7, 2026

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II

FIFE PORTAL 140, LLC, a Washington No. 60044-7-II Limited Liability Company,

Appellant,

v.

SUBWAY REAL ESTATE, LLC, a Delaware UNPUBLISHED OPINION Limited Liability Company,

Respondent.

MAXA, P.J. – Fife Portal 140, LLC (Fife Portal) appeals the trial court’s grant of summary

judgment in favor of Subway Real Estate, LLC (Subway) in Fife Portal’s unlawful detainer

action. The unlawful detainer action arose out of a conflict regarding the commencement date of

the lease agreement between Fife Portal and Subway.

Subway leased property from Fife Portal to sublease the premises to a franchisee, who

would then operate a Subway branded restaurant on the premises. Subway and Fife Portal

executed the lease in March 2017. The lease provided for an initial term of five years. Section

R1 of a rider to the lease stated that the lease would commence when certain conditions were

met: completion of construction, receipt of the necessary permits, and acceptance of the premises No. 60044-7-II

by Subway, as evidenced by a letter of possession signed by both parties. The construction and

permitting process was completed in June 2018 and the restaurant opened that month. But Fife

Portal never signed the letter of possession mentioned in section R1.

The lease provided that Subway could renew the lease for an additional five year period

with six months’ notice, or within 10 days of Fife Portal’s notice that it failed to renew. In

September 2022, Subway sent notice that it was renewing the lease. Fife Portal informed

Subway that it could not renew because the lease had expired and its notice was untimely.

In April 2023, Fife Portal served Subway notice to vacate the premises. This unlawful

detainer action followed. Both parties filed motions for summary judgment, and the trial court

granted summary judgment in favor of Subway and denied Fife Portal’s motion.

Fife Portal appealed the trial court’s summary judgment order to this court. While the

appeal was pending, Fife Portal sold the property to JAMAT, LLC. This court allowed JAMAT

to intervene in this appeal.

Even though Fife Portal no longer has a right to possess the property, we can grant relief

because JAMAT will be bound by our decision. We hold that the trial court did not err when it

granted summary judgment in favor of Subway because under the terms of section R1, the lease

commenced in June 2018. Therefore, Subway timely renewed the lease.

Accordingly, we affirm the trial court’s summary judgment order. This decision is

binding on JAMAT.

FACTS

Background and Lease Agreement

Fife Portal owned a commercial property in Fife. In March 2017, Fife Portal entered into

an agreement with Subway to lease commercial space on the property for a Subway branded

2 No. 60044-7-II

restaurant. Subway planned to sublease the property to a franchisee, who would operate the

Subway branded restaurant on the property.

The parties understood that the property would have to be modified to operate a Subway

restaurant on the premises. Fife Portal agreed to perform certain modifications to the property.

Subway’s subtenant would complete other necessary modifications.

The agreement contained a master lease and a rider. The terms in the rider controlled if

they conflicted with the master lease. Regarding the length of the lease, the master lease stated

that the lease term consisted of an “Initial Term and any Extended Terms which may be provided

for by a Rider.” Clerk’s Papers (CP) at 137. The initial term of the lease was five years.

Regarding when the lease commenced, section R1 of the rider stated,

This Lease and all of its corresponding rights and obligations other than the payment of Rent shall commence when all of the following requirements have been met (“Lease Commencement Date”): 1) Completion of Landlord’s work and delivery of possession, 2) Receipt by Tenant of all necessary approvals and permits and 3) acceptance of the Premises by Tenant as evidenced by Tenant’s written acknowledgement of receipt and acceptance of a letter of possession from Landlord (Exhibit B).

The Rent shall commence the earlier of ninety (90) days after the Lease Commencement Date, or upon Tenant’s permits being signed off by the city (“Rent Commencement Date”).

The parties herein agree that, subject to the execution of this Lease, Tenant shall be entitled to the use and possession of the Premises for the purposes of renovation and remodeling.

CP at 152 (emphasis added). Exhibit B, mentioned in section R1, is titled “LETTER OF

POSSESSION” and stated,

In accordance with the Lease Agreement between the parties dated ____ 20 , Landlord warrants by signature below that all of it’s construction obligations under the lease are complete and the premises is hereby delivered to Tenant on ____ 20 . Execution of this Letter of Possession by Tenant shall signify the delivery of possession and acceptance of same by Tenant and satisfy the obligations of section of the lease.

3 No. 60044-7-II

CP at 161. Fife Portal states that exhibit B of the lease was a nonnegotiable requirement of

Subway’s. And Fife Portal states that exhibit B was added to protect Subway from lawsuits and

for Subway’s own recordkeeping purposes.

In addition, regarding possession, the lease stated that Subway was entitled to possession

of the premises immediately, and occupancy before the lease commenced would not advance the

termination date of the lease.

The lease gave Subway the option to renew the lease for three additional five year terms.

Regarding Subway’s right to exercise these options, the lease stated,

In order for Tenant to exercise this Extension Term it will be required to give Landlord six (6) months prior written notice of its intent to exercise said option period. The Extension Term shall be based upon the same terms and conditions as the Initial Term, except that the Base Rent shall be adjusted as stated below. In the event Landlord does not receive Tenant’s notice as stated above, Tenant shall not lose its options to renew unless and until the Tenant shall fail to give notice to Landlord within ten (10) days after receipt of written notice from Landlord citing Tenant’s failure to exercise its option to renew.

CP at 148.

The lease also provided that if Subway remained in possession of the property after the

lease expired, the lease converted to a month to month tenancy, with a higher monthly rent and

all terms applicable to a month-to-month tenancy.

Correspondence Between the Parties

After Fife Portal and Subway entered into the lease agreement, Subway subleased the

property to Sua Fife Subway, Inc (Sua). Sua was responsible for getting the required permits

from the City of Fife. The buildout took longer than Fife Portal predicted.

The construction process was completed, and the city issued the necessary permits on

June 13, 2018. Sua began operating the Subway branded restaurant the next day.

4 No. 60044-7-II

On June 22, Fife Portal’s manager, George Humphrey, emailed Subway and Sua and told

them that their “lease started Jan 1.” CP at 453. On July 27, a managing agent for Fife Portal,

Michelle Ryan, sent a letter to Sua and Subway demanding rent for January to August 2018 and

stating that the “lease commencement date” was January 1, 2018. CP at 170.

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