Game Place, L. L.C. v. Fredericksburg 35, LLC

813 S.E.2d 312, 295 Va. 396
CourtSupreme Court of Virginia
DecidedMay 10, 2018
DocketRecord 170631
StatusPublished
Cited by3 cases

This text of 813 S.E.2d 312 (Game Place, L. L.C. v. Fredericksburg 35, LLC) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Game Place, L. L.C. v. Fredericksburg 35, LLC, 813 S.E.2d 312, 295 Va. 396 (Va. 2018).

Opinion

OPINION BY JUSTICE D. ARTHUR KELSEY

**399 A commercial lessor, Fredericksburg 35, LLC, sued a lessee, The Game Place, L.L.C., 1 for unpaid rent under a 15-year lease after The Game Place vacated the leasehold prior to the expiration **400 of the 15-year term. The Game Place demurred, claiming that the lease was unenforceable under the Statute of Conveyances, Code § 55-2, because it did not have either the common-law formality of a seal or the relaxed seal substitutes available under Code § 11-3.

Reasoning that "[t]he law looks at substance not form," J.A. at 9, the trial court rejected The Game Place's arguments and overruled the demurrer. After a bench trial, the court entered final judgment against The Game Place and its guarantor, Robert C. Lightburn. Finding the 15-year lease unenforceable as a matter of law, we reverse and enter final judgment in favor of The Game Place and Lightburn. 2

I.

In September 2000, a real-estate partnership, Amusement-Central Park Limited Partnership, leased space in a commercial shopping center to Nicol, Inc. The parties executed a 15-year lease requiring monthly payments. A year later, Amusement-Central Park Limited Partnership conveyed property which included the leasehold space to Carl D. Silver. See id. at 194. That same year Silver re-conveyed the property to the Carl D. Silver Company. See id. at 235-37. After selling the property, Amusement-Central Park Limited Partnership dissolved itself in 2001 and filed a certificate of cancellation with the State Corporation Commission in January 2002. See id. at 239.

In November 2002, the lessee, Nichol, Inc., assigned its rights and obligations under the lease to The Game Place. 3 See id. at 224-25. The lease required the written consent of the landlord to any such assignment. Though Amusement-Central Park Limited Partnership had ceased to legally exist, it executed the assignment as "LANDLORD" with the signature line stating "By: Silver GP, Inc., General Partner." Id. at 225 (altering capitalization). 4 The **401 narrative becomes more tangled *314 when, in December 2002, the Silver Company conveyed the property to Fredericksburg 35. See id. at 193-96.

The lessor-lessee relationship nonetheless continued without contest until years later when The Game Place found itself unable to keep up with the rent payments. In May 2014, The Game Place vacated the premises and terminated what it characterized as "its month-month periodic tenancy." R. at 688. The Game Place was current on its rent at that time. Rejecting The Game Place's characterization of the lease as month-to-month, Fredericksburg 35 responded with a suit seeking unpaid rent that had accrued since The Game Place had vacated the leasehold space. The Game Place demurred, arguing that the lease was unenforceable under the Statute of Conveyances because it did not contain a seal as required by the common law for a deed or one of the substitutes for a seal available under Code § 11-3. The trial court overruled the demurrer. Following a bench trial, the court entered final judgment against The Game Place and Lightburn, jointly and severally, ordering them to pay $68,610.44 in unpaid rent and $17,152.61 in attorney fees pursuant to a lease provision allowing the landlord to recover 25% of the claim as attorney fees. See J.A. at 211, 253.

II.

On appeal, The Game Place contends that the trial court erred as a matter of law when it enforced the 15-year lease and that, instead, the trial court should have recognized that the lessor-lessee relationship could only be enforced as a month-to-month tenancy. 5 We agree.

A. THE STATUTE OF CONVEYANCES

The Statute of Conveyances states in pertinent part that "[n]o estate of inheritance or freehold or for a term of more than five years in lands shall be conveyed unless by deed or will." Code § 55-2 ; see **402 Humble Oil & Ref. Co. v. Cox , 207 Va. 197 , 201, 148 S.E.2d 756 , 760 (1966) ("The Lease purported to demise property for a term of more than five years, and Virginia law requires that such a demise be made in the form of a deed."). That provision's "statutory antecedents date back to 1705" and it appears to be "based in part upon section three of the English Statute of Frauds, 29 [Car. II] c.3 (1677)." Burdette v. Brush Mt. Estates, LLC , 278 Va. 286 , 293, 682 S.E.2d 549 , 553 (2009) (quoting Burns v. Equitable Assocs ., 220 Va. 1020 , 1031, 265 S.E.2d 737 , 744 (1980) ); see 3 William Waller Hening, The Statutes at Large 318-19 (1812) (reprinting 1705 Act).

When applicable to an inter vivos conveyance, the Statute of Conveyances specifically requires a "deed" to effect the transfer. Code § 55-2. When a statute employs a common-law term of art, the General Assembly "is presumed to have known and to have had the common law in mind in the enactment of a statute" and we must "giv[e] effect to both 'unless it clearly appears from express language or by necessary implication that the purpose of the statute was to change the common law.' " Jenkins v. Mehra , 281 Va. 37 , 44, 704 S.E.2d 577 , 581 (2011) (citation omitted); see also Tvardek v. Powhatan Vill. Homeowners Ass'n, Inc. , 291 Va. 269

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813 S.E.2d 312, 295 Va. 396, Counsel Stack Legal Research, https://law.counselstack.com/opinion/game-place-l-lc-v-fredericksburg-35-llc-va-2018.